As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 6 5
1999-2000 6
SENATORS ARMBRUSTER-JOHNSON-DiDONATO-DRAKE-BLESSING 8
_________________________________________________________________ 10
A B I L L
To amend sections 323.152 and 4503.065 of the 12
Revised Code to increase and index to inflation 13
the income brackets used to determine eligibility
for the homestead exemption and the amount of a 14
homesteader's tax reduction.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 15
Section 1. That sections 323.152 and 4503.065 of the 17
Revised Code be amended to read as follows: 18
Sec. 323.152. In addition to the reduction in taxes 27
required under section 319.302 of the Revised Code, taxes shall 28
be reduced as follows: PROVIDED IN DIVISIONS (A) AND (B) OF THIS 30
SECTION.
(A) This division (1) DIVISION (A) OF THIS SECTION 33
applies to any of the following:
(1)(a) A person who is permanently and totally disabled; 35
(2)(b) A person who is sixty-five years of age or older; 37
(3)(c) A person who is the surviving spouse of a deceased 39
person who was permanently and totally disabled or sixty-five 40
years of age or older and who applied and qualified for a 41
reduction in taxes under this division in the year of death, 42
provided the surviving spouse is at least fifty-nine but not 43
sixty-five or more years of age on the date the deceased spouse 44
dies.
(2) Real property taxes on a homestead owned and occupied 46
by a person to whom this division (A) OF THIS SECTION applies 48
shall be further reduced for each year for which the owner 49
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obtains a certificate of reduction from the county auditor under 50
section 323.154 of the Revised Code. The reduction shall equal 51
the amount obtained by multiplying the tax rate for the tax year 52
for which the certificate is issued by the reduction in taxable 53
value shown in the following schedule: 54
Reduce Taxable Value 56
Total Income by the Lesser of: 58
$10,800 11,900 or less $5,000 or seventy-five per cent 61
More than $10,800 11,900 $3,000 or sixty per cent 65
but not more than
$15,800 17,500 64
More than $15,800 17,500 $1,000 or twenty-five per cent 68
but not more than
$20,800 23,000
More than $20,800 23,000 -0- 70
(3) EACH CALENDAR YEAR BEGINNING IN 1999, THE TAX 74
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 75
THE FOLLOWING STEPS:
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 77
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 78
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 81
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 82
OF JUNE OF THE CURRENT CALENDAR YEAR; 84
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 87
INCOME AMOUNTS FOR THE CURRENT TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 90
AMOUNTS FOR THE CURRENT TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 93
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 95
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 96
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 98
FOLLOWING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 99
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 100
3
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 101
FOR THE CURRENT TAX YEAR.
(B) Real property taxes on any homestead, and manufactured 103
home taxes on any manufactured or mobile home on which a 104
manufactured home tax is assessed pursuant to division (D)(2) of 105
section 4503.06 of the Revised Code, shall be reduced for each 106
year for which the owner obtains a certificate of reduction from 108
the county auditor under section 323.154 of the Revised Code. 109
The amount of the reduction shall equal one-fourth of the amount 110
by which the taxes charged and payable on the homestead or the 111
manufactured or mobile home are reduced for such year under 112
section 319.302 of the Revised Code. 113
(C) The reductions granted by this section do not apply to 115
special assessments or respread of assessments levied against the 116
homestead, and if there is a transfer of ownership subsequent to 117
the filing of an application for a reduction in taxes, such 118
reductions are not forfeited for such year by virtue of such 119
transfer. 120
(D) The reductions in taxable value referred to in this 122
section shall be applied solely as a factor for the purpose of 123
computing the reduction of taxes under this section and shall not 124
affect the total value of property in any subdivision or taxing 125
district as listed and assessed for taxation on the tax lists and 126
duplicates, or any direct or indirect limitations on indebtedness 127
of a subdivision or taxing district. If after application of 128
sections 5705.31 and 5705.32 of the Revised Code, including the 129
allocation of all levies within the ten-mill limitation to debt 130
charges to the extent therein provided, there would be 131
insufficient funds for payment of debt charges not provided for 132
by levies in excess of the ten-mill limitation, the reduction of 133
taxes provided for in sections 323.151 to 323.157 of the Revised 134
Code, shall be proportionately adjusted to the extent necessary 135
to provide such funds from levies within the ten-mill limitation. 136
(E) No reduction shall be made on the taxes due on the 138
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homestead of any person convicted of violating division (C) or 139
(D) of section 323.153 of the Revised Code for a period of three 140
years following the conviction. 141
Sec. 4503.065. (A) This section applies to any of the 150
following:
(A)(1) An individual who is permanently and totally 152
disabled;
(B)(2) An individual who is sixty-five years of age or 154
older;
(C)(3) An individual who is the surviving spouse of a 156
deceased person who was permanently and totally disabled or 157
sixty-five years of age or older and who applied and qualified 158
for a reduction in assessable value under this section in the 159
year of death, provided the surviving spouse is at least 160
fifty-nine but not sixty-five or more years of age on the date 161
the deceased spouse dies. 162
(B)(1) The manufactured home tax on a manufactured or 165
mobile home that is paid pursuant to division (C) of section 166
4503.06 of the Revised Code and that is owned and occupied as a 167
home by an individual whose domicile is in this state and to whom 168
this section applies, shall be reduced for any tax year for which 169
the owner obtains a certificate of reduction from the county 170
auditor under section 4503.067 of the Revised Code, provided the 171
individual did not acquire ownership from a person, other than 172
the individual's spouse, related by consanguinity or affinity for 174
the purpose of qualifying for the reduction in assessable value. 175
An owner includes a settlor of a revocable inter vivos trust 176
holding the title to a manufactured or mobile home occupied by 177
the settlor as of right under the trust. The reduction shall 178
equal the amount obtained by multiplying the tax rate for the tax 179
year for which the certificate is issued by the reduction in 180
assessable value shown in the following schedule. 181
Reduce Assessable Value 183
Total Income by the Lesser of: 184
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Column A Column B 185
$10,800 11,900 or less $5,000 or seventy-five per cent 188
More than $10,800 11,900 189
but not more than $15,800 190
17,500 $3,000 or sixty per cent 191
More than $15,800 17,500 192
but not more than $20,800 193
23,000 $1,000 or twenty-five per cent 194
More than $20,800 23,000 -0- 196
(2) EACH CALENDAR YEAR BEGINNING IN 1999, THE TAX 199
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 200
THE FOLLOWING STEPS: 201
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 203
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 204
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 207
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 208
OF JUNE OF THE CURRENT CALENDAR YEAR; 210
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 213
INCOME AMOUNTS FOR THE ENSUING TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 216
AMOUNTS FOR THE ENSUING TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 219
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 221
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 222
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 224
SECOND ENSUING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 225
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 226
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 227
FOR THE ENSUING TAX YEAR.
(C) If the owner or the spouse of the owner of a 229
manufactured or mobile home is eligible for a homestead exemption 231
on the land upon which the home is located, the reduction in 232
assessable value to which the owner or spouse is entitled under 233
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this section shall not exceed the difference between the 235
reduction in assessable value to which the owner or spouse is 236
entitled under column A of the above schedule and the amount of 237
the reduction in taxable value that was used to compute the
homestead exemption. 238
(D) No reduction shall be made on the assessable value of 240
the home of any person convicted of violating division (C) or (D) 242
of section 4503.066 of the Revised Code for a period of three 243
years following the conviction.
Section 2. That existing sections 323.152 and 4503.065 of 245
the Revised Code are hereby repealed. 246
Section 3. (A) The amendments made by this act to 248
division (A) of section 323.152 of the Revised Code first apply 249
to tax year 1999. A person whose homestead first becomes 250
eligible for the reduction in taxable value or is entitled to an 251
increased reduction under that division for tax year 1999 because 252
of the amendments made to that division may apply for the 253
reduction or increase therein for that year not later than 90 254
days after the effective date of this section, notwithstanding 255
filing requirements to the contrary under division (A)(3) of 256
section 323.153 of the Revised Code.
(B) The amendments made by this act to section 4503.065 of 258
the Revised Code first apply to tax year 2000. A person whose 259
manufactured or mobile home first becomes eligible for the 260
reduction in assessable value or is entitled to an increased 261
reduction under that section for tax year 2000 because of the 262
amendments made to that section may apply for the reduction or 263
increase therein for that year not later than 90 days after the 264
effective date of this section, notwithstanding the filing 265
requirements to the contrary under division (A)(2) of section 266
4503.066 of the Revised Code. 267