As Passed by the House 1
122nd General Assembly 4
Regular Session Am. 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-SAWYER- 10
CATES-BOYD-OGG-VESPER-KRUPINSKI-REID-BEATTY-ROMAN-SULZER-TIBERI- 11
VERICH-TERWILLEGER-PADGETT-STAPLETON-SALERNO-DAMSCHRODER-WESTON- 12
METELSKY-WILSON-PRENTISS-KREBS-MILLER-BRADING-O'BRIEN-JOHNSON- 13
WACHTMANN-HOUSEHOLDER-SUTTON-MAIER-GERBERRY-ROBERTS-MYERS-HARRIS- 14
OLMAN-GARDNER-METZGER-HODGES 15
17
A B I L L
To amend sections 323.131 and 323.153 of the Revised 19
Code to require regular notification to 20
homeowners of their right to the 2-1/2 per cent 21
reduction in property taxes, and to require an 22
application for the tax reduction to be provided 23
with any forms used by county auditors to 24
administer the tax law in respect to the 25
conveyance of real property. 26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 323.131 and 323.153 of the 30
Revised Code be amended to read as follows: 31
Sec. 323.131. Each tax bill prepared and mailed or 40
delivered under section 323.13 of the Revised Code shall be in 41
the form and contain the information required by the tax 42
commissioner. The commissioner may prescribe different forms for 43
each county and may authorize the county auditor to make up tax 44
bills and tax receipts to be used by the county treasurer. For 45
any county in which the board of county commissioners has granted 46
a partial property tax exemption on homesteads under section 47
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323.158 of the Revised Code, the commissioner shall require that 48
the tax bills for those homesteads include a notice of the amount 49
of the tax reduction that results from the partial exemption. In 50
addition to the information required by the commissioner, each 52
tax bill shall contain the following information: 53
(A) The taxes levied and the taxes charged and payable 55
against the property; 56
(B) The effective tax rate. The words "effective tax 58
rate" shall appear in boldface type. 59
(C) The following notices: 61
(1) "Notice: If the taxes are not paid within one year 63
from the date they are due, the property is subject to 64
foreclosure for tax delinquency." Failure to provide such notice 65
has no effect upon the validity of any tax foreclosure to which a 66
property is subjected. 67
(2) "Notice: If the taxes charged against this parcel 69
have been reduced by the 2-1/2 per cent tax reduction for 70
owner-occupied homesteads and RESIDENCES OCCUPIED BY THE OWNER 71
BUT the property is not A RESIDENCE occupied by the owner, the 73
owner must notify the county auditor's office NOT LATER THAN 74
MARCH 31, ..... (INSERT THE YEAR FOLLOWING THE YEAR FOR WHICH THE 75
TAXES ARE DUE). Failure to do so may result in the owner being 76
convicted of a fourth degree misdemeanor, which is punishable by
imprisonment up to 30 days, a fine up to $250, or both, AND IN 77
THE OWNER HAVING TO REPAY THE AMOUNT BY WHICH THE TAXES WERE 78
ERRONEOUSLY OR ILLEGALLY REDUCED, PLUS ANY INTEREST THAT MAY 79
APPLY.
IF THE TAXES CHARGED AGAINST THIS PARCEL HAVE NOT BEEN 81
REDUCED BY THE 2-1/2 PER CENT TAX REDUCTION AND THE PARCEL 82
INCLUDES A RESIDENCE OCCUPIED BY THE OWNER, THE PARCEL MAY 84
QUALIFY FOR THE TAX REDUCTION. TO OBTAIN AN APPLICATION FOR THE 87
TAX REDUCTION OR FURTHER INFORMATION, THE OWNER MAY CONTACT THE 89
COUNTY AUDITOR'S OFFICE AT .......... (INSERT THE ADDRESS AND 90
TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE)."
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(D) For a tract or lot on the real property tax suspension 92
list under section 319.48 of the Revised Code, the following 93
notice: "Notice: The taxes shown due on this bill are for the 94
current year only. Delinquent taxes, penalties, and interest 95
also are due on this property. Contact the county treasurer to 96
learn the total amount due."
The tax bill shall not contain or be mailed or delivered 98
with any information or material that is not required by this 99
section or that is not authorized by section 321.45 of the 100
Revised Code or by the tax commissioner. IF A TAX BILL IS NOT 101
MAILED OR DELIVERED TO THE OWNER OF PROPERTY THE PRINCIPAL, 103
CURRENT USE OF WHICH IS FOR RESIDENTIAL PURPOSES BECAUSE THE BILL 104
IS MAILED OR DELIVERED TO AN AGENT OF THE OWNER OR BECAUSE TAXES 105
ARE BILLED THROUGH AN INFORMATION EXCHANGE AGREEMENT UNDER 106
SECTION 323.134 OF THE REVISED CODE, THE AGENT OF THE OWNER OR 107
THE FINANCIAL INSTITUTION THAT IS A PARTY TO SUCH AN AGREEMENT 108
SHALL SEND TO THE OWNER, BY ORDINARY MAIL, A NOTICE SUBSTANTIALLY 110
IN THE FORM OF THE NOTICE PRESCRIBED UNDER DIVISION (C)(2) OF 111
THIS SECTION NOT LATER THAN THE THIRTY-FIRST DAY OF DECEMBER EACH 113
YEAR.
Sec. 323.153. (A) To obtain a reduction in real property 124
taxes under division (A) or (B) of section 323.152 of the Revised 125
Code, the owner shall file an application with the county auditor 126
of the county in which his THE OWNER'S homestead is located. 127
(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 be filed only if 153
the homestead was transferred in the preceding year or did not 154
qualify for and receive the reduction in taxes under that 155
division for the preceding tax year. THE APPLICATION SHALL BE 157
INCORPORATED INTO ANY FORM USED BY THE COUNTY AUDITOR TO 158
ADMINISTER THE TAX LAW IN RESPECT TO THE CONVEYANCE OF REAL 159
PROPERTY PURSUANT TO SECTION 319.20 OF THE REVISED CODE, OR SHALL 161
BE SUPPLIED AS A SEPARATE FORM ACCOMPANYING SUCH FORM. AN 163
APPLICATION INCORPORATED INTO OR ACCOMPANYING SUCH A FORM MAY BE 164
FILED PRIOR TO THE FIRST MONDAY IN JANUARY, NOTWITHSTANDING 166
DIVISION (C) OF THIS SECTION. Such an application constitutes a 170
continuing application for a reduction in taxes for each year in 171
which the dwelling is the applicant's homestead.
(3) Failure to receive a new application filed under 173
division (A)(1) or (2) or notification under division (C) of this 174
section after a certificate of reduction has been issued under 175
section 323.154 of the Revised Code is prima-facie evidence that 176
the original applicant is entitled to the reduction in taxes 177
calculated on the basis of the information contained in his THE 179
original application. The original application and any
subsequent application, including any late application, shall be 180
in the form of a signed statement and shall be filed after the 181
first Monday in January and not later than the first Monday in 182
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June. The statement shall be on a form, devised and supplied by 183
the tax commissioner, which shall require no more information 184
than is necessary to establish the applicant's eligibility for 185
the reduction in taxes and the amount of the reduction and shall 186
include an affirmation by the applicant that ownership of the 187
homestead was not acquired from a person, other than his A 188
spouse, related to the owner by consanguinity or affinity for the 189
purpose of qualifying for the real property tax reduction 190
provided for in division (A) or (B) of section 323.152 of the 191
Revised Code. The form shall contain a statement that conviction 192
of willfully falsifying information to obtain a reduction in 193
taxes or failing to comply with division (C) of this section 194
results in the revocation of the right to the reduction for a 195
period of three years. In the case of an application for a 196
reduction in taxes under division (A) of section 323.152 of the 197
Revised Code, the form shall contain a statement that signing the 198
application constitutes a delegation of authority by the 199
applicant to the county auditor to examine any financial records 200
relating to income earned by the applicant as stated on the 201
application for the purpose of determining possible violation of 202
division (D) or (E) of this section. 203
(B) A late application for a tax reduction for the year 205
preceding the year in which an original application is filed may 206
be filed with the original application. If the COUNTY auditor 207
determines the information contained in the late application is 208
correct, he THE AUDITOR shall determine the amount of the 209
reduction in taxes to which the applicant would have been 210
entitled for the preceding tax year had his THE application been 211
timely filed and approved in that year. 212
The amount of such reduction shall be treated by the 214
auditor as an overpayment of taxes by the applicant and shall be 215
refunded in the manner prescribed in section 5715.22 of the 216
Revised Code for making refunds of overpayments. On the first 217
day of July of each year, the county auditor shall certify the 218
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total amount of the reductions in taxes made in the current year 219
under this division to the tax commissioner, who shall treat the 220
full amount thereof as a reduction in taxes for the preceding tax 221
year and shall make reimbursement to the county therefor in the 222
manner prescribed by section 323.156 of the Revised Code, from 223
money appropriated for that purpose. 224
(C) If, in any year after an application has been filed 226
under division (A)(1) OR (2) of this section, the owner does not 228
qualify for a reduction in taxes on the homestead set forth on 229
such application, or qualifies for a reduction in taxes that is 230
to be based upon a reduction in taxable value less than either 231
the percentage or amount of the reduction in taxable value to 232
which he THE OWNER was entitled in the year the application was 233
filed, the owner shall notify the county auditor that he THE 234
OWNER is not qualified for a reduction in taxes or file a new 235
application under division (A)(1) OR (2) of this section. IF THE 237
COUNTY AUDITOR OR COUNTY TREASURER DISCOVERS THAT THE OWNER OF 238
PROPERTY NOT ENTITLED TO THE REDUCTION IN TAXES UNDER DIVISION 239
(B) OF SECTION 323.152 OF THE REVISED CODE FAILED TO NOTIFY THE 240
COUNTY AUDITOR AS REQUIRED BY THIS PARAGRAPH, A CHARGE SHALL BE 241
IMPOSED AGAINST THE PROPERTY IN THE AMOUNT BY WHICH TAXES WERE 242
REDUCED UNDER THAT DIVISION FOR EACH TAX YEAR THE COUNTY AUDITOR 243
ASCERTAINS THAT THE PROPERTY WAS NOT ENTITLED TO THE REDUCTION 245
AND WAS OWNED BY THE CURRENT OWNER. INTEREST SHALL ACCRUE IN THE 246
MANNER PRESCRIBED BY DIVISION (B) OF SECTION 323.121 OF THE 248
REVISED CODE ON THE AMOUNT BY WHICH TAXES WERE REDUCED FOR EACH 250
SUCH TAX YEAR AS IF THE REDUCTION BECAME DELINQUENT TAXES AT THE
CLOSE OF THE LAST DAY THE SECOND INSTALLMENT OF TAXES FOR THAT 252
TAX YEAR COULD BE PAID WITHOUT PENALTY. THE COUNTY AUDITOR SHALL 254
NOTIFY THE OWNER, BY ORDINARY MAIL, OF THE CHARGE, OF THE OWNER'S 255
RIGHT TO APPEAL THE CHARGE, AND OF THE MANNER IN WHICH THE OWNER 256
MAY APPEAL. THE OWNER MAY APPEAL THE IMPOSITION OF THE CHARGE 257
AND INTEREST BY FILING AN APPEAL WITH THE COUNTY BOARD OF 258
REVISION NOT LATER THAN THE LAST DAY PRESCRIBED FOR PAYMENT OF 259
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REAL AND PUBLIC UTILITY PROPERTY TAXES UNDER SECTION 323.12 OF 260
THE REVISED CODE FOLLOWING RECEIPT OF THE NOTICE AND OCCURRING AT 262
LEAST NINETY DAYS AFTER RECEIPT OF THE NOTICE. THE APPEAL SHALL 263
BE TREATED IN THE SAME MANNER AS A COMPLAINT RELATING TO THE 264
VALUATION OR ASSESSMENT OF REAL PROPERTY UNDER CHAPTER 5715. OF 265
THE REVISED CODE. THE CHARGE AND ANY INTEREST SHALL BE COLLECTED 267
AS OTHER DELINQUENT TAXES.
Each year during January, the county auditor shall furnish 269
by ordinary mail a continuing application to each person issued a 270
certificate of reduction under section 323.154 of the Revised 271
Code with respect to a reduction in taxes under division (A) of 272
section 323.152 of the Revised Code. The continuing application 273
shall be used to report changes in total income that would have 274
the effect of increasing or decreasing the reduction in taxable 275
value to which the owner is entitled, changes in ownership of the 276
homestead, including changes in or revocation of a revocable 277
inter vivos trust, changes in disability, and other changes in 278
the information earlier furnished the auditor relative to his THE 280
reduction in taxes on the property. The continuing application
shall be returned to the auditor not later than the first Monday 281
in June; provided, that if such changes do not affect the status 282
of the homestead exemption or the amount of the reduction to 283
which the owner is entitled under division (A) of section 323.152 284
of the Revised Code, the application does not need to be 285
returned. 286
Each year during February, the county auditor, EXCEPT AS 288
OTHERWISE PROVIDED IN THIS PARAGRAPH, shall furnish by ordinary 290
mail an original application to the owner, as of the first day of 291
January of that year, of a homestead that transferred during the 292
preceding calendar year and that qualified for and received a 293
reduction in taxes under division (B) of section 323.152 of the 294
Revised Code for the preceding tax year. In order to receive the 295
reduction under that division, the owner shall file the 296
application with the county auditor not later than the first 297
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Monday in June. If the application is not timely filed, the 298
auditor shall not grant a reduction in taxes for the homestead 299
for the current year, and shall notify the owner that the 300
reduction in taxes has not been granted, in the same manner
prescribed under section 323.154 of the Revised Code for 301
notification of denial of an application. Failure of an owner to 302
receive an application under this paragraph does not excuse the 303
failure of the owner to file an original application. THE COUNTY 305
AUDITOR IS NOT REQUIRED TO FURNISH AN APPLICATION UNDER THIS 306
PARAGRAPH FOR ANY HOMESTEAD FOR WHICH APPLICATION HAS PREVIOUSLY 307
BEEN MADE ON A FORM INCORPORATED INTO OR ACCOMPANYING ANY FORM 308
USED BY THE COUNTY AUDITOR TO ADMINISTER THE TAX LAW IN RESPECT 309
TO THE CONVEYANCE OF REAL PROPERTY, AND AN OWNER WHO PREVIOUSLY 311
HAS APPLIED ON SUCH A FORM IS NOT REQUIRED TO RETURN AN 312
APPLICATION FURNISHED UNDER THIS PARAGRAPH.
(D) No person shall knowingly make a false statement for 314
the purpose of obtaining a reduction in his real property taxes 315
under section 323.152 of the Revised Code. 316
(E) No person shall knowingly fail to notify the county 318
auditor of changes required by division (C) of this section which 319
have the effect of maintaining or securing a reduction in taxable 320
value of homestead property or a reduction in taxes in excess of 321
the reduction allowed under section 323.152 of the Revised Code. 322
(F) No person shall knowingly make a false statement or 324
certification attesting to any person's physical or mental 325
condition for purposes of qualifying such person for tax relief 326
pursuant to sections 323.151 to 323.157 of the Revised Code. 327
Section 2. That existing sections 323.131 and 323.153 of 329
the Revised Code are hereby repealed. 330
Section 3. Sections 323.131 and 323.153 of the Revised 332
Code, as amended by this act, apply to reductions in taxes under 333
division (B) of section 323.152 of the Revised Code for tax years 335
1998 and thereafter.