As Passed by the Senate 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-SENATORS GARDNER-B. JOHNSON- 15
ESPY-OELSLAGER-WATTS-SUHADOLNIK-CARNES 16
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A B I L L
To amend sections 323.131 and 323.153 and to enact 20
section 5713.011 of the Revised Code to provide 22
for notification to homeowners of their right to
the 2-1/2 per cent reduction in property taxes, 23
to require an application for the tax reduction 24
to be incorporated into any forms used by county 26
auditors to administer the tax law in respect to 27
the conveyance of real property, and to authorize 29
the conveyance of state-owned real estate in 30
Cuyahoga County to HDH Mechanical, Inc. 31
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 33
Section 1. That sections 323.131 and 323.153 be amended 36
and section 5713.011 of the Revised Code be enacted to read as
follows: 37
Sec. 323.131. Each tax bill prepared and mailed or 46
delivered under section 323.13 of the Revised Code shall be in 47
the form and contain the information required by the tax 48
commissioner. The commissioner may prescribe different forms for 49
2
each county and may authorize the county auditor to make up tax 50
bills and tax receipts to be used by the county treasurer. For 51
any county in which the board of county commissioners has granted 52
a partial property tax exemption on homesteads under section 53
323.158 of the Revised Code, the commissioner shall require that 54
the tax bills for those homesteads include a notice of the amount 55
of the tax reduction that results from the partial exemption. In 56
addition to the information required by the commissioner, each 58
tax bill shall contain the following information: 59
(A) The taxes levied and the taxes charged and payable 61
against the property; 62
(B) The effective tax rate. The words "effective tax 64
rate" shall appear in boldface type. 65
(C) The following notices: 67
(1) "Notice: If the taxes are not paid within one year 69
from the date they are due, the property is subject to 70
foreclosure for tax delinquency." Failure to provide such notice 71
has no effect upon the validity of any tax foreclosure to which a 72
property is subjected. 73
(2) "Notice: If the taxes charged against this parcel 75
have been reduced by the 2-1/2 per cent tax reduction for 76
owner-occupied homesteads and RESIDENCES OCCUPIED BY THE OWNER 77
BUT the property is not A RESIDENCE occupied by the owner, the 79
owner must notify the county auditor's office NOT LATER THAN 80
MARCH 31, ..... (INSERT THE YEAR FOLLOWING THE YEAR FOR WHICH THE 81
TAXES ARE DUE). Failure to do so may result in the owner being 82
convicted of a fourth degree misdemeanor, which is punishable by
imprisonment up to 30 days, a fine up to $250, or both, AND IN 83
THE OWNER HAVING TO REPAY THE AMOUNT BY WHICH THE TAXES WERE 84
ERRONEOUSLY OR ILLEGALLY REDUCED, PLUS ANY INTEREST THAT MAY 85
APPLY.
IF THE TAXES CHARGED AGAINST THIS PARCEL HAVE NOT BEEN 87
REDUCED BY THE 2-1/2 PER CENT TAX REDUCTION AND THE PARCEL 88
INCLUDES A RESIDENCE OCCUPIED BY THE OWNER, THE PARCEL MAY 90
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QUALIFY FOR THE TAX REDUCTION. TO OBTAIN AN APPLICATION FOR THE 93
TAX REDUCTION OR FURTHER INFORMATION, THE OWNER MAY CONTACT THE 95
COUNTY AUDITOR'S OFFICE AT .......... (INSERT THE ADDRESS AND 96
TELEPHONE NUMBER OF THE COUNTY AUDITOR'S OFFICE)."
(D) For a tract or lot on the real property tax suspension 98
list under section 319.48 of the Revised Code, the following 99
notice: "Notice: The taxes shown due on this bill are for the 100
current year only. Delinquent taxes, penalties, and interest 101
also are due on this property. Contact the county treasurer to 102
learn the total amount due."
The tax bill shall not contain or be mailed or delivered 104
with any information or material that is not required by this 105
section or that is not authorized by section 321.45 of the 106
Revised Code or by the tax commissioner. 107
Sec. 323.153. (A) To obtain a reduction in real property 118
taxes under division (A) or (B) of section 323.152 of the Revised 119
Code, the owner shall file an application with the county auditor 120
of the county in which his THE OWNER'S homestead is located. 121
(1) An application for reduction based upon a physical 123
disability shall be accompanied by a certificate signed by a 124
physician, and an application for reduction based upon a mental 125
disability shall be accompanied by a certificate signed by a 126
physician or psychologist licensed to practice in this state, 127
attesting to the fact that the applicant is permanently and 128
totally disabled. The certificate shall be in a form that the 129
tax commissioner requires and shall include the definition of 130
permanently and totally disabled as set forth in section 323.151 131
of the Revised Code. An application for reduction based upon a 132
disability certified as permanent and total by a state or federal 133
agency having the function of so classifying persons shall be 134
accompanied by a certificate from that agency. Such an 135
application constitutes a continuing application for a reduction 136
in taxes for each year in which the dwelling is the applicant's 137
homestead and the amount of the reduction in taxable value to 138
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which he THE APPLICANT is entitled does not exceed either the 139
amount or percentage of the reduction to which he THE APPLICANT 141
was entitled for the year in which the application was first 143
filed.
(2) An application for a reduction in taxes under division 145
(B) of section 323.152 of the Revised Code shall be filed only if 147
the homestead was transferred in the preceding year or did not 148
qualify for and receive the reduction in taxes under that 149
division for the preceding tax year. THE APPLICATION SHALL BE 151
INCORPORATED INTO ANY FORM USED BY THE COUNTY AUDITOR TO 152
ADMINISTER THE TAX LAW IN RESPECT TO THE CONVEYANCE OF REAL 153
PROPERTY PURSUANT TO SECTION 319.20 OF THE REVISED CODE, AND 155
SHALL CONTAIN A STATEMENT THAT FAILURE BY THE APPLICANT TO AFFIRM 156
ON THE APPLICATION THAT THE DWELLING ON THE PROPERTY CONVEYED IS 157
THE APPLICANT'S HOMESTEAD DISQUALIFIES THE OWNER FROM RECEIVING
THE REDUCTION IN TAXES UNDER THIS DIVISION. Such an application 158
constitutes a continuing application for a reduction in taxes for 159
each year in which the dwelling is the applicant's homestead. 160
(3) Failure to receive a new application filed under 162
division (A)(1) or (2) or notification under division (C) of this 163
section after a certificate of reduction has been issued under 164
section 323.154 of the Revised Code is prima-facie evidence that 165
the original applicant is entitled to the reduction in taxes 166
calculated on the basis of the information contained in his THE 168
original application. The original application and any
subsequent application, including any late application, shall be 169
in the form of a signed statement and shall be filed after the 170
first Monday in January and not later than the first Monday in 171
June. The statement shall be on a form, devised and supplied by 172
the tax commissioner, which shall require no more information 173
than is necessary to establish the applicant's eligibility for 174
the reduction in taxes and the amount of the reduction and shall 175
include an affirmation by the applicant that ownership of the 176
homestead was not acquired from a person, other than his A 177
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spouse, related to the owner by consanguinity or affinity for the 178
purpose of qualifying for the real property tax reduction 179
provided for in division (A) or (B) of section 323.152 of the 180
Revised Code. The form shall contain a statement that conviction 181
of willfully falsifying information to obtain a reduction in 182
taxes or failing to comply with division (C) of this section 183
results in the revocation of the right to the reduction for a 184
period of three years. In the case of an application for a 185
reduction in taxes under division (A) of section 323.152 of the 186
Revised Code, the form shall contain a statement that signing the 187
application constitutes a delegation of authority by the 188
applicant to the county auditor to examine any financial records 189
relating to income earned by the applicant as stated on the 190
application for the purpose of determining possible violation of 191
division (D) or (E) of this section. 192
(B) A late application for a tax reduction for the year 194
preceding the year in which an original application is filed may 195
be filed with the original application. If the COUNTY auditor 196
determines the information contained in the late application is 197
correct, he THE AUDITOR shall determine the amount of the 198
reduction in taxes to which the applicant would have been 199
entitled for the preceding tax year had his THE application been 200
timely filed and approved in that year. 201
The amount of such reduction shall be treated by the 203
auditor as an overpayment of taxes by the applicant and shall be 204
refunded in the manner prescribed in section 5715.22 of the 205
Revised Code for making refunds of overpayments. On the first 206
day of July of each year, the county auditor shall certify the 207
total amount of the reductions in taxes made in the current year 208
under this division to the tax commissioner, who shall treat the 209
full amount thereof as a reduction in taxes for the preceding tax 210
year and shall make reimbursement to the county therefor in the 211
manner prescribed by section 323.156 of the Revised Code, from 212
money appropriated for that purpose. 213
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(C) If, in any year after an application has been filed 215
under division (A)(1) OR (2) of this section, the owner does not 217
qualify for a reduction in taxes on the homestead set forth on 218
such application, or qualifies for a reduction in taxes that is 219
to be based upon a reduction in taxable value less than either 220
the percentage or amount of the reduction in taxable value to 221
which he THE OWNER was entitled in the year the application was 222
filed, the owner shall notify the county auditor that he THE 223
OWNER is not qualified for a reduction in taxes or file a new 224
application under division (A)(1) OR (2) of this section. IF THE 226
COUNTY AUDITOR OR COUNTY TREASURER DISCOVERS THAT THE OWNER OF 227
PROPERTY NOT ENTITLED TO THE REDUCTION IN TAXES UNDER DIVISION 228
(B) OF SECTION 323.152 OF THE REVISED CODE FAILED TO NOTIFY THE 229
COUNTY AUDITOR AS REQUIRED BY THIS PARAGRAPH, A CHARGE SHALL BE 230
IMPOSED AGAINST THE PROPERTY IN THE AMOUNT BY WHICH TAXES WERE 231
REDUCED UNDER THAT DIVISION FOR EACH TAX YEAR THE COUNTY AUDITOR 232
ASCERTAINS THAT THE PROPERTY WAS NOT ENTITLED TO THE REDUCTION 234
AND WAS OWNED BY THE CURRENT OWNER. INTEREST SHALL ACCRUE IN THE 235
MANNER PRESCRIBED BY DIVISION (B) OF SECTION 323.121 OF THE 237
REVISED CODE ON THE AMOUNT BY WHICH TAXES WERE REDUCED FOR EACH 239
SUCH TAX YEAR AS IF THE REDUCTION BECAME DELINQUENT TAXES AT THE
CLOSE OF THE LAST DAY THE SECOND INSTALLMENT OF TAXES FOR THAT 241
TAX YEAR COULD BE PAID WITHOUT PENALTY. THE COUNTY AUDITOR SHALL 243
NOTIFY THE OWNER, BY ORDINARY MAIL, OF THE CHARGE, OF THE OWNER'S 244
RIGHT TO APPEAL THE CHARGE, AND OF THE MANNER IN WHICH THE OWNER 245
MAY APPEAL. THE OWNER MAY APPEAL THE IMPOSITION OF THE CHARGE 246
AND INTEREST BY FILING AN APPEAL WITH THE COUNTY BOARD OF 247
REVISION NOT LATER THAN THE LAST DAY PRESCRIBED FOR PAYMENT OF 248
REAL AND PUBLIC UTILITY PROPERTY TAXES UNDER SECTION 323.12 OF 249
THE REVISED CODE FOLLOWING RECEIPT OF THE NOTICE AND OCCURRING AT 251
LEAST NINETY DAYS AFTER RECEIPT OF THE NOTICE. THE APPEAL SHALL 252
BE TREATED IN THE SAME MANNER AS A COMPLAINT RELATING TO THE 253
VALUATION OR ASSESSMENT OF REAL PROPERTY UNDER CHAPTER 5715. OF 254
THE REVISED CODE. THE CHARGE AND ANY INTEREST SHALL BE COLLECTED 256
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AS OTHER DELINQUENT TAXES.
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, EXCEPT AS 277
OTHERWISE PROVIDED IN THIS PARAGRAPH, shall furnish by ordinary 279
mail an original application to the owner, as of the first day of 280
January of that year, of a homestead that transferred during the 281
preceding calendar year and that qualified for and received a 282
reduction in taxes under division (B) of section 323.152 of the 283
Revised Code for the preceding tax year. In order to receive the 284
reduction under that division, the owner shall file the 285
application with the county auditor not later than the first 286
Monday in June. If the application is not timely filed, the 287
auditor shall not grant a reduction in taxes for the homestead 288
for the current year, and shall notify the owner that the 289
reduction in taxes has not been granted, in the same manner
prescribed under section 323.154 of the Revised Code for 290
notification of denial of an application. Failure of an owner to 291
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receive an application under this paragraph does not excuse the 292
failure of the owner to file an original application. THE COUNTY 294
AUDITOR IS NOT REQUIRED TO FURNISH AN APPLICATION UNDER THIS 295
PARAGRAPH FOR ANY HOMESTEAD FOR WHICH APPLICATION HAS PREVIOUSLY 296
BEEN MADE ON A FORM INCORPORATED INTO OR ACCOMPANYING ANY FORM 297
USED BY THE COUNTY AUDITOR TO ADMINISTER THE TAX LAW IN RESPECT 298
TO THE CONVEYANCE OF REAL PROPERTY, AND AN OWNER WHO PREVIOUSLY 300
HAS APPLIED ON SUCH A FORM IS NOT REQUIRED TO RETURN AN 301
APPLICATION FURNISHED UNDER THIS PARAGRAPH.
(D) No person shall knowingly make a false statement for 303
the purpose of obtaining a reduction in his real property taxes 304
under section 323.152 of the Revised Code. 305
(E) No person shall knowingly fail to notify the county 307
auditor of changes required by division (C) of this section which 308
have the effect of maintaining or securing a reduction in taxable 309
value of homestead property or a reduction in taxes in excess of 310
the reduction allowed under section 323.152 of the Revised Code. 311
(F) No person shall knowingly make a false statement or 313
certification attesting to any person's physical or mental 314
condition for purposes of qualifying such person for tax relief 315
pursuant to sections 323.151 to 323.157 of the Revised Code. 316
Sec. 5713.011. IF THE COUNTY AUDITOR DETERMINES UNDER 318
SECTION 5713.01 OF THE REVISED CODE THAT THE CONSTRUCTION OF A 319
DWELLING ON A PREVIOUSLY VACANT PARCEL OF LAND IS NOT AVAILABLE 320
FOR USE OR THAT AN ADDITIONAL DWELLING IS CONSTRUCTED ON A PARCEL 321
OF LAND AND IS NOW AVAILABLE FOR USE, THE COUNTY AUDITOR, BY
ORDINARY MAIL, SHALL SEND TO THE OWNER OF THE DWELLING A NOTICE 322
THAT THE APPLICANT MAY APPLY FOR A REDUCTION IN TAXES UNDER 323
DIVISION (A)(2) OF SECTION 323.153 OF THE REVISED CODE. THE 324
NOTICE SHALL BE SUBSTANTIALLY IN THE FORM OF THE NOTICE
PRESCRIBED UNDER DIVISION (C)(2) OF SECTION 323.131 OF THE 325
REVISED CODE.
Section 2. That existing sections 323.131 and 323.153 of 327
the Revised Code are hereby repealed. 328
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Section 3. Sections 323.131 and 323.153 of the Revised 330
Code, as amended by this act, and section 5713.011 of the Revised 330/1
Code, as enacted by this act, apply to reductions in taxes under 330/4
division (B) of section 323.152 of the Revised Code for tax years 330/6
1998 and thereafter.
Section 4. Not later than February following the effective 330/8
date of this act, each county auditor, by ordinary mail, shall 330/9
send a notice substantially in the form of the notice prescribed 330/10
by division (C)(2) of section 323.131 of the Revised Code, as 330/12
amended by this act, to each owner of residential real property
if all of the following apply: 330/13
(1) The property was conveyed during tax years 1995 330/15
through December 31 following the effective date of this act; 330/16
(2) Such property is not receiving the two and one-half 330/18
per cent tax reduction; 346
(3) The owner does not receive a tax bill for the property 348
because the bill is mailed or delivered to an agent of the owner 349
or taxes are billed through an information exchange agreement 350
under section 323.134 of the Revised Code;
(4) The county auditor has not previously mailed to the 352
owner a notice substantially in the form of the notice prescribed 353
by division (C)(2) of section 323.131 of the Revised Code, as 354
amended by this act.
Section 5. (A) The Governor is hereby authorized to 356
execute a deed in the name of the state conveying to HDH 357
Mechanical, Inc., and its successors and assigns, all of the 358
state's right, title, and interest in the following described 359
real estate, which is a warehouse, situated in the City of
Bedford Heights, County of Cuyahoga, State of Ohio, being part of 360
original Bedford Township Lot No. 8, being more fully described 361
as follows:
Beginning on the centerline of Miles Road, N 89°52'50" W, 363
30.00 feet from the centerline of Corbin Drive as appears by the 364
dedication plat of said Corbin Drive as recorded in map Volume 366
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193, Page 64 & 68 of Cuyahoga County Records, said point being 367
witnessed by an iron monument found, N 89°52'50" W, 567.66 on the 369
centerline of Miles Road at the centerline of Green Road;
Thence, S 00°00'45" E, 270.27 feet along the westerly line 371
of said Corbin Drive to a 5/8" iron pin set at the True Place of 372
Beginning for the parcel intended to be described herein; 373
Thence, S 00°00'45" E, along the west line of Corbin Drive 375
217.00 feet to a 5/8" iron pin found; 376
Thence, N 89°52'50" W, 402.47 feet to an 5/8"; iron pin 378
set;
Thence, N 00°00'45" W, 217.00 feet to a 5/8" iron pin set; 380
Thence, S 89°52'50" E, 402.47 feet to the True Place of 382
Beginning and containing 2.005 acres of land, but subject to all 383
legal highways, easements and restrictions, if any, as surveyed 384
by Robert J. Warner, P.S., Number 6931 for Environmental Design 385
Group, Inc. in May 1996.
(B) Consideration for conveyance of the real estate 387
described in division (A) of this section is a purchase price of 388
four hundred thousand dollars and no cents ($400,000.00). 389
(C) The proceeds of the conveyance of the real estate 391
described in division (A) of this section shall be deposited as 392
follows:
(1) Three hundred ninety thousand dollars ($390,000.00) 394
shall be deposited into the state treasury to the credit of the 395
Department of Mental Health Trust Fund, created by section 396
5119.18 of the Revised Code;
(2) Ten thousand dollars ($10,000.00) shall be deposited 398
into the treasury of the City of Bedford Heights for those costs 399
incurred by the City to reconnect utility services and prepare 400
the real estate for sale.
(D) Upon payment of the purchase price by HDH Mechanical, 402
Inc., the Auditor of State, with the assistance of the Attorney 404
General, shall prepare a deed to the real estate. The deed shall 406
state the consideration set forth in division (B) of this 407
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section. The deed shall be executed by the Governor in the name
of the state, countersigned by the Secretary of State, sealed 409
with the Great Seal of the State, presented in the Office of the 410
Auditor of State for recording, and delivered to HDH Mechanical, 411
Inc. HDH Mechanical, Inc. shall present the deed for recording 412
in the Office of the Cuyahoga County Recorder.
(E) HDH Mechanical, Inc. shall pay the costs of the 414
conveyance of the real estate described in division (A) of this 415
section.
(F) This section expires one year after its effective 417
date.