As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 6 5
1999-2000 6
SENATOR ARMBRUSTER 8
10
A B I L L
To amend sections 323.152 and 4503.065 of the 12
Revised Code to increase the maximum income limit 13
used to determine eligibility for the homestead
exemption, and to index to inflation the income 14
brackets used to determine the amount of a 15
homesteader's tax reduction.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 16
Section 1. That sections 323.152 and 4503.065 of the 18
Revised Code be amended to read as follows: 19
Sec. 323.152. In addition to the reduction in taxes 28
required under section 319.302 of the Revised Code, taxes shall 29
be reduced as follows: PROVIDED IN DIVISIONS (A) AND (B) OF THIS 31
SECTION.
(A) This division (1) DIVISION (A) OF THIS SECTION 34
applies to any of the following:
(1)(a) A person who is permanently and totally disabled; 36
(2)(b) A person who is sixty-five years of age or older; 38
(3)(c) A person who is the surviving spouse of a deceased 40
person who was permanently and totally disabled or sixty-five 41
years of age or older and who applied and qualified for a 42
reduction in taxes under this division in the year of death, 43
provided the surviving spouse is at least fifty-nine but not 44
sixty-five or more years of age on the date the deceased spouse 45
dies.
(2) Real property taxes on a homestead owned and occupied 47
by a person to whom this division (A) OF THIS SECTION applies 49
2
shall be further reduced for each year for which the owner 50
obtains a certificate of reduction from the county auditor under 51
section 323.154 of the Revised Code. The reduction shall equal 52
the amount obtained by multiplying the tax rate for the tax year 53
for which the certificate is issued by the reduction in taxable 54
value shown in the following schedule: 55
Reduce Taxable Value 57
Total Income by the Lesser of: 59
$10,800 or less $5,000 or seventy-five per cent 62
More than $10,800 but not $3,000 or sixty per cent 64
more than $15,800
More than $15,800 but not $1,000 or twenty-five per cent 66
more than $20,800 23,000
More than $20,800 23,000 -0- 68
(3) EACH CALENDAR YEAR BEGINNING IN 2000, THE TAX 72
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 73
THE FOLLOWING STEPS:
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 75
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 76
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 79
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 80
OF JUNE OF THE CURRENT CALENDAR YEAR; 82
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 85
INCOME AMOUNTS FOR THE CURRENT TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 88
AMOUNTS FOR THE CURRENT TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 91
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 93
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 94
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 96
FOLLOWING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 97
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 98
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 99
3
FOR THE CURRENT TAX YEAR.
(B) Real property taxes on any homestead, and manufactured 101
home taxes on any manufactured or mobile home on which a 102
manufactured home tax is assessed pursuant to division (D)(2) of 103
section 4503.06 of the Revised Code, shall be reduced for each 104
year for which the owner obtains a certificate of reduction from 106
the county auditor under section 323.154 of the Revised Code. 107
The amount of the reduction shall equal one-fourth of the amount 108
by which the taxes charged and payable on the homestead or the 109
manufactured or mobile home are reduced for such year under 110
section 319.302 of the Revised Code. 111
(C) The reductions granted by this section do not apply to 113
special assessments or respread of assessments levied against the 114
homestead, and if there is a transfer of ownership subsequent to 115
the filing of an application for a reduction in taxes, such 116
reductions are not forfeited for such year by virtue of such 117
transfer. 118
(D) The reductions in taxable value referred to in this 120
section shall be applied solely as a factor for the purpose of 121
computing the reduction of taxes under this section and shall not 122
affect the total value of property in any subdivision or taxing 123
district as listed and assessed for taxation on the tax lists and 124
duplicates, or any direct or indirect limitations on indebtedness 125
of a subdivision or taxing district. If after application of 126
sections 5705.31 and 5705.32 of the Revised Code, including the 127
allocation of all levies within the ten-mill limitation to debt 128
charges to the extent therein provided, there would be 129
insufficient funds for payment of debt charges not provided for 130
by levies in excess of the ten-mill limitation, the reduction of 131
taxes provided for in sections 323.151 to 323.157 of the Revised 132
Code, shall be proportionately adjusted to the extent necessary 133
to provide such funds from levies within the ten-mill limitation. 134
(E) No reduction shall be made on the taxes due on the 136
homestead of any person convicted of violating division (C) or 137
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(D) of section 323.153 of the Revised Code for a period of three 138
years following the conviction. 139
Sec. 4503.065. (A) This section applies to any of the 148
following:
(A)(1) An individual who is permanently and totally 150
disabled;
(B)(2) An individual who is sixty-five years of age or 152
older;
(C)(3) An individual who is the surviving spouse of a 154
deceased person who was permanently and totally disabled or 155
sixty-five years of age or older and who applied and qualified 156
for a reduction in assessable value under this section in the 157
year of death, provided the surviving spouse is at least 158
fifty-nine but not sixty-five or more years of age on the date 159
the deceased spouse dies. 160
(B)(1) The manufactured home tax on a manufactured or 163
mobile home that is paid pursuant to division (C) of section 164
4503.06 of the Revised Code and that is owned and occupied as a 165
home by an individual whose domicile is in this state and to whom 166
this section applies, shall be reduced for any tax year for which 167
the owner obtains a certificate of reduction from the county 168
auditor under section 4503.067 of the Revised Code, provided the 169
individual did not acquire ownership from a person, other than 170
the individual's spouse, related by consanguinity or affinity for 172
the purpose of qualifying for the reduction in assessable value. 173
An owner includes a settlor of a revocable inter vivos trust 174
holding the title to a manufactured or mobile home occupied by 175
the settlor as of right under the trust. The reduction shall 176
equal the amount obtained by multiplying the tax rate for the tax 177
year for which the certificate is issued by the reduction in 178
assessable value shown in the following schedule. 179
Reduce Assessable Value 181
Total Income by the Lesser of: 182
Column A Column B 183
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$10,800 or less $5,000 or seventy-five per cent 186
More than $10,800 but not 187
more than $15,800 $3,000 or sixty per cent 188
More than $15,800 but not 189
more than $20,800 23,000 $1,000 or twenty-five per cent 190
More than $20,800 23,000 -0- 192
(2) EACH CALENDAR YEAR BEGINNING IN 2000, THE TAX 195
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 196
THE FOLLOWING STEPS: 197
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 199
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 200
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 203
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 204
OF JUNE OF THE CURRENT CALENDAR YEAR; 206
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 209
INCOME AMOUNTS FOR THE ENSUING TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 212
AMOUNTS FOR THE ENSUING TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 215
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 217
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 218
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 220
SECOND ENSUING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 221
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 222
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 223
FOR THE ENSUING TAX YEAR.
(C) If the owner or the spouse of the owner of a 225
manufactured or mobile home is eligible for a homestead exemption 227
on the land upon which the home is located, the reduction in 228
assessable value to which the owner or spouse is entitled under 229
this section shall not exceed the difference between the 231
reduction in assessable value to which the owner or spouse is 232
entitled under column A of the above schedule and the amount of 233
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the reduction in taxable value that was used to compute the
homestead exemption. 234
(D) No reduction shall be made on the assessable value of 236
the home of any person convicted of violating division (C) or (D) 238
of section 4503.066 of the Revised Code for a period of three 239
years following the conviction.
Section 2. That existing sections 323.152 and 4503.065 of 241
the Revised Code are hereby repealed. 242
Section 3. This act's increase of the maximum total income 244
limitation in sections 323.152 and 4503.065 of the Revised Code 245
first applies to tax year 2000 real property taxes and tax year 246
2001 manufactured home taxes.