As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 177 5
1997-1998 6
REPRESENTATIVES JONES-LOGAN-TAVARES-MALLORY-OPFER-CAREY-JAMES- 8
HEALY-BENDER-FORD-JACOBSON-COLONNA-WHALEN- 9
BRITTON-WOMER BENJAMIN 10
12
A B I L L
To amend sections 323.131 and 323.153 of the Revised 14
Code to require regular notification to 15
homeowners of their right to the 2-1/2 per cent 16
reduction in property taxes, and to permit 17
county auditors to grant the reduction 18
presumptively to all owners of residential real 19
property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 323.131 and 323.153 of the 23
Revised Code be amended to read as follows: 24
Sec. 323.131. Each tax bill prepared and mailed or 33
delivered under section 323.13 of the Revised Code shall be in 34
the form and contain the information required by the tax 35
commissioner. The commissioner may prescribe different forms for 36
each county and may authorize the county auditor to make up tax 37
bills and tax receipts to be used by the county treasurer. For 38
any county in which the board of county commissioners has granted 39
a partial property tax exemption on homesteads under section 40
323.158 of the Revised Code, the commissioner shall require that 41
the tax bills for those homesteads include a notice of the amount 42
of the tax reduction that results from the partial exemption. In 43
addition to the information required by the commissioner, each 45
tax bill shall contain the following information: 46
(A) The taxes levied and the taxes charged and payable 48
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against the property; 49
(B) The effective tax rate. The words "effective tax 51
rate" shall appear in boldface type. 52
(C) The following notices: 54
(1) "Notice: If the taxes are not paid within one year 56
from the date they are due, the property is subject to 57
foreclosure for tax delinquency." Failure to provide such notice 58
has no effect upon the validity of any tax foreclosure to which a 59
property is subjected. 60
(2) "Notice: If the taxes charged against this parcel 62
have been reduced by the 2-1/2 per cent tax reduction for 63
owner-occupied homesteads and RESIDENCES OCCUPIED BY THE OWNER 64
BUT the property is not occupied by the owner, the owner must 66
notify the county auditor's office AT .......... (INSERT THE 67
ADDRESS AND TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE) NOT
LATER THAN MARCH 31, ..... (INSERT THE YEAR FOLLOWING THE YEAR 68
FOR WHICH THE TAXES ARE DUE). Failure to do so may result in the 69
owner being convicted of a fourth degree misdemeanor, which is 70
punishable by imprisonment up to 30 days, a fine up to $250, or 71
both, AND IN THE OWNER REPAYING THE AMOUNT OF THE REDUCTION 72
RECEIVED FOR THE MOST RECENT TAX YEAR." 73
(3) IF THE TAX BILL IS FOR A PARCEL OF RESIDENTIAL 75
PROPERTY AS DEFINED IN DIVISION (A)(2) OF SECTION 323.153 OF THE 78
REVISED CODE FOR WHICH TAXES HAVE NOT BEEN REDUCED UNDER DIVISION 79
(B) OF SECTION 323.152 OF THE REVISED CODE, THE FOLLOWING NOTICE, 81
OR A NOTICE OF SUBSTANTIALLY SIMILAR IMPORT: "NOTICE: IF THIS 83
PARCEL IS A RESIDENCE OCCUPIED BY THE OWNER, THE PARCEL MAY 84
QUALIFY FOR A REDUCTION IN TAXES BY 2-1/2 PER CENT. TO APPLY FOR 85
THE REDUCTION, THE OWNER MUST APPLY TO THE COUNTY AUDITOR. TO 86
OBTAIN AN APPLICATION OR FURTHER INFORMATION, THE OWNER MAY 87
CONTACT THE COUNTY AUDITOR'S OFFICE AT .......... (INSERT THE 88
ADDRESS AND TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE)." 89
(D) For a tract or lot on the real property tax suspension 91
list under section 319.48 of the Revised Code, the following 92
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notice: "Notice: The taxes shown due on this bill are for the 93
current year only. Delinquent taxes, penalties, and interest 94
also are due on this property. Contact the county treasurer to 95
learn the total amount due."
The tax bill shall not contain or be mailed or delivered 97
with any information or material that is not required by this 98
section or that is not authorized by section 321.45 of the 99
Revised Code or by the tax commissioner. IF A TAX BILL IS NOT 100
MAILED OR DELIVERED TO THE OWNER OF RESIDENTIAL PROPERTY AS 102
DEFINED IN DIVISION (A)(2) OF SECTION 323.153 OF THE REVISED CODE 104
BECAUSE THE BILL IS MAILED OR DELIVERED TO AN AGENT OF THE OWNER 105
OR BECAUSE TAXES ARE BILLED THROUGH AN INFORMATION EXCHANGE 106
AGREEMENT UNDER SECTION 323.134 OF THE REVISED CODE, THE AGENT OF 107
THE OWNER OR THE FINANCIAL INSTITUTION THAT IS A PARTY TO SUCH AN 108
AGREEMENT SHALL SEND TO THE OWNER, BY ORDINARY MAIL, A NOTICE 109
SUBSTANTIALLY IN THE FORM OF ONE OF THE NOTICES PRESCRIBED UNDER 110
DIVISIONS (C)(2) AND (3) OF THIS SECTION, AS REQUIRED BY THE 111
CIRCUMSTANCES INDICATED IN EACH OF THOSE DIVISIONS, NOT LATER 112
THAN THE THIRTY-FIRST DAY OF DECEMBER OF EACH YEAR. 113
Sec. 323.153. (A)(1) To obtain a reduction in real 124
property taxes under division (A) or (B) of section 323.152 of 125
the Revised Code, the owner shall file an application with the 126
county auditor of the county in which his THE OWNER'S homestead 127
is located.
(1) An application for reduction based upon a physical 129
disability shall be accompanied by a certificate signed by a 130
physician, and an application for reduction based upon a mental 131
disability shall be accompanied by a certificate signed by a 132
physician or psychologist licensed to practice in this state, 133
attesting to the fact that the applicant is permanently and 134
totally disabled. The certificate shall be in a form that the 135
tax commissioner requires and shall include the definition of 136
permanently and totally disabled as set forth in section 323.151 137
of the Revised Code. An application for reduction based upon a 138
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disability certified as permanent and total by a state or federal 139
agency having the function of so classifying persons shall be 140
accompanied by a certificate from that agency. Such an 141
application constitutes a continuing application for a reduction 142
in taxes for each year in which the dwelling is the applicant's 143
homestead and the amount of the reduction in taxable value to 144
which he THE APPLICANT is entitled does not exceed either the 145
amount or percentage of the reduction to which he THE APPLICANT 147
was entitled for the year in which the application was first 149
filed.
(2) An application for a reduction in taxes under division 151
(B) of section 323.152 of the Revised Code shall AS USED IN 152
DIVISION (A)(2) OF THIS SECTION, "RESIDENTIAL PROPERTY" MEANS 154
REAL PROPERTY THE PRINCIPAL, CURRENT USE OF WHICH IS FOR 155
RESIDENTIAL PURPOSES AS CLASSIFIED UNDER SECTION 5713.041 OF THE 156
REVISED CODE. 157
THE COUNTY AUDITOR MAY REDUCE TAXES AS AUTHORIZED BY 159
DIVISION (B) OF SECTION 323.152 OF THE REVISED CODE FOR EACH 161
HOMESTEAD FOR WHICH AN APPLICATION IS FILED UNDER THIS DIVISION, 162
OR MAY APPLY THE REDUCTION PRESUMPTIVELY TO ALL RESIDENTIAL 163
PROPERTY WITHOUT REQUIRING OWNERS TO FILE APPLICATIONS. IF THE 164
COUNTY AUDITOR APPLIES THE REDUCTION PRESUMPTIVELY TO ALL 165
RESIDENTIAL PROPERTY WITHOUT REQUIRING OWNERS TO FILE 166
APPLICATIONS, THE OWNER OF ANY PROPERTY FOR WHICH SUCH A 167
REDUCTION IS GRANTED THAT IS NOT ENTITLED TO THE REDUCTION SHALL 168
NOTIFY THE COUNTY AUDITOR THAT THE PROPERTY IS NOT ENTITLED TO 169
THE REDUCTION NOT LATER THAN THE THIRTY-FIRST DAY OF MARCH OF THE 171
YEAR FOLLOWING THE YEAR FOR WHICH THE TAXES ARE REDUCED. IF THE 172
COUNTY AUDITOR OR COUNTY TREASURER DISCOVERS THAT AN OWNER OF 173
PROPERTY THAT IS NOT ENTITLED TO THE REDUCTION HAS FAILED TO
NOTIFY THE COUNTY AUDITOR AS REQUIRED BY DIVISION (A)(2)(a) OF 176
THIS SECTION, A PENALTY SHALL BE ASSESSED AGAINST THE PROPERTY IN 177
THE AMOUNT BY WHICH TAXES WERE REDUCED UNDER DIVISION (B) OF 178
SECTION 323.152 OF THE REVISED CODE FOR THE MOST RECENT TAX YEAR. 180
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THE COUNTY AUDITOR MAY REMIT THE PENALTY IMPOSED BY THIS DIVISION 181
FOR GOOD CAUSE. THE PENALTY IMPOSED BY THIS DIVISION IS IN 182
ADDITION TO ANY PENALTY IMPOSED UNDER SECTION 323.99 OF THE 183
REVISED CODE FOR VIOLATING DIVISION (D) OF THIS SECTION. 184
IF THE COUNTY AUDITOR GRANTS THE REDUCTION ONLY UPON 186
APPLICATION BY OWNERS, AN APPLICATION MUST be filed only if the 188
homestead was transferred in the preceding year or did not
qualify for and receive the reduction in taxes under that 189
division for the preceding tax year. Such an application 190
constitutes a continuing application for a reduction in taxes for 191
each year in which the dwelling is the applicant's homestead. 192
(3) Failure to receive a new application filed under 194
division (A)(1) or (2) or notification under division (C) of this 195
section after a certificate of reduction has been issued under 196
section 323.154 of the Revised Code is prima-facie evidence that 197
the original applicant is entitled to the reduction in taxes 198
calculated on the basis of the information contained in his THE 200
original application. The original application and any
subsequent application, including any late application, shall be 201
in the form of a signed statement and shall be filed after the 202
first Monday in January and not later than the first Monday in 203
June. The statement shall be on a form, devised and supplied by 204
the tax commissioner, which shall require no more information 205
than is necessary to establish the applicant's eligibility for 206
the reduction in taxes and the amount of the reduction and shall 207
include an affirmation by the applicant that ownership of the 208
homestead was not acquired from a person, other than his A 209
spouse, related to the owner by consanguinity or affinity for the 210
purpose of qualifying for the real property tax reduction 211
provided for in division (A) or (B) of section 323.152 of the 212
Revised Code. The form shall contain a statement that conviction 213
of willfully falsifying information to obtain a reduction in 214
taxes or failing to comply with division (C) of this section 215
results in the revocation of the right to the reduction for a 216
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period of three years. In the case of an application for a 217
reduction in taxes under division (A) of section 323.152 of the 218
Revised Code, the form shall contain a statement that signing the 219
application constitutes a delegation of authority by the 220
applicant to the county auditor to examine any financial records 221
relating to income earned by the applicant as stated on the 222
application for the purpose of determining possible violation of 223
division (D) or (E) of this section. 224
(B) A late application for a tax reduction for the year 226
preceding the year in which an original application is filed may 227
be filed with the original application. If the auditor 228
determines the information contained in the late application is 229
correct, he THE AUDITOR shall determine the amount of the 230
reduction in taxes to which the applicant would have been 231
entitled for the preceding tax year had his THE application been 232
timely filed and approved in that year. 233
The amount of such reduction shall be treated by the 235
auditor as an overpayment of taxes by the applicant and shall be 236
refunded in the manner prescribed in section 5715.22 of the 237
Revised Code for making refunds of overpayments. On the first 238
day of July of each year, the county auditor shall certify the 239
total amount of the reductions in taxes made in the current year 240
under this division to the tax commissioner, who shall treat the 241
full amount thereof as a reduction in taxes for the preceding tax 242
year and shall make reimbursement to the county therefor in the 243
manner prescribed by section 323.156 of the Revised Code, from 244
money appropriated for that purpose. 245
(C) If, in any year after an application has been filed 247
under division (A) of this section, the owner does not qualify 248
for a reduction in taxes on the homestead set forth on such 249
application, or qualifies for a reduction in taxes that is to be 250
based upon a reduction in taxable value less than either the 251
percentage or amount of the reduction in taxable value to which 252
he THE OWNER was entitled in the year the application was filed, 254
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the owner shall notify the county auditor that he THE OWNER is 255
not qualified for a reduction in taxes or file a new application
under division (A) of this section. 256
Each year during January, the county auditor shall furnish 258
by ordinary mail a continuing application to each person issued a 259
certificate of reduction under section 323.154 of the Revised 260
Code with respect to a reduction in taxes under division (A) of 261
section 323.152 of the Revised Code. The continuing application 262
shall be used to report changes in total income that would have 263
the effect of increasing or decreasing the reduction in taxable 264
value to which the owner is entitled, changes in ownership of the 265
homestead, including changes in or revocation of a revocable 266
inter vivos trust, changes in disability, and other changes in 267
the information earlier furnished the auditor relative to his THE 269
reduction in taxes on the property. The continuing application
shall be returned to the auditor not later than the first Monday 270
in June; provided, that if such changes do not affect the status 271
of the homestead exemption or the amount of the reduction to 272
which the owner is entitled under division (A) of section 323.152 273
of the Revised Code, the application does not need to be 274
returned. 275
Each year during February, the county auditor shall furnish 277
by ordinary mail an original application to the owner, as of the 278
first day of January of that year, of a homestead that 279
transferred during the preceding calendar year and that qualified 280
for and received a reduction in taxes under division (B) of 281
section 323.152 of the Revised Code for the preceding tax year. 282
In order to receive the reduction under that division, the owner 283
shall file the application with the county auditor not later than 284
the first Monday in June. If the application is not timely 285
filed, the auditor shall not grant a reduction in taxes for the 286
homestead for the current year, and shall notify the owner that 287
the reduction in taxes has not been granted, in the same manner 288
prescribed under section 323.154 of the Revised Code for 289
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notification of denial of an application. Failure of an owner to 290
receive an application under this paragraph does not excuse the 291
failure of the owner to file an original application. THIS 292
PARAGRAPH DOES NOT APPLY IF THE COUNTY AUDITOR HAS APPLIED THE 294
REDUCTION PRESUMPTIVELY TO ALL RESIDENTIAL PROPERTY UNDER 295
DIVISION (A)(2) OF THIS SECTION. 296
(D) No person shall knowingly make a false statement for 298
the purpose of obtaining a reduction in his real property taxes 299
under section 323.152 of the Revised Code. 300
(E) No person shall knowingly fail to notify the county 302
auditor of changes required by division (C) of this section which 303
have the effect of maintaining or securing a reduction in taxable 304
value of homestead property or a reduction in taxes in excess of 305
the reduction allowed under section 323.152 of the Revised Code. 306
(F) No person shall knowingly make a false statement or 308
certification attesting to any person's physical or mental 309
condition for purposes of qualifying such person for tax relief 310
pursuant to sections 323.151 to 323.157 of the Revised Code. 311
Section 2. That existing sections 323.131 and 323.153 of 313
the Revised Code are hereby repealed. 314
Section 3. Sections 323.131 and 323.153 of the Revised 316
Code, as amended by this act, apply to reductions in taxes under 317
division (B) of section 323.152 of the Revised Code for tax years 319
1998 and thereafter.