As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 6 5
1999-2000 6
SENATORS ARMBRUSTER-JOHNSON-DiDONATO-DRAKE-BLESSING-BRADY- 8
CARNES-CUPP-FINGERHUT-HOTTINGER-LATELL-LATTA-NEIN-OELSLAGER- 9
SPADA-WATTS-WHITE-KEARNS-WACHTMANN-SCHAFRATH-HERINGTON-GARDNER 10
_________________________________________________________________ 12
A B I L L
To amend sections 323.152 and 4503.065 of the 14
Revised Code to increase and index to inflation 15
the income brackets used to determine eligibility
for the homestead exemption and the amount of a 16
homesteader's tax reduction.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That sections 323.152 and 4503.065 of the 19
Revised Code be amended to read as follows: 20
Sec. 323.152. In addition to the reduction in taxes 29
required under section 319.302 of the Revised Code, taxes shall 30
be reduced as follows: PROVIDED IN DIVISIONS (A) AND (B) OF THIS 32
SECTION.
(A) This division (1) DIVISION (A) OF THIS SECTION 35
applies to any of the following:
(1)(a) A person who is permanently and totally disabled; 37
(2)(b) A person who is sixty-five years of age or older; 39
(3)(c) A person who is the surviving spouse of a deceased 41
person who was permanently and totally disabled or sixty-five 42
years of age or older and who applied and qualified for a 43
reduction in taxes under this division in the year of death, 44
provided the surviving spouse is at least fifty-nine but not 45
sixty-five or more years of age on the date the deceased spouse 46
dies.
(2) Real property taxes on a homestead owned and occupied 48
2
by a person to whom this division (A) OF THIS SECTION applies 50
shall be further reduced for each year for which the owner 51
obtains a certificate of reduction from the county auditor under 52
section 323.154 of the Revised Code. The reduction shall equal 53
the amount obtained by multiplying the tax rate for the tax year 54
for which the certificate is issued by the reduction in taxable 55
value shown in the following schedule: 56
Reduce Taxable Value 58
Total Income by the Lesser of: 60
$10,800 11,900 or less $5,000 or seventy-five per cent 63
More than $10,800 11,900 $3,000 or sixty per cent 67
but not more than
$15,800 17,500 66
More than $15,800 17,500 $1,000 or twenty-five per cent 70
but not more than
$20,800 23,000
More than $20,800 23,000 -0- 72
(3) EACH CALENDAR YEAR BEGINNING IN 1999, THE TAX 76
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 77
THE FOLLOWING STEPS:
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 79
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 80
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 83
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 84
OF JUNE OF THE CURRENT CALENDAR YEAR; 86
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 89
INCOME AMOUNTS FOR THE CURRENT TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 92
AMOUNTS FOR THE CURRENT TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 95
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 97
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 98
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 100
3
FOLLOWING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 101
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 102
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 103
FOR THE CURRENT TAX YEAR.
(B) Real property taxes on any homestead, and manufactured 105
home taxes on any manufactured or mobile home on which a 106
manufactured home tax is assessed pursuant to division (D)(2) of 107
section 4503.06 of the Revised Code, shall be reduced for each 108
year for which the owner obtains a certificate of reduction from 110
the county auditor under section 323.154 of the Revised Code. 111
The amount of the reduction shall equal one-fourth of the amount 112
by which the taxes charged and payable on the homestead or the 113
manufactured or mobile home are reduced for such year under 114
section 319.302 of the Revised Code. 115
(C) The reductions granted by this section do not apply to 117
special assessments or respread of assessments levied against the 118
homestead, and if there is a transfer of ownership subsequent to 119
the filing of an application for a reduction in taxes, such 120
reductions are not forfeited for such year by virtue of such 121
transfer. 122
(D) The reductions in taxable value referred to in this 124
section shall be applied solely as a factor for the purpose of 125
computing the reduction of taxes under this section and shall not 126
affect the total value of property in any subdivision or taxing 127
district as listed and assessed for taxation on the tax lists and 128
duplicates, or any direct or indirect limitations on indebtedness 129
of a subdivision or taxing district. If after application of 130
sections 5705.31 and 5705.32 of the Revised Code, including the 131
allocation of all levies within the ten-mill limitation to debt 132
charges to the extent therein provided, there would be 133
insufficient funds for payment of debt charges not provided for 134
by levies in excess of the ten-mill limitation, the reduction of 135
taxes provided for in sections 323.151 to 323.157 of the Revised 136
Code, shall be proportionately adjusted to the extent necessary 137
4
to provide such funds from levies within the ten-mill limitation. 138
(E) No reduction shall be made on the taxes due on the 140
homestead of any person convicted of violating division (C) or 141
(D) of section 323.153 of the Revised Code for a period of three 142
years following the conviction. 143
Sec. 4503.065. (A) This section applies to any of the 152
following:
(A)(1) An individual who is permanently and totally 154
disabled;
(B)(2) An individual who is sixty-five years of age or 156
older;
(C)(3) An individual who is the surviving spouse of a 158
deceased person who was permanently and totally disabled or 159
sixty-five years of age or older and who applied and qualified 160
for a reduction in assessable value under this section in the 161
year of death, provided the surviving spouse is at least 162
fifty-nine but not sixty-five or more years of age on the date 163
the deceased spouse dies. 164
(B)(1) The manufactured home tax on a manufactured or 167
mobile home that is paid pursuant to division (C) of section 168
4503.06 of the Revised Code and that is owned and occupied as a 169
home by an individual whose domicile is in this state and to whom 170
this section applies, shall be reduced for any tax year for which 171
the owner obtains a certificate of reduction from the county 172
auditor under section 4503.067 of the Revised Code, provided the 173
individual did not acquire ownership from a person, other than 174
the individual's spouse, related by consanguinity or affinity for 176
the purpose of qualifying for the reduction in assessable value. 177
An owner includes a settlor of a revocable inter vivos trust 178
holding the title to a manufactured or mobile home occupied by 179
the settlor as of right under the trust. The reduction shall 180
equal the amount obtained by multiplying the tax rate for the tax 181
year for which the certificate is issued by the reduction in 182
assessable value shown in the following schedule. 183
5
Reduce Assessable Value 185
Total Income by the Lesser of: 186
Column A Column B 187
$10,800 11,900 or less $5,000 or seventy-five per cent 190
More than $10,800 11,900 191
but not more than $15,800 192
17,500 $3,000 or sixty per cent 193
More than $15,800 17,500 194
but not more than $20,800 195
23,000 $1,000 or twenty-five per cent 196
More than $20,800 23,000 -0- 198
(2) EACH CALENDAR YEAR BEGINNING IN 1999, THE TAX 201
COMMISSIONER SHALL ADJUST THE FOREGOING SCHEDULE BY COMPLETING 202
THE FOLLOWING STEPS: 203
(a) DETERMINE THE PERCENTAGE INCREASE IN THE GROSS 205
DOMESTIC PRODUCT DEFLATOR DETERMINED BY THE BUREAU OF ECONOMIC 206
ANALYSIS OF THE UNITED STATES DEPARTMENT OF COMMERCE FROM THE 209
FIRST DAY OF JULY OF THE PRECEDING CALENDAR YEAR TO THE LAST DAY 210
OF JUNE OF THE CURRENT CALENDAR YEAR; 212
(b) MULTIPLY THAT PERCENTAGE INCREASE BY EACH OF THE TOTAL 215
INCOME AMOUNTS FOR THE ENSUING TAX YEAR;
(c) ADD THE RESULTING PRODUCT TO EACH OF THE TOTAL INCOME 218
AMOUNTS FOR THE ENSUING TAX YEAR;
(d) ROUND THE RESULTING SUM TO THE NEAREST MULTIPLE OF ONE 221
HUNDRED DOLLARS.
THE COMMISSIONER SHALL CERTIFY THE AMOUNTS RESULTING FROM 223
THE ADJUSTMENT TO EACH COUNTY AUDITOR NOT LATER THAN THE FIRST 224
DAY OF DECEMBER EACH YEAR. THE CERTIFIED AMOUNTS APPLY TO THE 226
SECOND ENSUING TAX YEAR. THE COMMISSIONER SHALL NOT MAKE THE 227
ADJUSTMENT IN ANY CALENDAR YEAR IN WHICH THE AMOUNTS RESULTING 228
FROM THE ADJUSTMENT WOULD BE LESS THAN THE TOTAL INCOME AMOUNTS 229
FOR THE ENSUING TAX YEAR.
(C) If the owner or the spouse of the owner of a 231
manufactured or mobile home is eligible for a homestead exemption 233
6
on the land upon which the home is located, the reduction in 234
assessable value to which the owner or spouse is entitled under 235
this section shall not exceed the difference between the 237
reduction in assessable value to which the owner or spouse is 238
entitled under column A of the above schedule and the amount of 239
the reduction in taxable value that was used to compute the
homestead exemption. 240
(D) No reduction shall be made on the assessable value of 242
the home of any person convicted of violating division (C) or (D) 244
of section 4503.066 of the Revised Code for a period of three 245
years following the conviction.
Section 2. That existing sections 323.152 and 4503.065 of 247
the Revised Code are hereby repealed. 248
Section 3. (A) The amendments made by this act to 250
division (A) of section 323.152 of the Revised Code first apply 251
to tax year 1999. A person whose homestead first becomes 252
eligible for the reduction in taxable value or is entitled to an 253
increased reduction under that division for tax year 1999 because 254
of the amendments made to that division may apply for the 255
reduction or increase therein for that year not later than 90 256
days after the effective date of this section, notwithstanding 257
filing requirements to the contrary under division (A)(3) of 258
section 323.153 of the Revised Code.
(B) The amendments made by this act to section 4503.065 of 260
the Revised Code first apply to tax year 2000. A person whose 261
manufactured or mobile home first becomes eligible for the 262
reduction in assessable value or is entitled to an increased 263
reduction under that section for tax year 2000 because of the 264
amendments made to that section may apply for the reduction or 265
increase therein for that year not later than 90 days after the 266
effective date of this section, notwithstanding the filing 267
requirements to the contrary under division (A)(2) of section 268
4503.066 of the Revised Code. 269