As Introduced

128th General Assembly
Regular Session
2009-2010
S. B. No. 44


Senator Miller, D. 

Cosponsors: Senators Fedor, Turner, Miller, R., Roberts 

A BILL
To amend sections 323.152, 323.153, and 323.156 of 1
the Revised Code to require county auditors to 2
make reasonable efforts to identify property 3
owners wrongfully receiving the 2.5% property tax 4
rollback, to limit the monetary charge against 5
violators to five years' worth of reductions plus 6
interest, to require 10% of monetary charge 7
collections to be credited to the rollback 8
enforcement fund, and to provide amnesty for 9
persons who report their illegal receipt of the 10
rollback.11


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

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

       Sec. 323.152.  In addition to the reduction in taxes required14
under section 319.302 of the Revised Code, taxes shall be reduced15
as provided in divisions (A) and (B) of this section.16

       (A)(1) Division (A) of this section applies to any of the17
following:18

       (a) A person who is permanently and totally disabled;19

       (b) A person who is sixty-five years of age or older;20

       (c) A person who is the surviving spouse of a deceased person 21
who was permanently and totally disabled or sixty-five years of 22
age or older and who applied and qualified for a reduction in 23
taxes under this division in the year of death, provided the24
surviving spouse is at least fifty-nine but not sixty-five or more 25
years of age on the date the deceased spouse dies.26

       (2) Real property taxes on a homestead owned and occupied, or 27
a homestead in a housing cooperative occupied, by a person to whom 28
division (A) of this section applies shall be reduced for each 29
year for which the owner obtains a certificate of reduction from 30
the county auditor under section 323.154 of the Revised Code or 31
for which the occupant obtains a certificate of reduction in32
accordance with section 323.159 of the Revised Code. The reduction33
shall equal the greater of the reduction granted for the tax year 34
preceding the first tax year to which this section applies 35
pursuant to Section 803.06 of Am. Sub. H.B. 119 of the 127th 36
general assembly, if the taxpayer received a reduction for that 37
preceding tax year, or the product of the following:38

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

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

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

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

       (B) To provide a partial exemption, real property taxes on 52
any homestead, and manufactured home taxes on any manufactured or 53
mobile home on which a manufactured home tax is assessed pursuant 54
to division (D)(2) of section 4503.06 of the Revised Code, shall 55
be reduced for each year for which the owner obtains a certificate 56
of reduction from the county auditor under section 323.154 of the57
Revised Code. The amount of the reduction shall equal two and 58
one-half per cent of the amount of taxes to be levied on the59
homestead or the manufactured or mobile home after applying60
section 319.301 of the Revised Code.61

       (C) The reductions granted by this section do not apply to62
special assessments or respread of assessments levied against the63
homestead, and if there is a transfer of ownership subsequent to64
the filing of an application for a reduction in taxes, such65
reductions are not forfeited for such year by virtue of such66
transfer.67

       (D) The reductions in taxable value referred to in this68
section shall be applied solely as a factor for the purpose of69
computing the reduction of taxes under this section and shall not70
affect the total value of property in any subdivision or taxing71
district as listed and assessed for taxation on the tax lists and72
duplicates, or any direct or indirect limitations on indebtedness73
of a subdivision or taxing district. If after application of74
sections 5705.31 and 5705.32 of the Revised Code, including the75
allocation of all levies within the ten-mill limitation to debt76
charges to the extent therein provided, there would be77
insufficient funds for payment of debt charges not provided for by78
levies in excess of the ten-mill limitation, the reduction of79
taxes provided for in sections 323.151 to 323.159 of the Revised80
Code shall be proportionately adjusted to the extent necessary to81
provide such funds from levies within the ten-mill limitation.82

       (E) No reduction shall be made on the taxes due on the83
homestead of any person convicted of violating division (C) or (D)84
or (E) of section 323.153 of the Revised Code for a period of 85
three years following the conviction.86

       Sec. 323.153.  (A) To obtain a reduction in real property87
taxes under division (A) or (B) of section 323.152 of the Revised88
Code or in manufactured home taxes under division (B) of section89
323.152 of the Revised Code, the owner shall file an application90
with the county auditor of the county in which the owner's91
homestead is located.92

       To obtain a reduction in real property taxes under division93
(A) of section 323.152 of the Revised Code, the occupant of a94
homestead in a housing cooperative shall file an application with95
the nonprofit corporation that owns and operates the housing96
cooperative, in accordance with this paragraph. Not later than the 97
first day of March each year, the corporation shall obtain98
applications from the county auditor's office and provide one to99
each new occupant. Not later than the first day of May, any100
occupant who may be eligible for a reduction in taxes under101
division (A) of section 323.152 of the Revised Code shall submit102
the completed application to the corporation. Not later than the103
fifteenth day of May, the corporation shall file all completed104
applications, and the information required by division (B) of105
section 323.159 of the Revised Code, with the county auditor of106
the county in which the occupants' homesteads are located. 107
Continuing applications shall be furnished to an occupant in the108
manner provided in division (C)(4) of this section.109

       (1) An application for reduction based upon a physical110
disability shall be accompanied by a certificate signed by a111
physician, and an application for reduction based upon a mental112
disability shall be accompanied by a certificate signed by a113
physician or psychologist licensed to practice in this state,114
attesting to the fact that the applicant is permanently and115
totally disabled. The certificate shall be in a form that the tax116
commissioner requires and shall include the definition of117
permanently and totally disabled as set forth in section 323.151118
of the Revised Code. An application for reduction based upon a119
disability certified as permanent and total by a state or federal120
agency having the function of so classifying persons shall be121
accompanied by a certificate from that agency. 122

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

       (2) An application for a reduction in taxes under division127
(B) of section 323.152 of the Revised Code shall be filed only if128
the homestead or manufactured or mobile home was transferred in129
the preceding year or did not qualify for and receive the130
reduction in taxes under that division for the preceding tax year. 131
The application for homesteads transferred in the preceding year132
shall be incorporated into any form used by the county auditor to133
administer the tax law in respect to the conveyance of real134
property pursuant to section 319.20 of the Revised Code or of used135
manufactured homes or used mobile homes as defined in section136
5739.0210 of the Revised Code. The owner of a manufactured or137
mobile home who has elected under division (D)(4) of section138
4503.06 of the Revised Code to be taxed under division (D)(2) of139
that section for the ensuing year may file the application at the140
time of making that election. The application shall contain a141
statement that failure by the applicant to affirm on the142
application that the dwelling on the property conveyed is the143
applicant's homestead prohibits the owner from receiving the144
reduction in taxes until a proper application is filed within the145
period prescribed by division (A)(3) of this section. Such an146
application constitutes a continuing application for a reduction147
in taxes for each year in which the dwelling is the applicant's148
homestead.149

       (3) Failure to receive a new application filed under division 150
(A)(1) or (2) or notification under division (C) of this section 151
after a certificate of reduction has been issued under section 152
323.154 of the Revised Code, or failure to receive a new153
application filed under division (A)(1) or notification under154
division (C) of this section after a certificate of reduction has155
been issued under section 323.159 of the Revised Code, is156
prima-facie evidence that the original applicant is entitled to157
the reduction in taxes calculated on the basis of the information158
contained in the original application. The original application159
and any subsequent application, including any late application,160
shall be in the form of a signed statement and shall be filed161
after the first Monday in January and not later than the first162
Monday in June. The original application and any subsequent163
application for a reduction in real property taxes shall be filed164
in the year for which the reduction is sought. The original165
application and any subsequent application for a reduction in166
manufactured home taxes shall be filed in the year preceding the167
year for which the reduction is sought. The statement shall be on168
a form, devised and supplied by the tax commissioner, which shall169
require no more information than is necessary to establish the170
applicant's eligibility for the reduction in taxes and the amount171
of the reduction, and, for a certificate of reduction issued under172
section 323.154 of the Revised Code, shall include an affirmation173
by the applicant that ownership of the homestead was not acquired174
from a person, other than the applicant's spouse, related to the175
owner by consanguinity or affinity for the purpose of qualifying176
for the real property or manufactured home tax reduction provided177
for in division (A) or (B) of section 323.152 of the Revised Code. 178
The form shall contain a statement that conviction of willfully179
falsifying information to obtain a reduction in taxes or failing180
to comply with division (C) of this section results in the181
revocation of the right to the reduction for a period of three182
years. 183

       (B) A late application for a tax reduction for the year184
preceding the year in which an original application is filed, or185
for a reduction in manufactured home taxes for the year in which186
an original application is filed, may be filed with the original187
application. If the county auditor determines the information188
contained in the late application is correct, the auditor shall189
determine the amount of the reduction in taxes to which the190
applicant would have been entitled for the preceding tax year had191
the applicant's application been timely filed and approved in that192
year.193

       The amount of such reduction shall be treated by the auditor194
as an overpayment of taxes by the applicant and shall be refunded195
in the manner prescribed in section 5715.22 of the Revised Code196
for making refunds of overpayments. On the first day of July of197
each year, the county auditor shall certify the total amount of198
the reductions in taxes made in the current year under this199
division to the tax commissioner, who shall treat the full amount200
thereof as a reduction in taxes for the preceding tax year and201
shall make reimbursement to the county therefor in the manner202
prescribed by section 323.156 of the Revised Code, from money203
appropriated for that purpose.204

       (C)(1) If, in any year after an application has been filed205
under division (A)(1) or (2) of this section, the owner does not206
qualify for a reduction in taxes on the homestead or on the207
manufactured or mobile home set forth on such application, the 208
owner shall notify the county auditor that the owner is not 209
qualified for a reduction in taxes.210

       (2) If, in any year after an application has been filed under211
division (A) of this section, the occupant of a homestead in a212
housing cooperative does not qualify for a reduction in taxes on 213
the homestead, the occupant shall notify the county auditor that 214
the occupant is not qualified for a reduction in taxes or file a 215
new application under division (A) of this section.216

       (3) The county auditor shall make reasonable attempts to 217
identify owners of property receiving the reduction in taxes under 218
division (B) of section 323.152 of the Revised Code that are not 219
entitled to the reduction. If the county auditor or county 220
treasurer discovers that the owner of property not entitled to the 221
reduction in taxes under that division (B) of section 323.152 of 222
the Revised Code failed to notify the county auditor as required 223
by division (C)(1) of this section, a charge shall be imposed 224
against the property in the amount by which taxes were reduced 225
under that division for each tax year the county auditor 226
ascertains that the property was not entitled to the reduction and 227
was owned by the current owner, but not for more than the five 228
most recent such years. Interest shall accrue in the manner229
prescribed by division (B) of section 323.121 or division (G)(2) 230
of section 4503.06 of the Revised Code on the amount by which 231
taxes were reduced for each such tax year as if the reduction 232
became delinquent taxes at the close of the last day the second233
installment of taxes for that tax year could be paid without234
penalty. The county auditor shall notify the owner, by ordinary235
mail, of the charge, of the owner's right to appeal the charge,236
and of the manner in which the owner may appeal. The owner may237
appeal the imposition of the charge and interest by filing an238
appeal with the county board of revision not later than the last239
day prescribed for payment of real and public utility property240
taxes under section 323.12 of the Revised Code following receipt241
of the notice and occurring at least ninety days after receipt of242
the notice. The appeal shall be treated in the same manner as a243
complaint relating to the valuation or assessment of real property244
under Chapter 5715. of the Revised Code. The charge and any245
interest shall be collected as other delinquent taxes. Ten per 246
cent of the amount collected shall be credited to the county 247
rollback enforcement fund, which shall be created in the county 248
treasury, for use by the county auditor to enforce compliance with 249
this section. The remainder shall be credited to the county 250
undivided income tax fund and distributed to taxing districts in 251
the county in the same manner as provided in section 323.156 of 252
the Revised Code.253

       (4) Each year during January, the county auditor shall254
furnish by ordinary mail a continuing application to each person255
issued a certificate of reduction under section 323.154 or 323.159256
of the Revised Code with respect to a reduction in taxes under257
division (A) of section 323.152 of the Revised Code. The258
continuing application shall be used to report changes in259
ownership or occupancy of the homestead, including changes in or 260
revocation of a revocable inter vivos trust, changes in 261
disability, and other changes in the information earlier furnished 262
the auditor relative to the reduction in taxes on the property. 263
The continuing application shall be returned to the auditor not 264
later than the first Monday in June; provided, that if such 265
changes do not affect the status of the homestead exemption or the 266
amount of the reduction to which the owner is entitled under 267
division (A) of section 323.152 of the Revised Code or to which 268
the occupant is entitled under section 323.159 of the Revised 269
Code, the application does not need to be returned.270

       (5) Each year during February, the county auditor, except as271
otherwise provided in this paragraph, shall furnish by ordinary272
mail an original application to the owner, as of the first day of273
January of that year, of a homestead or a manufactured or mobile274
home that transferred during the preceding calendar year and that275
qualified for and received a reduction in taxes under division (B)276
of section 323.152 of the Revised Code for the preceding tax year. 277
In order to receive the reduction under that division, the owner278
shall file the application with the county auditor not later than279
the first Monday in June. If the application is not timely filed,280
the auditor shall not grant a reduction in taxes for the homestead281
for the current year, and shall notify the owner that the282
reduction in taxes has not been granted, in the same manner283
prescribed under section 323.154 of the Revised Code for284
notification of denial of an application. Failure of an owner to285
receive an application does not excuse the failure of the owner to286
file an original application. The county auditor is not required287
to furnish an application under this paragraph for any homestead288
for which application has previously been made on a form289
incorporated into any form used by the county auditor to290
administer the tax law in respect to the conveyance of real291
property or of used manufactured homes or used mobile homes, and292
an owner who previously has applied on such a form is not required293
to return an application furnished under this paragraph.294

       (D) No person shall knowingly make a false statement for the295
purpose of obtaining a reduction in the person's real property or296
manufactured home taxes under section 323.152 of the Revised Code.297

       (E) No person shall knowingly fail to notify the county298
auditor of changes required by division (C) of this section that299
have the effect of maintaining or securing a reduction in taxes 300
under section 323.152 of the Revised Code.301

       (F) No person shall knowingly make a false statement or302
certification attesting to any person's physical or mental303
condition for purposes of qualifying such person for tax relief304
pursuant to sections 323.151 to 323.159 of the Revised Code.305

       Sec. 323.156.  Within thirty days after a settlement of taxes306
under divisions (A), (C), and (H) of section 321.24 of the Revised 307
Code, the county treasurer shall certify to the tax commissioner308
one-half of the total amount of taxes on real property that were309
reduced pursuant to section 323.152 of the Revised Code for the310
preceding tax year, and one-half of the total amount of taxes on311
manufactured and mobile homes that were reduced pursuant to312
division (B) of section 323.152 of the Revised Code for the313
current tax year, as evidenced by the certificates of reduction314
and the tax duplicate certified to the county treasurer by the315
county auditor, less ninety per cent of the amount collected 316
pursuant to division (C)(3) of section 323.153 of the Revised Code 317
since the treasurer's last certification under this section. The 318
commissioner, within thirty days of the receipt of such319
certifications, shall provide for payment to the county treasurer,320
from the general revenue fund, of the net amount certified, which321
shall be credited upon receipt to the county's undivided income322
tax fund, and an amount equal to two per cent of the net amount by323
which taxes were reduced, which shall be credited upon receipt to324
the county general fund as a payment, in addition to the fees and325
charges authorized by sections 319.54 and 321.26 of the Revised326
Code, to the county auditor and treasurer for the costs of327
administering the exemption provided under sections 323.151 to 328
323.159 of the Revised Code.329

       Immediately upon receipt of funds into the county undivided330
income tax fund under this section, the auditor shall distribute331
the full amount thereof among the taxing districts in the county332
as though the total had been paid as taxes by each person for whom333
taxes were reduced under sections 323.151 to 323.159 of the334
Revised Code.335

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

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

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

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

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

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

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

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