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To amend sections 323.152 and 4503.065 of the Revised | 1 |
Code and Section 803.80 of Am. Sub. H.B. 59 of the | 2 |
130th General Assembly to clarify the effective | 3 |
date of an income tax deduction, to extend the | 4 |
availability of a corporation franchise tax | 5 |
credit, to clarify that a person eligible for the | 6 |
homestead exemption without income limits | 7 |
continues to receive that exemption if the | 8 |
person's homestead changes, and to declare an | 9 |
emergency. | 10 |
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; | 18 |
(b) A person who is sixty-five years of age or older; | 19 |
(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 | 263 |
of the 130th General Assembly of | 264 |
265 | |
thereto | 266 |
Code applies to taxable years beginning on or after January 1, | 267 |
2014. | 268 |
(B) The amendment by | 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 |