As Passed by the House

127th General Assembly Regular Session 2007-2008

Sub. S. B. No. 306

Senator Schuler 

Cosponsors: Senators Mumper, Seitz, Wagoner, Schaffer, Spada, Cates, Amstutz, Austria, Buehrer, Grendell, Harris, Niehaus, Padgett, Schuring, Stivers, Jacobson 

Representatives Gibbs, Schindel, Mecklenborg, Hagan, J., Slesnick, Blessing, Chandler, Combs, Domenick, Dyer, Foley, Luckie, Oelslager, Otterman, J., Schneider, Webster 

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A BILL

To amend sections 135.804, 307.695, 322.07, 323.151,

1

323.152, 323.153, 323.154, 323.155, 323.156,

2

323.159, 3317.16, 4503.065, 4503.066, 4503.067,

3

4503.068, 4735.18, and 5739.09 and to enact

4

section 4735.24 of the Revised Code to change

5

the definition of "housing cooperative" for the

6

purposes of the county homestead tax exemptions

7

and property tax payment link deposit programs

8

for low-to-moderate income senior citizens and

9

permanently disabled citizens, to expand the

10

definition of a homestead owner to include

11

settlors of irrevocable inter vivos trusts, to

12

eliminate the necessity of issuing certificates of

13

reduction for homestead exemptions, to modify how

14

state funding for joint vocational school

15

districts is computed when a new school district

16

is added to the joint district, to establish

17

requirements for the disbursement of earnest money

18

deposited in a real estate broker's trust or

19

special account, and to allow certain counties to

20

increase the lodging tax by up to four per cent to

21

fund a new arena or convention center project.

22

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

Section 1. That sections 135.804, 307.695, 322.07, 323.151,	23
323.152, 323.153, 323.154, 323.155, 323.156, 323.159, 3317.16,	24
4503.065, 4503.066, 4503.067, 4503.068, 4735.18, and 5739.09 be	25
amended and section 4735.24 of the Revised Code be enacted to read	26
as follows:	27

Sec. 135.804.  As used in sections 135.804 to 135.807 of the	28
Revised Code:	29

(A) "Taxes" has the same meaning as in section 323.01 of the	30
Revised Code.	31

(B) "Eligible borrower" means a person meeting all of the	32
following:	33

(1) The person is the owner of a homestead that is not	34
charged with more than two years' worth of certified delinquent	35
taxes.	36

(2) The person had total income in the year prior to	37
submitting an application for a reduced rate loan under a property	38
tax payment linked deposit program of the lesser of fifty thousand	39
dollars or the total income limit established pursuant to section	40
135.805 of the Revised Code by the board of county commissioners	41
as an eligibility requirement for participation in a property tax	42
payment linked deposit program.	43

(3) The person meets all other eligibility requirements	44
established pursuant to section 135.805 of the Revised Code by the	45
board of county commissioners for participation in a property tax	46
payment linked deposit program.	47

(C) "Eligible lending institution" means a financial	48
institution that meets all of the following:	49

(1) The financial institution is eligible to make loans to	50
individuals that are secured by mortgages, including mortgages	51
commonly known as reverse mortgages.	52

(2) The financial institution has an office located within	53
the territorial limits of the county.	54

(3) The financial institution is an eligible public	55
depository described in section 135.32 of the Revised Code into	56
which the county's investing authority may deposit the public	57
moneys of the county.	58

(4) The financial institution has entered into an agreement	59
described in division (B)(4) of section 135.805 of the Revised	60
Code with the investing authority of the county to participate in	61
the property tax payment linked deposit program.	62

(D)(1) "Homestead" means either of the following:

63

(1)(a) A dwelling, including a unit in a multiple-unit	64
dwelling and a manufactured home or mobile home taxed as real	65
property pursuant to division (B) of section 4503.06 of the	66
Revised Code, owned and occupied as a home by an individual whose	67
domicile is in this state and who has not acquired ownership from	68
a person, other than the individual's spouse, related by	69
consanguinity or affinity for the purpose of qualifying for a	70
property tax payment linked deposit program.	71

(2)(b) A unit in a housing cooperative that is occupied as a	72
home, but not owned, by an individual whose domicile is in this	73
state.	74

(2) The homestead shall include so much of the land	75
surrounding it, not exceeding one acre, as is reasonably necessary	76
for the use of the dwelling or unit as a home. An owner includes a	77
holder of one of the several estates in fee, a vendee in	78
possession under a purchase agreement or a land contract, a	79
mortgagor, a life tenant, one or more tenants with a right of	80
survivorship, tenants in common, and a settlor of a revocable or	81
irrevocable inter vivos trust holding the title to a homestead	82
occupied by the settlor as of right under the trust.	83

(E) "Housing cooperative" means a housing complex of at least	84
two hundred fifty units that is owned and operated by a nonprofit	85
corporation that issues a share of the corporation's stock to an	86
individual, entitling the individual to live in a unit of the	87
complex, and collects a monthly maintenance fee from the	88
individual to maintain, operate, and pay the taxes of the complex.	89

(F) "Investing authority" and "public moneys" have the same	90
meanings as in section 135.31 of the Revised Code.	91

(G) "Lien certificate" means the certificate described in	92
section 135.807 of the Revised Code.	93

(H) "Old age and survivors benefits received pursuant to the	94
'Social Security Act'" or "tier I railroad retirement benefits	95
received pursuant to the 'Railroad Retirement Act'" means:	96

(1) Old age benefits payable under the social security or	97
railroad retirement laws in effect on the last day of the calendar	98
year prior to the year for which a reduced rate loan under a	99
property tax payment linked deposit program is applied for, or, if	100
no such benefits are payable that year, old age benefits payable	101
the first succeeding year in which old age benefits under the	102
social security or railroad retirement laws are payable, except in	103
those cases where a change in social security or railroad	104
retirement benefits results in a reduction in income.	105

(2) The lesser of:

106

(a) Survivors benefits payable under the social security or	107
railroad retirement laws in effect on the last day of the calendar	108
year prior to the year for which a reduced rate loan under a	109
property tax payment linked deposit program is applied for, or, if	110
no such benefits are payable that year, survivors benefits payable	111
the first succeeding year in which survivors benefits are payable;	112
or	113

(b) Old age benefits of the deceased spouse, as determined	114
under division (H)(1) of this section, upon which the surviving	115
spouse's survivors benefits are based under the social security or	116
railroad retirement laws, except in those cases where a change in	117
benefits would cause a reduction in income.	118

Survivors benefits are those described in division (H)(2)(b)	119
of this section only if the deceased spouse received old age	120
benefits in the year in which the deceased spouse died. If the	121
deceased spouse did not receive old age benefits in the year in	122
which the deceased spouse died, then survivors benefits are those	123
described in division (H)(2)(a) of this section.	124

(I) "Permanently and totally disabled" means a person who, on	125
the first day of January of the year that a reduced rate loan	126
under a property tax payment linked deposit program is applied	127
for, has some impairment in body or mind that makes the person	128
unable to work at any substantially remunerative employment that	129
the person reasonably is able to perform and that will, with	130
reasonable probability, continue for an indefinite period of at	131
least twelve months without any present indication of recovery	132
therefrom or has been certified as permanently and totally	133
disabled by a state or federal agency having the function of so	134
classifying persons.	135

(J) "Property tax payment linked deposit program" means a	136
county-widecountywide program authorized under section 135.805 of	137
the Revised Code and established by the board of county	138
commissioners of a county pursuant to that section.	139

(K) "Sixty-five years of age or older" means a person who has	140
attained age sixty-four prior to the first day of January of the	141
year of application for a reduced rate loan under a property tax	142
payment linked deposit program.	143

(L) "Total income" means the adjusted gross income of the	144
owner and the owner's spouse for the year preceding the year in	145
which application for a reduced rate loan under a property tax	146
payment linked deposit program is made, as determined under the	147
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as	148
amended, adjusted as follows:	149

(1) Subtract the amount of disability benefits included in	150
adjusted gross income, but not to exceed fifty-two hundred	151
dollars;	152

(2) Add old age and survivors benefits received pursuant to	153
the "Social Security Act" that are not included in adjusted gross	154
income;	155

(3) Add retirement, pension, annuity, or other retirement	156
payments or benefits not included in adjusted gross income;	157

(4) Add tier I and tier II railroad retirement benefits	158
received pursuant to the "Railroad Retirement Act," 50 Stat. 307,	159
45 U.S.C.A. 228;	160

(5) Add interest on federal, state, and local government	161
obligations;	162

(6) For a person who received a reduced rate loan under a	163
property tax payment linked deposit program for a prior year on	164
the basis of being permanently and totally disabled and whose	165
current application for a reduced rate loan is made on the basis	166
of age, subtract the following amount:	167

(a) If the person received disability benefits that were not	168
included in adjusted gross income in the year preceding the first	169
year in which the person applied for a reduced rate loan on the	170
basis of age, subtract an amount equal to the disability benefits	171
the person received in that preceding year, to the extent included	172
in total income in the current year and not subtracted under	173
division (L)(1) of this section in the current year;	174

(b) If the person received disability benefits that were	175
included in adjusted gross income in the year preceding the first	176
year in which the person applied for a reduced rate loan on the	177
basis of age, subtract an amount equal to the amount of disability	178
benefits that were subtracted pursuant to division (L)(1) of this	179
section in that preceding year, to the extent included in total	180
income in the current year and not subtracted under division	181
(L)(1) of this section in the current year.	182

Disability benefits that are paid by the department of	183
veterans affairs or a branch of the armed forces of the United	184
States on account of an injury or disability shall not be included	185
in total income.	186

Sec. 307.695.  (A) As used in this section:

187

(1) "Arena" means any structure designed and constructed for	188
the purpose of providing a venue for public entertainment and	189
recreation by the presentation of concerts, sporting and athletic	190
events, and other events and exhibitions, including facilities	191
intended to house or provide a site for one or more athletic or	192
sports teams or activities, spectator facilities, parking	193
facilities, walkways, and auxiliary facilities, real and personal	194
property, property rights, easements, leasehold estates, and	195
interests that may be appropriate for, or used in connection with,	196
the operation of the arena.	197

(2) "Convention center" means any structure expressly	198
designed and constructed for the purposes of presenting	199
conventions, public meetings, and exhibitions and includes parking	200
facilities that serve the center and any personal property used in	201
connection with any such structure or facilities.	202

(3) "Eligible county" means a county having a population of	203
at least four hundred thousand but not more than eight hundred	204
thousand according to the 2000 federal decennial census and that	205
directly borders the geographic boundaries of another state.	206

(4) "Entity" means a nonprofit corporation, a municipal	207
corporation, a port authority created under Chapter 4582. of the	208
Revised Code, or a convention facilities authority created under	209
Chapter 351. of the Revised Code.	210

(5) "Lodging taxes" means excise taxes levied under division	211
(A)(1), (A)(2), (A)(8), or (C) of section 5739.09 of the Revised	212
Code and the revenues arising therefrom.	213

(6) "Nonprofit corporation" means a nonprofit corporation	214
that is organized under the laws of this state and that includes	215
within the purposes for which it is incorporated the authorization	216
to lease and operate facilities such as a convention center or an	217
arena or a combination of an arena and convention center.	218

(7) "Project" means acquiring, constructing, reconstructing,	219
renovating, rehabilitating, expanding, adding to, equipping,	220
furnishing or otherwise improving an arena, a convention center,	221
or a combination of an arena and convention center. For purposes	222
of this section, a project is a permanent improvement for one	223
purpose under Chapter 133. of the Revised Code.	224

(8) "Project revenues" means money received by a county with	225
a population greater than four hundred thousand wherein the	226
population of the largest city comprises more than one-third	227
one-fourth of that county's population, other than money from	228
taxes or from the proceeds of securities secured by taxes, in	229
connection with, derived from, related to, or resulting from a	230
project, including, but not limited to, rentals and other	231
payments received under a lease or agreement with respect to the	232
project, ticket charges or surcharges for admission to events at	233
a project, charges or surcharges for parking for events at a	234
project, charges for the use of a project or any portion of a	235
project, including suites and seating rights, the sale of naming	236
rights for the project or a portion of the project, unexpended	237
proceeds of any county revenue bonds issued for the project, and	238
any income and profit from the investment of the proceeds of any	239
such revenue bonds or any project revenues.	240

(9) "Chapter 133. securities," "debt charges," "general	241
obligation," "legislation," "one purpose," "outstanding,"	242
"permanent improvement," "person," and "securities" have the	243
meanings given to those terms in section 133.01 of the Revised	244
Code.	245

(B) A board of county commissioners may enter into an	246
agreement with a convention and visitors' bureau operating in the	247
county under which:	248

(1) The bureau agrees to construct and equip a convention	249
center in the county and to pledge and contribute from the tax	250
revenues received by it under division (A) of section 5739.09 of	251
the Revised Code, not more than such portion thereof that it is	252
authorized to pledge and contribute for the purpose described in	253
division (C) of this section; and	254

(2) The board agrees to levy a tax under division (C) of	255
section 5739.09 of the Revised Code and pledge and contribute the	256
revenues therefrom for the purpose described in division (C) of	257
this section.	258

(C) The purpose of the pledges and contributions described in	259
divisions (B)(1) and (2) of this section is payment of principal,	260
interest, and premium, if any, on bonds and notes issued by or for	261
the benefit of the bureau to finance the construction and	262
equipping of a convention center. The pledges and contributions	263
provided for in the agreement shall be for the period stated in	264
the agreement. Revenues determined from time to time by the board	265
to be needed to cover the real and actual costs of administering	266
the tax imposed by division (C) of section 5739.09 of the Revised	267
Code may not be pledged or contributed. The agreement shall	268
provide that any such bonds and notes shall be secured by a trust	269
agreement between the bureau or other issuer acting for the	270
benefit of the bureau and a corporate trustee that is a trust	271
company or bank having the powers of a trust company within or	272
without the state, and the trust agreement shall pledge or assign	273
to the retirement of the bonds or notes, all moneys paid by the	274
county under this section. A tax the revenues from which are	275
pledged under an agreement entered into by a board of county	276
commissioners under this section shall not be subject to	277
diminution by initiative or referendum, or diminution by statute,	278
unless provision is made therein for an adequate substitute	279
therefor reasonably satisfactory to the trustee under the trust	280
agreement that secures the bonds and notes.	281

(D) A pledge of money by a county under division (B) of this	282
section shall not be indebtedness of the county for purposes of	283
Chapter 133. of the Revised Code.	284

(E) If the terms of the agreement so provide, the board of	285
county commissioners may acquire and lease real property to the	286
convention bureau as the site of the convention center. The lease	287
shall be on such terms as are set forth in the agreement. The	288
purchase and lease are not subject to the limitations of sections	289
307.02 and 307.09 of the Revised Code.	290

(F) In addition to the authority granted to a board of county	291
commissioners under divisions (B) to (E) of this section, a board	292
of county commissioners in a county with a population of one	293
million two hundred thousand or more, or a county with a	294
population greater than four hundred thousand wherein the	295
population of the largest city comprises more than one-third	296
one-fourth of that county's population, may purchase, for cash or	297
by installment payments, enter into lease-purchase agreements	298
for, lease with an option to purchase, lease, construct, enlarge,	299
improve, rebuild, equip, or furnish a convention center.	300

(G) The board of county commissioners of a county with a	301
population greater than four hundred thousand wherein the	302
population of the largest city comprises more than one-third	303
one-fourth of that county's population may undertake, finance,	304
lease, operate, and maintain a project. For the purposes of this	305
section, leasing includes but is not limited to entering a	306
lease-purchase agreement. The board may lease a project to or from	307
an entity on terms that the board determines to be in the best	308
interest of the county and in furtherance of the public purpose	309
of the project; the lease may be for a term of thirty-five years	310
or less and may provide for an option of the entity or the county	311
to renew the lease for a term of thirty-five years or less. The	312
board may enter into an agreement with an entity with respect to	313
a project on terms that the board determines to be in the best	314
interest of the county and in furtherance of the public purpose	315
of the project. To the extent provided for in an agreement or a	316
lease with an entity, the board may authorize the entity to	317
administer on behalf of the board any contracts for the project.	318
The board may enter into an agreement providing for the sale to	319
a person of naming rights to a project or portion of a project,	320
for a period, for consideration, and on other terms and	321
conditions that the board determines to be in the best interest	322
of the county and in furtherance of the public purpose of the	323
project. The board may enter into an agreement with a person	324
owning or operating a professional athletic or sports team	325
providing for the use by that person of a project or portion of	326
a project for that team's offices, training, practices, and home	327
games for a period, for consideration, and on other terms and	328
conditions that the board determines to be in the best interest	329
of the county and in furtherance of the public purpose of the	330
project. The board may establish ticket charges or surcharges for	331
admission to events at a project, charges or surcharges for	332
parking for events at a project, and charges for the use of a	333
project or any portion of a project, including suites and seating	334
rights, and may, as necessary, enter into agreements related	335
thereto with persons for a period, for consideration, and on	336
other terms and conditions that the board determines to be in	337
the best interest of the county and in furtherance of the public	338
purpose of the project. A lease or agreement authorized by this	339
division is not subject to sections 307.02, 307.09, and 307.12	340
of the Revised Code.	341

(H) Notwithstanding any contrary provision in Chapter 5739.	342
of the Revised Code, after adopting a resolution declaring it to	343
be in the best interest of the county to undertake a project as	344
described in division (G) of this section, the board of county	345
commissioners of an eligible county may adopt a resolution	346
enacting or increasing any lodging taxes within the limits	347
specified in Chapter 5739. of the Revised Code with respect to	348
those lodging taxes and amending any prior resolution under which	349
any of its lodging taxes have been imposed in order to provide	350
that those taxes, after deducting the real and actual costs of	351
administering the taxes and any portion of the taxes returned to	352
any municipal corporation or township as provided in division	353
(A)(1) of section 5739.09 of the Revised Code, shall be used by	354
the board for the purposes of undertaking, financing, operating,	355
and maintaining the project, including paying debt charges on any	356
securities issued by the board under division (I) of this section,	357
or to make contributions to the convention and visitors' bureau	358
operating within the county, or to promote, advertise, and market	359
the region in which the county is located, all as the board may	360
determine and make appropriations for from time to time, subject	361
to the terms of any pledge to the payment of debt charges on	362
outstanding general obligation securities or special obligation	363
securities authorized under division (I) of this section. A	364
resolution adopted under division (H) of this section shall be	365
adopted not earlier than January 15, 2007, and not later than	366
January 15, 2008.	367

A resolution adopted under division (H) of this section may	368
direct the board of elections to submit the question of enacting	369
or increasing lodging taxes, as the case may be, to the electors	370
of the county at a special election held on the date specified by	371
the board in the resolution, provided that the election occurs not	372
less than seventy-five days after a certified copy of the	373
resolution is transmitted to the board of elections and no later	374
than January 15, 2008. A resolution submitted to the electors	375
under this division shall not go into effect unless it is approved	376
by a majority of those voting upon it. A resolution adopted under	377
division (H) of this section that is not submitted to the electors	378
of the county for their approval or disapproval is subject to a	379
referendum as provided in sections 305.31 to 305.41 of the Revised	380
Code.	381

A resolution adopted under division (H) of this section takes	382
effect upon its adoption, unless the resolution is submitted to	383
the electors of the county for their approval or disapproval, in	384
which case the resolution takes effect on the date the board of	385
county commissioners receives notification from the board of	386
elections of the affirmative vote. Lodging taxes received after	387
the effective date of the resolution may be used for the purposes	388
described in division (H) of this section, except that lodging	389
taxes that have been pledged to the payment of debt charges on any	390
bonds or notes issued by or for the benefit of a convention and	391
visitors' bureau under division (C) of this section shall be used	392
exclusively for that purpose until such time as the bonds or notes	393
are no longer outstanding under the trust agreement securing those	394
bonds or notes.	395

(I)(1) The board of county commissioners of a county with a	396
population greater than four hundred thousand wherein the	397
population of the largest city comprises more than one-third	398
one-fourth of that county's population may issue the following	399
securities of the county for the purpose of paying costs of the	400
project, refunding any outstanding county securities issued for	401
that purpose, refunding any outstanding bonds or notes issued by	402
or for the benefit of the bureau under division (C) of this	403
section, or for any combination of those purposes:	404

(a) General obligation securities issued under Chapter 133.	405
of the Revised Code. The resolution authorizing these securities	406
may include covenants to appropriate annually from lawfully	407
available lodging taxes, and to continue to levy and collect those	408
lodging taxes in, amounts necessary to meet the debt charges on	409
those securities.	410

(b) Special obligation securities issued under Chapter 133.	411
of the Revised Code that are secured only by lawfully available	412
lodging taxes and any other taxes and revenues pledged to pay the	413
debt charges on those securities, except ad valorem property	414
taxes. The resolution authorizing those securities shall include a	415
pledge of and covenants to appropriate annually from lawfully	416
available lodging taxes and any other taxes and revenues pledged	417
for such purpose, and to continue to collect any of those revenues	418
pledged for such purpose and to levy and collect those lodging	419
taxes and any other taxes pledged for such purpose, in amounts	420
necessary to meet the debt charges on those securities. The pledge	421
is valid and binding from the time the pledge is made, and the	422
lodging taxes so pledged and thereafter received by the county are	423
immediately subject to the lien of the pledge without any physical	424
delivery of the lodging taxes or further act. The lien of any	425
pledge is valid and binding as against all parties having claims	426
of any kind in tort, contract, or otherwise against the county,	427
regardless of whether such parties have notice of the lien.	428
Neither the resolution nor any trust agreement by which a pledge	429
is created or further evidenced is required to be filed or	430
recorded except in the records of the board. The special	431
obligation securities shall contain a statement on their face to	432
the effect that they are not general obligation securities, and,	433
unless paid from other sources, are payable from the pledged	434
lodging taxes.	435

(c) Revenue securities authorized under section 133.08 of the	436
Revised Code and issued under Chapter 133. of the Revised Code	437
that are secured only by lawfully available project revenues	438
pledged to pay the debt charges on those securities.	439

(2) The securities described in division (I)(1) of this	440
section are subject to Chapter 133. of the Revised Code.	441

(3) Section 133.34 of the Revised Code, except for division	442
(A) of that section, applies to the issuance of any refunding	443
securities authorized under this division. In lieu of division (A)	444
of section 133.34 of the Revised Code, the board of county	445
commissioners shall establish the maturity date or dates, the	446
interest payable on, and other terms of refunding securities as it	447
considers necessary or appropriate for their issuance, provided	448
that the final maturity of refunding securities shall not exceed	449
by more than ten years the final maturity of any bonds refunded by	450
refunding securities.	451

(4) The board may not repeal, rescind, or reduce all or any	452
portion of any lodging taxes pledged to the payment of debt	453
charges on any outstanding special obligation securities	454
authorized under this division, and no portion of any lodging	455
taxes that is pledged, or that the board has covenanted to levy,	456
collect, and appropriate annually to pay debt charges on any	457
outstanding securities authorized under this division is subject	458
to repeal, rescission, or reduction by the electorate of the	459
county.	460

Sec. 322.07.  (A) By resolution the board of county	461
commissioners may prescribe a lower rate for the real property	462
transfer tax levied under section 322.02 of the Revised Code than	463
the uniform rate that is otherwise levied. The lower rate shall	464
apply to any deed conveying a homestead for which the grantor has	465
obtained a certificate of reduction in taxes under section 323.154	466
of the Revised Code forreceiving a reduction in taxes under	467
division (A) of section 323.152 of the Revised Code.	468

(B) A board of county commissioners that prescribes a lower	469
real property transfer tax rate under division (A) of this section	470
shall prescribe the same lower rate for the manufactured home	471
transfer tax if it levies a manufactured home transfer tax under	472
section 322.06 of the Revised Code. The lower manufactured home	473
transfer tax rate shall apply to any certificate of title	474
conveying a used manufactured or used mobile home for which the	475
grantor has obtained a certificate ofreceiving a reduction in	476
assessable value under section 4503.0674503.065 of the Revised	477
Code.	478

Sec. 323.151.  As used in sections 323.151 to 323.159 of the	479
Revised Code:	480

(A)(1) "Homestead" means either of the following:

481

(1)(a) A dwelling, including a unit in a multiple-unit	482
dwelling and a manufactured home or mobile home taxed as real	483
property pursuant to division (B) of section 4503.06 of the	484
Revised Code, owned and occupied as a home by an individual whose	485
domicile is in this state and who has not acquired ownership from	486
a person, other than the individual's spouse, related by	487
consanguinity or affinity for the purpose of qualifying for the	488
real property tax reduction provided in section 323.152 of the	489
Revised Code.	490

(2)(b) A unit in a housing cooperative that is occupied as a	491
home, but not owned, by an individual whose domicile is in this	492
state.	493

(2) The homestead shall include so much of the land	494
surrounding it, not exceeding one acre, as is reasonably necessary	495
for the use of the dwelling or unit as a home. An owner includes a	496
holder of one of the several estates in fee, a vendee in	497
possession under a purchase agreement or a land contract, a	498
mortgagor, a life tenant, one or more tenants with a right of	499
survivorship, tenants in common, and a settlor of a revocable or	500
irrevocable inter vivos trust holding the title to a homestead	501
occupied by the settlor as of right under the trust. The tax	502
commissioner shall adopt rules for the uniform classification and	503
valuation of real property or portions of real property as	504
homesteads.	505

(B) "Sixty-five years of age or older" means a person who has	506
attained age sixty-four prior to the first day of January of the	507
year of application for reduction in real estate taxes.	508

(C) "Permanently and totally disabled" means a person who	509
has, on the first day of January of the year of application for	510
reduction in real estate taxes, some impairment in body or mind	511
that makes the person unable to work at any substantially	512
remunerative employment that the person is reasonably able to	513
perform and that will, with reasonable probability, continue for	514
an indefinite period of at least twelve months without any	515
present indication of recovery therefrom or has been certified as	516
permanently and totally disabled by a state or federal agency	517
having the function of so classifying persons.	518

(D) "Housing cooperative" means a housing complex of at least	519
two hundred fifty units that is owned and operated by a nonprofit	520
corporation that issues a share of the corporation's stock to an	521
individual, entitling the individual to live in a unit of the	522
complex, and collects a monthly maintenance fee from the	523
individual to maintain, operate, and pay the taxes of the complex.	524

Sec. 323.152.  In addition to the reduction in taxes required	525
under section 319.302 of the Revised Code, taxes shall be reduced	526
as provided in divisions (A) and (B) of this section.	527

(A)(1) Division (A) of this section applies to any of the	528
following:	529

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

530

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

531

(c) A person who is the surviving spouse of a deceased person	532
who was permanently and totally disabled or sixty-five years of	533
age or older and who applied and qualified for a reduction in	534
taxes under this division in the year of death, provided the	535
surviving spouse is at least fifty-nine but not sixty-five or more	536
years of age on the date the deceased spouse dies.	537

(2) Real property taxes on a homestead owned and occupied, or	538
a homestead in a housing cooperative occupied, by a person to whom	539
division (A) of this section applies shall be reduced for each	540
year for which the owner obtains a certificate of reduction from	541
the county auditor under section 323.154 of the Revised Code or	542
for which the occupant obtains a certificate of reduction in	543
accordance with section 323.159 of the Revised Codean application	544
for the reduction has been approved. The reduction shall equal the	545
greater of the reduction granted for the tax year preceding the	546
first tax year to which this section applies pursuant to Section	547
803.06 of Am. Sub. H.B. 119 of the 127th general assembly, if	548
the taxpayer received a reduction for that preceding tax year,	549
or the product of the following:	550

(a) Twenty-five thousand dollars of the true value of the	551
property in money;	552

(b) The assessment percentage established by the tax	553
commissioner under division (B) of section 5715.01 of the Revised	554
Code, not to exceed thirty-five per cent;	555

(c) The effective tax rate used to calculate the taxes	556
charged against the property for the current year, where	557
"effective tax rate" is defined as in section 323.08 of the	558
Revised Code;	559

(d) The quantity equal to one minus the sum of the percentage	560
reductions in taxes received by the property for the current tax	561
year under section 319.302 of the Revised Code and division (B) of	562
section 323.152 of the Revised Code.	563

(B) To provide a partial exemption, real property taxes on	564
any homestead, and manufactured home taxes on any manufactured or	565
mobile home on which a manufactured home tax is assessed pursuant	566
to division (D)(2) of section 4503.06 of the Revised Code, shall	567
be reduced for each year for which the owner obtains a certificate	568
of reduction from the county auditor under section 323.154 of the	569
Revised Codean application for the reduction has been approved.	570
The amount of the reduction shall equal two and one-half per cent	571
of the amount of taxes to be levied on the homestead or the	572
manufactured or mobile home after applying section 319.301 of the	573
Revised Code.	574

(C) The reductions granted by this section do not apply to	575
special assessments or respread of assessments levied against the	576
homestead, and if there is a transfer of ownership subsequent to	577
the filing of an application for a reduction in taxes, such	578
reductions are not forfeited for such year by virtue of such	579
transfer.	580

(D) The reductions in taxable value referred to in this	581
section shall be applied solely as a factor for the purpose of	582
computing the reduction of taxes under this section and shall not	583
affect the total value of property in any subdivision or taxing	584
district as listed and assessed for taxation on the tax lists and	585
duplicates, or any direct or indirect limitations on indebtedness	586
of a subdivision or taxing district. If after application of	587
sections 5705.31 and 5705.32 of the Revised Code, including the	588
allocation of all levies within the ten-mill limitation to debt	589
charges to the extent therein provided, there would be	590
insufficient funds for payment of debt charges not provided for by	591
levies in excess of the ten-mill limitation, the reduction of	592
taxes provided for in sections 323.151 to 323.159 of the Revised	593
Code shall be proportionately adjusted to the extent necessary to	594
provide such funds from levies within the ten-mill limitation.	595

(E) No reduction shall be made on the taxes due on the	596
homestead of any person convicted of violating division (C) or (D)	597
or (E) of section 323.153 of the Revised Code for a period of	598
three years following the conviction.	599

Sec. 323.153.  (A) To obtain a reduction in real property	600
taxes under division (A) or (B) of section 323.152 of the Revised	601
Code or in manufactured home taxes under division (B) of section	602
323.152 of the Revised Code, the owner shall file an application	603
with the county auditor of the county in which the owner's	604
homestead is located.	605

To obtain a reduction in real property taxes under division	606
(A) of section 323.152 of the Revised Code, the occupant of a	607
homestead in a housing cooperative shall file an application with	608
the nonprofit corporation that owns and operates the housing	609
cooperative, in accordance with this paragraph. Not later than the	610
first day of March each year, the corporation shall obtain	611
applications from the county auditor's office and provide one to	612
each new occupant. Not later than the first day of May, any	613
occupant who may be eligible for a reduction in taxes under	614
division (A) of section 323.152 of the Revised Code shall submit	615
the completed application to the corporation. Not later than the	616
fifteenth day of May, the corporation shall file all completed	617
applications, and the information required by division (B) of	618
section 323.159 of the Revised Code, with the county auditor of	619
the county in which the occupants' homesteads are located.	620
Continuing applications shall be furnished to an occupant in the	621
manner provided in division (C)(4) of this section.	622

(1) An application for reduction based upon a physical	623
disability shall be accompanied by a certificate signed by a	624
physician, and an application for reduction based upon a mental	625
disability shall be accompanied by a certificate signed by a	626
physician or psychologist licensed to practice in this state,	627
attesting to the fact that the applicant is permanently and	628
totally disabled. The certificate shall be in a form that the tax	629
commissioner requires and shall include the definition of	630
permanently and totally disabled as set forth in section 323.151	631
of the Revised Code. An application for reduction based upon a	632
disability certified as permanent and total by a state or federal	633
agency having the function of so classifying persons shall be	634
accompanied by a certificate from that agency.	635

An application for a reduction under division (A) of section	636
323.152 of the Revised Code constitutes a continuing application	637
for a reduction in taxes for each year in which the dwelling is	638
the applicant's homestead.	639

(2) An application for a reduction in taxes under division	640
(B) of section 323.152 of the Revised Code shall be filed only if	641
the homestead or manufactured or mobile home was transferred in	642
the preceding year or did not qualify for and receive the	643
reduction in taxes under that division for the preceding tax year.	644
The application for homesteads transferred in the preceding year	645
shall be incorporated into any form used by the county auditor to	646
administer the tax law in respect to the conveyance of real	647
property pursuant to section 319.20 of the Revised Code or of used	648
manufactured homes or used mobile homes as defined in section	649
5739.0210 of the Revised Code. The owner of a manufactured or	650
mobile home who has elected under division (D)(4) of section	651
4503.06 of the Revised Code to be taxed under division (D)(2) of	652
that section for the ensuing year may file the application at the	653
time of making that election. The application shall contain a	654
statement that failure by the applicant to affirm on the	655
application that the dwelling on the property conveyed is the	656
applicant's homestead prohibits the owner from receiving the	657
reduction in taxes until a proper application is filed within the	658
period prescribed by division (A)(3) of this section. Such an	659
application constitutes a continuing application for a reduction	660
in taxes for each year in which the dwelling is the applicant's	661
homestead.	662

(3) Failure to receive a new application filed under division	663
(A)(1) or (2) or notification under division (C) of this section	664
after a certificate of reduction has been issued under section	665
323.154 of the Revised Code, or failure to receive a new	666
application filed under division (A)(1) or notification under	667
division (C) of this section after a certificate of reduction has	668
been issued under section 323.159 of the Revised Code,an	669
application for reduction has been approved is prima-facie	670
evidence that the original applicant is entitled to the reduction	671
in taxes calculated on the basis of the information contained in	672
the original application. The original application and any	673
subsequent application, including any late application, shall be	674
in the form of a signed statement and shall be filed after the	675
first Monday in January and not later than the first Monday in	676
June. The original application and any subsequent application for	677
a reduction in real property taxes shall be filed in the year for	678
which the reduction is sought. The original application and any	679
subsequent application for a reduction in manufactured home taxes	680
shall be filed in the year preceding the year for which the	681
reduction is sought. The statement shall be on a form, devised and	682
supplied by the tax commissioner, which shall require no more	683
information than is necessary to establish the applicant's	684
eligibility for the reduction in taxes and the amount of the	685
reduction, and, for a certificate of reduction issued under	686
section 323.154 of the Revised Codeexcept for homesteads that are	687
units in a housing cooperative, shall include an affirmation by	688
the applicant that ownership of the homestead was not acquired	689
from a person, other than the applicant's spouse, related to the	690
owner by consanguinity or affinity for the purpose of qualifying	691
for the real property or manufactured home tax reduction provided	692
for in division (A) or (B) of section 323.152 of the Revised Code.	693
The form shall contain a statement that conviction of willfully	694
falsifying information to obtain a reduction in taxes or failing	695
to comply with division (C) of this section results in the	696
revocation of the right to the reduction for a period of three	697
years.	698

(B) A late application for a tax reduction for the year	699
preceding the year in which an original application is filed, or	700
for a reduction in manufactured home taxes for the year in which	701
an original application is filed, may be filed with the original	702
application. If the county auditor determines the information	703
contained in the late application is correct, the auditor shall	704
determine the amount of the reduction in taxes to which the	705
applicant would have been entitled for the preceding tax year had	706
the applicant's application been timely filed and approved in that	707
year.	708

The amount of such reduction shall be treated by the auditor	709
as an overpayment of taxes by the applicant and shall be refunded	710
in the manner prescribed in section 5715.22 of the Revised Code	711
for making refunds of overpayments. On the first day of July of	712
each year, the county auditor shall certify the total amount of	713
the reductions in taxes made in the current year under this	714
division to the tax commissioner, who shall treat the full amount	715
thereof as a reduction in taxes for the preceding tax year and	716
shall make reimbursement to the county therefor in the manner	717
prescribed by section 323.156 of the Revised Code, from money	718
appropriated for that purpose.	719

(C)(1) If, in any year after an application has been filed	720
under division (A)(1) or (2) of this section, the owner does not	721
qualify for a reduction in taxes on the homestead or on the	722
manufactured or mobile home set forth on such application, the	723
owner shall notify the county auditor that the owner is not	724
qualified for a reduction in taxes.	725

(2) If, in any year after an application has been filed under	726
division (A) of this section, the occupant of a homestead in a	727
housing cooperative does not qualify for a reduction in taxes on	728
the homestead, the occupant shall notify the county auditor that	729
the occupant is not qualified for a reduction in taxes or file a	730
new application under division (A) of this section.	731

(3) If the county auditor or county treasurer discovers that	732
the owner of property not entitled to the reduction in taxes under	733
division (B) of section 323.152 of the Revised Code failed to	734
notify the county auditor as required by division (C)(1) of this	735
section, a charge shall be imposed against the property in the	736
amount by which taxes were reduced under that division for each	737
tax year the county auditor ascertains that the property was not	738
entitled to the reduction and was owned by the current owner.	739
Interest shall accrue in the manner prescribed by division (B) of	740
section 323.121 or division (G)(2) of section 4503.06 of the	741
Revised Code on the amount by which taxes were reduced for each	742
such tax year as if the reduction became delinquent taxes at the	743
close of the last day the second installment of taxes for that tax	744
year could be paid without penalty. The county auditor shall	745
notify the owner, by ordinary mail, of the charge, of the owner's	746
right to appeal the charge, and of the manner in which the owner	747
may appeal. The owner may appeal the imposition of the charge and	748
interest by filing an appeal with the county board of revision not	749
later than the last day prescribed for payment of real and public	750
utility property taxes under section 323.12 of the Revised Code	751
following receipt of the notice and occurring at least ninety days	752
after receipt of the notice. The appeal shall be treated in the	753
same manner as a complaint relating to the valuation or assessment	754
of real property under Chapter 5715. of the Revised Code. The	755
charge and any interest shall be collected as other delinquent	756
taxes.	757

(4) Each year during January, the county auditor shall	758
furnish by ordinary mail a continuing application to each person	759
issued a certificate of reduction under section 323.154 or 323.159	760
of the Revised Code with respect to a reduction in taxesreceiving	761
a reduction under division (A) of section 323.152 of the Revised	762
Code. The continuing application shall be used to report changes	763
in ownership or, occupancy of the homestead, including changes in	764
or revocation of a revocable inter vivos trust, changes in,	765
disability, and other changes in the information earlier furnished	766
the auditor relative to the reduction in taxes on the property.	767
The continuing application shall be returned to the auditor not	768
later than the first Monday in June; provided, that if such	769
changes do not affect the status of the homestead exemption or the	770
amount of the reduction to which the owner is entitled under	771
division (A) of section 323.152 of the Revised Code or to which	772
the occupant is entitled under section 323.159 of the Revised	773
Code, the application does not need to be returned.	774

(5) Each year during February, the county auditor, except as	775
otherwise provided in this paragraph, shall furnish by ordinary	776
mail an original application to the owner, as of the first day of	777
January of that year, of a homestead or a manufactured or mobile	778
home that transferred during the preceding calendar year and that	779
qualified for and received a reduction in taxes under division (B)	780
of section 323.152 of the Revised Code for the preceding tax year.	781
In order to receive the reduction under that division, the owner	782
shall file the application with the county auditor not later than	783
the first Monday in June. If the application is not timely filed,	784
the auditor shall not grant a reduction in taxes for the homestead	785
for the current year, and shall notify the owner that the	786
reduction in taxes has not been granted, in the same manner	787
prescribed under section 323.154 of the Revised Code for	788
notification of denial of an application. Failure of an owner to	789
receive an application does not excuse the failure of the owner to	790
file an original application. The county auditor is not required	791
to furnish an application under this paragraph for any homestead	792
for which application has previously been made on a form	793
incorporated into any form used by the county auditor to	794
administer the tax law in respect to the conveyance of real	795
property or of used manufactured homes or used mobile homes, and	796
an owner who previously has applied on such a form is not required	797
to return an application furnished under this paragraph.	798

(D) No person shall knowingly make a false statement for the	799
purpose of obtaining a reduction in the person's real property or	800
manufactured home taxes under section 323.152 of the Revised Code.	801

(E) No person shall knowingly fail to notify the county	802
auditor of changes required by division (C) of this section that	803
have the effect of maintaining or securing a reduction in taxes	804
under section 323.152 of the Revised Code.	805

(F) No person shall knowingly make a false statement or	806
certification attesting to any person's physical or mental	807
condition for purposes of qualifying such person for tax relief	808
pursuant to sections 323.151 to 323.159 of the Revised Code.	809

Sec. 323.154. On or before the day the county auditor has	810
completed the duties imposed by sections 319.30 to 319.302 of the	811
Revised Code, the auditor shall issue a certificate of reduction	812
in taxes in triplicate for each person who has complied with	813
section 323.153 of the Revised Code and whose homestead, as	814
defined in division (A)(1) of section 323.151 of the Revised Code,	815
or manufactured or mobile home the auditor finds is entitled to a	816
reduction in real property or manufactured home taxes for that	817
year under section 323.152 of the Revised Code. Except as provided	818
in section 323.159 of the Revised Code, in the case of a homestead	819
entitled to a reduction under division (A) of that section, the	820
certificate shall state the taxable value of the homestead on the	821
first day of January of that year, the total reduction in taxes	822
for that year under that section, the tax rate that is applicable	823
against such homestead for that year, and any other information	824
the tax commissioner requires. In the case of a homestead or a	825
manufactured or mobile home entitled to a reduction under division	826
(B) of that section, the certificate shall state the total amount	827
of the reduction in taxes for that year under that section and any	828
other information the tax commissioner requires. The certificate	829
for reduction in taxes shall be on a form approved by the	830
commissioner. Upon issuance of such a certificate, the county	831
auditor shall forward one copy and the original to the county	832
treasurer and retain one copy. The county auditor alsoThe county	833
auditor shall approve or deny an application for reduction under	834
section 323.152 of the Revised Code and shall so notify the	835
applicant not later than the first Monday in October. Notification	836
shall be provided on a form prescribed by the tax commissioner. If	837
the application is approved, upon issuance of the notification the	838
county auditor shall record the amount of reduction in taxes in	839
the appropriate column on the general tax list and duplicate of	840
real and public utility property and on the manufactured home tax	841
list. If the application is denied, the notification shall inform	842
the applicant of the reasons for the denial.	843

If an application, late application, or continuing	844
application is not approved, or if the county auditor otherwise	845
determines that a homestead or a manufactured or mobile home does	846
not qualify for a reduction in taxes under division (A) or (B) of	847
section 323.152 of the Revised Code, the auditor shall notify the	848
applicant of the reasons for denial not later than the first	849
Monday in October. If an applicant believes that the application	850
for reduction has been improperly denied or that the reduction is	851
for less than that to which the applicant is entitled, the	852
applicant may file an appeal with the county board of revision not	853
later than the date of closing of the collection for the first	854
half of real and public utility property taxes or manufactured	855
home taxes. The appeal shall be treated in the same manner as a	856
complaint relating to the valuation or assessment of real property	857
under Chapter 5715. of the Revised Code.	858

Sec. 323.155. The county treasurer shall retain the original	859
certificate of reduction in taxes issued under section 323.154 of	860
the Revised Code and forward the copy to the person to whom the	861
certificate is issued, along with the tax bill submitted pursuant	862
to section 323.13 of the Revised Code or the advance payment	863
certificate submitted pursuant to section 4503.061 of the Revised	864
Code.	865

The county treasurer shall retain the original certificate of	866
reduction issued under section 323.159 of the Revised Code and	867
forward a copy to the person to whom the certificate is issued,	868
and a copy to the nonprofit corporation that owns and operates the	869
housing cooperative in which the person is an occupant, along with	870
the corporation's tax bill submitted pursuant to section 323.13 of	871
the Revised Code.	872

The tax bill prescribed under section 323.131 of the Revised	873
Code shall indicate the net amount of taxes due following the	874
reductions in taxes under sections 319.301, 319.302, and 323.152	875
of the Revised Code.	876

Any reduction in taxes under this section 323.152 of the	877
Revised Code shall be disregarded as income or resources in	878
determining eligibility for any program or calculating any payment	879
under Title LI of the Revised Code.	880

Sec. 323.156.  Within thirty days after a settlement of taxes	881
under divisions (A), (C), and (H) of section 321.24 of the Revised	882
Code, the county treasurer shall certify to the tax commissioner	883
one-half of the total amount of taxes on real property that were	884
reduced pursuant to section 323.152 of the Revised Code for the	885
preceding tax year, and one-half of the total amount of taxes on	886
manufactured and mobile homes that were reduced pursuant to	887
division (B) of section 323.152 of the Revised Code for the	888
current tax year, as evidenced by the certificates of reduction	889
and the tax duplicate certified to the county treasurer by the	890
county auditor. The commissioner, within thirty days of the	891
receipt of such certifications, shall provide for payment to the	892
county treasurer, from the general revenue fund, of the amount	893
certified, which shall be credited upon receipt to the county's	894
undivided income tax fund, and an amount equal to two per cent of	895
the amount by which taxes were reduced, which shall be credited	896
upon receipt to the county general fund as a payment, in addition	897
to the fees and charges authorized by sections 319.54 and 321.26	898
of the Revised Code, to the county auditor and treasurer for the	899
costs of administering the exemption provided under sections	900
323.151 to 323.159 of the Revised Code.	901

Immediately upon receipt of funds into the county undivided	902
income tax fund under this section, the auditor shall distribute	903
the full amount thereof among the taxing districts in the county	904
as though the total had been paid as taxes by each person for whom	905
taxes were reduced under sections 323.151 to 323.159 of the	906
Revised Code.	907

Sec. 323.159.  (A) As used in this section:

908

(1) "Applicant" means the person who occupies a homestead in	909
a housing cooperative.	910

(2) "Homestead" has the same meaning as in division	911
(A)(2)(1)(b) of section 323.151 of the Revised Code.	912

(B) Not later than the first day of May each year, any	913
nonprofit corporation that owns and operates a housing cooperative	914
shall determine the amount of property taxes it paid for the	915
housing cooperative for the preceding tax year and shall attribute	916
to each homestead in the housing cooperative a portion of the	917
total property taxes as if the homestead's occupant paid the	918
taxes. The taxes attributed to each homestead shall be based on	919
the percentage that the square footage of the homestead is of the	920
total square footage of the housing cooperative and on other	921
reasonable factors that reflect the value of the homestead. Not	922
later than the fifteenth day of May each year, the corporation	923
shall file this information with the county auditor, along with	924
any applications submitted to it under division (A) of section	925
323.153 of the Revised Code. No nonprofit corporation that owns	926
and operates a housing cooperative shall fail to file with the	927
county auditor the information required by this division and	928
division (A) of section 323.153 of the Revised Code.	929

(C) On or before the day the county auditor has completed the	930
duties imposed by sections 319.30 to 319.302 of the Revised Code,	931
the auditor shall issue a certificate of reduction in taxes for	932
each applicant who has complied with section 323.153 of the	933
Revised Code and whose homestead the auditor finds is entitled to	934
a reduction in real property taxes for that year under division	935
(A) of section 323.152 of the Revised Code. The county auditor	936
shall calculate the taxable value of each applicant's homestead as	937
if the homestead was owned by the applicant and shall use the	938
information provided by the nonprofit corporation under division	939
(B) of this section to determine the reduction in taxable value to	940
be attributed to the homestead.	941

The certificate shall state the taxable value, on the first	942
day of January of that year, attributed to each homestead in the	943
housing cooperative; the reduction in taxable value and reduction	944
in taxes attributed to the homestead; the total amount of the	945
reduction in taxable value for the housing cooperative based on	946
all certificates issued under this section for homesteads in the	947
housing cooperative; the nonprofit corporation's total reduction	948
in taxes for that year under division (A) of section 323.152 of	949
the Revised Code; the tax rate that is applicable against the	950
housing cooperative for that year; and any other information the	951
tax commissioner requires. The county auditor shall prepare three	952
copies of the original certificate. Upon the issuance of such a	953
certificate, the county auditor shall forward two copies and the	954
original to the county treasurer and retain one copy. The county	955
auditor alsoThe county auditor shall approve or deny an	956
application for reduction under division (A) of section 323.152	957
of the Revised Code and, not later than the first Monday in	958
October, shall so notify the applicant and the nonprofit	959
corporation that owns and operates the housing cooperative.	960
Notification shall be provided on a form prescribed by the tax	961
commissioner. If the application is approved, upon issuance of	962
the notification the county auditor shall record the amount of	963
reduction in taxes in the appropriate column on the general tax	964
list and duplicate of real and public utility property.	965

(D) On receipt of the notice from the county auditor under	966
division (C) of this section, the nonprofit corporation that owns	967
and operates the housing cooperative shall reduce the monthly	968
maintenance fee for each homestead for which an applicant received	969
a certificate of reduction under this sectionapplication for	970
reduction was approved for the year following the year for which	971
the certificate was issuedapplication was approved. The	972
reduction in the monthly maintenance fee shall equal one-twelfth	973
of the reduction in taxes attributed to the homestead by the	974
county auditor under division (C) of this section.	975

(E) If an application, late application, or continuing	976
application is not approved, or if the county auditor otherwise	977
determines that a homestead does not qualify for a reduction in	978
taxes under division (A) of section 323.152 of the Revised Code,	979
the auditor shall notify the applicant, and the nonprofit	980
corporation that owns and operates the housing cooperative, of the	981
reasons for denial not later than the first Monday in October. If	982
the applicant believes that the application for reduction has been	983
improperly denied, or the nonprofit corporation that owns and	984
operates the housing cooperative believes that the reduction is	985
for less than that to which the housing cooperative is entitled,	986
the applicant or housing cooperative, respectively, may file an	987
appeal with the county board of revision not later than the date	988
of closing of the collection for the first half of real and public	989
utility property taxes. The appeal shall be treated in the same	990
manner as a complaint relating to the valuation or assessment of	991
real property under Chapter 5715. of the Revised Code.	992

Sec. 3317.16.  (A) As used in this section:

993

(1) "State share percentage" means the percentage calculated	994
for a joint vocational school district as follows:	995

(a) Calculate the state base cost funding amount for the	996
district under division (B) of this section. If the district would	997
not receive any base cost funding for that year under that	998
division, the district's state share percentage is zero.	999

(b) If the district would receive base cost funding under	1000
that division, divide that base cost amount by an amount equal to	1001
the following:	1002

the formula amount X	1003

formula ADM	1004

The resultant number is the district's state share	1005
percentage.	1006

(2) The "total special education weight" for a joint	1007
vocational school district shall be calculated in the same manner	1008
as prescribed in division (B)(1) of section 3317.022 of the	1009
Revised Code.	1010

(3) The "total vocational education weight" for a joint	1011
vocational school district shall be calculated in the same manner	1012
as prescribed in division (B)(4) of section 3317.022 of the	1013
Revised Code.	1014

(4) The "total recognized valuation" of a joint vocational	1015
school district shall be determined by adding the recognized	1016
valuations of all its constituent school districts that were	1017
subject to the joint vocational school district's tax levies for	1018
the applicable fiscal yearboth the current and preceding tax	1019
years.	1020

(5) "Resident district" means the city, local, or exempted	1021
village school district in which a student is entitled to attend	1022
school under section 3313.64 or 3313.65 of the Revised Code.	1023

(6) "Community school" means a community school established	1024
under Chapter 3314. of the Revised Code.	1025

(B) The department of education shall compute and distribute	1026
state base cost funding to each joint vocational school district	1027
for the fiscal year in accordance with the following formula:	1028

(formula amount X	1029

formula ADM) -	1030

(.0005 X total recognized valuation)	1031

If the difference obtained under this division is a negative	1032
number, the district's computation shall be zero.	1033

(C)(1) The department shall compute and distribute state	1034
vocational education additional weighted costs funds to each joint	1035
vocational school district in accordance with the following	1036
formula:	1037

state share percentage X formula amount X	1038

total vocational education weight	1039

In each fiscal year, a joint vocational school district	1040
receiving funds under division (C)(1) of this section shall spend	1041
those funds only for the purposes the department designates as	1042
approved for vocational education expenses. Vocational educational	1043
expenses approved by the department shall include only expenses	1044
connected to the delivery of career-technical programming to	1045
career-technical students. The department shall require the joint	1046
vocational school district to report data annually so that the	1047
department may monitor the district's compliance with the	1048
requirements regarding the manner in which funding received under	1049
division (C)(1) of this section may be spent.	1050

(2) The department shall compute for each joint vocational	1051
school district state funds for vocational education associated	1052
services costs in accordance with the following formula:	1053

state share percentage X .05 X	1054

the formula amount X the sum of	1055

categories one and two vocational	1056

education ADM	1057

In any fiscal year, a joint vocational school district	1058
receiving funds under division (C)(2) of this section, or through	1059
a transfer of funds pursuant to division (L) of section 3317.023	1060
of the Revised Code, shall spend those funds only for the purposes	1061
that the department designates as approved for vocational	1062
education associated services expenses, which may include such	1063
purposes as apprenticeship coordinators, coordinators for other	1064
vocational education services, vocational evaluation, and other	1065
purposes designated by the department. The department may deny	1066
payment under division (C)(2) of this section to any district that	1067
the department determines is not operating those services or is	1068
using funds paid under division (C)(2) of this section, or through	1069
a transfer of funds pursuant to division (L) of section 3317.023	1070
of the Revised Code, for other purposes.	1071

(D)(1) The department shall compute and distribute state	1072
special education and related services additional weighted costs	1073
funds to each joint vocational school district in accordance with	1074
the following formula:	1075

state share percentage X formula amount X	1076

total special education weight	1077

(2)(a) As used in this division, the "personnel allowance"	1078
means thirty thousand dollars in fiscal years 2008 and 2009.	1079

(b) For the provision of speech language pathology services	1080
to students, including students who do not have individualized	1081
education programs prepared for them under Chapter 3323. of the	1082
Revised Code, and for no other purpose, the department shall pay	1083
each joint vocational school district an amount calculated under	1084
the following formula:	1085

(formula ADM divided by 2000) X the personnel	1086

allowance X state share percentage	1087

(3) In any fiscal year, a joint vocational school district	1088
shall spend for purposes that the department designates as	1089
approved for special education and related services expenses at	1090
least the amount calculated as follows:	1091

(formula amount	1092

X the sum of categories one through	1093

six special education ADM) +	1094

(total special education weight X	1095

formula amount)	1096

The purposes approved by the department for special education	1097
expenses shall include, but shall not be limited to, compliance	1098
with state rules governing the education of children with	1099
disabilities, providing services identified in a student's	1100
individualized education program as defined in section 3323.01 of	1101
the Revised Code, provision of speech language pathology services,	1102
and the portion of the district's overall administrative and	1103
overhead costs that are attributable to the district's special	1104
education student population.	1105

The department shall require joint vocational school	1106
districts to report data annually to allow for monitoring	1107
compliance with division (D)(3) of this section. The department	1108
shall annually report to the governor and the general assembly the	1109
amount of money spent by each joint vocational school district for	1110
special education and related services.	1111

(4) In any fiscal year, a joint vocational school district	1112
shall spend for the provision of speech language pathology	1113
services not less than the sum of the amount calculated under	1114
division (D)(1) of this section for the students in the district's	1115
category one special education ADM and the amount calculated under	1116
division (D)(2) of this section.	1117

(E)(1) If a joint vocational school district's costs for a	1118
fiscal year for a student in its categories two through six	1119
special education ADM exceed the threshold catastrophic cost for	1120
serving the student, as specified in division (C)(3)(b) of section	1121
3317.022 of the Revised Code, the district may submit to the	1122
superintendent of public instruction documentation, as prescribed	1123
by the superintendent, of all of its costs for that student. Upon	1124
submission of documentation for a student of the type and in the	1125
manner prescribed, the department shall pay to the district an	1126
amount equal to the sum of the following:	1127

(a) One-half of the district's costs for the student in	1128
excess of the threshold catastrophic cost;	1129

(b) The product of one-half of the district's costs for the	1130
student in excess of the threshold catastrophic cost multiplied by	1131
the district's state share percentage.	1132

(2) The district shall only report under division (E)(1) of	1133
this section, and the department shall only pay for, the costs of	1134
educational expenses and the related services provided to the	1135
student in accordance with the student's individualized education	1136
program. Any legal fees, court costs, or other costs associated	1137
with any cause of action relating to the student may not be	1138
included in the amount.	1139

(F) Each fiscal year, the department shall pay each joint	1140
vocational school district an amount for adult technical and	1141
vocational education and specialized consultants.	1142

(G)(1) A joint vocational school district's local share of	1143
special education and related services additional weighted costs	1144
equals:	1145

(1 - state share percentage) X	1146

Total special education weight X	1147

the formula amount	1148

(2) For each student with a disability receiving special	1149
education and related services under an individualized education	1150
program, as defined in section 3323.01 of the Revised Code, at a	1151
joint vocational district, the resident district or, if the	1152
student is enrolled in a community school, the community school	1153
shall be responsible for the amount of any costs of providing	1154
those special education and related services to that student that	1155
exceed the sum of the amount calculated for those services	1156
attributable to that student under divisions (B), (D), (E), and	1157
(G)(1) of this section.	1158

Those excess costs shall be calculated by subtracting the sum	1159
of the following from the actual cost to provide special education	1160
and related services to the student:	1161

(a) The formula amount;

1162

(b) The product of the formula amount times the applicable	1163
multiple specified in section 3317.013 of the Revised Code;	1164

(c) Any funds paid under division (E) of this section for the	1165
student;	1166

(d) Any other funds received by the joint vocational school	1167
district under this chapter to provide special education and	1168
related services to the student, not including the amount	1169
calculated under division (G)(2) of this section.	1170

(3) The board of education of the joint vocational school	1171
district may report the excess costs calculated under division	1172
(G)(2) of this section to the department of education.	1173

(4) If the board of education of the joint vocational school	1174
district reports excess costs under division (G)(3) of this	1175
section, the department shall pay the amount of excess cost	1176
calculated under division (G)(2) of this section to the joint	1177
vocational school district and shall deduct that amount as	1178
provided in division (G)(4)(a) or (b) of this section, as	1179
applicable:	1180

(a) If the student is not enrolled in a community school, the	1181
department shall deduct the amount from the account of the	1182
student's resident district pursuant to division (M) of section	1183
3317.023 of the Revised Code.	1184

(b) If the student is enrolled in a community school, the	1185
department shall deduct the amount from the account of the	1186
community school pursuant to section 3314.083 of the Revised	1187
Code.	1188

Sec. 4503.065.  (A) This section applies to any of the	1189
following:	1190

(1) An individual who is permanently and totally disabled;

1191

(2) An individual who is sixty-five years of age or older;

1192

(3) An individual who is the surviving spouse of a deceased	1193
person who was permanently and totally disabled or sixty-five	1194
years of age or older and who applied and qualified for a	1195
reduction in assessable value under this section in the year of	1196
death, provided the surviving spouse is at least fifty-nine but	1197
not sixty-five or more years of age on the date the deceased	1198
spouse dies.	1199

(B) The manufactured home tax on a manufactured or mobile	1200
home that is paid pursuant to division (C) of section 4503.06 of	1201
the Revised Code and that is owned and occupied as a home by an	1202
individual whose domicile is in this state and to whom this	1203
section applies, shall be reduced for any tax year for which the	1204
owner obtains a certificate of reduction from the county auditor	1205
under section 4503.067 of the Revised Codean application for such	1206
reduction has been approved, provided the individual did not	1207
acquire ownership from a person, other than the individual's	1208
spouse, related by consanguinity or affinity for the purpose of	1209
qualifying for the reduction. An owner includes a settlor of a	1210
revocable or irrevocable inter vivos trust holding the title to a	1211
manufactured or mobile home occupied by the settlor as of right	1212
under the trust.	1213

(1) For manufactured and mobile homes for which the tax	1214
imposed by section 4503.06 of the Revised Code is computed under	1215
division (D)(2) of that section, the reduction shall equal the	1216
greater of the reduction granted for the tax year preceding the	1217
first tax year to which this section applies pursuant to Section	1218
803.06 of Am. Sub. H.B. 119 of the 127th general assembly, if	1219
the taxpayer received a reduction for that preceding tax year,	1220
or the product of the following:	1221

(a) Twenty-five thousand dollars of the true value of the	1222
property in money;	1223

(b) The assessment percentage established by the tax	1224
commissioner under division (B) of section 5715.01 of the Revised	1225
Code, not to exceed thirty-five per cent;	1226

(c) The effective tax rate used to calculate the taxes	1227
charged against the property for the current year, where	1228
"effective tax rate" is defined as in section 323.08 of the	1229
Revised Code;	1230

(d) The quantity equal to one minus the sum of the percentage	1231
reductions in taxes received by the property for the current tax	1232
year under section 319.302 of the Revised Code and division (B) of	1233
section 323.152 of the Revised Code.	1234

(2) For manufactured and mobile homes for which the tax	1235
imposed by section 4503.06 of the Revised Code is computed under	1236
division (D)(1) of that section, the reduction shall equal the	1237
greater of the reduction granted for the tax year preceding the	1238
first tax year to which this section applies pursuant to Section	1239
803.06 of Am. Sub. H.B. 119 of the 127th general assembly, if the	1240
taxpayer received a reduction for that preceding tax year, or the	1241
product of the following:	1242

(a) Twenty-five thousand dollars of the cost to the owner, or	1243
the market value at the time of purchase, whichever is greater, as	1244
those terms are used in division (D)(1) of section 4503.06 of the	1245
Revised Code;	1246

(b) The percentage from the appropriate schedule in division	1247
(D)(1)(b) of section 4503.06 of the Revised Code;	1248

(c) The assessment percentage of forty per cent used in	1249
division (D)(1)(b) of section 4503.06 of the Revised Code;	1250

(d) The tax rate of the taxing district in which the home has	1251
its situs.	1252

(C) If the owner or the spouse of the owner of a manufactured	1253
or mobile home is eligible for a homestead exemption on the land	1254
upon which the home is located, the reduction to which the owner	1255
or spouse is entitled under this section shall not exceed the	1256
difference between the reduction to which the owner or spouse is	1257
entitled under division (B) of this section and the amount of the	1258
reduction under the homestead exemption.	1259

(D) No reduction shall be made with respect to the home of	1260
any person convicted of violating division (C) or (D) of section	1261
4503.066 of the Revised Code for a period of three years	1262
following the conviction.	1263

Sec. 4503.066.  (A)(1) To obtain a tax reduction under	1264
section 4503.065 of the Revised Code, the owner of the home shall	1265
file an application with the county auditor of the county in which	1266
the home is located. An application for reduction in taxes based	1267
upon a physical disability shall be accompanied by a certificate	1268
signed by a physician, and an application for reduction in taxes	1269
based upon a mental disability shall be accompanied by a	1270
certificate signed by a physician or psychologist licensed to	1271
practice in this state. The certificate shall attest to the fact	1272
that the applicant is permanently and totally disabled, shall be	1273
in a form that the department of taxation requires, and shall	1274
include the definition of totally and permanently disabled as set	1275
forth in section 4503.064 of the Revised Code. An application for	1276
reduction in taxes based upon a disability certified as permanent	1277
and total by a state or federal agency having the function of so	1278
classifying persons shall be accompanied by a certificate from	1279
that agency.	1280

(2) Each application shall constitute a continuing	1281
application for a reduction in taxes for each year in which the	1282
manufactured or mobile home is occupied by the applicant.	1283
Failure to receive a new application or notification under	1284
division (B) of this section after a certificate of reduction has	1285
been issued under section 4503.067 of the Revised Codean	1286
application for reduction has been approved is prima-facie	1287
evidence that the original applicant is entitled to the reduction	1288
calculated on the basis of the information contained in the	1289
original application. The original application and any	1290
subsequent application shall be in the form of a signed	1291
statement and shall be filed not later than the first Monday in	1292
June. The statement shall be on a form, devised and supplied by	1293
the tax commissioner, that shall require no more information than	1294
is necessary to establish the applicant's eligibility for the	1295
reduction in taxes and the amount of the reduction to which the	1296
applicant is entitled. The form also shall contain a statement	1297
that conviction of willfully falsifying information to obtain a	1298
reduction in taxes or failing to comply with division (B) of this	1299
section shall result in the revocation of the right to the	1300
reduction for a period of three years.	1301

(3) A late application for a reduction in taxes for the year	1302
preceding the year for which an original application is filed may	1303
be filed with an original application. If the auditor determines	1304
that the information contained in the late application is correct,	1305
the auditor shall determine both the amount of the reduction in	1306
taxes to which the applicant would have been entitled for the	1307
current tax year had the application been timely filed and	1308
approved in the preceding year, and the amount the taxes levied	1309
under section 4503.06 of the Revised Code for the current year	1310
would have been reduced as a result of the reduction. When an	1311
applicant is permanently and totally disabled on the first day of	1312
January of the year in which the applicant files a late	1313
application, the auditor, in making the determination of the	1314
amounts of the reduction in taxes under division (A)(3) of this	1315
section, is not required to determine that the applicant was	1316
permanently and totally disabled on the first day of January of	1317
the preceding year.	1318

The amount of the reduction in taxes pursuant to a late	1319
application shall be treated as an overpayment of taxes by the	1320
applicant. The auditor shall credit the amount of the overpayment	1321
against the amount of the taxes or penalties then due from the	1322
applicant, and, at the next succeeding settlement, the amount of	1323
the credit shall be deducted from the amount of any taxes or	1324
penalties distributable to the county or any taxing unit in the	1325
county that has received the benefit of the taxes or penalties	1326
previously overpaid, in proportion to the benefits previously	1327
received. If, after the credit has been made, there remains a	1328
balance of the overpayment, or if there are no taxes or penalties	1329
due from the applicant, the auditor shall refund that balance to	1330
the applicant by a warrant drawn on the county treasurer in favor	1331
of the applicant. The treasurer shall pay the warrant from the	1332
general fund of the county. If there is insufficient money in the	1333
general fund to make the payment, the treasurer shall pay the	1334
warrant out of any undivided manufactured or mobile home taxes	1335
subsequently received by the treasurer for distribution to the	1336
county or taxing district in the county that received the benefit	1337
of the overpaid taxes, in proportion to the benefits previously	1338
received, and the amount paid from the undivided funds shall be	1339
deducted from the money otherwise distributable to the county or	1340
taxing district in the county at the next or any succeeding	1341
distribution. At the next or any succeeding distribution after	1342
making the refund, the treasurer shall reimburse the general fund	1343
for any payment made from that fund by deducting the amount of	1344
that payment from the money distributable to the county or other	1345
taxing unit in the county that has received the benefit of the	1346
taxes, in proportion to the benefits previously received. On the	1347
second Monday in September of each year, the county auditor shall	1348
certify the total amount of the reductions in taxes made in the	1349
current year under division (A)(3) of this section to the tax	1350
commissioner who shall treat that amount as a reduction in taxes	1351
for the current tax year and shall make reimbursement to the	1352
county of that amount in the manner prescribed in section 4503.068	1353
of the Revised Code, from moneys appropriated for that purpose.	1354

(B) If in any year afterfor which an application for	1355
reduction in taxes has been filed under division (A) of this	1356
sectionapproved the owner no longer qualifies for the reduction	1357
in taxes for which the owner was issued a certificate, the owner	1358
shall notify the county auditor that the owner is not qualified	1359
for a reduction in taxes.	1360

During January of each year, the county auditor shall furnish	1361
each person issued a certificate of reductionwhose application	1362
for reduction has been approved, by ordinary mail, a form on	1363
which to report any changes in ownership of the home, including	1364
changes in or revocation of a revocable inter vivos trust,	1365
changes in, occupancy, disability, and other changes in the	1366
information earlier furnished the auditor relative to the	1367
application.	1368

(C) No person shall knowingly make a false statement for the	1369
purpose of obtaining a reduction in taxes under section 4503.065	1370
of the Revised Code.	1371

(D) No person shall knowingly fail to notify the county	1372
auditor of any change required by division (B) of this section	1373
that has the effect of maintaining or securing a reduction in	1374
taxes under section 4503.065 of the Revised Code.	1375

(E) No person shall knowingly make a false statement or	1376
certification attesting to any person's physical or mental	1377
condition for purposes of qualifying such person for tax relief	1378
pursuant to sections 4503.064 to 4503.069 of the Revised Code.	1379

(F) Whoever violates division (C), (D), or (E) of this	1380
section is guilty of a misdemeanor of the fourth degree.	1381

Sec. 4503.067. (A) At the same time the tax bill for the	1382
first half of the tax year is issued, the county auditor shall	1383
issue a certificate of reduction in taxes for a manufactured or	1384
mobile home in triplicate for each person who has complied with	1385
section 4503.066 of the Revised Code and been found by the	1386
auditor to be entitled to a reduction in taxes for the succeeding	1387
tax year. The certificate shall set forth the amount of the	1388
reduction in taxes calculated under section 4503.065 of the	1389
Revised Code. Upon issuance of the certificate, the auditor shall	1390
reduce the manufactured home tax levied on the home for the	1391
succeeding tax year by the required amount and forward the	1392
original and one copy of the certificate to the county treasurer.	1393
The auditor shall retain one copy of the certificate. The	1394
treasurer shall retain the original certificate and forward the	1395
remaining copy to the recipient with the tax bill delivered	1396
pursuant to division (D)(6) of section 4503.06 of the Revised	1397
Code.	1398

(B) If the application or a continuing application is not	1399
approved, the auditor shall notify the applicant of the reasons	1400
for denial no later than the first Monday in October.The county	1401
auditor shall approve or deny an application for reduction under	1402
section 4503.065 of the Revised Code and shall so notify the	1403
applicant not later than the first Monday in October. Notification	1404
shall be provided on a form prescribed by the tax commissioner. If	1405
a person believes that the person's application for reduction in	1406
taxes has been improperly denied or is for less than that to	1407
which the person is entitled, the person may file an appeal with	1408
the county board of revision no later than the thirty-first day	1409
of January of the following calendar year. The appeal shall be	1410
treated in the same manner as a complaint relating to the	1411
valuation or assessment of real property under Chapter 5715. of	1412
the Revised Code.	1413

Sec. 4503.068.  On or before the second Monday in September	1414
of each year, the county treasurer shall total the amount by which	1415
the taxes levied in that year were reduced pursuant to section	1416
4503.0674503.065 of the Revised Code, and certify that amount to	1417
the tax commissioner. Within ninety days of the receipt of the	1418
certification, the commissioner shall certify that amount to the	1419
director of budget and management and the director shall make two	1420
payments from the general revenue fund in favor of the county	1421
treasurer. One shall be in the full amount by which taxes were	1422
reduced. The other shall be in an amount equal to two per cent of	1423
such amount and shall be a payment to the county auditor and	1424
county treasurer for the costs of administering sections 4503.064	1425
to 4503.069 of the Revised Code.	1426

Immediately upon receipt of the payment in the full amount by	1427
which taxes were reduced, the full amount of the payment shall be	1428
distributed among the taxing districts in the county as though it	1429
had been received as taxes under section 4503.06 of the Revised	1430
Code from each person for whom taxes were reduced under sections	1431
4503.064 to 4503.069section 4503.065 of the Revised Code.	1432

Sec. 4735.18.  (A) Subject to section 4735.32 of the Revised	1433
Code, the superintendent of real estate, upon the superintendent's	1434
own motion, may investigate the conduct of any licensee. Subject	1435
to section 4735.32 of the Revised Code, the Ohio real estate	1436
commission shall, pursuant to section 4735.051 of the Revised	1437
Code, impose disciplinary sanctions upon any licensee who, whether	1438
or not acting in the licensee's capacity as a real estate broker	1439
or salesperson, or in handling the licensee's own property, is	1440
found to have been convicted of a felony or a crime of moral	1441
turpitude, and shall, pursuant to section 4735.051 of the Revised	1442
Code, impose disciplinary sanctions upon any licensee who, in the	1443
licensee's capacity as a real estate broker or salesperson, or in	1444
handling the licensee's own property, is found guilty of:	1445

(1) Knowingly making any misrepresentation;

1446

(2) Making any false promises with intent to influence,	1447
persuade, or induce;	1448

(3) A continued course of misrepresentation or the making of	1449
false promises through agents, salespersons, advertising, or	1450
otherwise;	1451

(4) Acting for more than one party in a transaction except as	1452
permitted by and in compliance with section 4735.71 of the Revised	1453
Code;	1454

(5) Failure within a reasonable time to account for or to	1455
remit any money coming into the licensee's possession which	1456
belongs to others;	1457

(6) Dishonest or illegal dealing, gross negligence,	1458
incompetency, or misconduct;	1459

(7)(a) By final adjudication by a court, a violation of any	1460
municipal or federal civil rights law relevant to the protection	1461
of purchasers or sellers of real estate or, by final adjudication	1462
by a court, any unlawful discriminatory practice pertaining to the	1463
purchase or sale of real estate prohibited by Chapter 4112. of the	1464
Revised Code, provided that such violation arose out of a	1465
situation wherein parties were engaged in bona fide efforts to	1466
purchase, sell, or lease real estate, in the licensee's practice	1467
as a licensed real estate broker or salesperson;	1468

(b) A second or subsequent violation of any unlawful	1469
discriminatory practice pertaining to the purchase or sale of real	1470
estate prohibited by Chapter 4112. of the Revised Code or any	1471
second or subsequent violation of municipal or federal civil	1472
rights laws relevant to purchasing or selling real estate whether	1473
or not there has been a final adjudication by a court, provided	1474
that such violation arose out of a situation wherein parties were	1475
engaged in bona fide efforts to purchase, sell, or lease real	1476
estate. For any second offense under this division, the commission	1477
shall suspend for a minimum of two months or revoke the license of	1478
the broker or salesperson. For any subsequent offense, the	1479
commission shall revoke the license of the broker or salesperson.	1480

(8) Procuring a license under this chapter, for the licensee	1481
or any salesperson by fraud, misrepresentation, or deceit;	1482

(9) Having violated or failed to comply with any provision of	1483
sections 4735.51 to 4735.74 of the Revised Code or having	1484
willfully disregarded or violated any other provisions of this	1485
chapter;	1486

(10) As a real estate broker, having demanded, without	1487
reasonable cause, other than from a broker licensed under this	1488
chapter, a commission to which the licensee is not entitled, or,	1489
as a real estate salesperson, having demanded, without reasonable	1490
cause, a commission to which the licensee is not entitled;	1491

(11) Except as permitted under section 4735.20 of the Revised	1492
Code, having paid commissions or fees to, or divided commissions	1493
or fees with, anyone not licensed as a real estate broker or	1494
salesperson under this chapter or anyone not operating as an	1495
out-of-state commercial real estate broker or salesperson under	1496
section 4735.022 of the Revised Code;	1497

(12) Having falsely represented membership in any real estate	1498
professional association of which the licensee is not a member;	1499

(13) Having accepted, given, or charged any undisclosed	1500
commission, rebate, or direct profit on expenditures made for a	1501
principal;	1502

(14) Having offered anything of value other than the	1503
consideration recited in the sales contract as an inducement to a	1504
person to enter into a contract for the purchase or sale of real	1505
estate or having offered real estate or the improvements on real	1506
estate as a prize in a lottery or scheme of chance;	1507

(15) Having acted in the dual capacity of real estate broker	1508
and undisclosed principal, or real estate salesperson and	1509
undisclosed principal, in any transaction;	1510

(16) Having guaranteed, authorized, or permitted any person	1511
to guarantee future profits which may result from the resale of	1512
real property;	1513

(17) Having placed a sign on any property offering it for	1514
sale or for rent without the consent of the owner or the owner's	1515
authorized agent;	1516

(18) Having induced any party to a contract of sale or lease	1517
to break such contract for the purpose of substituting in lieu of	1518
it a new contract with another principal;	1519

(19) Having negotiated the sale, exchange, or lease of any	1520
real property directly with a seller, purchaser, lessor, or tenant	1521
knowing that such seller, purchaser, lessor, or tenant is	1522
represented by another broker under a written exclusive agency	1523
agreement, exclusive right to sell or lease listing agreement, or	1524
exclusive purchaser agency agreement with respect to such property	1525
except as provided for in section 4735.75 of the Revised Code;	1526

(20) Having offered real property for sale or for lease	1527
without the knowledge and consent of the owner or the owner's	1528
authorized agent, or on any terms other than those authorized by	1529
the owner or the owner's authorized agent;	1530

(21) Having published advertising, whether printed, radio,	1531
display, or of any other nature, which was misleading or	1532
inaccurate in any material particular, or in any way having	1533
misrepresented any properties, terms, values, policies, or	1534
services of the business conducted;	1535

(22) Having knowingly withheld from or inserted in any	1536
statement of account or invoice any statement that made it	1537
inaccurate in any material particular;	1538

(23) Having published or circulated unjustified or	1539
unwarranted threats of legal proceedings which tended to or had	1540
the effect of harassing competitors or intimidating their	1541
customers;	1542

(24) Having failed to keep complete and accurate records of	1543
all transactions for a period of three years from the date of the	1544
transaction, such records to include copies of listing forms,	1545
earnest money receipts, offers to purchase and acceptances of	1546
them, records of receipts and disbursements of all funds received	1547
by the licensee as broker and incident to the licensee's	1548
transactions as such, and records required pursuant to divisions	1549
(C)(4) and (5) of section 4735.20 of the Revised Code, and any	1550
other instruments or papers related to the performance of any of	1551
the acts set forth in the definition of a real estate broker;	1552

(25) Failure of a real estate broker or salesperson to	1553
furnish all parties involved in a real estate transaction true	1554
copies of all listings and other agreements to which they are a	1555
party, at the time each party signs them;	1556

(26) Failure to maintain at all times a special or trust bank	1557
account in a depository located in this state. The account shall	1558
be noninterest-bearing, separate and distinct from any personal or	1559
other account of the broker, and, except as provided in division	1560
(A)(27) of this section, shall be used for the deposit and	1561
maintenance of all escrow funds, security deposits, and other	1562
moneys received by the broker in a fiduciary capacity. The name,	1563
account number, if any, and location of the depository wherein	1564
such special or trust account is maintained shall be submitted in	1565
writing to the superintendent. Checks drawn on such special or	1566
trust bank accounts are deemed to meet the conditions imposed by	1567
section 1349.21 of the Revised Code. Funds deposited in the trust	1568
or special account in connection with a purchase agreement shall	1569
be maintained in accordance with section 4735.24 of the Revised	1570
Code.	1571

(27) Failure to maintain at all times a special or trust bank	1572
account in a depository in this state, to be used exclusively for	1573
the deposit and maintenance of all rents, security deposits,	1574
escrow funds, and other moneys received by the broker in a	1575
fiduciary capacity in the course of managing real property. This	1576
account shall be separate and distinct from any other account	1577
maintained by the broker. The name, account number, and location	1578
of the depository shall be submitted in writing to the	1579
superintendent. This account may earn interest, which shall be	1580
paid to the property owners on a pro rata basis.	1581

Division (A)(27) of this section does not apply to brokers	1582
who are not engaged in the management of real property on behalf	1583
of real property owners.	1584

(28) Having failed to put definite expiration dates in all	1585
written agency agreements to which the broker is a party;	1586

(29) Having an unsatisfied final judgment in any court of	1587
record against the licensee arising out of the licensee's conduct	1588
as a licensed broker or salesperson;	1589

(30) Failing to render promptly upon demand a full and	1590
complete statement of the expenditures by the broker or	1591
salesperson of funds advanced by or on behalf of a party to a real	1592
estate transaction to the broker or salesperson for the purpose of	1593
performing duties as a licensee under this chapter in conjunction	1594
with the real estate transaction;	1595

(31) Failure within a reasonable time, after the receipt of	1596
the commission by the broker, to render an accounting to and pay a	1597
real estate salesperson the salesperson's earned share of it;	1598

(32) Performing any service for another constituting the	1599
practice of law, as determined by any court of law;	1600

(33) Having been adjudicated incompetent for the purpose of	1601
holding the license by a court, as provided in section 5122.301 of	1602
the Revised Code. A license revoked or suspended under this	1603
division shall be reactivated upon proof to the commission of the	1604
removal of the disability.	1605

(34) Having authorized or permitted a person to act as an	1606
agent in the capacity of a real estate broker, or a real estate	1607
salesperson, who was not then licensed as a real estate broker or	1608
real estate salesperson under this chapter or who was not then	1609
operating as an out-of-state commercial real estate broker or	1610
salesperson under section 4735.022 of the Revised Code;	1611

(35) Having knowingly inserted or participated in inserting	1612
any materially inaccurate term in a document, including naming a	1613
false consideration;	1614

(36) Having failed to inform the licensee's client of the	1615
existence of an offer or counteroffer or having failed to present	1616
an offer or counteroffer in a timely manner, unless otherwise	1617
instructed by the client, provided the instruction of the client	1618
does not conflict with any state or federal law.	1619

(B) Whenever the commission, pursuant to section 4735.051 of	1620
the Revised Code, imposes disciplinary sanctions for any violation	1621
of this section, the commission also may impose such sanctions	1622
upon the broker with whom the salesperson is affiliated if the	1623
commission finds that the broker had knowledge of the	1624
salesperson's actions that violated this section.	1625

(C) The commission shall, pursuant to section 4735.051 of the	1626
Revised Code, impose disciplinary sanctions upon any foreign real	1627
estate dealer or salesperson who, in that capacity or in handling	1628
the dealer's or salesperson's own property, is found guilty of any	1629
of the acts or omissions specified or comprehended in division (A)	1630
of this section insofar as the acts or omissions pertain to	1631
foreign real estate. If the commission imposes such sanctions upon	1632
a foreign real estate salesperson for a violation of this section,	1633
the commission also may suspend or revoke the license of the	1634
foreign real estate dealer with whom the salesperson is affiliated	1635
if the commission finds that the dealer had knowledge of the	1636
salesperson's actions that violated this section.	1637

(D) The commission may suspend, in whole or in part, the	1638
imposition of the penalty of suspension of a license under this	1639
section.	1640

(E) The commission immediately shall notify the real estate	1641
appraiser board of any disciplinary action taken under this	1642
section against a licensee who also is a state-certified real	1643
estate appraiser under Chapter 4763. of the Revised Code.	1644

Sec. 4735.24. (A) Except as otherwise provided in this	1645
section, when earnest money connected to a real estate purchase	1646
agreement is deposited in a real estate broker's trust or special	1647
account, the broker shall maintain that money in the account in	1648
accordance with the terms of the purchase agreement until one of	1649
the following occurs:	1650

(1) The transaction closes and the broker disburses the	1651
earnest money to the closing or escrow agent or otherwise	1652
disburses the money pursuant to the terms of the purchase	1653
agreement.	1654

(2) The parties provide the broker with written instructions	1655
that both parties have signed that specify how the broker is to	1656
disburse the earnest money and the broker acts pursuant to those	1657
instructions.	1658

(3) The broker receives a copy of a final court order that	1659
specifies to whom the earnest money is to be awarded and the	1660
broker acts pursuant to the court order.	1661

(4) The earnest money becomes unclaimed funds as defined in	1662
division (M)(2) of section 169.02 of the Revised Code and, after	1663
providing the notice that division (D) of section 169.03 of the	1664
Revised Code requires, the broker has reported the unclaimed funds	1665
to the director of commerce pursuant to section 169.03 of the	1666
Revised Code and has remitted all of the earnest money to the	1667
director.	1668

(B) A purchase agreement may provide that in the event of a	1669
dispute regarding the disbursement of the earnest money, the	1670
broker will return the money to the purchaser without notice to	1671
the parties unless, within two years from the date the earnest	1672
money was deposited in the broker's trust or special account, the	1673
broker has received one of the following:	1674

(1) Written instructions signed by both parties specifying	1675
how the money is to be disbursed;	1676

(2) Written notice that a court action to resolve the dispute	1677
has been filed.	1678

(C)(1) If the parties dispute the disbursement of the earnest	1679
money and the purchase agreement contains the provision described	1680
in division (B) of this section, not later than the first day of	1681
September following the two year anniversary date of the deposit	1682
of the earnest money in the broker's account, the broker shall	1683
return the earnest money to the purchaser unless the parties	1684
provided the broker with written instructions or a notice of a	1685
court action as described in division (B) of this section.	1686

(2) If the broker cannot locate the purchaser at the time the	1687
disbursement is due, after providing the notice that division (D)	1688
of section 169.03 of the Revised Code requires, the broker shall	1689
report the earnest money as unclaimed funds to the director of	1690
commerce pursuant to section 169.03 of the Revised Code and remit	1691
all of the earnest money to the director.	1692

Sec. 5739.09.  (A)(1) A board of county commissioners may, by	1693
resolution adopted by a majority of the members of the board, levy	1694
an excise tax not to exceed three per cent on transactions by	1695
which lodging by a hotel is or is to be furnished to transient	1696
guests. The board shall establish all regulations necessary to	1697
provide for the administration and allocation of the tax. The	1698
regulations may prescribe the time for payment of the tax, and may	1699
provide for the imposition of a penalty or interest, or both, for	1700
late payments, provided that the penalty does not exceed ten per	1701
cent of the amount of tax due, and the rate at which interest	1702
accrues does not exceed the rate per annum prescribed pursuant to	1703
section 5703.47 of the Revised Code. Except as provided in	1704
divisions (A)(2), (3), (4), (5), (6), and (7), and (8) of this	1705
section, the regulations shall provide, after deducting the real	1706
and actual costs of administering the tax, for the return to each	1707
municipal corporation or township that does not levy an excise tax	1708
on the transactions, a uniform percentage of the tax collected in	1709
the municipal corporation or in the unincorporated portion of the	1710
township from each transaction, not to exceed thirty-three and	1711
one-third per cent. The remainder of the revenue arising from the	1712
tax shall be deposited in a separate fund and shall be spent	1713
solely to make contributions to the convention and visitors'	1714
bureau operating within the county, including a pledge and	1715
contribution of any portion of the remainder pursuant to an	1716
agreement authorized by section 307.695 of the Revised Code,	1717
provided that if the board of county commissioners of an eligible	1718
county as defined in section 307.695 of the Revised Code adopts a	1719
resolution amending a resolution levying a tax under this division	1720
to provide that the revenue from the tax shall be used by the	1721
board as described in division (H) of section 307.695 of the	1722
Revised Code, the remainder of the revenue shall be used as	1723
described in the resolution making that amendment. Except as	1724
provided in division (A)(2), (3), (4), (5), (6), or (7), or (8) or	1725
(H) of this section, on and after May 10, 1994, a board of county	1726
commissioners may not levy an excise tax pursuant to this division	1727
in any municipal corporation or township located wholly or partly	1728
within the county that has in effect an ordinance or resolution	1729
levying an excise tax pursuant to division (B) of this section.	1730
The board of a county that has levied a tax under division (C) of	1731
this section may, by resolution adopted within ninety days after	1732
July 15, 1985, by a majority of the members of the board, amend	1733
the resolution levying a tax under this division to provide for a	1734
portion of that tax to be pledged and contributed in accordance	1735
with an agreement entered into under section 307.695 of the	1736
Revised Code. A tax, any revenue from which is pledged pursuant to	1737
such an agreement, shall remain in effect at the rate at which it	1738
is imposed for the duration of the period for which the revenue	1739
from the tax has been so pledged.	1740

The board of county commissioners of an eligible county as	1741
defined in section 307.695 of the Revised Code may, by resolution	1742
adopted by a majority of the members of the board, amend a	1743
resolution levying a tax under this division to provide that the	1744
revenue from the tax shall be used by the board as described in	1745
division (H) of section 307.695 of the Revised Code, in which case	1746
the tax shall remain in effect at the rate at which it was imposed	1747
for the duration of any agreement entered into by the board under	1748
section 307.695 of the Revised Code, the duration during which any	1749
securities issued by the board under that section are outstanding,	1750
or the duration of the period during which the board owns a	1751
project as defined in section 307.695 of the Revised Code,	1752
whichever duration is longest.	1753

(2) A board of county commissioners that levies an excise tax	1754
under division (A)(1) of this section on June 30, 1997, at a rate	1755
of three per cent, and that has pledged revenue from the tax to an	1756
agreement entered into under section 307.695 of the Revised Code	1757
or, in the case of the board of county commissioners of an	1758
eligible county as defined in section 307.695 of the Revised Code,	1759
has amended a resolution levying a tax under division (C) of this	1760
section to provide that proceeds from the tax shall be used by the	1761
board as described in division (H) of section 307.695 of the	1762
Revised Code, may, at any time by a resolution adopted by a	1763
majority of the members of the board, amend the resolution levying	1764
a tax under division (A)(1) of this section to provide for an	1765
increase in the rate of that tax up to seven per cent on each	1766
transaction; to provide that revenue from the increase in the rate	1767
shall be used as described in division (H) of section 307.695 of	1768
the Revised Code or be spent solely to make contributions to the	1769
convention and visitors' bureau operating within the county to be	1770
used specifically for promotion, advertising, and marketing of the	1771
region in which the county is located; and to provide that the	1772
rate in excess of the three per cent levied under division (A)(1)	1773
of this section shall remain in effect at the rate at which it is	1774
imposed for the duration of the period during which any agreement	1775
is in effect that was entered into under section 307.695 of the	1776
Revised Code by the board of county commissioners levying a tax	1777
under division (A)(1) of this section, the duration of the period	1778
during which any securities issued by the board under division (I)	1779
of section 307.695 of the Revised Code are outstanding, or the	1780
duration of the period during which the board owns a project as	1781
defined in section 307.695 of the Revised Code, whichever duration	1782
is longest. The amendment also shall provide that no portion of	1783
that revenue need be returned to townships or municipal	1784
corporations as would otherwise be required under division (A)(1)	1785
of this section.	1786

(3) A board of county commissioners that levies a tax under	1787
division (A)(1) of this section on March 18, 1999, at a rate of	1788
three per cent may, by resolution adopted not later than	1789
forty-five days after March 18, 1999, amend the resolution levying	1790
the tax to provide for all of the following:	1791

(a) That the rate of the tax shall be increased by not more	1792
than an additional four per cent on each transaction;	1793

(b) That all of the revenue from the increase in the rate	1794
shall be pledged and contributed to a convention facilities	1795
authority established by the board of county commissioners under	1796
Chapter 351. of the Revised Code on or before November 15, 1998,	1797
and used to pay costs of constructing, maintaining, operating, and	1798
promoting a facility in the county, including paying bonds, or	1799
notes issued in anticipation of bonds, as provided by that	1800
chapter;	1801

(c) That no portion of the revenue arising from the increase	1802
in rate need be returned to municipal corporations or townships as	1803
otherwise required under division (A)(1) of this section;	1804

(d) That the increase in rate shall not be subject to	1805
diminution by initiative or referendum or by law while any bonds,	1806
or notes in anticipation of bonds, issued by the authority under	1807
Chapter 351. of the Revised Code to which the revenue is pledged,	1808
remain outstanding in accordance with their terms, unless	1809
provision is made by law or by the board of county commissioners	1810
for an adequate substitute therefor that is satisfactory to the	1811
trustee if a trust agreement secures the bonds.	1812

Division (A)(3) of this section does not apply to the board	1813
of county commissioners of any county in which a convention center	1814
or facility exists or is being constructed on November 15, 1998,	1815
or of any county in which a convention facilities authority levies	1816
a tax pursuant to section 351.021 of the Revised Code on that	1817
date.	1818

As used in division (A)(3) of this section, "cost" and	1819
"facility" have the same meanings as in section 351.01 of the	1820
Revised Code, and "convention center" has the same meaning as in	1821
section 307.695 of the Revised Code.	1822

(4)(a) A board of county commissioners that levies a tax	1823
under division (A)(1) of this section on June 30, 2002, at a rate	1824
of three per cent may, by resolution adopted not later than	1825
September 30, 2002, amend the resolution levying the tax to	1826
provide for all of the following:	1827

(i) That the rate of the tax shall be increased by not more	1828
than an additional three and one-half per cent on each	1829
transaction;	1830

(ii) That all of the revenue from the increase in rate shall	1831
be pledged and contributed to a convention facilities authority	1832
established by the board of county commissioners under Chapter	1833
351. of the Revised Code on or before May 15, 2002, and be used	1834
to pay costs of constructing, expanding, maintaining, operating,	1835
or promoting a convention center in the county, including paying	1836
bonds, or notes issued in anticipation of bonds, as provided by	1837
that chapter;	1838

(iii) That no portion of the revenue arising from the	1839
increase in rate need be returned to municipal corporations or	1840
townships as otherwise required under division (A)(1) of this	1841
section;	1842

(iv) That the increase in rate shall not be subject to	1843
diminution by initiative or referendum or by law while any bonds,	1844
or notes in anticipation of bonds, issued by the authority under	1845
Chapter 351. of the Revised Code to which the revenue is pledged,	1846
remain outstanding in accordance with their terms, unless	1847
provision is made by law or by the board of county commissioners	1848
for an adequate substitute therefor that is satisfactory to the	1849
trustee if a trust agreement secures the bonds.	1850

(b) Any board of county commissioners that, pursuant to	1851
division (A)(4)(a) of this section, has amended a resolution	1852
levying the tax authorized by division (A)(1) of this section may	1853
further amend the resolution to provide that the revenue referred	1854
to in division (A)(4)(a)(ii) of this section shall be pledged and	1855
contributed both to a convention facilities authority to pay the	1856
costs of constructing, expanding, maintaining, or operating one or	1857
more convention centers in the county, including paying bonds, or	1858
notes issued in anticipation of bonds, as provided in Chapter 351.	1859
of the Revised Code, and to a convention and visitors' bureau to	1860
pay the costs of promoting one or more convention centers in the	1861
county.	1862

As used in division (A)(4) of this section, "cost" has the	1863
same meaning as in section 351.01 of the Revised Code, and	1864
"convention center" has the same meaning as in section 307.695 of	1865
the Revised Code.	1866

(5)(a) As used in division (A)(5) of this section:

1867

(i) "Port authority" means a port authority created under	1868
Chapter 4582. of the Revised Code.	1869

(ii) "Port authority military-use facility" means port	1870
authority facilities on which or adjacent to which is located an	1871
installation of the armed forces of the United States, a reserve	1872
component thereof, or the national guard and at least part of	1873
which is made available for use, for consideration, by the armed	1874
forces of the United States, a reserve component thereof, or the	1875
national guard.	1876

(b) For the purpose of contributing revenue to pay operating	1877
expenses of a port authority that operates a port authority	1878
military-use facility, the board of county commissioners of a	1879
county that created, participated in the creation of, or has	1880
joined such a port authority may do one or both of the following:	1881

(i) Amend a resolution previously adopted under division	1882
(A)(1) of this section to designate some or all of the revenue	1883
from the tax levied under the resolution to be used for that	1884
purpose, notwithstanding that division;	1885

(ii) Amend a resolution previously adopted under division	1886
(A)(1) of this section to increase the rate of the tax by not more	1887
than an additional two per cent and use the revenue from the	1888
increase exclusively for that purpose.	1889

(c) If a board of county commissioners amends a resolution to	1890
increase the rate of a tax as authorized in division (A)(5)(b)(ii)	1891
of this section, the board also may amend the resolution to	1892
specify that the increase in rate of the tax does not apply to	1893
"hotels," as otherwise defined in section 5739.01 of the Revised	1894
Code, having fewer rooms used for the accommodation of guests than	1895
a number of rooms specified by the board.	1896

(6) A board of county commissioners of a county organized	1897
under a county charter adopted pursuant to Article X, Section 3,	1898
Ohio Constitution, and that levies an excise tax under division	1899
(A)(1) of this section at a rate of three per cent and levies an	1900
additional excise tax under division (E) of this section at a rate	1901
of one and one-half per cent may, by resolution adopted not later	1902
than January 1, 2008, by a majority of the members of the board,	1903
amend the resolution levying a tax under division (A)(1) of this	1904
section to provide for an increase in the rate of that tax by not	1905
more than an additional one per cent on transactions by which	1906
lodging by a hotel is or is to be furnished to transient guests.	1907
Notwithstanding divisions (A)(1) and (E) of this section, the	1908
resolution shall provide that all of the revenue from the increase	1909
in rate, after deducting the real and actual costs of	1910
administering the tax, shall be used to pay the costs of	1911
improving, expanding, equipping, financing, or operating a	1912
convention center by a convention and visitors' bureau in the	1913
county. The increase in rate shall remain in effect for the	1914
period specified in the resolution, not to exceed ten years. The	1915
increase in rate shall be subject to the regulations adopted	1916
under division (A)(1) of this section, except that the	1917
resolution may provide that no portion of the revenue from the	1918
increase in the rate shall be returned to townships or municipal	1919
corporations as would otherwise be required under that division.	1920

(7) Division (A)(7) of this section applies only to a county	1921
with a population greater than sixty-five thousand and less than	1922
seventy thousand according to the most recent federal decennial	1923
census and in which, on December 31, 2006, an excise tax is levied	1924
under division (A)(1) of this section at a rate not less than and	1925
not greater than three per cent, and in which the most recent	1926
increase in the rate of that tax was enacted or took effect in	1927
November 1984.	1928

The board of county commissioners of a county to which this	1929
division applies, by resolution adopted by a majority of the	1930
members of the board, may increase the rate of the tax by not more	1931
than one per cent on transactions by which lodging by a hotel is	1932
or is to be furnished to transient guests. The increase in rate	1933
shall be for the purpose of paying expenses deemed necessary by	1934
the convention and visitors' bureau operating in the county to	1935
promote travel and tourism. The increase in rate shall remain in	1936
effect for the period specified in the resolution, not to exceed	1937
twenty years, provided that the increase in rate may not continue	1938
beyond the time when the purpose for which the increase is levied	1939
ceases to exist. If revenue from the increase in rate is pledged	1940
to the payment of debt charges on securities, the increase in rate	1941
is not subject to diminution by initiative or referendum or by law	1942
for so long as the securities are outstanding, unless provision is	1943
made by law or by the board of county commissioners for an	1944
adequate substitute for that revenue that is satisfactory to the	1945
trustee if a trust agreement secures payment of the debt charges.	1946
The increase in rate shall be subject to the regulations adopted	1947
under division (A)(1) of this section, except that the resolution	1948
may provide that no portion of the revenue from the increase in	1949
the rate shall be returned to townships or municipal corporations	1950
as would otherwise be required under division (A)(1) of this	1951
section. A resolution adopted under division (A)(7) of this	1952
section is subject to referendum under sections 305.31 to 305.99	1953
of the Revised Code.	1954

(8) A board of county commissioners of a county with a	1955
population greater than four hundred thousand that levies an	1956
excise tax under division (A)(1) of this section at a rate of	1957
three per cent and that levies no other excise tax under this	1958
section may, by resolution adopted by a majority of the members of	1959
the board, amend the resolution levying the tax to provide for all	1960
of the following, notwithstanding anything in that division to the	1961
contrary:	1962

(a) That the rate of the tax shall be increased by not more	1963
than an additional four per cent on each transaction;	1964

(b)(i) That a portion of the revenue from the first three per	1965
cent of the tax levied under division (A)(1) of this section may	1966
be used for the purposes described in division (A)(8)(c) of this	1967
section;	1968

(ii) That all revenue exceeding the revenue from the first	1969
three per cent of the tax levied under division (A)(1) of this	1970
section shall be used for the purposes of division (A)(8)(c) of	1971
this section;	1972

(c) That the revenue described in divisions (A)(8)(b)(i) and	1973
(ii) of this section may be used by the board for the purposes of	1974
undertaking, financing, or leasing a project, as defined in	1975
section 307.695 of the Revised Code, including paying debt	1976
charges on any securities issued by the board under division (I)	1977
of that section, except that the project financed with such	1978
revenue shall be limited to constructing, acquiring, equipping,	1979
furnishing, or leasing an arena or convention center, or	1980
combination thereof, that does not exist on the effective date of	1981
S.B. 306 of the 127th general assembly, subject to the terms of	1982
any pledge to the payment of debt charges on outstanding general	1983
obligation securities or special obligation securities under	1984
division (I) of section 307.695 of the Revised Code;	1985

(d) That the additional rate of tax levied under division	1986
(A)(8)(a) of this section shall remain in effect at the rate at	1987
which it is imposed for the duration of a period ending on the	1988
last day of the thirty-fifth year following the adoption of a	1989
resolution under this division, the duration of the period during	1990
which any securities issued by the board under division (I) of	1991
section 307.695 of the Revised Code are outstanding, or the	1992
duration of the period during which the board owns as or leases	1993
the arena or convention center, whichever duration is longest.	1994

(B)(1) The legislative authority of a municipal corporation	1995
or the board of trustees of a township that is not wholly or	1996
partly located in a county that has in effect a resolution levying	1997
an excise tax pursuant to division (A)(1) of this section may, by	1998
ordinance or resolution, levy an excise tax not to exceed three	1999
per cent on transactions by which lodging by a hotel is or is to	2000
be furnished to transient guests. The legislative authority of the	2001
municipal corporation or the board of trustees of the township	2002
shall deposit at least fifty per cent of the revenue from the tax	2003
levied pursuant to this division into a separate fund, which shall	2004
be spent solely to make contributions to convention and visitors'	2005
bureaus operating within the county in which the municipal	2006
corporation or township is wholly or partly located, and the	2007
balance of that revenue shall be deposited in the general fund.	2008
The municipal corporation or township shall establish all	2009
regulations necessary to provide for the administration and	2010
allocation of the tax. The regulations may prescribe the time for	2011
payment of the tax, and may provide for the imposition of a	2012
penalty or interest, or both, for late payments, provided that the	2013
penalty does not exceed ten per cent of the amount of tax due, and	2014
the rate at which interest accrues does not exceed the rate per	2015
annum prescribed pursuant to section 5703.47 of the Revised Code.	2016
The levy of a tax under this division is in addition to any tax	2017
imposed on the same transaction by a municipal corporation or a	2018
township as authorized by division (A) of section 5739.08 of the	2019
Revised Code.	2020

(2)(a) The legislative authority of the most populous	2021
municipal corporation located wholly or partly in a county in	2022
which the board of county commissioners has levied a tax under	2023
division (A)(4) of this section may amend, on or before September	2024
30, 2002, that municipal corporation's ordinance or resolution	2025
that levies an excise tax on transactions by which lodging by a	2026
hotel is or is to be furnished to transient guests, to provide for	2027
all of the following:	2028

(i) That the rate of the tax shall be increased by not more	2029
than an additional one per cent on each transaction;	2030

(ii) That all of the revenue from the increase in rate shall	2031
be pledged and contributed to a convention facilities authority	2032
established by the board of county commissioners under Chapter	2033
351. of the Revised Code on or before May 15, 2002, and be used	2034
to pay costs of constructing, expanding, maintaining, operating,	2035
or promoting a convention center in the county, including paying	2036
bonds, or notes issued in anticipation of bonds, as provided by	2037
that chapter;	2038

(iii) That the increase in rate shall not be subject to	2039
diminution by initiative or referendum or by law while any bonds,	2040
or notes in anticipation of bonds, issued by the authority under	2041
Chapter 351. of the Revised Code to which the revenue is pledged,	2042
remain outstanding in accordance with their terms, unless	2043
provision is made by law, by the board of county commissioners, or	2044
by the legislative authority, for an adequate substitute therefor	2045
that is satisfactory to the trustee if a trust agreement secures	2046
the bonds.	2047

(b) The legislative authority of a municipal corporation	2048
that, pursuant to division (B)(2)(a) of this section, has amended	2049
its ordinance or resolution to increase the rate of the tax	2050
authorized by division (B)(1) of this section may further amend	2051
the ordinance or resolution to provide that the revenue referred	2052
to in division (B)(2)(a)(ii) of this section shall be pledged and	2053
contributed both to a convention facilities authority to pay the	2054
costs of constructing, expanding, maintaining, or operating one or	2055
more convention centers in the county, including paying bonds, or	2056
notes issued in anticipation of bonds, as provided in Chapter 351.	2057
of the Revised Code, and to a convention and visitors' bureau to	2058
pay the costs of promoting one or more convention centers in the	2059
county.	2060

As used in division (B)(2) of this section, "cost" has the	2061
same meaning as in section 351.01 of the Revised Code, and	2062
"convention center" has the same meaning as in section 307.695 of	2063
the Revised Code.	2064

(C) For the purposes described in section 307.695 of the	2065
Revised Code and to cover the costs of administering the tax, a	2066
board of county commissioners of a county where a tax imposed	2067
under division (A)(1) of this section is in effect may, by	2068
resolution adopted within ninety days after July 15, 1985, by a	2069
majority of the members of the board, levy an additional excise	2070
tax not to exceed three per cent on transactions by which lodging	2071
by a hotel is or is to be furnished to transient guests. The tax	2072
authorized by this division shall be in addition to any tax that	2073
is levied pursuant to division (A) of this section, but it shall	2074
not apply to transactions subject to a tax levied by a municipal	2075
corporation or township pursuant to the authorization granted by	2076
division (A) of section 5739.08 of the Revised Code. The board	2077
shall establish all regulations necessary to provide for the	2078
administration and allocation of the tax. The regulations may	2079
prescribe the time for payment of the tax, and may provide for the	2080
imposition of a penalty or interest, or both, for late payments,	2081
provided that the penalty does not exceed ten per cent of the	2082
amount of tax due, and the rate at which interest accrues does not	2083
exceed the rate per annum prescribed pursuant to section 5703.47	2084
of the Revised Code. All revenues arising from the tax shall be	2085
expended in accordance with section 307.695 of the Revised Code.	2086
The board of county commissioners of an eligible county as defined	2087
in section 307.695 of the Revised Code may, by resolution adopted	2088
by a majority of the members of the board, amend the resolution	2089
levying a tax under this division to provide that the revenue from	2090
the tax shall be used by the board as described in division (H) of	2091
section 307.695 of the Revised Code. A tax imposed under this	2092
division shall remain in effect at the rate at which it is imposed	2093
for the duration of the period during which any agreement entered	2094
into by the board under section 307.695 of the Revised Code is in	2095
effect, the duration of the period during which any securities	2096
issued by the board under division (I) of section 307.695 of the	2097
Revised Code are outstanding, or the duration of the period during	2098
which the board owns a project as defined in section 307.695 of	2099
the Revised Code, whichever duration is longest.	2100

(D) For the purpose of providing contributions under division	2101
(B)(1) of section 307.671 of the Revised Code to enable the	2102
acquisition, construction, and equipping of a port authority	2103
educational and cultural facility in the county and, to the extent	2104
provided for in the cooperative agreement authorized by that	2105
section, for the purpose of paying debt service charges on bonds,	2106
or notes in anticipation of bonds, described in division (B)(1)(b)	2107
of that section, a board of county commissioners, by resolution	2108
adopted within ninety days after December 22, 1992, by a majority	2109
of the members of the board, may levy an additional excise tax not	2110
to exceed one and one-half per cent on transactions by which	2111
lodging by a hotel is or is to be furnished to transient guests.	2112
The excise tax authorized by this division shall be in addition to	2113
any tax that is levied pursuant to divisions (A), (B), and (C) of	2114
this section, to any excise tax levied pursuant to section 5739.08	2115
of the Revised Code, and to any excise tax levied pursuant to	2116
section 351.021 of the Revised Code. The board of county	2117
commissioners shall establish all regulations necessary to provide	2118
for the administration and allocation of the tax that are not	2119
inconsistent with this section or section 307.671 of the Revised	2120
Code. The regulations may prescribe the time for payment of the	2121
tax, and may provide for the imposition of a penalty or interest,	2122
or both, for late payments, provided that the penalty does not	2123
exceed ten per cent of the amount of tax due, and the rate at	2124
which interest accrues does not exceed the rate per annum	2125
prescribed pursuant to section 5703.47 of the Revised Code. All	2126
revenues arising from the tax shall be expended in accordance with	2127
section 307.671 of the Revised Code and division (D) of this	2128
section. The levy of a tax imposed under this division may not	2129
commence prior to the first day of the month next following the	2130
execution of the cooperative agreement authorized by section	2131
307.671 of the Revised Code by all parties to that agreement. The	2132
tax shall remain in effect at the rate at which it is imposed for	2133
the period of time described in division (C) of section 307.671 of	2134
the Revised Code for which the revenue from the tax has been	2135
pledged by the county to the corporation pursuant to that section,	2136
but, to any extent provided for in the cooperative agreement, for	2137
no lesser period than the period of time required for payment of	2138
the debt service charges on bonds, or notes in anticipation of	2139
bonds, described in division (B)(1)(b) of that section.	2140

(E) For the purpose of paying the costs of acquiring,	2141
constructing, equipping, and improving a municipal educational and	2142
cultural facility, including debt service charges on bonds	2143
provided for in division (B) of section 307.672 of the Revised	2144
Code, and for any additional purposes determined by the county in	2145
the resolution levying the tax or amendments to the resolution,	2146
including subsequent amendments providing for paying costs of	2147
acquiring, constructing, renovating, rehabilitating, equipping,	2148
and improving a port authority educational and cultural performing	2149
arts facility, as defined in section 307.674 of the Revised Code,	2150
and including debt service charges on bonds provided for in	2151
division (B) of section 307.674 of the Revised Code, the	2152
legislative authority of a county, by resolution adopted within	2153
ninety days after June 30, 1993, by a majority of the members of	2154
the legislative authority, may levy an additional excise tax not	2155
to exceed one and one-half per cent on transactions by which	2156
lodging by a hotel is or is to be furnished to transient guests.	2157
The excise tax authorized by this division shall be in addition to	2158
any tax that is levied pursuant to divisions (A), (B), (C), and	2159
(D) of this section, to any excise tax levied pursuant to section	2160
5739.08 of the Revised Code, and to any excise tax levied pursuant	2161
to section 351.021 of the Revised Code. The legislative authority	2162
of the county shall establish all regulations necessary to provide	2163
for the administration and allocation of the tax. The regulations	2164
may prescribe the time for payment of the tax, and may provide for	2165
the imposition of a penalty or interest, or both, for late	2166
payments, provided that the penalty does not exceed ten per cent	2167
of the amount of tax due, and the rate at which interest accrues	2168
does not exceed the rate per annum prescribed pursuant to section	2169
5703.47 of the Revised Code. All revenues arising from the tax	2170
shall be expended in accordance with section 307.672 of the	2171
Revised Code and this division. The levy of a tax imposed under	2172
this division shall not commence prior to the first day of the	2173
month next following the execution of the cooperative agreement	2174
authorized by section 307.672 of the Revised Code by all parties	2175
to that agreement. The tax shall remain in effect at the rate at	2176
which it is imposed for the period of time determined by the	2177
legislative authority of the county. That period of time shall	2178
not exceed fifteen years, except that the legislative authority	2179
of a county with a population of less than two hundred fifty	2180
thousand according to the most recent federal decennial census,	2181
by resolution adopted by a majority of its members before the	2182
original tax expires, may extend the duration of the tax for an	2183
additional period of time. The additional period of time by which	2184
a legislative authority extends a tax levied under this division	2185
shall not exceed fifteen years.	2186

(F) The legislative authority of a county that has levied a	2187
tax under division (E) of this section may, by resolution adopted	2188
within one hundred eighty days after January 4, 2001, by a	2189
majority of the members of the legislative authority, amend the	2190
resolution levying a tax under that division to provide for the	2191
use of the proceeds of that tax, to the extent that it is no	2192
longer needed for its original purpose as determined by the	2193
parties to a cooperative agreement amendment pursuant to division	2194
(D) of section 307.672 of the Revised Code, to pay costs of	2195
acquiring, constructing, renovating, rehabilitating, equipping,	2196
and improving a port authority educational and cultural performing	2197
arts facility, including debt service charges on bonds provided	2198
for in division (B) of section 307.674 of the Revised Code, and to	2199
pay all obligations under any guaranty agreements, reimbursement	2200
agreements, or other credit enhancement agreements described in	2201
division (C) of section 307.674 of the Revised Code. The	2202
resolution may also provide for the extension of the tax at the	2203
same rate for the longer of the period of time determined by the	2204
legislative authority of the county, but not to exceed an	2205
additional twenty-five years, or the period of time required to	2206
pay all debt service charges on bonds provided for in division (B)	2207
of section 307.672 of the Revised Code and on port authority	2208
revenue bonds provided for in division (B) of section 307.674 of	2209
the Revised Code. All revenues arising from the amendment and	2210
extension of the tax shall be expended in accordance with section	2211
307.674 of the Revised Code, this division, and division (E) of	2212
this section.	2213

(G) For purposes of a tax levied by a county, township, or	2214
municipal corporation under this section or section 5739.08 of the	2215
Revised Code, a board of county commissioners, board of township	2216
trustees, or the legislative authority of a municipal corporation	2217
may adopt a resolution or ordinance at any time specifying that	2218
"hotel," as otherwise defined in section 5739.01 of the Revised	2219
Code, includes establishments in which fewer than five rooms are	2220
used for the accommodation of guests. The resolution or ordinance	2221
may apply to a tax imposed pursuant to this section prior to the	2222
adoption of the resolution or ordinance if the resolution or	2223
ordinance so states, but the tax shall not apply to transactions	2224
by which lodging by such an establishment is provided to transient	2225
guests prior to the adoption of the resolution or ordinance.	2226

(H)(1) As used in this division:

2227

(a) "Convention facilities authority" has the same meaning as	2228
in section 351.01 of the Revised Code.	2229

(b) "Convention center" has the same meaning as in section	2230
307.695 of the Revised Code.	2231

(2) Notwithstanding any contrary provision of division (D) of	2232
this section, the legislative authority of a county with a	2233
population of one million or more according to the most recent	2234
federal decennial census that has levied a tax under division (D)	2235
of this section may, by resolution adopted by a majority of the	2236
members of the legislative authority, provide for the extension of	2237
such levy and may provide that the proceeds of that tax, to the	2238
extent that they are no longer needed for their original purpose	2239
as defined by a cooperative agreement entered into under section	2240
307.671 of the Revised Code, shall be deposited into the county	2241
general revenue fund. The resolution shall provide for the	2242
extension of the tax at a rate not to exceed the rate specified in	2243
division (D) of this section for a period of time determined by	2244
the legislative authority of the county, but not to exceed an	2245
additional forty years.	2246

(3) The legislative authority of a county with a population	2247
of one million or more that has levied a tax under division (A)(1)	2248
of this section may, by resolution adopted by a majority of the	2249
members of the legislative authority, increase the rate of the tax	2250
levied by such county under division (A)(1) of this section to a	2251
rate not to exceed five per cent on transactions by which lodging	2252
by a hotel is or is to be furnished to transient guests.	2253
Notwithstanding any contrary provision of division (A)(1) of this	2254
section, the resolution may provide that all collections resulting	2255
from the rate levied in excess of three per cent, after deducting	2256
the real and actual costs of administering the tax, shall be	2257
deposited in the county general fund.	2258

(4) The legislative authority of a county with a population	2259
of one million or more that has levied a tax under division (A)(1)	2260
of this section may, by resolution adopted on or before August 30,	2261
2004, by a majority of the members of the legislative authority,	2262
provide that all or a portion of the proceeds of the tax levied	2263
under division (A)(1) of this section, after deducting the real	2264
and actual costs of administering the tax and the amounts required	2265
to be returned to townships and municipal corporations with	2266
respect to the first three per cent levied under division (A)(1)	2267
of this section, shall be deposited in the county general fund,	2268
provided that such proceeds shall be used to satisfy any pledges	2269
made in connection with an agreement entered into under section	2270
307.695 of the Revised Code.	2271

(5) No amount collected from a tax levied, extended, or	2272
required to be deposited in the county general fund under division	2273
(H) of this section shall be contributed to a convention	2274
facilities authority, corporation, or other entity created after	2275
July 1, 2003, for the principal purpose of constructing,	2276
improving, expanding, equipping, financing, or operating a	2277
convention center unless the mayor of the municipal corporation	2278
in which the convention center is to be operated by that	2279
convention facilities authority, corporation, or other entity	2280
has consented to the creation of that convention facilities	2281
authority, corporation, or entity. Notwithstanding any contrary	2282
provision of section 351.04 of the Revised Code, if a tax is	2283
levied by a county under division (H) of this section, the board	2284
of county commissioners of that county may determine the manner	2285
of selection, the qualifications, the number, and terms of	2286
office of the members of the board of directors of any convention	2287
facilities authority, corporation, or other entity described in	2288
division (H)(5) of this section.	2289

(6)(a) No amount collected from a tax levied, extended, or	2290
required to be deposited in the county general fund under division	2291
(H) of this section may be used for any purpose other than paying	2292
the direct and indirect costs of constructing, improving,	2293
expanding, equipping, financing, or operating a convention center	2294
and for the real and actual costs of administering the tax,	2295
unless, prior to the adoption of the resolution of the	2296
legislative authority of the county authorizing the levy,	2297
extension, increase, or deposit, the county and the mayor of the	2298
most populous municipal corporation in that county have entered	2299
into an agreement as to the use of such amounts, provided that	2300
such agreement has been approved by a majority of the mayors of	2301
the other municipal corporations in that county. The agreement	2302
shall provide that the amounts to be used for purposes other	2303
than paying the convention center or administrative costs	2304
described in division (H)(6)(a) of this section be used only for	2305
the direct and indirect costs of capital improvements, including	2306
the financing of capital improvements.	2307

(b) If the county in which the tax is levied has an	2308
association of mayors and city managers, the approval of that	2309
association of an agreement described in division (H)(6)(a) of	2310
this section shall be considered to be the approval of the	2311
majority of the mayors of the other municipal corporations for	2312
purposes of that division.	2313

(7) Each year, the auditor of state shall conduct an audit of	2314
the uses of any amounts collected from taxes levied, extended, or	2315
deposited under division (H) of this section and shall prepare a	2316
report of the auditor of state's findings. The auditor of state	2317
shall submit the report to the legislative authority of the county	2318
that has levied, extended, or deposited the tax, the speaker of	2319
the house of representatives, the president of the senate, and the	2320
leaders of the minority parties of the house of representatives	2321
and the senate.	2322

(I)(1) As used in this division:

2323

(a) "Convention facilities authority" has the same meaning as	2324
in section 351.01 of the Revised Code.	2325

(b) "Convention center" has the same meaning as in section	2326
307.695 of the Revised Code.	2327

(2) Notwithstanding any contrary provision of division (D) of	2328
this section, the legislative authority of a county with a	2329
population of one million two hundred thousand or more according	2330
to the most recent federal decennial census or the most recent	2331
annual population estimate published or released by the United	2332
States census bureau at the time the resolution is adopted placing	2333
the levy on the ballot, that has levied a tax under division (D)	2334
of this section may, by resolution adopted by a majority of the	2335
members of the legislative authority, provide for the extension of	2336
such levy and may provide that the proceeds of that tax, to the	2337
extent that the proceeds are no longer needed for their original	2338
purpose as defined by a cooperative agreement entered into under	2339
section 307.671 of the Revised Code and after deducting the real	2340
and actual costs of administering the tax, shall be used for	2341
paying the direct and indirect costs of constructing, improving,	2342
expanding, equipping, financing, or operating a convention center.	2343
The resolution shall provide for the extension of the tax at a	2344
rate not to exceed the rate specified in division (D) of this	2345
section for a period of time determined by the legislative	2346
authority of the county, but not to exceed an additional forty	2347
years.	2348

(3) The legislative authority of a county with a population	2349
of one million two hundred thousand or more that has levied a tax	2350
under division (A)(1) of this section may, by resolution adopted	2351
by a majority of the members of the legislative authority,	2352
increase the rate of the tax levied by such county under division	2353
(A)(1) of this section to a rate not to exceed five per cent on	2354
transactions by which lodging by a hotel is or is to be furnished	2355
to transient guests. Notwithstanding any contrary provision of	2356
division (A)(1) of this section, the resolution shall provide that	2357
all collections resulting from the rate levied in excess of three	2358
per cent, after deducting the real and actual costs of	2359
administering the tax, shall be used for paying the direct and	2360
indirect costs of constructing, improving, expanding, equipping,	2361
financing, or operating a convention center.	2362

(4) The legislative authority of a county with a population	2363
of one million two hundred thousand or more that has levied a tax	2364
under division (A)(1) of this section may, by resolution adopted	2365
on or before July 1, 2008, by a majority of the members of the	2366
legislative authority, provide that all or a portion of the	2367
proceeds of the tax levied under division (A)(1) of this section,	2368
after deducting the real and actual costs of administering the tax	2369
and the amounts required to be returned to townships and municipal	2370
corporations with respect to the first three per cent levied under	2371
division (A)(1) of this section, shall be used to satisfy any	2372
pledges made in connection with an agreement entered into under	2373
section 307.695 of the Revised Code or shall otherwise be used for	2374
paying the direct and indirect costs of constructing, improving,	2375
expanding, equipping, financing, or operating a convention center.	2376

(5) Any amount collected from a tax levied or extended under	2377
division (I) of this section may be contributed to a convention	2378
facilities authority created before July 1, 2005, but no amount	2379
collected from a tax levied or extended under division (I) of this	2380
section may be contributed to a convention facilities authority,	2381
corporation, or other entity created after July 1, 2005, unless	2382
the mayor of the municipal corporation in which the convention	2383
center is to be operated by that convention facilities authority,	2384
corporation, or other entity has consented to the creation of that	2385
convention facilities authority, corporation, or entity.	2386

Section 2.  That existing sections 135.804, 307.695, 322.07,	2387
323.151, 323.152, 323.153, 323.154, 323.155, 323.156, 323.159,	2388
3317.16, 4503.065, 4503.066, 4503.067, 4503.068, 4735.18, and	2389
5739.09 of the Revised Code are hereby repealed.	2390

Section 3.  That the amendment by this act to section	2391
3317.16 of the Revised Code shall first apply to the fiscal year	2392
ending June 30, 2009, and that the total amount of payments under	2393
that section during that fiscal year to any joint vocational	2394
school district affected by the amendment shall be calculated as	2395
though the amendment had been in effect prior to July 1, 2008.	2396

Section 4.  Section 323.156 of the Revised Code is presented	2397
in this act as a composite of the section as amended by both Am.	2398
H.B. 595 and Am. Sub. H.B. 672 of the 123rd General Assembly. The	2399
General Assembly, applying the principle stated in division (B)	2400
of section 1.52 of the Revised Code that amendments are to be	2401
harmonized if reasonably capable of simultaneous operation, finds	2402
that the composite is the resulting version of the section in	2403
effect prior to the effective date of the section as presented in	2404
this act.	2405