As Reported by the House Ways and Means Committee 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 177 5
1997-1998 6
REPRESENTATIVES JONES-LOGAN-TAVARES-MALLORY-OPFER-CAREY-JAMES- 8
HEALY-BENDER-FORD-JACOBSON-COLONNA-WHALEN-BRITTON-WOMER BENJAMIN- 9
THOMAS-LEWIS-MOTTLEY-CALLENDER-JERSE-MOTTL-BRADY-GRENDELL 10
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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 require an 17
application for the tax reduction to be provided 18
with any forms used by county auditors to 19
administer the tax law in respect to the 20
conveyance of real property. 21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 323.131 and 323.153 of the 25
Revised Code be amended to read as follows: 26
Sec. 323.131. Each tax bill prepared and mailed or 35
delivered under section 323.13 of the Revised Code shall be in 36
the form and contain the information required by the tax 37
commissioner. The commissioner may prescribe different forms for 38
each county and may authorize the county auditor to make up tax 39
bills and tax receipts to be used by the county treasurer. For 40
any county in which the board of county commissioners has granted 41
a partial property tax exemption on homesteads under section 42
323.158 of the Revised Code, the commissioner shall require that 43
the tax bills for those homesteads include a notice of the amount 44
of the tax reduction that results from the partial exemption. In 45
addition to the information required by the commissioner, each 47
tax bill shall contain the following information: 48
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(A) The taxes levied and the taxes charged and payable 50
against the property; 51
(B) The effective tax rate. The words "effective tax 53
rate" shall appear in boldface type. 54
(C) The following notices: 56
(1) "Notice: If the taxes are not paid within one year 58
from the date they are due, the property is subject to 59
foreclosure for tax delinquency." Failure to provide such notice 60
has no effect upon the validity of any tax foreclosure to which a 61
property is subjected. 62
(2) "Notice: If the taxes charged against this parcel 64
have been reduced by the 2-1/2 per cent tax reduction for 65
owner-occupied homesteads and RESIDENCES OCCUPIED BY THE OWNER 66
BUT the property is not A RESIDENCE occupied by the owner, the 68
owner must notify the county auditor's office NOT LATER THAN 69
MARCH 31, ..... (INSERT THE YEAR FOLLOWING THE YEAR FOR WHICH THE 70
TAXES ARE DUE). Failure to do so may result in the owner being
convicted of a fourth degree misdemeanor, which is punishable by 71
imprisonment up to 30 days, a fine up to $250, or both, AND IN 72
THE OWNER HAVING TO REPAY THE AMOUNT BY WHICH THE TAXES WERE 73
ERRONEOUSLY OR ILLEGALLY REDUCED, PLUS ANY INTEREST THAT MAY 74
APPLY.
IF THE TAXES CHARGED AGAINST THIS PARCEL HAVE NOT BEEN 76
REDUCED BY THE 2-1/2 PER CENT TAX REDUCTION AND THE PARCEL 77
INCLUDES A RESIDENCE OCCUPIED BY THE OWNER, THE PARCEL MAY 79
QUALIFY FOR THE TAX REDUCTION. TO OBTAIN AN APPLICATION FOR THE 82
TAX REDUCTION OR FURTHER INFORMATION, THE OWNER MAY CONTACT THE 84
COUNTY AUDITOR'S OFFICE AT .......... (INSERT THE ADDRESS AND 85
TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE)."
(D) For a tract or lot on the real property tax suspension 87
list under section 319.48 of the Revised Code, the following 88
notice: "Notice: The taxes shown due on this bill are for the 89
current year only. Delinquent taxes, penalties, and interest 90
also are due on this property. Contact the county treasurer to 91
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learn the total amount due."
The tax bill shall not contain or be mailed or delivered 93
with any information or material that is not required by this 94
section or that is not authorized by section 321.45 of the 95
Revised Code or by the tax commissioner. IF A TAX BILL IS NOT 96
MAILED OR DELIVERED TO THE OWNER OF PROPERTY THE PRINCIPAL, 98
CURRENT USE OF WHICH IS FOR RESIDENTIAL PURPOSES BECAUSE THE BILL 99
IS MAILED OR DELIVERED TO AN AGENT OF THE OWNER OR BECAUSE TAXES 100
ARE BILLED THROUGH AN INFORMATION EXCHANGE AGREEMENT UNDER 101
SECTION 323.134 OF THE REVISED CODE, THE AGENT OF THE OWNER OR 102
THE FINANCIAL INSTITUTION THAT IS A PARTY TO SUCH AN AGREEMENT 103
SHALL SEND TO THE OWNER, BY ORDINARY MAIL, A NOTICE SUBSTANTIALLY 105
IN THE FORM OF THE NOTICE PRESCRIBED UNDER DIVISION (C)(2) OF 106
THIS SECTION NOT LATER THAN THE THIRTY-FIRST DAY OF DECEMBER EACH 108
YEAR.
Sec. 323.153. (A) To obtain a reduction in real property 119
taxes under division (A) or (B) of section 323.152 of the Revised 120
Code, the owner shall file an application with the county auditor 121
of the county in which his THE OWNER'S homestead is located. 122
(1) An application for reduction based upon a physical 124
disability shall be accompanied by a certificate signed by a 125
physician, and an application for reduction based upon a mental 126
disability shall be accompanied by a certificate signed by a 127
physician or psychologist licensed to practice in this state, 128
attesting to the fact that the applicant is permanently and 129
totally disabled. The certificate shall be in a form that the 130
tax commissioner requires and shall include the definition of 131
permanently and totally disabled as set forth in section 323.151 132
of the Revised Code. An application for reduction based upon a 133
disability certified as permanent and total by a state or federal 134
agency having the function of so classifying persons shall be 135
accompanied by a certificate from that agency. Such an 136
application constitutes a continuing application for a reduction 137
in taxes for each year in which the dwelling is the applicant's 138
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homestead and the amount of the reduction in taxable value to 139
which he THE APPLICANT is entitled does not exceed either the 140
amount or percentage of the reduction to which he THE APPLICANT 142
was entitled for the year in which the application was first 144
filed.
(2) An application for a reduction in taxes under division 146
(B) of section 323.152 of the Revised Code shall be filed only if 148
the homestead was transferred in the preceding year or did not 149
qualify for and receive the reduction in taxes under that 150
division for the preceding tax year. THE APPLICATION SHALL BE 152
INCORPORATED INTO ANY FORM USED BY THE COUNTY AUDITOR TO 153
ADMINISTER THE TAX LAW IN RESPECT TO THE CONVEYANCE OF REAL 154
PROPERTY PURSUANT TO SECTION 319.20 OF THE REVISED CODE, OR SHALL 156
BE SUPPLIED AS A SEPARATE FORM ACCOMPANYING SUCH FORM. AN 158
APPLICATION INCORPORATED INTO OR ACCOMPANYING SUCH A FORM MAY BE 159
FILED PRIOR TO THE FIRST MONDAY IN JANUARY, NOTWITHSTANDING 161
DIVISION (C) OF THIS SECTION. Such an application constitutes a 165
continuing application for a reduction in taxes for each year in 166
which the dwelling is the applicant's homestead.
(3) Failure to receive a new application filed under 168
division (A)(1) or (2) or notification under division (C) of this 169
section after a certificate of reduction has been issued under 170
section 323.154 of the Revised Code is prima-facie evidence that 171
the original applicant is entitled to the reduction in taxes 172
calculated on the basis of the information contained in his THE 174
original application. The original application and any
subsequent application, including any late application, shall be 175
in the form of a signed statement and shall be filed after the 176
first Monday in January and not later than the first Monday in 177
June. The statement shall be on a form, devised and supplied by 178
the tax commissioner, which shall require no more information 179
than is necessary to establish the applicant's eligibility for 180
the reduction in taxes and the amount of the reduction and shall 181
include an affirmation by the applicant that ownership of the 182
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homestead was not acquired from a person, other than his A 183
spouse, related to the owner by consanguinity or affinity for the 184
purpose of qualifying for the real property tax reduction 185
provided for in division (A) or (B) of section 323.152 of the 186
Revised Code. The form shall contain a statement that conviction 187
of willfully falsifying information to obtain a reduction in 188
taxes or failing to comply with division (C) of this section 189
results in the revocation of the right to the reduction for a 190
period of three years. In the case of an application for a 191
reduction in taxes under division (A) of section 323.152 of the 192
Revised Code, the form shall contain a statement that signing the 193
application constitutes a delegation of authority by the 194
applicant to the county auditor to examine any financial records 195
relating to income earned by the applicant as stated on the 196
application for the purpose of determining possible violation of 197
division (D) or (E) of this section. 198
(B) A late application for a tax reduction for the year 200
preceding the year in which an original application is filed may 201
be filed with the original application. If the COUNTY auditor 202
determines the information contained in the late application is 203
correct, he THE AUDITOR shall determine the amount of the 204
reduction in taxes to which the applicant would have been 205
entitled for the preceding tax year had his THE application been 206
timely filed and approved in that year. 207
The amount of such reduction shall be treated by the 209
auditor as an overpayment of taxes by the applicant and shall be 210
refunded in the manner prescribed in section 5715.22 of the 211
Revised Code for making refunds of overpayments. On the first 212
day of July of each year, the county auditor shall certify the 213
total amount of the reductions in taxes made in the current year 214
under this division to the tax commissioner, who shall treat the 215
full amount thereof as a reduction in taxes for the preceding tax 216
year and shall make reimbursement to the county therefor in the 217
manner prescribed by section 323.156 of the Revised Code, from 218
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money appropriated for that purpose. 219
(C) If, in any year after an application has been filed 221
under division (A)(1) OR (2) of this section, the owner does not 223
qualify for a reduction in taxes on the homestead set forth on 224
such application, or qualifies for a reduction in taxes that is 225
to be based upon a reduction in taxable value less than either 226
the percentage or amount of the reduction in taxable value to 227
which he THE OWNER was entitled in the year the application was 228
filed, the owner shall notify the county auditor that he THE 229
OWNER is not qualified for a reduction in taxes or file a new 230
application under division (A)(1) OR (2) of this section. IF THE 232
COUNTY AUDITOR OR COUNTY TREASURER DISCOVERS THAT THE OWNER OF 233
PROPERTY NOT ENTITLED TO THE REDUCTION IN TAXES UNDER DIVISION 234
(B) OF SECTION 323.152 OF THE REVISED CODE FAILED TO NOTIFY THE 235
COUNTY AUDITOR AS REQUIRED BY THIS PARAGRAPH, A CHARGE SHALL BE 236
IMPOSED AGAINST THE PROPERTY IN THE AMOUNT BY WHICH TAXES WERE 237
REDUCED UNDER THAT DIVISION FOR EACH TAX YEAR THE COUNTY AUDITOR 238
ASCERTAINS THAT THE PROPERTY WAS NOT ENTITLED TO THE REDUCTION 240
AND WAS OWNED BY THE CURRENT OWNER. INTEREST SHALL ACCRUE IN THE 241
MANNER PRESCRIBED BY DIVISION (B) OF SECTION 323.121 OF THE 243
REVISED CODE ON THE AMOUNT BY WHICH TAXES WERE REDUCED FOR EACH 245
SUCH TAX YEAR AS IF THE REDUCTION BECAME DELINQUENT TAXES AT THE
CLOSE OF THE LAST DAY THE SECOND INSTALLMENT OF TAXES FOR THAT 247
TAX YEAR COULD BE PAID WITHOUT PENALTY. THE COUNTY AUDITOR SHALL 249
NOTIFY THE OWNER, BY ORDINARY MAIL, OF THE CHARGE, OF THE OWNER'S 250
RIGHT TO APPEAL THE CHARGE, AND OF THE MANNER IN WHICH THE OWNER 251
MAY APPEAL. THE OWNER MAY APPEAL THE IMPOSITION OF THE CHARGE 252
AND INTEREST BY FILING AN APPEAL WITH THE COUNTY BOARD OF 253
REVISION NOT LATER THAN THE LAST DAY PRESCRIBED FOR PAYMENT OF 254
REAL AND PUBLIC UTILITY PROPERTY TAXES UNDER SECTION 323.12 OF 255
THE REVISED CODE FOLLOWING RECEIPT OF THE NOTICE AND OCCURRING AT 257
LEAST NINETY DAYS AFTER RECEIPT OF THE NOTICE. THE APPEAL SHALL 258
BE TREATED IN THE SAME MANNER AS A COMPLAINT RELATING TO THE 259
VALUATION OR ASSESSMENT OF REAL PROPERTY UNDER CHAPTER 5715. OF 260
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THE REVISED CODE. THE CHARGE AND ANY INTEREST SHALL BE COLLECTED 262
AS OTHER DELINQUENT TAXES.
Each year during January, the county auditor shall furnish 264
by ordinary mail a continuing application to each person issued a 265
certificate of reduction under section 323.154 of the Revised 266
Code with respect to a reduction in taxes under division (A) of 267
section 323.152 of the Revised Code. The continuing application 268
shall be used to report changes in total income that would have 269
the effect of increasing or decreasing the reduction in taxable 270
value to which the owner is entitled, changes in ownership of the 271
homestead, including changes in or revocation of a revocable 272
inter vivos trust, changes in disability, and other changes in 273
the information earlier furnished the auditor relative to his THE 275
reduction in taxes on the property. The continuing application
shall be returned to the auditor not later than the first Monday 276
in June; provided, that if such changes do not affect the status 277
of the homestead exemption or the amount of the reduction to 278
which the owner is entitled under division (A) of section 323.152 279
of the Revised Code, the application does not need to be 280
returned. 281
Each year during February, the county auditor, EXCEPT AS 283
OTHERWISE PROVIDED IN THIS PARAGRAPH, shall furnish by ordinary 285
mail an original application to the owner, as of the first day of 286
January of that year, of a homestead that transferred during the 287
preceding calendar year and that qualified for and received a 288
reduction in taxes under division (B) of section 323.152 of the 289
Revised Code for the preceding tax year. In order to receive the 290
reduction under that division, the owner shall file the 291
application with the county auditor not later than the first 292
Monday in June. If the application is not timely filed, the 293
auditor shall not grant a reduction in taxes for the homestead 294
for the current year, and shall notify the owner that the 295
reduction in taxes has not been granted, in the same manner
prescribed under section 323.154 of the Revised Code for 296
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notification of denial of an application. Failure of an owner to 297
receive an application under this paragraph does not excuse the 298
failure of the owner to file an original application. THE COUNTY 300
AUDITOR IS NOT REQUIRED TO FURNISH AN APPLICATION UNDER THIS 301
PARAGRAPH FOR ANY HOMESTEAD FOR WHICH APPLICATION HAS PREVIOUSLY 302
BEEN MADE ON A FORM INCORPORATED INTO OR ACCOMPANYING ANY FORM 303
USED BY THE COUNTY AUDITOR TO ADMINISTER THE TAX LAW IN RESPECT 304
TO THE CONVEYANCE OF REAL PROPERTY, AND AN OWNER WHO PREVIOUSLY 306
HAS APPLIED ON SUCH A FORM IS NOT REQUIRED TO RETURN AN 307
APPLICATION FURNISHED UNDER THIS PARAGRAPH.
(D) No person shall knowingly make a false statement for 309
the purpose of obtaining a reduction in his real property taxes 310
under section 323.152 of the Revised Code. 311
(E) No person shall knowingly fail to notify the county 313
auditor of changes required by division (C) of this section which 314
have the effect of maintaining or securing a reduction in taxable 315
value of homestead property or a reduction in taxes in excess of 316
the reduction allowed under section 323.152 of the Revised Code. 317
(F) No person shall knowingly make a false statement or 319
certification attesting to any person's physical or mental 320
condition for purposes of qualifying such person for tax relief 321
pursuant to sections 323.151 to 323.157 of the Revised Code. 322
Section 2. That existing sections 323.131 and 323.153 of 324
the Revised Code are hereby repealed. 325
Section 3. Sections 323.131 and 323.153 of the Revised 327
Code, as amended by this act, apply to reductions in taxes under 328
division (B) of section 323.152 of the Revised Code for tax years 330
1998 and thereafter.