Am. Sub. H. B. No. 311 As Passed by the House

As Passed by the House

130th General Assembly

Regular Session

2013-2014

Am. Sub. H. B. No. 311

Representatives Boose, Retherford

Cosponsors: Representatives Winburn, Adams, R., Amstutz, Anielski, Antonio, Barborak, Beck, Blair, Blessing, Brenner, Brown, Buchy, Budish, Burkley, Butler, Carney, Celebrezze, Cera, Derickson, DeVitis, Green, Grossman, Hackett, Hall, Hayes, Milkovich, O'Brien, Phillips, Rogers, Ruhl, Schuring, Sears, Sheehy, Sprague, Thompson, Young Speaker Batchelder

A BILL

To amend sections 323.152 and 4503.065 of the Revised

Code and Section 803.80 of Am. Sub. H.B. 59 of the

130th General Assembly to clarify the effective

date of an income tax deduction, to extend the

availability of a corporation franchise tax

credit, to clarify that a person eligible for the

homestead exemption without income limits

continues to receive that exemption if the

person's homestead changes, and to declare an

emergency.

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

Section 1. That sections 323.152 and 4503.065 of the Revised	11
Code be amended to read as follows:	12

Sec. 323.152. In addition to the reduction in taxes required	13
under section 319.302 of the Revised Code, taxes shall be reduced	14
as provided in divisions (A) and (B) of this section.	15

(A)(1) Division (A) of this section applies to any of the	16
following persons:	17

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

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

(c) A person who is the surviving spouse of a deceased person	20
who was permanently and totally disabled or sixty-five years of	21
age or older and who applied and qualified for a reduction in	22
taxes under this division in the year of death, provided the	23
surviving spouse is at least fifty-nine but not sixty-five or more	24
years of age on the date the deceased spouse dies.	25

(2) Real property taxes on a homestead owned and occupied, or	26
a homestead in a housing cooperative occupied, by a person to whom	27
division (A) of this section applies shall be reduced for each	28
year for which an application for the reduction has been approved.	29
The reduction shall equal one of the following amounts, as	30
applicable to the person:	31

(a) If the person received a reduction under division (A) of	32
this section for tax year 2006, the greater of the reduction for	33
that tax year or the amount computed under division (A)(3) of this	34
section;	35

(b) If the person received, for any homestead, a reduction	36
under division (A) of this section for tax year 2013 or under	37
section 4503.065 of the Revised Code for tax year 2014 or the	38
person is the surviving spouse of such a person and the surviving	39
spouse is at least fifty-nine years of age on the date the	40
deceased spouse dies, the amount computed under division (A)(3) of	41
this section. For purposes of divisions (A)(2)(b) and (c) of this	42
section, a person receives a reduction under division (A) of this	43
section or under section 4503.065 of the Revised Code for tax year	44
2013 or 2014, respectively, if the person files a late application	45
for that respective tax year that is approved by the county	46
auditor under section 323.153 or 4503.066 of the Revised Code.	47

(c) If the person is not described in division (A)(2)(a) or	48
(b) of this section and the person's total income does not exceed	49
thirty thousand dollars, as adjusted under division (A)(4) of this	50
section, the amount computed under division (A)(3) of this	51
section.	52

(3) The amount of the reduction under division (A)(3) of this	53
section equals the product of the following:	54

(a) Twenty-five thousand dollars of the true value of the	55
property in money;	56

(b) The assessment percentage established by the tax	57
commissioner under division (B) of section 5715.01 of the Revised	58
Code, not to exceed thirty-five per cent;	59

(c) The effective tax rate used to calculate the taxes	60
charged against the property for the current year, where	61
"effective tax rate" is defined as in section 323.08 of the	62
Revised Code;	63

(d) The quantity equal to one minus the sum of the percentage	64
reductions in taxes received by the property for the current tax	65
year under section 319.302 of the Revised Code and division (B) of	66
section 323.152 of the Revised Code.	67

(4) Each calendar year, the tax commissioner shall adjust the	68
total income threshold described in division (A)(2)(c) of this	69
section by completing the following calculations in September of	70
each year:	71

(a) Determine the percentage increase in the gross domestic	72
product deflator determined by the bureau of economic analysis of	73
the United States department of commerce from the first day of	74
January of the preceding calendar year to the last day of December	75
of the preceding calendar year;	76

(b) Multiply that percentage increase by the total income	77
threshold for the current tax year;	78

(c) Add the resulting product to the total income threshold	79
for the current tax year;	80

(d) Round the resulting sum to the nearest multiple of one	81
hundred dollars.	82

The commissioner shall certify the amount resulting from the	83
adjustment to each county auditor not later than the first day of	84
December each year. The certified amount applies to the following	85
tax year for persons described in division (A)(2)(c) of this	86
section. The commissioner shall not make the adjustment in any	87
calendar year in which the amount resulting from the adjustment	88
would be less than the total income threshold for the current tax	89
year.	90

(B) To provide a partial exemption, real property taxes on	91
any homestead, and manufactured home taxes on any manufactured or	92
mobile home on which a manufactured home tax is assessed pursuant	93
to division (D)(2) of section 4503.06 of the Revised Code, shall	94
be reduced for each year for which an application for the	95
reduction has been approved. The amount of the reduction shall	96
equal two and one-half per cent of the amount of taxes to be	97
levied by qualifying levies on the homestead or the manufactured	98
or mobile home after applying section 319.301 of the Revised Code.	99
For the purposes of this division, "qualifying levy" has the same	100
meaning as in section 319.302 of the Revised Code.	101

(C) The reductions granted by this section do not apply to	102
special assessments or respread of assessments levied against the	103
homestead, and if there is a transfer of ownership subsequent to	104
the filing of an application for a reduction in taxes, such	105
reductions are not forfeited for such year by virtue of such	106
transfer.	107

(D) The reductions in taxable value referred to in this	108
section shall be applied solely as a factor for the purpose of	109
computing the reduction of taxes under this section and shall not	110
affect the total value of property in any subdivision or taxing	111
district as listed and assessed for taxation on the tax lists and	112
duplicates, or any direct or indirect limitations on indebtedness	113
of a subdivision or taxing district. If after application of	114
sections 5705.31 and 5705.32 of the Revised Code, including the	115
allocation of all levies within the ten-mill limitation to debt	116
charges to the extent therein provided, there would be	117
insufficient funds for payment of debt charges not provided for by	118
levies in excess of the ten-mill limitation, the reduction of	119
taxes provided for in sections 323.151 to 323.159 of the Revised	120
Code shall be proportionately adjusted to the extent necessary to	121
provide such funds from levies within the ten-mill limitation.	122

(E) No reduction shall be made on the taxes due on the	123
homestead of any person convicted of violating division (D) or (E)	124
of section 323.153 of the Revised Code for a period of three years	125
following the conviction.	126

Sec. 4503.065. (A) This section applies to any of the	127
following persons:	128

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

129

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

130

(3) An individual who is the surviving spouse of a deceased	131
person who was permanently and totally disabled or sixty-five	132
years of age or older and who applied and qualified for a	133
reduction in assessable value under this section in the year of	134
death, provided the surviving spouse is at least fifty-nine but	135
not sixty-five or more years of age on the date the deceased	136
spouse dies.	137

(B) The manufactured home tax on a manufactured or mobile	138
home that is paid pursuant to division (C) of section 4503.06 of	139
the Revised Code and that is owned and occupied as a home by an	140
individual whose domicile is in this state and to whom this	141
section applies, shall be reduced for any tax year for which an	142
application for such reduction has been approved, provided the	143
individual did not acquire ownership from a person, other than the	144
individual's spouse, related by consanguinity or affinity for the	145
purpose of qualifying for the reduction. An owner includes a	146
settlor of a revocable or irrevocable inter vivos trust holding	147
the title to a manufactured or mobile home occupied by the settlor	148
as of right under the trust.	149

(1) For manufactured and mobile homes for which the tax	150
imposed by section 4503.06 of the Revised Code is computed under	151
division (D)(2) of that section, the reduction shall equal one of	152
the following amounts, as applicable to the person:	153

(a) If the person received a reduction under this section for	154
tax year 2007, the greater of the reduction for that tax year or	155
the amount computed under division (B)(2) of this section;	156

(b) If the person received, for any homestead, a reduction	157
under this section for tax year 2014 or under division (A) of	158
section 323.152 of the Revised Code for tax year 2013 or the	159
person is the surviving spouse of such a person and the surviving	160
spouse is at least fifty-nine years of age on the date the	161
deceased spouse dies, the amount computed under division (B)(2) of	162
this section. For purposes of divisions (B)(1)(b) and (c) of this	163
section, a person receives a reduction under this section or	164
division (A) of section 323.152 of the Revised Code for tax year	165
2014 or 2013, respectively, if the person files a late application	166
for that respective tax year that is approved by the county	167
auditor under section 4503.066 or 323.153 of the Revised Code.	168

(c) If the person is not described in division (B)(1)(a) or	169
(b) of this section and the person's total income does not exceed	170
thirty thousand dollars, as adjusted under division (B)(5) of this	171
section, the amount computed under division (B)(2) of this	172
section.	173

(2) The amount of the reduction under division (B)(2) of this	174
section equals the product of the following:	175

(a) Twenty-five thousand dollars of the true value of the	176
property in money;	177

(b) The assessment percentage established by the tax	178
commissioner under division (B) of section 5715.01 of the Revised	179
Code, not to exceed thirty-five per cent;	180

(c) The effective tax rate used to calculate the taxes	181
charged against the property for the current year, where	182
"effective tax rate" is defined as in section 323.08 of the	183
Revised Code;	184

(d) The quantity equal to one minus the sum of the percentage	185
reductions in taxes received by the property for the current tax	186
year under section 319.302 of the Revised Code and division (B) of	187
section 323.152 of the Revised Code.	188

(3) For manufactured and mobile homes for which the tax	189
imposed by section 4503.06 of the Revised Code is computed under	190
division (D)(1) of that section, the reduction shall equal one of	191
the following amounts, as applicable to the person:	192

(a) If the person received a reduction under this section for	193
tax year 2007, the greater of the reduction for that tax year or	194
the amount computed under division (B)(4) of this section;	195

(b) If the person received, for any homestead, a reduction	196
under this section for tax year 2014 or under division (A) of	197
section 323.152 of the Revised Code for tax year 2013 or the	198
person is the surviving spouse of such a person and the surviving	199
spouse is at least fifty-nine years of age on the date the	200
deceased spouse dies, the amount computed under division (B)(4) of	201
this section. For purposes of divisions (B)(3)(b) and (c) of this	202
section, a person receives a reduction under this section or under	203
division (A) of section 323.152 of the Revised Code for tax year	204
2014 or 2013, respectively, if the person files a late application	205
for a refund of overpayments for that respective tax year that is	206
approved by the county auditor under section 4503.066 of the	207
Revised Code.	208

(c) If the person is not described in division (B)(3)(a) or	209
(b) of this section and the person's total income does not exceed	210
thirty thousand dollars, as adjusted under division (B)(5) of this	211
section, the amount computed under division (B)(4) of this	212
section.	213

(4) The amount of the reduction under division (B)(4) of this	214
section equals the product of the following:	215

(a) Twenty-five thousand dollars of the cost to the owner, or	216
the market value at the time of purchase, whichever is greater, as	217
those terms are used in division (D)(1) of section 4503.06 of the	218
Revised Code;	219

(b) The percentage from the appropriate schedule in division	220
(D)(1)(b) of section 4503.06 of the Revised Code;	221

(c) The assessment percentage of forty per cent used in	222
division (D)(1)(b) of section 4503.06 of the Revised Code;	223

(d) The tax rate of the taxing district in which the home has	224
its situs.	225

(5) Each calendar year, the tax commissioner shall adjust the	226
income threshold described in divisions (B)(1)(c) and (B)(3)(c) of	227
this section by completing the following calculations in September	228
of each year:	229

(a) Determine the percentage increase in the gross domestic	230
product deflator determined by the bureau of economic analysis of	231
the United States department of commerce from the first day of	232
January of the preceding calendar year to the last day of December	233
of the preceding calendar year;	234

(b) Multiply that percentage increase by the total income	235
threshold for the ensuing tax year;	236

(c) Add the resulting product to the total income threshold	237
for the ensuing tax year;	238

(d) Round the resulting sum to the nearest multiple of one	239
hundred dollars.	240

The commissioner shall certify the amount resulting from the	241
adjustment to each county auditor not later than the first day of	242
December each year. The certified amount applies to the second	243
ensuing tax year. The commissioner shall not make the adjustment	244
in any calendar year in which the amount resulting from the	245
adjustment would be less than the total income threshold for the	246
ensuing tax year.	247

(C) If the owner or the spouse of the owner of a manufactured	248
or mobile home is eligible for a homestead exemption on the land	249
upon which the home is located, the reduction to which the owner	250
or spouse is entitled under this section shall not exceed the	251
difference between the reduction to which the owner or spouse is	252
entitled under division (B) of this section and the amount of the	253
reduction under the homestead exemption.	254

(D) No reduction shall be made with respect to the home of	255
any person convicted of violating division (C) or (D) of section	256
4503.066 of the Revised Code for a period of three years following	257
the conviction.	258

Section 2. That existing sections 323.152 and 4503.065 of the	259
Revised Code are hereby repealed.	260

Section 3. That Section 803.80 of Am. Sub. H.B. 59 of the	261
130th General Assembly be amended to read as follows:	262

Sec. 803.80. (A) The amendment by ~~this act~~Am. Sub. H.B. 59	263
of the 130th General Assembly of ~~divisions (A)(26) and (GG) of~~	264
~~section 5747.01,~~ section 5747.022 by adding the last sentence	265
thereto, and of division (A) of section 5747.025 of the Revised	266
Code applies to taxable years beginning on or after January 1,	267
2014.	268

(B) The amendment by ~~this act~~Am. Sub. H.B. 59 of the 130th	269
General Assembly of divisions (A)(26), (29), (31), and (GG) of	270
section 5747.01, the first sentence of section 5747.022, division	271
(C) of section 5747.025, and of sections 5747.02, 5747.05,	272
5747.08, 5747.21, 5747.22, and 5748.01 and the repeal of section	273
5747.211 of the Revised Code apply to taxable years beginning on	274
or after January 1, 2013.	275

Section 4. That existing Section 803.80 of Am. Sub. H.B. 59	276
of the 130th General Assembly is hereby repealed.	277

Section 5. (A) As used in this section, "certificate owner"	278
has the same meaning as in section 149.311 of the Revised Code and	279
"tax year" has the same meaning as in section 5733.04 of the	280
Revised Code.	281

(B) Notwithstanding division (B) of section 5733.01 of the	282
Revised Code, a certificate owner of a rehabilitation tax credit	283
certificate with an effective date on or before December 31, 2013,	284
that authorizes the certificate owner to claim a credit under	285
section 5733.47 of the Revised Code for tax year 2014 or a prior	286
tax year may claim the credit at any time before October 15, 2014,	287
with the forms and in the method prescribed in Chapter 5733. of	288
the Revised Code as applicable to tax years prior to tax year	289
2014.	290

Section 6. Sections 323.152 and 4503.065 of the Revised Code	291
are amended by this act and also by H.B. 72 of the 130th General	292
Assembly (effective January 30, 2014). The amendments of H.B. 72	293
are included in this act to confirm the intention to retain them,	294
but are not intended to be effective until January 30, 2014.	295

Section 7. This act is hereby declared to be an emergency	296
measure necessary for the immediate preservation of the public	297
peace, health, and safety. The reason for such necessity is to	298
ensure that a previously enacted tax deduction and credit be	299
available before the close of the current tax period. Therefore,	300
this act shall go into immediate effect.	301