As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 223

Senator Miller, D. 

Cosponsors: Senators Miller, R., Jacobson 

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A BILL

To amend sections 323.152, 323.153, and 323.156 of

1

the Revised Code to require county auditors to

2

make reasonable efforts to identify property

3

owners wrongfully receiving the 2.5% property tax

4

rollback, to limit the monetary charge against

5

violators to five years' worth of reductions plus

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interest, to require 10% of monetary charge

7

collections to be credited to the rollback

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enforcement fund, and to provide amnesty for

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persons who report their illegal receipt of the

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rollback.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 323.152, 323.153, and 323.156 of the	12
Revised Code be amended to read as follows:	13

Sec. 323.152.  In addition to the reduction in taxes required	14
under section 319.302 of the Revised Code, taxes shall be reduced	15
as provided in divisions (A) and (B) of this section.	16

(A)(1) Division (A) of this section applies to any of the	17
following:	18

(a) A person who is permanently and totally disabled;

19

(b) A person who is sixty-five years of age or older;

20

(c) A person who is the surviving spouse of a deceased person	21
who was permanently and totally disabled or sixty-five years of	22
age or older and who applied and qualified for a reduction in	23
taxes under this division in the year of death, provided the	24
surviving spouse is at least fifty-nine but not sixty-five or more	25
years of age on the date the deceased spouse dies.	26

(2) Real property taxes on a homestead owned and occupied, or	27
a homestead in a housing cooperative occupied, by a person to whom	28
division (A) of this section applies shall be reduced for each	29
year for which the owner obtains a certificate of reduction from	30
the county auditor under section 323.154 of the Revised Code or	31
for which the occupant obtains a certificate of reduction in	32
accordance with section 323.159 of the Revised Code. The reduction	33
shall equal the greater of the reduction granted for the tax year	34
preceding the first tax year to which this section applies	35
pursuant to Section 803.06 of Am. Sub. H.B. 119 of the 127th	36
general assembly, if the taxpayer received a reduction for that	37
preceding tax year, or the product of the following:	38

(a) Twenty-five thousand dollars of the true value of the	39
property in money;	40

(b) The assessment percentage established by the tax	41
commissioner under division (B) of section 5715.01 of the Revised	42
Code, not to exceed thirty-five per cent;	43

(c) The effective tax rate used to calculate the taxes	44
charged against the property for the current year, where	45
"effective tax rate" is defined as in section 323.08 of the	46
Revised Code;	47

(d) The quantity equal to one minus the sum of the percentage	48
reductions in taxes received by the property for the current tax	49
year under section 319.302 of the Revised Code and division (B) of	50
section 323.152 of the Revised Code.	51

(B) To provide a partial exemption, real property taxes on	52
any homestead, and manufactured home taxes on any manufactured or	53
mobile home on which a manufactured home tax is assessed pursuant	54
to division (D)(2) of section 4503.06 of the Revised Code, shall	55
be reduced for each year for which the owner obtains a certificate	56
of reduction from the county auditor under section 323.154 of the	57
Revised Code. The amount of the reduction shall equal two and	58
one-half per cent of the amount of taxes to be levied on the	59
homestead or the manufactured or mobile home after applying	60
section 319.301 of the Revised Code.	61

(C) The reductions granted by this section do not apply to	62
special assessments or respread of assessments levied against the	63
homestead, and if there is a transfer of ownership subsequent to	64
the filing of an application for a reduction in taxes, such	65
reductions are not forfeited for such year by virtue of such	66
transfer.	67

(D) The reductions in taxable value referred to in this	68
section shall be applied solely as a factor for the purpose of	69
computing the reduction of taxes under this section and shall not	70
affect the total value of property in any subdivision or taxing	71
district as listed and assessed for taxation on the tax lists and	72
duplicates, or any direct or indirect limitations on indebtedness	73
of a subdivision or taxing district. If after application of	74
sections 5705.31 and 5705.32 of the Revised Code, including the	75
allocation of all levies within the ten-mill limitation to debt	76
charges to the extent therein provided, there would be	77
insufficient funds for payment of debt charges not provided for by	78
levies in excess of the ten-mill limitation, the reduction of	79
taxes provided for in sections 323.151 to 323.159 of the Revised	80
Code shall be proportionately adjusted to the extent necessary to	81
provide such funds from levies within the ten-mill limitation.	82

(E) No reduction shall be made on the taxes due on the	83
homestead of any person convicted of violating division (C) or (D)	84
or (E) of section 323.153 of the Revised Code for a period of	85
three years following the conviction.	86

Sec. 323.153.  (A) To obtain a reduction in real property	87
taxes under division (A) or (B) of section 323.152 of the Revised	88
Code or in manufactured home taxes under division (B) of section	89
323.152 of the Revised Code, the owner shall file an application	90
with the county auditor of the county in which the owner's	91
homestead is located.	92

To obtain a reduction in real property taxes under division	93
(A) of section 323.152 of the Revised Code, the occupant of a	94
homestead in a housing cooperative shall file an application with	95
the nonprofit corporation that owns and operates the housing	96
cooperative, in accordance with this paragraph. Not later than the	97
first day of March each year, the corporation shall obtain	98
applications from the county auditor's office and provide one to	99
each new occupant. Not later than the first day of May, any	100
occupant who may be eligible for a reduction in taxes under	101
division (A) of section 323.152 of the Revised Code shall submit	102
the completed application to the corporation. Not later than the	103
fifteenth day of May, the corporation shall file all completed	104
applications, and the information required by division (B) of	105
section 323.159 of the Revised Code, with the county auditor of	106
the county in which the occupants' homesteads are located.	107
Continuing applications shall be furnished to an occupant in the	108
manner provided in division (C)(4) of this section.	109

(1) An application for reduction based upon a physical	110
disability shall be accompanied by a certificate signed by a	111
physician, and an application for reduction based upon a mental	112
disability shall be accompanied by a certificate signed by a	113
physician or psychologist licensed to practice in this state,	114
attesting to the fact that the applicant is permanently and	115
totally disabled. The certificate shall be in a form that the tax	116
commissioner requires and shall include the definition of	117
permanently and totally disabled as set forth in section 323.151	118
of the Revised Code. An application for reduction based upon a	119
disability certified as permanent and total by a state or federal	120
agency having the function of so classifying persons shall be	121
accompanied by a certificate from that agency.	122

An application for a reduction under division (A) of section	123
323.152 of the Revised Code constitutes a continuing application	124
for a reduction in taxes for each year in which the dwelling is	125
the applicant's homestead.	126

(2) An application for a reduction in taxes under division	127
(B) of section 323.152 of the Revised Code shall be filed only if	128
the homestead or manufactured or mobile home was transferred in	129
the preceding year or did not qualify for and receive the	130
reduction in taxes under that division for the preceding tax year.	131
The application for homesteads transferred in the preceding year	132
shall be incorporated into any form used by the county auditor to	133
administer the tax law in respect to the conveyance of real	134
property pursuant to section 319.20 of the Revised Code or of used	135
manufactured homes or used mobile homes as defined in section	136
5739.0210 of the Revised Code. The owner of a manufactured or	137
mobile home who has elected under division (D)(4) of section	138
4503.06 of the Revised Code to be taxed under division (D)(2) of	139
that section for the ensuing year may file the application at the	140
time of making that election. The application shall contain a	141
statement that failure by the applicant to affirm on the	142
application that the dwelling on the property conveyed is the	143
applicant's homestead prohibits the owner from receiving the	144
reduction in taxes until a proper application is filed within the	145
period prescribed by division (A)(3) of this section. Such an	146
application constitutes a continuing application for a reduction	147
in taxes for each year in which the dwelling is the applicant's	148
homestead.	149

(3) Failure to receive a new application filed under division	150
(A)(1) or (2) or notification under division (C) of this section	151
after a certificate of reduction has been issued under section	152
323.154 of the Revised Code, or failure to receive a new	153
application filed under division (A)(1) or notification under	154
division (C) of this section after a certificate of reduction has	155
been issued under section 323.159 of the Revised Code, is	156
prima-facie evidence that the original applicant is entitled to	157
the reduction in taxes calculated on the basis of the information	158
contained in the original application. The original application	159
and any subsequent application, including any late application,	160
shall be in the form of a signed statement and shall be filed	161
after the first Monday in January and not later than the first	162
Monday in June. The original application and any subsequent	163
application for a reduction in real property taxes shall be filed	164
in the year for which the reduction is sought. The original	165
application and any subsequent application for a reduction in	166
manufactured home taxes shall be filed in the year preceding the	167
year for which the reduction is sought. The statement shall be on	168
a form, devised and supplied by the tax commissioner, which shall	169
require no more information than is necessary to establish the	170
applicant's eligibility for the reduction in taxes and the amount	171
of the reduction, and, for a certificate of reduction issued under	172
section 323.154 of the Revised Code, shall include an affirmation	173
by the applicant that ownership of the homestead was not acquired	174
from a person, other than the applicant's spouse, related to the	175
owner by consanguinity or affinity for the purpose of qualifying	176
for the real property or manufactured home tax reduction provided	177
for in division (A) or (B) of section 323.152 of the Revised Code.	178
The form shall contain a statement that conviction of willfully	179
falsifying information to obtain a reduction in taxes or failing	180
to comply with division (C) of this section results in the	181
revocation of the right to the reduction for a period of three	182
years.	183

(B) A late application for a tax reduction for the year	184
preceding the year in which an original application is filed, or	185
for a reduction in manufactured home taxes for the year in which	186
an original application is filed, may be filed with the original	187
application. If the county auditor determines the information	188
contained in the late application is correct, the auditor shall	189
determine the amount of the reduction in taxes to which the	190
applicant would have been entitled for the preceding tax year had	191
the applicant's application been timely filed and approved in that	192
year.	193

The amount of such reduction shall be treated by the auditor	194
as an overpayment of taxes by the applicant and shall be refunded	195
in the manner prescribed in section 5715.22 of the Revised Code	196
for making refunds of overpayments. On the first day of July of	197
each year, the county auditor shall certify the total amount of	198
the reductions in taxes made in the current year under this	199
division to the tax commissioner, who shall treat the full amount	200
thereof as a reduction in taxes for the preceding tax year and	201
shall make reimbursement to the county therefor in the manner	202
prescribed by section 323.156 of the Revised Code, from money	203
appropriated for that purpose.	204

(C)(1) If, in any year after an application has been filed	205
under division (A)(1) or (2) of this section, the owner does not	206
qualify for a reduction in taxes on the homestead or on the	207
manufactured or mobile home set forth on such application, the	208
owner shall notify the county auditor that the owner is not	209
qualified for a reduction in taxes.	210

(2) If, in any year after an application has been filed under	211
division (A) of this section, the occupant of a homestead in a	212
housing cooperative does not qualify for a reduction in taxes on	213
the homestead, the occupant shall notify the county auditor that	214
the occupant is not qualified for a reduction in taxes or file a	215
new application under division (A) of this section.	216

(3) The county auditor shall make reasonable attempts to	217
identify owners of property receiving the reduction in taxes under	218
division (B) of section 323.152 of the Revised Code that are not	219
entitled to the reduction. If the county auditor or county	220
treasurer discovers that the owner of property not entitled to the	221
reduction in taxes under that division (B) of section 323.152 of	222
the Revised Code failed to notify the county auditor as required	223
by division (C)(1) of this section, a charge shall be imposed	224
against the property in the amount by which taxes were reduced	225
under that division for each tax year the county auditor	226
ascertains that the property was not entitled to the reduction and	227
was owned by the current owner, but not for more than the five	228
most recent such years. Interest shall accrue in the manner	229
prescribed by division (B) of section 323.121 or division (G)(2)	230
of section 4503.06 of the Revised Code on the amount by which	231
taxes were reduced for each such tax year as if the reduction	232
became delinquent taxes at the close of the last day the second	233
installment of taxes for that tax year could be paid without	234
penalty. The county auditor shall notify the owner, by ordinary	235
mail, of the charge, of the owner's right to appeal the charge,	236
and of the manner in which the owner may appeal. The owner may	237
appeal the imposition of the charge and interest by filing an	238
appeal with the county board of revision not later than the last	239
day prescribed for payment of real and public utility property	240
taxes under section 323.12 of the Revised Code following receipt	241
of the notice and occurring at least ninety days after receipt of	242
the notice. The appeal shall be treated in the same manner as a	243
complaint relating to the valuation or assessment of real property	244
under Chapter 5715. of the Revised Code. The charge and any	245
interest shall be collected as other delinquent taxes. Ten per	246
cent of the amount collected shall be credited to the county	247
rollback enforcement fund, which shall be created in the county	248
treasury, for use by the county auditor to enforce compliance with	249
this section. The remainder shall be credited to the county	250
undivided income tax fund and distributed to taxing districts in	251
the county in the same manner as provided in section 323.156 of	252
the Revised Code.	253

(4) Each year during January, the county auditor shall	254
furnish by ordinary mail a continuing application to each person	255
issued a certificate of reduction under section 323.154 or 323.159	256
of the Revised Code with respect to a reduction in taxes under	257
division (A) of section 323.152 of the Revised Code. The	258
continuing application shall be used to report changes in	259
ownership or occupancy of the homestead, including changes in or	260
revocation of a revocable inter vivos trust, changes in	261
disability, and other changes in the information earlier furnished	262
the auditor relative to the reduction in taxes on the property.	263
The continuing application shall be returned to the auditor not	264
later than the first Monday in June; provided, that if such	265
changes do not affect the status of the homestead exemption or the	266
amount of the reduction to which the owner is entitled under	267
division (A) of section 323.152 of the Revised Code or to which	268
the occupant is entitled under section 323.159 of the Revised	269
Code, the application does not need to be returned.	270

(5) Each year during February, the county auditor, except as	271
otherwise provided in this paragraph, shall furnish by ordinary	272
mail an original application to the owner, as of the first day of	273
January of that year, of a homestead or a manufactured or mobile	274
home that transferred during the preceding calendar year and that	275
qualified for and received a reduction in taxes under division (B)	276
of section 323.152 of the Revised Code for the preceding tax year.	277
In order to receive the reduction under that division, the owner	278
shall file the application with the county auditor not later than	279
the first Monday in June. If the application is not timely filed,	280
the auditor shall not grant a reduction in taxes for the homestead	281
for the current year, and shall notify the owner that the	282
reduction in taxes has not been granted, in the same manner	283
prescribed under section 323.154 of the Revised Code for	284
notification of denial of an application. Failure of an owner to	285
receive an application does not excuse the failure of the owner to	286
file an original application. The county auditor is not required	287
to furnish an application under this paragraph for any homestead	288
for which application has previously been made on a form	289
incorporated into any form used by the county auditor to	290
administer the tax law in respect to the conveyance of real	291
property or of used manufactured homes or used mobile homes, and	292
an owner who previously has applied on such a form is not required	293
to return an application furnished under this paragraph.	294

(D) No person shall knowingly make a false statement for the	295
purpose of obtaining a reduction in the person's real property or	296
manufactured home taxes under section 323.152 of the Revised Code.	297

(E) No person shall knowingly fail to notify the county	298
auditor of changes required by division (C) of this section that	299
have the effect of maintaining or securing a reduction in taxes	300
under section 323.152 of the Revised Code.	301

(F) No person shall knowingly make a false statement or	302
certification attesting to any person's physical or mental	303
condition for purposes of qualifying such person for tax relief	304
pursuant to sections 323.151 to 323.159 of the Revised Code.	305

Sec. 323.156.  Within thirty days after a settlement of taxes	306
under divisions (A), (C), and (H) of section 321.24 of the Revised	307
Code, the county treasurer shall certify to the tax commissioner	308
one-half of the total amount of taxes on real property that were	309
reduced pursuant to section 323.152 of the Revised Code for the	310
preceding tax year, and one-half of the total amount of taxes on	311
manufactured and mobile homes that were reduced pursuant to	312
division (B) of section 323.152 of the Revised Code for the	313
current tax year, as evidenced by the certificates of reduction	314
and the tax duplicate certified to the county treasurer by the	315
county auditor, less ninety per cent of the amount collected	316
pursuant to division (C)(3) of section 323.153 of the Revised Code	317
since the treasurer's last certification under this section. The	318
commissioner, within thirty days of the receipt of such	319
certifications, shall provide for payment to the county treasurer,	320
from the general revenue fund, of the net amount certified, which	321
shall be credited upon receipt to the county's undivided income	322
tax fund, and an amount equal to two per cent of the net amount by	323
which taxes were reduced, which shall be credited upon receipt to	324
the county general fund as a payment, in addition to the fees and	325
charges authorized by sections 319.54 and 321.26 of the Revised	326
Code, to the county auditor and treasurer for the costs of	327
administering the exemption provided under sections 323.151 to	328
323.159 of the Revised Code.	329

Immediately upon receipt of funds into the county undivided	330
income tax fund under this section, the auditor shall distribute	331
the full amount thereof among the taxing districts in the county	332
as though the total had been paid as taxes by each person for whom	333
taxes were reduced under sections 323.151 to 323.159 of the	334
Revised Code.	335

Section 2. That existing sections 323.152, 323.153, and	336
323.156 of the Revised Code are hereby repealed.	337

Section 3. (A) The county auditor of each county shall	338
determine a date, to fall within one year after the effective date	339
of this act, by which owners of property located in the county who	340
currently receive the reduction in taxes under division (B) of	341
section 323.152 of the Revised Code must inform the county auditor	342
or county treasurer that the property might not be entitled to the	343
reduction. The property owner shall provide the auditor or	344
treasurer with the property owner's full name, the street address	345
of the property, and the month and year the owner last used the	346
property as the owner's homestead.	347

Property owners who so notify the county auditor or treasurer	348
on or before the date determined by the county auditor shall be	349
immune from prosecution for violation of division (D) or (E) of	350
section 323.153 of the Revised Code and shall not be subject to	351
the prohibition in division (E) of section 323.152 of the Revised	352
Code.	353

(B)(1) In lieu of the charges imposed in division (C)(3) of	354
section 323.153 of the Revised Code, if the county auditor	355
determines that property subject to the manufactured home tax in	356
division (C) of section 4503.06 of the Revised Code has improperly	357
received the reduction under division (B) of section 323.152 of	358
the Revised Code for the current tax year and one or more	359
preceding tax years, and that the owner of the property has	360
provided proper notice to the county auditor or treasurer pursuant	361
to division (A) of this section, the property owner shall be	362
subject to a charge equal to the reduction in taxes the property	363
received for the current tax year. If the property improperly	364
received the reduction only for the current tax year, no charge	365
shall be imposed so long as the owner provided proper notice under	366
division (A) of this section.	367

(2) In lieu of the charges imposed in division (C)(3) of	368
section 323.153 of the Revised Code, if the county auditor	369
determines that real property has improperly received the	370
reduction under division (B) of section 323.152 of the Revised	371
Code for the preceding tax year and one or more preceding tax	372
years, and that the owner of the property has provided proper	373
notice to the county auditor or treasurer pursuant to division (A)	374
of this section, the property owner shall be subject to a charge	375
equal to the reduction the property received for the preceding tax	376
year. If the property improperly received the reduction only for	377
the preceding tax year, no charge shall be imposed so long as the	378
owner provided proper notice under this section.	379

(C) A reasonable time before the date chosen by the county	380
auditor, the auditor shall publish notice reasonably calculated to	381
reach the property owners identified in division (A) of this	382
section. The notice shall state the purpose of the notice, the	383
relief available under this section, the deadline by which persons	384
must apply for the relief, how relief is to be applied for, and	385
the potential consequences of not doing so.	386

(D) Charges collected under this section shall be credited as	387
provided in division (C)(3) of section 323.153 of the Revised	388
Code.	389

Section 4.  Section 323.156 of the Revised Code is presented	390
in this act as a composite of the section as amended by both Am.	391
H.B. 595 and Am. Sub. H.B. 672 of the 123rd General Assembly. The	392
General Assembly, applying the principle stated in division (B)	393
of section 1.52 of the Revised Code that amendments are to be	394
harmonized if reasonably capable of simultaneous operation, finds	395
that the composite is the resulting version of the section in	396
effect prior to the effective date of the section as presented in	397
this act.	398