As Reported by the Senate 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-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-SENATOR GARDNER 15
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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, 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, and to authorize the 27
conveyance of state-owned real estate in Cuyahoga 28
County to HDH Mechanical, Inc. 29
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 31
Section 1. That sections 323.131 and 323.153 of the 33
Revised Code be amended to read as follows: 34
Sec. 323.131. Each tax bill prepared and mailed or 43
delivered under section 323.13 of the Revised Code shall be in 44
the form and contain the information required by the tax 45
commissioner. The commissioner may prescribe different forms for 46
each county and may authorize the county auditor to make up tax 47
bills and tax receipts to be used by the county treasurer. For 48
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any county in which the board of county commissioners has granted 49
a partial property tax exemption on homesteads under section 50
323.158 of the Revised Code, the commissioner shall require that 51
the tax bills for those homesteads include a notice of the amount 52
of the tax reduction that results from the partial exemption. In 53
addition to the information required by the commissioner, each 55
tax bill shall contain the following information: 56
(A) The taxes levied and the taxes charged and payable 58
against the property; 59
(B) The effective tax rate. The words "effective tax 61
rate" shall appear in boldface type. 62
(C) The following notices: 64
(1) "Notice: If the taxes are not paid within one year 66
from the date they are due, the property is subject to 67
foreclosure for tax delinquency." Failure to provide such notice 68
has no effect upon the validity of any tax foreclosure to which a 69
property is subjected. 70
(2) "Notice: If the taxes charged against this parcel 72
have been reduced by the 2-1/2 per cent tax reduction for 73
owner-occupied homesteads and RESIDENCES OCCUPIED BY THE OWNER 74
BUT the property is not A RESIDENCE occupied by the owner, the 76
owner must notify the county auditor's office NOT LATER THAN 77
MARCH 31, ..... (INSERT THE YEAR FOLLOWING THE YEAR FOR WHICH THE 78
TAXES ARE DUE). Failure to do so may result in the owner being 79
convicted of a fourth degree misdemeanor, which is punishable by
imprisonment up to 30 days, a fine up to $250, or both, AND IN 80
THE OWNER HAVING TO REPAY THE AMOUNT BY WHICH THE TAXES WERE 81
ERRONEOUSLY OR ILLEGALLY REDUCED, PLUS ANY INTEREST THAT MAY 82
APPLY.
IF THE TAXES CHARGED AGAINST THIS PARCEL HAVE NOT BEEN 84
REDUCED BY THE 2-1/2 PER CENT TAX REDUCTION AND THE PARCEL 85
INCLUDES A RESIDENCE OCCUPIED BY THE OWNER, THE PARCEL MAY 87
QUALIFY FOR THE TAX REDUCTION. TO OBTAIN AN APPLICATION FOR THE 90
TAX REDUCTION OR FURTHER INFORMATION, THE OWNER MAY CONTACT THE 92
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COUNTY AUDITOR'S OFFICE AT .......... (INSERT THE ADDRESS AND 93
TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE)."
(D) For a tract or lot on the real property tax suspension 95
list under section 319.48 of the Revised Code, the following 96
notice: "Notice: The taxes shown due on this bill are for the 97
current year only. Delinquent taxes, penalties, and interest 98
also are due on this property. Contact the county treasurer to 99
learn the total amount due."
The tax bill shall not contain or be mailed or delivered 101
with any information or material that is not required by this 102
section or that is not authorized by section 321.45 of the 103
Revised Code or by the tax commissioner. IF A TAX BILL IS NOT 104
MAILED OR DELIVERED TO THE OWNER OF PROPERTY THE PRINCIPAL, 106
CURRENT USE OF WHICH IS FOR RESIDENTIAL PURPOSES BECAUSE THE BILL 107
IS MAILED OR DELIVERED TO AN AGENT OF THE OWNER OR BECAUSE TAXES 108
ARE BILLED THROUGH AN INFORMATION EXCHANGE AGREEMENT UNDER 109
SECTION 323.134 OF THE REVISED CODE, THE AGENT OF THE OWNER OR 110
THE FINANCIAL INSTITUTION THAT IS A PARTY TO SUCH AN AGREEMENT 111
SHALL SEND TO THE OWNER, BY ORDINARY MAIL, A NOTICE SUBSTANTIALLY 113
IN THE FORM OF THE NOTICE PRESCRIBED UNDER DIVISION (C)(2) OF 114
THIS SECTION NOT LATER THAN THE THIRTY-FIRST DAY OF DECEMBER EACH 116
YEAR.
Sec. 323.153. (A) To obtain a reduction in real property 127
taxes under division (A) or (B) of section 323.152 of the Revised 128
Code, the owner shall file an application with the county auditor 129
of the county in which his THE OWNER'S homestead is located. 130
(1) An application for reduction based upon a physical 132
disability shall be accompanied by a certificate signed by a 133
physician, and an application for reduction based upon a mental 134
disability shall be accompanied by a certificate signed by a 135
physician or psychologist licensed to practice in this state, 136
attesting to the fact that the applicant is permanently and 137
totally disabled. The certificate shall be in a form that the 138
tax commissioner requires and shall include the definition of 139
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permanently and totally disabled as set forth in section 323.151 140
of the Revised Code. An application for reduction based upon a 141
disability certified as permanent and total by a state or federal 142
agency having the function of so classifying persons shall be 143
accompanied by a certificate from that agency. Such an 144
application constitutes a continuing application for a reduction 145
in taxes for each year in which the dwelling is the applicant's 146
homestead and the amount of the reduction in taxable value to 147
which he THE APPLICANT is entitled does not exceed either the 148
amount or percentage of the reduction to which he THE APPLICANT 150
was entitled for the year in which the application was first 152
filed.
(2) An application for a reduction in taxes under division 154
(B) of section 323.152 of the Revised Code shall be filed only if 156
the homestead was transferred in the preceding year or did not 157
qualify for and receive the reduction in taxes under that 158
division for the preceding tax year. THE APPLICATION SHALL BE 160
INCORPORATED INTO ANY FORM USED BY THE COUNTY AUDITOR TO 161
ADMINISTER THE TAX LAW IN RESPECT TO THE CONVEYANCE OF REAL 162
PROPERTY PURSUANT TO SECTION 319.20 OF THE REVISED CODE, OR SHALL 164
BE SUPPLIED AS A SEPARATE FORM ACCOMPANYING SUCH FORM. Such an 166
application constitutes a continuing application for a reduction 167
in taxes for each year in which the dwelling is the applicant's 168
homestead.
(3) Failure to receive a new application filed under 170
division (A)(1) or (2) or notification under division (C) of this 171
section after a certificate of reduction has been issued under 172
section 323.154 of the Revised Code is prima-facie evidence that 173
the original applicant is entitled to the reduction in taxes 174
calculated on the basis of the information contained in his THE 176
original application. The original application and any
subsequent application, including any late application, shall be 177
in the form of a signed statement and shall be filed after the 178
first Monday in January and not later than the first Monday in 179
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June. The statement shall be on a form, devised and supplied by 180
the tax commissioner, which shall require no more information 181
than is necessary to establish the applicant's eligibility for 182
the reduction in taxes and the amount of the reduction and shall 183
include an affirmation by the applicant that ownership of the 184
homestead was not acquired from a person, other than his A 185
spouse, related to the owner by consanguinity or affinity for the 186
purpose of qualifying for the real property tax reduction 187
provided for in division (A) or (B) of section 323.152 of the 188
Revised Code. The form shall contain a statement that conviction 189
of willfully falsifying information to obtain a reduction in 190
taxes or failing to comply with division (C) of this section 191
results in the revocation of the right to the reduction for a 192
period of three years. In the case of an application for a 193
reduction in taxes under division (A) of section 323.152 of the 194
Revised Code, the form shall contain a statement that signing the 195
application constitutes a delegation of authority by the 196
applicant to the county auditor to examine any financial records 197
relating to income earned by the applicant as stated on the 198
application for the purpose of determining possible violation of 199
division (D) or (E) of this section. 200
(B) A late application for a tax reduction for the year 202
preceding the year in which an original application is filed may 203
be filed with the original application. If the COUNTY auditor 204
determines the information contained in the late application is 205
correct, he THE AUDITOR shall determine the amount of the 206
reduction in taxes to which the applicant would have been 207
entitled for the preceding tax year had his THE application been 208
timely filed and approved in that year. 209
The amount of such reduction shall be treated by the 211
auditor as an overpayment of taxes by the applicant and shall be 212
refunded in the manner prescribed in section 5715.22 of the 213
Revised Code for making refunds of overpayments. On the first 214
day of July of each year, the county auditor shall certify the 215
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total amount of the reductions in taxes made in the current year 216
under this division to the tax commissioner, who shall treat the 217
full amount thereof as a reduction in taxes for the preceding tax 218
year and shall make reimbursement to the county therefor in the 219
manner prescribed by section 323.156 of the Revised Code, from 220
money appropriated for that purpose. 221
(C) If, in any year after an application has been filed 223
under division (A)(1) OR (2) of this section, the owner does not 225
qualify for a reduction in taxes on the homestead set forth on 226
such application, or qualifies for a reduction in taxes that is 227
to be based upon a reduction in taxable value less than either 228
the percentage or amount of the reduction in taxable value to 229
which he THE OWNER was entitled in the year the application was 230
filed, the owner shall notify the county auditor that he THE 231
OWNER is not qualified for a reduction in taxes or file a new 232
application under division (A)(1) OR (2) of this section. IF THE 234
COUNTY AUDITOR OR COUNTY TREASURER DISCOVERS THAT THE OWNER OF 235
PROPERTY NOT ENTITLED TO THE REDUCTION IN TAXES UNDER DIVISION 236
(B) OF SECTION 323.152 OF THE REVISED CODE FAILED TO NOTIFY THE 237
COUNTY AUDITOR AS REQUIRED BY THIS PARAGRAPH, A CHARGE SHALL BE 238
IMPOSED AGAINST THE PROPERTY IN THE AMOUNT BY WHICH TAXES WERE 239
REDUCED UNDER THAT DIVISION FOR EACH TAX YEAR THE COUNTY AUDITOR 240
ASCERTAINS THAT THE PROPERTY WAS NOT ENTITLED TO THE REDUCTION 242
AND WAS OWNED BY THE CURRENT OWNER. INTEREST SHALL ACCRUE IN THE 243
MANNER PRESCRIBED BY DIVISION (B) OF SECTION 323.121 OF THE 245
REVISED CODE ON THE AMOUNT BY WHICH TAXES WERE REDUCED FOR EACH 247
SUCH TAX YEAR AS IF THE REDUCTION BECAME DELINQUENT TAXES AT THE
CLOSE OF THE LAST DAY THE SECOND INSTALLMENT OF TAXES FOR THAT 249
TAX YEAR COULD BE PAID WITHOUT PENALTY. THE COUNTY AUDITOR SHALL 251
NOTIFY THE OWNER, BY ORDINARY MAIL, OF THE CHARGE, OF THE OWNER'S 252
RIGHT TO APPEAL THE CHARGE, AND OF THE MANNER IN WHICH THE OWNER 253
MAY APPEAL. THE OWNER MAY APPEAL THE IMPOSITION OF THE CHARGE 254
AND INTEREST BY FILING AN APPEAL WITH THE COUNTY BOARD OF 255
REVISION NOT LATER THAN THE LAST DAY PRESCRIBED FOR PAYMENT OF 256
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REAL AND PUBLIC UTILITY PROPERTY TAXES UNDER SECTION 323.12 OF 257
THE REVISED CODE FOLLOWING RECEIPT OF THE NOTICE AND OCCURRING AT 259
LEAST NINETY DAYS AFTER RECEIPT OF THE NOTICE. THE APPEAL SHALL 260
BE TREATED IN THE SAME MANNER AS A COMPLAINT RELATING TO THE 261
VALUATION OR ASSESSMENT OF REAL PROPERTY UNDER CHAPTER 5715. OF 262
THE REVISED CODE. THE CHARGE AND ANY INTEREST SHALL BE COLLECTED 264
AS OTHER DELINQUENT TAXES.
Each year during January, the county auditor shall furnish 266
by ordinary mail a continuing application to each person issued a 267
certificate of reduction under section 323.154 of the Revised 268
Code with respect to a reduction in taxes under division (A) of 269
section 323.152 of the Revised Code. The continuing application 270
shall be used to report changes in total income that would have 271
the effect of increasing or decreasing the reduction in taxable 272
value to which the owner is entitled, changes in ownership of the 273
homestead, including changes in or revocation of a revocable 274
inter vivos trust, changes in disability, and other changes in 275
the information earlier furnished the auditor relative to his THE 277
reduction in taxes on the property. The continuing application
shall be returned to the auditor not later than the first Monday 278
in June; provided, that if such changes do not affect the status 279
of the homestead exemption or the amount of the reduction to 280
which the owner is entitled under division (A) of section 323.152 281
of the Revised Code, the application does not need to be 282
returned. 283
Each year during February, the county auditor, EXCEPT AS 285
OTHERWISE PROVIDED IN THIS PARAGRAPH, shall furnish by ordinary 287
mail an original application to the owner, as of the first day of 288
January of that year, of a homestead that transferred during the 289
preceding calendar year and that qualified for and received a 290
reduction in taxes under division (B) of section 323.152 of the 291
Revised Code for the preceding tax year. In order to receive the 292
reduction under that division, the owner shall file the 293
application with the county auditor not later than the first 294
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Monday in June. If the application is not timely filed, the 295
auditor shall not grant a reduction in taxes for the homestead 296
for the current year, and shall notify the owner that the 297
reduction in taxes has not been granted, in the same manner
prescribed under section 323.154 of the Revised Code for 298
notification of denial of an application. Failure of an owner to 299
receive an application under this paragraph does not excuse the 300
failure of the owner to file an original application. THE COUNTY 302
AUDITOR IS NOT REQUIRED TO FURNISH AN APPLICATION UNDER THIS 303
PARAGRAPH FOR ANY HOMESTEAD FOR WHICH APPLICATION HAS PREVIOUSLY 304
BEEN MADE ON A FORM INCORPORATED INTO OR ACCOMPANYING ANY FORM 305
USED BY THE COUNTY AUDITOR TO ADMINISTER THE TAX LAW IN RESPECT 306
TO THE CONVEYANCE OF REAL PROPERTY, AND AN OWNER WHO PREVIOUSLY 308
HAS APPLIED ON SUCH A FORM IS NOT REQUIRED TO RETURN AN 309
APPLICATION FURNISHED UNDER THIS PARAGRAPH.
(D) No person shall knowingly make a false statement for 311
the purpose of obtaining a reduction in his real property taxes 312
under section 323.152 of the Revised Code. 313
(E) No person shall knowingly fail to notify the county 315
auditor of changes required by division (C) of this section which 316
have the effect of maintaining or securing a reduction in taxable 317
value of homestead property or a reduction in taxes in excess of 318
the reduction allowed under section 323.152 of the Revised Code. 319
(F) No person shall knowingly make a false statement or 321
certification attesting to any person's physical or mental 322
condition for purposes of qualifying such person for tax relief 323
pursuant to sections 323.151 to 323.157 of the Revised Code. 324
Section 2. That existing sections 323.131 and 323.153 of 326
the Revised Code are hereby repealed. 327
Section 3. Sections 323.131 and 323.153 of the Revised 329
Code, as amended by this act, apply to reductions in taxes under 330
division (B) of section 323.152 of the Revised Code for tax years 332
1998 and thereafter.
Section 4. (A) The Governor is hereby authorized to 334
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execute a deed in the name of the state conveying to HDH 335
Mechanical, Inc., and its successors and assigns, all of the 336
state's right, title, and interest in the following described 337
real estate, which is a warehouse, situated in the City of
Bedford Heights, County of Cuyahoga, State of Ohio, being part of 338
original Bedford Township Lot No. 8, being more fully described 339
as follows:
Beginning on the centerline of Miles Road, N 89°52'50" W, 341
30.00 feet from the centerline of Corbin Drive as appears by the 342
dedication plat of said Corbin Drive as recorded in map Volume 344
193, Page 64 & 68 of Cuyahoga County Records, said point being 345
witnessed by an iron monument found, N 89°52'50" W, 567.66 on the 347
centerline of Miles Road at the centerline of Green Road;
Thence, S 00°00'45" E, 270.27 feet along the westerly line 349
of said Corbin Drive to a 5/8" iron pin set at the True Place of 350
Beginning for the parcel intended to be described herein; 351
Thence, S 00°00'45" E, along the west line of Corbin Drive 353
217.00 feet to a 5/8" iron pin found; 354
Thence, N 89°52'50" W, 402.47 feet to an 5/8"; iron pin 356
set;
Thence, N 00°00'45" W, 217.00 feet to a 5/8" iron pin set; 358
Thence, S 89°52'50" E, 402.47 feet to the True Place of 360
Beginning and containing 2.005 acres of land, but subject to all 361
legal highways, easements and restrictions, if any, as surveyed 362
by Robert J. Warner, P.S., Number 6931 for Environmental Design 363
Group, Inc. in May 1996.
(B) Consideration for conveyance of the real estate 365
described in division (A) of this section is a purchase price of 366
four hundred thousand dollars and no cents ($400,000.00). 367
(C) The proceeds of the conveyance of the real estate 369
described in division (A) of this section shall be deposited as 370
follows:
(1) Three hundred ninety thousand dollars ($390,000.00) 372
shall be deposited into the state treasury to the credit of the 373
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Department of Mental Health Trust Fund, created by section 374
5119.18 of the Revised Code;
(2) Ten thousand dollars ($10,000.00) shall be deposited 376
into the treasury of the City of Bedford Heights for those costs 377
incurred by the City to reconnect utility services and prepare 378
the real estate for sale.
(D) Upon payment of the purchase price by HDH Mechanical, 380
Inc., the Auditor of State, with the assistance of the Attorney 382
General, shall prepare a deed to the real estate. The deed shall 384
state the consideration set forth in division (B) of this 385
section. The deed shall be executed by the Governor in the name
of the state, countersigned by the Secretary of State, sealed 387
with the Great Seal of the State, presented in the Office of the 388
Auditor of State for recording, and delivered to HDH Mechanical, 389
Inc. HDH Mechanical, Inc. shall present the deed for recording 390
in the Office of the Cuyahoga County Recorder.
(E) HDH Mechanical, Inc. shall pay the costs of the 392
conveyance of the real estate described in division (A) of this 393
section.
(F) This section expires one year after its effective 395
date.