As Passed by the House

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 85

Representatives Terhar, Gonzales 

Cosponsors: Representatives Pillich, Brenner, Boose, Sprague, Retherford, Becker, Derickson, Reece, Amstutz, Beck, Hayes, McClain, Hall, Antonio, Dovilla, Adams, J., Adams, R., Anielski, Ashford, Baker, Barborak, Barnes, Bishoff, Blair, Blessing, Boyce, Boyd, Brown, Buchy, Burkley, Butler, Carney, Celebrezze, Cera, Conditt, Curtin, Damschroder, DeVitis, Driehaus, Duffey, Fedor, Gerberry, Green, Grossman, Hackett, Hagan, C., Hagan, R., Henne, Hill, Hood, Hottinger, Huffman, Johnson, Kunze, Landis, Letson, Lundy, Lynch, Maag, Mallory, McGregor, Milkovich, O'Brien, Patmon, Patterson, Pelanda, Perales, Phillips, Ramos, Rogers, Romanchuk, Rosenberger, Ruhl, Scherer, Schuring, Sears, Sheehy, Slaby, Slesnick, Smith, Stebelton, Stinziano, Sykes, Thompson, Williams, Winburn, Young Speaker Batchelder 

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A BILL

To amend sections 323.151, 323.152, 323.153,

1

4503.064, 4503.065, and 4503.066 of the Revised

2

Code to enhance the homestead exemption for

3

military veterans who are 100% disabled from a

4

service-connected disability.

5

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

Section 1.  That sections 323.151, 323.152, 323.153,	6
4503.064, 4503.065, and 4503.066 of the Revised Code be amended to	7
read as follows:	8

Sec. 323.151.  As used in sections 323.151 to 323.159 of the	9
Revised Code:	10

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

11

(a) A dwelling, including a unit in a multiple-unit dwelling	12
and a manufactured home or mobile home taxed as real property	13
pursuant to division (B) of section 4503.06 of the Revised Code,	14
owned and occupied as a home by an individual whose domicile is in	15
this state and who has not acquired ownership from a person, other	16
than the individual's spouse, related by consanguinity or affinity	17
for the purpose of qualifying for the real property tax reduction	18
provided in section 323.152 of the Revised Code.	19

(b) A unit in a housing cooperative that is occupied as a	20
home, but not owned, by an individual whose domicile is in this	21
state.	22

(2) The homestead shall include so much of the land	23
surrounding it, not exceeding one acre, as is reasonably necessary	24
for the use of the dwelling or unit as a home. An owner includes a	25
holder of one of the several estates in fee, a vendee in	26
possession under a purchase agreement or a land contract, a	27
mortgagor, a life tenant, one or more tenants with a right of	28
survivorship, tenants in common, and a settlor of a revocable or	29
irrevocable inter vivos trust holding the title to a homestead	30
occupied by the settlor as of right under the trust. The tax	31
commissioner shall adopt rules for the uniform classification and	32
valuation of real property or portions of real property as	33
homesteads.	34

(B) "Sixty-five years of age or older" means a person who has	35
attained age sixty-four prior to the first day of January of the	36
year of application for reduction in real estate taxes.	37

(C) "Total income" means Ohio adjusted gross income of the	38
owner and the owner's spouse for the year preceding the year in	39
which application for a reduction in taxes is made, as determined	40
under division (A) of section 5747.01 of the Revised Code.	41

(D) "Permanently and totally disabled" means that a person	42
whoother than a disabled veteran has, on the first day of January	43
of the year of application for reduction in real estate taxes,	44
some impairment in body or mind that makes the person unable to	45
work at any substantially remunerative employment that the person	46
is reasonably able to perform and that will, with reasonable	47
probability, continue for an indefinite period of at least twelve	48
months without any present indication of recovery therefrom or has	49
been certified as permanently and totally disabled by a state or	50
federal agency having the function of so classifying persons.	51

(E) "Housing cooperative" means a housing complex of at least	52
two units that is owned and operated by a nonprofit corporation	53
that issues a share of the corporation's stock to an individual,	54
entitling the individual to live in a unit of the complex, and	55
collects a monthly maintenance fee from the individual to	56
maintain, operate, and pay the taxes of the complex.	57

(F) "Disabled veteran" means a person who is a veteran of the	58
armed forces of the United States, including reserve components	59
thereof, or of the national guard, who has received a permanent	60
total disability rating or a total disability rating for a	61
service-connected disability or combination of service-connected	62
disabilities for which the schedule for rating disabilities in	63
Schedule 38, Part 4 of the Code of Federal Regulations, as	64
amended, prescribes a one hundred per cent evaluation.	65

Sec. 323.152.  In addition to the reduction in taxes required	66
under section 319.302 of the Revised Code, taxes shall be reduced	67
as provided in divisions (A) and (B) of this section.	68

(A)(1)(a) Division (A)(1) of this section applies to any of	69
the following persons:	70

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

71

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

72

(c)(iii) A person who is the surviving spouse of a deceased	73
person who was permanently and totally disabled or sixty-five	74
years of age or older and who applied and qualified for a	75
reduction in taxes under this division in the year of death,	76
provided the surviving spouse is at least fifty-nine but not	77
sixty-five or more years of age on the date the deceased spouse	78
dies.	79

(2)(b) Real property taxes on a homestead owned and occupied,	80
or a homestead in a housing cooperative occupied, by a person to	81
whom division (A)(1) of this section applies shall be reduced for	82
each year for which an application for the reduction has been	83
approved. The reduction shall equal one of the following amounts,	84
as applicable to the person:	85

(a)(i) If the person received a reduction under division	86
(A)(1) of this section for tax year 2006, the greater of the	87
reduction for that tax year or the amount computed under division	88
(A)(3)(1)(c) of this section;	89

(b)(ii) If the person received, for any homestead, a	90
reduction under division (A)(1) of this section for tax year 2013	91
or under division (A) of section 4503.065 of the Revised Code for	92
tax year 2014 or the person is the surviving spouse of such a	93
person and the surviving spouse is at least fifty-nine years of	94
age on the date the deceased spouse dies, the amount computed	95
under division (A)(3)(1)(c) of this section. For purposes of	96
divisions (A)(2)(b)(1)(b)(ii) and (c)(iii) of this section, a	97
person receives a reduction under division (A)(1) of this section	98
or under division (A) of section 4503.065 of the Revised Code for	99
tax year 2013 or 2014, respectively, if the person files a late	100
application for that respective tax year that is approved by the	101
county auditor under section 323.153 or 4503.066 of the Revised	102
Code.	103

(c)(iii) If the person is not described in division	104
(A)(2)(a)(1)(b)(i) or (b)(ii) of this section and the person's	105
total income does not exceed thirty thousand dollars, as adjusted	106
under division (A)(4)(1)(d) of this section, the amount computed	107
under division (A)(3)(1)(c) of this section.	108

(3)(c) The amount of the reduction under division	109
(A)(3)(1)(c) of this section equals the product of the following:	110

(a)(i) Twenty-five thousand dollars of the true value of the	111
property in money;	112

(b)(ii) The assessment percentage established by the tax	113
commissioner under division (B) of section 5715.01 of the Revised	114
Code, not to exceed thirty-five per cent;	115

(c)(iii) The effective tax rate used to calculate the taxes	116
charged against the property for the current year, where	117
"effective tax rate" is defined as in section 323.08 of the	118
Revised Code;	119

(d)(iv) The quantity equal to one minus the sum of the	120
percentage reductions in taxes received by the property for the	121
current tax year under section 319.302 of the Revised Code and	122
division (B) of section 323.152 of the Revised Code.	123

(4)(d) Each calendar year, the tax commissioner shall adjust	124
the total income threshold described in division	125
(A)(2)(c)(1)(b)(iii) of this section by completing the following	126
calculations in September of each year:	127

(a)(i) Determine the percentage increase in the gross	128
domestic product deflator determined by the bureau of economic	129
analysis of the United States department of commerce from the	130
first day of January of the preceding calendar year to the last	131
day of December of the preceding calendar year;	132

(b)(ii) Multiply that percentage increase by the total income	133
threshold for the current tax year;	134

(c)(iii) Add the resulting product to the total income	135
threshold for the current tax year;	136

(d)(iv) Round the resulting sum to the nearest multiple of	137
one hundred dollars.	138

The commissioner shall certify the amount resulting from the	139
adjustment to each county auditor not later than the first day of	140
December each year. The certified amount applies to the following	141
tax year for persons described in division (A)(2)(c)(1)(b)(iii) of	142
this section. The commissioner shall not make the adjustment in	143
any calendar year in which the amount resulting from the	144
adjustment would be less than the total income threshold for the	145
current tax year.	146

(2) Real property taxes on a homestead owned and occupied, or	147
a homestead in a housing cooperative occupied, by a disabled	148
veteran shall be reduced for each year for which an application	149
for the reduction has been approved. The reduction shall equal the	150
product obtained by multiplying fifty thousand dollars of the true	151
value of the property in money by the amounts described in	152
divisions (A)(1)(c)(ii) to (iv) of this section. The reduction is	153
in lieu of any reduction under section 323.158 of the Revised Code	154
or division (A)(1) of this section. The reduction applies to only	155
one homestead owned and occupied by a disabled veteran.	156

If a homestead qualifies for a reduction in taxes under	157
division (A)(2) of this section for the year in which the disabled	158
veteran dies, and the disabled veteran is survived by a spouse who	159
occupied the homestead when the disabled veteran died and who	160
acquires ownership of the homestead or, in the case of a homestead	161
that is a unit in a housing cooperative, continues to occupy the	162
homestead, the reduction shall continue through the year in which	163
the surviving spouse dies or remarries.	164

(B) To provide a partial exemption, real property taxes on	165
any homestead, and manufactured home taxes on any manufactured or	166
mobile home on which a manufactured home tax is assessed pursuant	167
to division (D)(2) of section 4503.06 of the Revised Code, shall	168
be reduced for each year for which an application for the	169
reduction has been approved. The amount of the reduction shall	170
equal two and one-half per cent of the amount of taxes to be	171
levied by qualifying levies on the homestead or the manufactured	172
or mobile home after applying section 319.301 of the Revised Code.	173
For the purposes of this division, "qualifying levy" has the same	174
meaning as in section 319.302 of the Revised Code.	175

(C) The reductions granted by this section do not apply to	176
special assessments or respread of assessments levied against the	177
homestead, and if there is a transfer of ownership subsequent to	178
the filing of an application for a reduction in taxes, such	179
reductions are not forfeited for such year by virtue of such	180
transfer.	181

(D) The reductions in taxable value referred to in this	182
section shall be applied solely as a factor for the purpose of	183
computing the reduction of taxes under this section and shall not	184
affect the total value of property in any subdivision or taxing	185
district as listed and assessed for taxation on the tax lists and	186
duplicates, or any direct or indirect limitations on indebtedness	187
of a subdivision or taxing district. If after application of	188
sections 5705.31 and 5705.32 of the Revised Code, including the	189
allocation of all levies within the ten-mill limitation to debt	190
charges to the extent therein provided, there would be	191
insufficient funds for payment of debt charges not provided for by	192
levies in excess of the ten-mill limitation, the reduction of	193
taxes provided for in sections 323.151 to 323.159 of the Revised	194
Code shall be proportionately adjusted to the extent necessary to	195
provide such funds from levies within the ten-mill limitation.	196

(E) No reduction shall be made on the taxes due on the	197
homestead of any person convicted of violating division (D) or (E)	198
of section 323.153 of the Revised Code for a period of three years	199
following the conviction.	200

Sec. 323.153.  (A) To obtain a reduction in real property	201
taxes under division (A) or (B) of section 323.152 of the Revised	202
Code or in manufactured home taxes under division (B) of section	203
323.152 of the Revised Code, the owner shall file an application	204
with the county auditor of the county in which the owner's	205
homestead is located.	206

To obtain a reduction in real property taxes under division	207
(A) of section 323.152 of the Revised Code, the occupant of a	208
homestead in a housing cooperative shall file an application with	209
the nonprofit corporation that owns and operates the housing	210
cooperative, in accordance with this paragraph. Not later than the	211
first day of March each year, the corporation shall obtain	212
applications from the county auditor's office and provide one to	213
each new occupant. Not later than the first day of May, any	214
occupant who may be eligible for a reduction in taxes under	215
division (A) of section 323.152 of the Revised Code shall submit	216
the completed application to the corporation. Not later than the	217
fifteenth day of May, the corporation shall file all completed	218
applications, and the information required by division (B) of	219
section 323.159 of the Revised Code, with the county auditor of	220
the county in which the occupants' homesteads are located.	221
Continuing applications shall be furnished to an occupant in the	222
manner provided in division (C)(4) of this section.	223

(1) An application for reduction based upon a physical	224
disability shall be accompanied by a certificate signed by a	225
physician, and an application for reduction based upon a mental	226
disability shall be accompanied by a certificate signed by a	227
physician or psychologist licensed to practice in this state,	228
attesting to the fact that the applicant is permanently and	229
totally disabled. The certificate shall be in a form that the tax	230
commissioner requires and shall include the definition of	231
permanently and totally disabled as set forth in section 323.151	232
of the Revised Code. An application for reduction based upon a	233
disability certified as permanent and total by a state or federal	234
agency having the function of so classifying persons shall be	235
accompanied by a certificate from that agency. An application by	236
a disabled veteran for the reduction under division (A)(2) of	237
section 323.152 of the Revised Code shall be accompanied by a	238
letter or other written confirmation from the United States	239
government or United States department of veterans affairs, or its	240
predecessor or successor agency, showing that the veteran	241
qualifies as a disabled veteran.	242

An application for a reduction under division (A) of section	243
323.152 of the Revised Code constitutes a continuing application	244
for a reduction in taxes for each year in which the dwelling is	245
the applicant's homestead.	246

(2) An application for a reduction in taxes under division	247
(B) of section 323.152 of the Revised Code shall be filed only if	248
the homestead or manufactured or mobile home was transferred in	249
the preceding year or did not qualify for and receive the	250
reduction in taxes under that division for the preceding tax year.	251
The application for homesteads transferred in the preceding year	252
shall be incorporated into any form used by the county auditor to	253
administer the tax law in respect to the conveyance of real	254
property pursuant to section 319.20 of the Revised Code or of used	255
manufactured homes or used mobile homes as defined in section	256
5739.0210 of the Revised Code. The owner of a manufactured or	257
mobile home who has elected under division (D)(4) of section	258
4503.06 of the Revised Code to be taxed under division (D)(2) of	259
that section for the ensuing year may file the application at the	260
time of making that election. The application shall contain a	261
statement that failure by the applicant to affirm on the	262
application that the dwelling on the property conveyed is the	263
applicant's homestead prohibits the owner from receiving the	264
reduction in taxes until a proper application is filed within the	265
period prescribed by division (A)(3) of this section. Such an	266
application constitutes a continuing application for a reduction	267
in taxes for each year in which the dwelling is the applicant's	268
homestead.	269

(3) Failure to receive a new application filed under division	270
(A)(1) or (2) or notification under division (C) of this section	271
after an application for reduction has been approved is	272
prima-facie evidence that the original applicant is entitled to	273
the reduction in taxes calculated on the basis of the information	274
contained in the original application. The original application	275
and any subsequent application, including any late application,	276
shall be in the form of a signed statement and shall be filed	277
after the first Monday in January and not later than the first	278
Monday in June. The original application and any subsequent	279
application for a reduction in real property taxes shall be filed	280
in the year for which the reduction is sought. The original	281
application and any subsequent application for a reduction in	282
manufactured home taxes shall be filed in the year preceding the	283
year for which the reduction is sought. The statement shall be on	284
a form, devised and supplied by the tax commissioner, which shall	285
require no more information than is necessary to establish the	286
applicant's eligibility for the reduction in taxes and the amount	287
of the reduction, and, except for homesteads that are units in a	288
housing cooperative, shall include an affirmation by the applicant	289
that ownership of the homestead was not acquired from a person,	290
other than the applicant's spouse, related to the owner by	291
consanguinity or affinity for the purpose of qualifying for the	292
real property or manufactured home tax reduction provided for in	293
division (A) or (B) of section 323.152 of the Revised Code. The	294
form shall contain a statement that conviction of willfully	295
falsifying information to obtain a reduction in taxes or failing	296
to comply with division (C) of this section results in the	297
revocation of the right to the reduction for a period of three	298
years. In the case of an application for a reduction in taxes for	299
persons described in division (A)(2)(c)(1)(b)(iii) of section	300
323.152 of the Revised Code, the form shall contain a statement	301
that signing the application constitutes a delegation of authority	302
by the applicant to the tax commissioner or the county auditor,	303
individually or in consultation with each other, to examine any	304
tax or financial records relating to the income of the applicant	305
as stated on the application for the purpose of determining	306
eligibility for the exemption or a possible violation of division	307
(D) or (E) of this section.	308

(B) A late application for a tax reduction for the year	309
preceding the year in which an original application is filed, or	310
for a reduction in manufactured home taxes for the year in which	311
an original application is filed, may be filed with the original	312
application. If the county auditor determines the information	313
contained in the late application is correct, the auditor shall	314
determine the amount of the reduction in taxes to which the	315
applicant would have been entitled for the preceding tax year had	316
the applicant's application been timely filed and approved in that	317
year.	318

The amount of such reduction shall be treated by the auditor	319
as an overpayment of taxes by the applicant and shall be refunded	320
in the manner prescribed in section 5715.22 of the Revised Code	321
for making refunds of overpayments. On the first day of July of	322
each year, the county auditor shall certify the total amount of	323
the reductions in taxes made in the current year under this	324
division to the tax commissioner, who shall treat the full amount	325
thereof as a reduction in taxes for the preceding tax year and	326
shall make reimbursement to the county therefor in the manner	327
prescribed by section 323.156 of the Revised Code, from money	328
appropriated for that purpose.	329

(C)(1) If, in any year after an application has been filed	330
under division (A)(1) or (2) of this section, the owner does not	331
qualify for a reduction in taxes on the homestead or on the	332
manufactured or mobile home set forth on such application, the	333
owner shall notify the county auditor that the owner is not	334
qualified for a reduction in taxes.	335

(2) If, in any year after an application has been filed under	336
division (A)(1) of this section, the occupant of a homestead in a	337
housing cooperative does not qualify for a reduction in taxes on	338
the homestead, the occupant shall notify the county auditor that	339
the occupant is not qualified for a reduction in taxes or file a	340
new application under division (A)(1) of this section.	341

(3) If the county auditor or county treasurer discovers that	342
the owner of property not entitled to the reduction in taxes under	343
division (B) of section 323.152 of the Revised Code failed to	344
notify the county auditor as required by division (C)(1) of this	345
section, a charge shall be imposed against the property in the	346
amount by which taxes were reduced under that division for each	347
tax year the county auditor ascertains that the property was not	348
entitled to the reduction and was owned by the current owner.	349
Interest shall accrue in the manner prescribed by division (B) of	350
section 323.121 or division (G)(2) of section 4503.06 of the	351
Revised Code on the amount by which taxes were reduced for each	352
such tax year as if the reduction became delinquent taxes at the	353
close of the last day the second installment of taxes for that tax	354
year could be paid without penalty. The county auditor shall	355
notify the owner, by ordinary mail, of the charge, of the owner's	356
right to appeal the charge, and of the manner in which the owner	357
may appeal. The owner may appeal the imposition of the charge and	358
interest by filing an appeal with the county board of revision not	359
later than the last day prescribed for payment of real and public	360
utility property taxes under section 323.12 of the Revised Code	361
following receipt of the notice and occurring at least ninety days	362
after receipt of the notice. The appeal shall be treated in the	363
same manner as a complaint relating to the valuation or assessment	364
of real property under Chapter 5715. of the Revised Code. The	365
charge and any interest shall be collected as other delinquent	366
taxes.	367

(4) Each year during January, the county auditor shall	368
furnish by ordinary mail a continuing application to each person	369
receiving a reduction under division (A) of section 323.152 of the	370
Revised Code. The continuing application shall be used to report	371
changes in total income, ownership, occupancy, disability, and	372
other information earlier furnished the auditor relative to the	373
reduction in taxes on the property. The continuing application	374
shall be returned to the auditor not later than the first Monday	375
in June; provided, that if such changes do not affect the status	376
of the homestead exemption or the amount of the reduction to which	377
the owner is entitled under division (A) of section 323.152 of the	378
Revised Code or to which the occupant is entitled under section	379
323.159 of the Revised Code, the application does not need to be	380
returned.	381

(5) Each year during February, the county auditor, except as	382
otherwise provided in this paragraph, shall furnish by ordinary	383
mail an original application to the owner, as of the first day of	384
January of that year, of a homestead or a manufactured or mobile	385
home that transferred during the preceding calendar year and that	386
qualified for and received a reduction in taxes under division (B)	387
of section 323.152 of the Revised Code for the preceding tax year.	388
In order to receive the reduction under that division, the owner	389
shall file the application with the county auditor not later than	390
the first Monday in June. If the application is not timely filed,	391
the auditor shall not grant a reduction in taxes for the homestead	392
for the current year, and shall notify the owner that the	393
reduction in taxes has not been granted, in the same manner	394
prescribed under section 323.154 of the Revised Code for	395
notification of denial of an application. Failure of an owner to	396
receive an application does not excuse the failure of the owner to	397
file an original application. The county auditor is not required	398
to furnish an application under this paragraph for any homestead	399
for which application has previously been made on a form	400
incorporated into any form used by the county auditor to	401
administer the tax law in respect to the conveyance of real	402
property or of used manufactured homes or used mobile homes, and	403
an owner who previously has applied on such a form is not required	404
to return an application furnished under this paragraph.	405

(D) No person shall knowingly make a false statement for the	406
purpose of obtaining a reduction in the person's real property or	407
manufactured home taxes under section 323.152 of the Revised Code.	408

(E) No person shall knowingly fail to notify the county	409
auditor of changes required by division (C) of this section that	410
have the effect of maintaining or securing a reduction in taxes	411
under section 323.152 of the Revised Code.	412

(F) No person shall knowingly make a false statement or	413
certification attesting to any person's physical or mental	414
condition for purposes of qualifying such person for tax relief	415
pursuant to sections 323.151 to 323.159 of the Revised Code.	416

Sec. 4503.064.  As used in sections 4503.064 to 4503.069 of	417
the Revised Code:	418

(A) "Sixty-five years of age or older" means a person who	419
will be age sixty-five or older in the calendar year following the	420
year of application for reduction in the assessable value of the	421
person's manufactured or mobile home.	422

(B) "Permanently and totally disabled" means that a person	423
whoother than a disabled veteran has, on the first day of January	424
of the year of application, including late application, for	425
reduction in the assessable value of a manufactured or mobile	426
home, has some impairment in body or mind that makes the person	427
unable to work at any substantially remunerative employment which	428
the person is reasonably able to perform and which will, with	429
reasonable probability, continue for an indefinite period of at	430
least twelve months without any present indication of recovery	431
therefrom or has been certified as permanently and totally	432
disabled by a state or federal agency having the function of so	433
classifying persons.	434

(C) "Homestead exemption" means the reduction in taxes	435
allowed under division (A) of section 323.152 of the Revised Code	436
for the year in which an application is filed under section	437
4503.066 of the Revised Code.	438

(D) "Manufactured home" has the meaning given in division	439
(C)(4) of section 3781.06 of the Revised Code, and includes a	440
structure consisting of two manufactured homes that were purchased	441
either together or separately and are combined to form a single	442
dwelling, but does not include a manufactured home that is taxed	443
as real property pursuant to division (B) of section 4503.06 of	444
the Revised Code.	445

(E) "Mobile home" has the meaning given in division (O) of	446
section 4501.01 of the Revised Code and includes a structure	447
consisting of two mobile homes that were purchased together or	448
separately and combined to form a single dwelling, but does not	449
include a mobile home that is taxed as real property pursuant to	450
division (B) of section 4503.06 of the Revised Code.	451

(F) "Late application" means an application filed with an	452
original application under division (A)(3) of section 4503.066 of	453
the Revised Code.	454

(G) "Total income" hasand "disabled veteran" have the same	455
meaningmeanings as in section 323.151 of the Revised Code.	456

Sec. 4503.065.  (A) This(1) Division (A) of this section	457
applies to any of the following persons:	458

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

459

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

460

(3)(c) An individual who is the surviving spouse of a	461
deceased person who was permanently and totally disabled or	462
sixty-five years of age or older and who applied and qualified for	463
a reduction in assessable value under this section in the year of	464
death, provided the surviving spouse is at least fifty-nine but	465
not sixty-five or more years of age on the date the deceased	466
spouse dies.	467

(B)(2) The manufactured home tax on a manufactured or mobile	468
home that is paid pursuant to division (C) of section 4503.06 of	469
the Revised Code and that is owned and occupied as a home by an	470
individual whose domicile is in this state and to whom this	471
section applies, shall be reduced for any tax year for which an	472
application for such reduction has been approved, provided the	473
individual did not acquire ownership from a person, other than the	474
individual's spouse, related by consanguinity or affinity for the	475
purpose of qualifying for the reduction. An owner includes a	476
settlor of a revocable or irrevocable inter vivos trust holding	477
the title to a manufactured or mobile home occupied by the settlor	478
as of right under the trust.	479

(1)(a) For manufactured and mobile homes for which the tax	480
imposed by section 4503.06 of the Revised Code is computed under	481
division (D)(2) of that section, the reduction shall equal one of	482
the following amounts, as applicable to the person:	483

(a)(i) If the person received a reduction under this section	484
for tax year 2007, the greater of the reduction for that tax year	485
or the amount computed under division (B)(2)(A)(2)(b) of this	486
section;	487

(b)(ii) If the person received, for any homestead, a	488
reduction under division (A) of this section for tax year 2014 or	489
under division (A)(1) of section 323.152 of the Revised Code for	490
tax year 2013 or the person is the surviving spouse of such a	491
person and the surviving spouse is at least fifty-nine years of	492
age on the date the deceased spouse dies, the amount computed	493
under division (B)(2)(A)(2)(b) of this section. For purposes of	494
divisions (B)(1)(b)(A)(2)(a)(ii) and (c)(iii) of this section, a	495
person receives a reduction under division (A) of this section or	496
division (A)(1) of section 323.152 of the Revised Code for tax	497
year 2014 or 2013, respectively, if the person files a late	498
application for that respective tax year that is approved by the	499
county auditor under section 4503.066 or 323.153 of the Revised	500
Code.	501

(c)(iii) If the person is not described in division	502
(B)(1)(a)(A)(2)(a)(i) or (b)(ii) of this section and the person's	503
total income does not exceed thirty thousand dollars, as adjusted	504
under division (B)(5)(A)(2)(e) of this section, the amount	505
computed under division (B)(2)(A)(2)(b) of this section.	506

(2)(b) The amount of the reduction under division	507
(B)(2)(A)(2)(b) of this section equals the product of the	508
following:	509

(a)(i) Twenty-five thousand dollars of the true value of the	510
property in money;	511

(b)(ii) The assessment percentage established by the tax	512
commissioner under division (B) of section 5715.01 of the Revised	513
Code, not to exceed thirty-five per cent;	514

(c)(iii) The effective tax rate used to calculate the taxes	515
charged against the property for the current year, where	516
"effective tax rate" is defined as in section 323.08 of the	517
Revised Code;	518

(d)(iv) The quantity equal to one minus the sum of the	519
percentage reductions in taxes received by the property for the	520
current tax year under section 319.302 of the Revised Code and	521
division (B) of section 323.152 of the Revised Code.	522

(3)(c) For manufactured and mobile homes for which the tax	523
imposed by section 4503.06 of the Revised Code is computed under	524
division (D)(1) of that section, the reduction shall equal one of	525
the following amounts, as applicable to the person:	526

(a)(i) If the person received a reduction under this section	527
for tax year 2007, the greater of the reduction for that tax year	528
or the amount computed under division (B)(4)(A)(2)(d) of this	529
section;	530

(b)(ii) If the person received, for any homestead, a	531
reduction under division (A) of this section for tax year 2014 or	532
under division (A)(1) of section 323.152 of the Revised Code for	533
tax year 2013 or the person is the surviving spouse of such a	534
person and the surviving spouse is at least fifty-nine years of	535
age on the date the deceased spouse dies, the amount computed	536
under division (B)(4)(A)(2)(d) of this section. For purposes of	537
divisions (B)(3)(b)(A)(2)(c)(ii) and (c)(iii) of this section, a	538
person receives a reduction under division (A) of this section or	539
under division (A)(1) of section 323.152 of the Revised Code for	540
tax year 2014 or 2013, respectively, if the person files a late	541
application for a refund of overpayments for that respective tax	542
year that is approved by the county auditor under section 4503.066	543
of the Revised Code.	544

(c)(iii) If the person is not described in division	545
(B)(3)(a)(A)(2)(c)(i) or (b)(ii) of this section and the person's	546
total income does not exceed thirty thousand dollars, as adjusted	547
under division (B)(5)(A)(2)(e) of this section, the amount	548
computed under division (B)(4)(A)(2)(d) of this section.	549

(4)(d) The amount of the reduction under division	550
(B)(4)(A)(2)(d) of this section equals the product of the	551
following:	552

(a)(i) Twenty-five thousand dollars of the cost to the owner,	553
or the market value at the time of purchase, whichever is greater,	554
as those terms are used in division (D)(1) of section 4503.06 of	555
the Revised Code;	556

(b)(ii) The percentage from the appropriate schedule in	557
division (D)(1)(b) of section 4503.06 of the Revised Code;	558

(c)(iii) The assessment percentage of forty per cent used in	559
division (D)(1)(b) of section 4503.06 of the Revised Code;	560

(d)(iv) The tax rate of the taxing district in which the home	561
has its situs.	562

(5)(e) Each calendar year, the tax commissioner shall adjust	563
the income threshold described in divisions	564
(B)(1)(c)(A)(2)(a)(iii) and (B)(3)(c)(A)(2)(c)(iii) of this	565
section by completing the following calculations in September of	566
each year:	567

(a)(i) Determine the percentage increase in the gross	568
domestic product deflator determined by the bureau of economic	569
analysis of the United States department of commerce from the	570
first day of January of the preceding calendar year to the last	571
day of December of the preceding calendar year;	572

(b)(ii) Multiply that percentage increase by the total income	573
threshold for the ensuing tax year;	574

(c)(iii) Add the resulting product to the total income	575
threshold for the ensuing tax year;	576

(d)(iv) Round the resulting sum to the nearest multiple of	577
one hundred dollars.	578

The commissioner shall certify the amount resulting from the	579
adjustment to each county auditor not later than the first day of	580
December each year. The certified amount applies to the second	581
ensuing tax year. The commissioner shall not make the adjustment	582
in any calendar year in which the amount resulting from the	583
adjustment would be less than the total income threshold for the	584
ensuing tax year.	585

(B) The manufactured home tax levied pursuant to division (C)	586
of section 4503.06 of the Revised Code on a manufactured or mobile	587
home that is owned and occupied by a disabled veteran shall be	588
reduced for any tax year for which an application for such	589
reduction has been approved, provided the disabled veteran did not	590
acquire ownership from a person, other than the disabled veteran's	591
spouse, related by consanguinity or affinity for the purpose of	592
qualifying for the reduction. An owner includes an owner within	593
the meaning of division (A)(2) of this section.	594

(1) For manufactured and mobile homes for which the tax	595
imposed by section 4503.06 of the Revised Code is computed under	596
division (D)(2) of that section, the reduction shall equal the	597
product obtained by multiplying fifty thousand dollars of the true	598
value of the property in money by the amounts described in	599
divisions (A)(2)(b)(ii) to (iv) of this section.	600

(2) For manufactured and mobile homes for which the tax	601
imposed by section 4503.06 of the Revised Code is computed under	602
division (D)(1) of that section, the reduction shall equal the	603
product obtained by multiplying fifty thousand dollars of the cost	604
to the owner, or the market value at the time of purchase,	605
whichever is greater, as those terms are used in division (D)(1)	606
of section 4503.06 of the Revised Code, by the amounts described	607
in divisions (A)(2)(d)(ii) to (iv) of this section.	608

The reduction is in lieu of any reduction under section	609
4503.0610 of the Revised Code or division (A) of this section. The	610
reduction applies to only one manufactured or mobile home owned	611
and occupied by a disabled veteran.	612

If a manufactured or mobile home qualifies for a reduction in	613
taxes under this division for the year in which the disabled	614
veteran dies, and the disabled veteran is survived by a spouse who	615
occupied the home when the disabled veteran died and who acquires	616
ownership of the home, the reduction shall continue through the	617
year in which the surviving spouse dies or remarries.	618

(C) If the owner or the spouse of the owner of a manufactured	619
or mobile home is eligible for a homestead exemption on the land	620
upon which the home is located, the reduction to which the owner	621
or spouse is entitled under this section shall not exceed the	622
difference between the reduction to which the owner or spouse is	623
entitled under division (A) or (B) of this section and the amount	624
of the reduction under the homestead exemption.	625

(D) No reduction shall be made with respect to the home of	626
any person convicted of violating division (C) or (D) of section	627
4503.066 of the Revised Code for a period of three years following	628
the conviction.	629

Sec. 4503.066.  (A)(1) To obtain a tax reduction under	630
section 4503.065 of the Revised Code, the owner of the home shall	631
file an application with the county auditor of the county in which	632
the home is located. An application for reduction in taxes based	633
upon a physical disability shall be accompanied by a certificate	634
signed by a physician, and an application for reduction in taxes	635
based upon a mental disability shall be accompanied by a	636
certificate signed by a physician or psychologist licensed to	637
practice in this state. The certificate shall attest to the fact	638
that the applicant is permanently and totally disabled, shall be	639
in a form that the department of taxation requires, and shall	640
include the definition of totally and permanently disabled as set	641
forth in section 4503.064 of the Revised Code. An application for	642
reduction in taxes based upon a disability certified as permanent	643
and total by a state or federal agency having the function of so	644
classifying persons shall be accompanied by a certificate from	645
that agency. An application by a disabled veteran for the	646
reduction under division (B) of section 4503.065 of the Revised	647
Code shall be accompanied by a letter or other written	648
confirmation from the United States government or United States	649
department of veterans affairs, or its predecessor or successor	650
agency, showing that the veteran qualifies as a disabled veteran.	651

(2) Each application shall constitute a continuing	652
application for a reduction in taxes for each year in which the	653
manufactured or mobile home is occupied by the applicant. Failure	654
to receive a new application or notification under division (B) of	655
this section after an application for reduction has been approved	656
is prima-facie evidence that the original applicant is entitled to	657
the reduction calculated on the basis of the information contained	658
in the original application. The original application and any	659
subsequent application shall be in the form of a signed statement	660
and shall be filed not later than the first Monday in June. The	661
statement shall be on a form, devised and supplied by the tax	662
commissioner, that shall require no more information than is	663
necessary to establish the applicant's eligibility for the	664
reduction in taxes and the amount of the reduction to which the	665
applicant is entitled. The form shall contain a statement that	666
signing such application constitutes a delegation of authority by	667
the applicant to the tax commissioner or the county auditor,	668
individually or in consultation with each other, to examine any	669
tax or financial records that relate to the income of the	670
applicant as stated on the application for the purpose of	671
determining eligibility under, or possible violation of, division	672
(C) or (D) of this section. The form also shall contain a	673
statement that conviction of willfully falsifying information to	674
obtain a reduction in taxes or failing to comply with division (B)	675
of this section shall result in the revocation of the right to the	676
reduction for a period of three years.	677

(3) A late application for a reduction in taxes for the year	678
preceding the year for which an original application is filed may	679
be filed with an original application. If the auditor determines	680
that the information contained in the late application is correct,	681
the auditor shall determine both the amount of the reduction in	682
taxes to which the applicant would have been entitled for the	683
current tax year had the application been timely filed and	684
approved in the preceding year, and the amount the taxes levied	685
under section 4503.06 of the Revised Code for the current year	686
would have been reduced as a result of the reduction. When an	687
applicant is permanently and totally disabled on the first day of	688
January of the year in which the applicant files a late	689
application, the auditor, in making the determination of the	690
amounts of the reduction in taxes under division (A)(3) of this	691
section, is not required to determine that the applicant was	692
permanently and totally disabled on the first day of January of	693
the preceding year.	694

The amount of the reduction in taxes pursuant to a late	695
application shall be treated as an overpayment of taxes by the	696
applicant. The auditor shall credit the amount of the overpayment	697
against the amount of the taxes or penalties then due from the	698
applicant, and, at the next succeeding settlement, the amount of	699
the credit shall be deducted from the amount of any taxes or	700
penalties distributable to the county or any taxing unit in the	701
county that has received the benefit of the taxes or penalties	702
previously overpaid, in proportion to the benefits previously	703
received. If, after the credit has been made, there remains a	704
balance of the overpayment, or if there are no taxes or penalties	705
due from the applicant, the auditor shall refund that balance to	706
the applicant by a warrant drawn on the county treasurer in favor	707
of the applicant. The treasurer shall pay the warrant from the	708
general fund of the county. If there is insufficient money in the	709
general fund to make the payment, the treasurer shall pay the	710
warrant out of any undivided manufactured or mobile home taxes	711
subsequently received by the treasurer for distribution to the	712
county or taxing district in the county that received the benefit	713
of the overpaid taxes, in proportion to the benefits previously	714
received, and the amount paid from the undivided funds shall be	715
deducted from the money otherwise distributable to the county or	716
taxing district in the county at the next or any succeeding	717
distribution. At the next or any succeeding distribution after	718
making the refund, the treasurer shall reimburse the general fund	719
for any payment made from that fund by deducting the amount of	720
that payment from the money distributable to the county or other	721
taxing unit in the county that has received the benefit of the	722
taxes, in proportion to the benefits previously received. On the	723
second Monday in September of each year, the county auditor shall	724
certify the total amount of the reductions in taxes made in the	725
current year under division (A)(3) of this section to the tax	726
commissioner who shall treat that amount as a reduction in taxes	727
for the current tax year and shall make reimbursement to the	728
county of that amount in the manner prescribed in section 4503.068	729
of the Revised Code, from moneys appropriated for that purpose.	730

(B) If in any year for which an application for reduction in	731
taxes has been approved the owner no longer qualifies for the	732
reduction, the owner shall notify the county auditor that the	733
owner is not qualified for a reduction in taxes.	734

During January of each year, the county auditor shall furnish	735
each person whose application for reduction has been approved, by	736
ordinary mail, a form on which to report any changes in total	737
income, ownership, occupancy, disability, and other information	738
earlier furnished the auditor relative to the application. The	739
form shall be completed and returned to the auditor not later than	740
the first Monday in June if the changes would affect the person's	741
eligibility for the reduction.	742

(C) No person shall knowingly make a false statement for the	743
purpose of obtaining a reduction in taxes under section 4503.065	744
of the Revised Code.	745

(D) No person shall knowingly fail to notify the county	746
auditor of any change required by division (B) of this section	747
that has the effect of maintaining or securing a reduction in	748
taxes under section 4503.065 of the Revised Code.	749

(E) No person shall knowingly make a false statement or	750
certification attesting to any person's physical or mental	751
condition for purposes of qualifying such person for tax relief	752
pursuant to sections 4503.064 to 4503.069 of the Revised Code.	753

(F) Whoever violates division (C), (D), or (E) of this	754
section is guilty of a misdemeanor of the fourth degree.	755

Section 2.  That existing sections 323.151, 323.152, 323.153,	756
4503.064, 4503.065, and 4503.066 of the Revised Code are hereby	757
repealed.	758

Section 3.  That the amendment by this act of sections	759
323.151, 323.152, 323.153, 4503.064, 4503.065, and 4503.066 of the	760
Revised Code applies to tax year 2013 and each tax year	761
thereafter.	762