As Passed by the Senate

130th General Assembly
Regular Session
2013-2014
Am. 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 

Senators Coley, LaRose, Balderson, Beagle, Brown, Burke, Eklund, Gardner, Gentile, Hite, Hughes, Jones, Lehner, Manning, Obhof, Oelslager, Peterson, Sawyer, Schaffer, Seitz, Skindell, Smith, Tavares, Turner, Uecker, Widener 



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
department of veterans affairs, or its predecessor or successor 240
agency, showing that the veteran qualifies as a disabled veteran.241

       An application for a reduction under division (A) of section 242
323.152 of the Revised Code constitutes a continuing application 243
for a reduction in taxes for each year in which the dwelling is 244
the applicant's homestead.245

       (2) An application for a reduction in taxes under division 246
(B) of section 323.152 of the Revised Code shall be filed only if 247
the homestead or manufactured or mobile home was transferred in 248
the preceding year or did not qualify for and receive the 249
reduction in taxes under that division for the preceding tax year. 250
The application for homesteads transferred in the preceding year 251
shall be incorporated into any form used by the county auditor to 252
administer the tax law in respect to the conveyance of real 253
property pursuant to section 319.20 of the Revised Code or of used 254
manufactured homes or used mobile homes as defined in section 255
5739.0210 of the Revised Code. The owner of a manufactured or 256
mobile home who has elected under division (D)(4) of section 257
4503.06 of the Revised Code to be taxed under division (D)(2) of 258
that section for the ensuing year may file the application at the 259
time of making that election. The application shall contain a 260
statement that failure by the applicant to affirm on the 261
application that the dwelling on the property conveyed is the 262
applicant's homestead prohibits the owner from receiving the 263
reduction in taxes until a proper application is filed within the 264
period prescribed by division (A)(3) of this section. Such an 265
application constitutes a continuing application for a reduction 266
in taxes for each year in which the dwelling is the applicant's 267
homestead.268

       (3) Failure to receive a new application filed under division 269
(A)(1) or (2) or notification under division (C) of this section 270
after an application for reduction has been approved is 271
prima-facie evidence that the original applicant is entitled to 272
the reduction in taxes calculated on the basis of the information 273
contained in the original application. The original application 274
and any subsequent application, including any late application, 275
shall be in the form of a signed statement and shall be filed 276
after the first Monday in January and not later than the first 277
Monday in June. The original application and any subsequent 278
application for a reduction in real property taxes shall be filed 279
in the year for which the reduction is sought. The original 280
application and any subsequent application for a reduction in 281
manufactured home taxes shall be filed in the year preceding the 282
year for which the reduction is sought. The statement shall be on 283
a form, devised and supplied by the tax commissioner, which shall 284
require no more information than is necessary to establish the 285
applicant's eligibility for the reduction in taxes and the amount 286
of the reduction, and, except for homesteads that are units in a 287
housing cooperative, shall include an affirmation by the applicant 288
that ownership of the homestead was not acquired from a person, 289
other than the applicant's spouse, related to the owner by 290
consanguinity or affinity for the purpose of qualifying for the 291
real property or manufactured home tax reduction provided for in 292
division (A) or (B) of section 323.152 of the Revised Code. The 293
form shall contain a statement that conviction of willfully 294
falsifying information to obtain a reduction in taxes or failing 295
to comply with division (C) of this section results in the 296
revocation of the right to the reduction for a period of three 297
years. In the case of an application for a reduction in taxes for 298
persons described in division (A)(2)(c)(1)(b)(iii) of section 299
323.152 of the Revised Code, the form shall contain a statement 300
that signing the application constitutes a delegation of authority 301
by the applicant to the tax commissioner or the county auditor, 302
individually or in consultation with each other, to examine any 303
tax or financial records relating to the income of the applicant 304
as stated on the application for the purpose of determining 305
eligibility for the exemption or a possible violation of division 306
(D) or (E) of this section.307

       (B) A late application for a tax reduction for the year 308
preceding the year in which an original application is filed, or 309
for a reduction in manufactured home taxes for the year in which 310
an original application is filed, may be filed with the original 311
application. If the county auditor determines the information 312
contained in the late application is correct, the auditor shall 313
determine the amount of the reduction in taxes to which the 314
applicant would have been entitled for the preceding tax year had 315
the applicant's application been timely filed and approved in that 316
year.317

       The amount of such reduction shall be treated by the auditor 318
as an overpayment of taxes by the applicant and shall be refunded 319
in the manner prescribed in section 5715.22 of the Revised Code 320
for making refunds of overpayments. On the first day of July of 321
each year, the county auditor shall certify the total amount of 322
the reductions in taxes made in the current year under this 323
division to the tax commissioner, who shall treat the full amount 324
thereof as a reduction in taxes for the preceding tax year and 325
shall make reimbursement to the county therefor in the manner 326
prescribed by section 323.156 of the Revised Code, from money 327
appropriated for that purpose.328

       (C)(1) If, in any year after an application has been filed 329
under division (A)(1) or (2) of this section, the owner does not 330
qualify for a reduction in taxes on the homestead or on the 331
manufactured or mobile home set forth on such application, the 332
owner shall notify the county auditor that the owner is not 333
qualified for a reduction in taxes.334

       (2) If, in any year after an application has been filed under 335
division (A)(1) of this section, the occupant of a homestead in a 336
housing cooperative does not qualify for a reduction in taxes on 337
the homestead, the occupant shall notify the county auditor that 338
the occupant is not qualified for a reduction in taxes or file a 339
new application under division (A)(1) of this section.340

       (3) If the county auditor or county treasurer discovers that 341
the owner of property not entitled to the reduction in taxes under 342
division (B) of section 323.152 of the Revised Code failed to 343
notify the county auditor as required by division (C)(1) of this 344
section, a charge shall be imposed against the property in the 345
amount by which taxes were reduced under that division for each 346
tax year the county auditor ascertains that the property was not 347
entitled to the reduction and was owned by the current owner. 348
Interest shall accrue in the manner prescribed by division (B) of 349
section 323.121 or division (G)(2) of section 4503.06 of the 350
Revised Code on the amount by which taxes were reduced for each 351
such tax year as if the reduction became delinquent taxes at the 352
close of the last day the second installment of taxes for that tax 353
year could be paid without penalty. The county auditor shall 354
notify the owner, by ordinary mail, of the charge, of the owner's 355
right to appeal the charge, and of the manner in which the owner 356
may appeal. The owner may appeal the imposition of the charge and 357
interest by filing an appeal with the county board of revision not 358
later than the last day prescribed for payment of real and public 359
utility property taxes under section 323.12 of the Revised Code 360
following receipt of the notice and occurring at least ninety days 361
after receipt of the notice. The appeal shall be treated in the 362
same manner as a complaint relating to the valuation or assessment 363
of real property under Chapter 5715. of the Revised Code. The 364
charge and any interest shall be collected as other delinquent 365
taxes.366

       (4) Each year during January, the county auditor shall 367
furnish by ordinary mail a continuing application to each person 368
receiving a reduction under division (A) of section 323.152 of the 369
Revised Code. The continuing application shall be used to report 370
changes in total income, ownership, occupancy, disability, and 371
other information earlier furnished the auditor relative to the 372
reduction in taxes on the property. The continuing application 373
shall be returned to the auditor not later than the first Monday 374
in June; provided, that if such changes do not affect the status 375
of the homestead exemption or the amount of the reduction to which 376
the owner is entitled under division (A) of section 323.152 of the 377
Revised Code or to which the occupant is entitled under section 378
323.159 of the Revised Code, the application does not need to be 379
returned.380

       (5) Each year during February, the county auditor, except as 381
otherwise provided in this paragraph, shall furnish by ordinary 382
mail an original application to the owner, as of the first day of 383
January of that year, of a homestead or a manufactured or mobile 384
home that transferred during the preceding calendar year and that 385
qualified for and received a reduction in taxes under division (B) 386
of section 323.152 of the Revised Code for the preceding tax year. 387
In order to receive the reduction under that division, the owner 388
shall file the application with the county auditor not later than 389
the first Monday in June. If the application is not timely filed, 390
the auditor shall not grant a reduction in taxes for the homestead 391
for the current year, and shall notify the owner that the 392
reduction in taxes has not been granted, in the same manner 393
prescribed under section 323.154 of the Revised Code for 394
notification of denial of an application. Failure of an owner to 395
receive an application does not excuse the failure of the owner to 396
file an original application. The county auditor is not required 397
to furnish an application under this paragraph for any homestead 398
for which application has previously been made on a form 399
incorporated into any form used by the county auditor to 400
administer the tax law in respect to the conveyance of real 401
property or of used manufactured homes or used mobile homes, and 402
an owner who previously has applied on such a form is not required 403
to return an application furnished under this paragraph.404

       (D) No person shall knowingly make a false statement for the 405
purpose of obtaining a reduction in the person's real property or 406
manufactured home taxes under section 323.152 of the Revised Code.407

       (E) No person shall knowingly fail to notify the county 408
auditor of changes required by division (C) of this section that 409
have the effect of maintaining or securing a reduction in taxes 410
under section 323.152 of the Revised Code.411

       (F) No person shall knowingly make a false statement or 412
certification attesting to any person's physical or mental 413
condition for purposes of qualifying such person for tax relief 414
pursuant to sections 323.151 to 323.159 of the Revised Code.415

       Sec. 4503.064.  As used in sections 4503.064 to 4503.069 of 416
the Revised Code:417

       (A) "Sixty-five years of age or older" means a person who 418
will be age sixty-five or older in the calendar year following the 419
year of application for reduction in the assessable value of the 420
person's manufactured or mobile home.421

        (B) "Permanently and totally disabled" means that a person 422
whoother than a disabled veteran has, on the first day of January 423
of the year of application, including late application, for 424
reduction in the assessable value of a manufactured or mobile 425
home, has some impairment in body or mind that makes the person 426
unable to work at any substantially remunerative employment which 427
the person is reasonably able to perform and which will, with 428
reasonable probability, continue for an indefinite period of at 429
least twelve months without any present indication of recovery 430
therefrom or has been certified as permanently and totally 431
disabled by a state or federal agency having the function of so 432
classifying persons.433

       (C) "Homestead exemption" means the reduction in taxes 434
allowed under division (A) of section 323.152 of the Revised Code 435
for the year in which an application is filed under section 436
4503.066 of the Revised Code.437

       (D) "Manufactured home" has the meaning given in division 438
(C)(4) of section 3781.06 of the Revised Code, and includes a 439
structure consisting of two manufactured homes that were purchased 440
either together or separately and are combined to form a single 441
dwelling, but does not include a manufactured home that is taxed 442
as real property pursuant to division (B) of section 4503.06 of 443
the Revised Code.444

       (E) "Mobile home" has the meaning given in division (O) of 445
section 4501.01 of the Revised Code and includes a structure 446
consisting of two mobile homes that were purchased together or 447
separately and combined to form a single dwelling, but does not 448
include a mobile home that is taxed as real property pursuant to 449
division (B) of section 4503.06 of the Revised Code.450

       (F) "Late application" means an application filed with an 451
original application under division (A)(3) of section 4503.066 of 452
the Revised Code.453

       (G) "Total income" hasand "disabled veteran" have the same 454
meaningmeanings as in section 323.151 of the Revised Code.455

       Sec. 4503.065.  (A) This(1) Division (A) of this section 456
applies to any of the following persons:457

       (1)(a) An individual who is permanently and totally disabled;458

       (2)(b) An individual who is sixty-five years of age or older;459

       (3)(c) An individual who is the surviving spouse of a 460
deceased person who was permanently and totally disabled or 461
sixty-five years of age or older and who applied and qualified for 462
a reduction in assessable value under this section in the year of 463
death, provided the surviving spouse is at least fifty-nine but 464
not sixty-five or more years of age on the date the deceased 465
spouse dies.466

       (B)(2) The manufactured home tax on a manufactured or mobile 467
home that is paid pursuant to division (C) of section 4503.06 of 468
the Revised Code and that is owned and occupied as a home by an 469
individual whose domicile is in this state and to whom this 470
section applies, shall be reduced for any tax year for which an 471
application for such reduction has been approved, provided the 472
individual did not acquire ownership from a person, other than the 473
individual's spouse, related by consanguinity or affinity for the 474
purpose of qualifying for the reduction. An owner includes a 475
settlor of a revocable or irrevocable inter vivos trust holding 476
the title to a manufactured or mobile home occupied by the settlor 477
as of right under the trust.478

       (1)(a) For manufactured and mobile homes for which the tax 479
imposed by section 4503.06 of the Revised Code is computed under 480
division (D)(2) of that section, the reduction shall equal one of 481
the following amounts, as applicable to the person:482

       (a)(i) If the person received a reduction under this section 483
for tax year 2007, the greater of the reduction for that tax year 484
or the amount computed under division (B)(2)(A)(2)(b) of this 485
section;486

       (b)(ii) If the person received, for any homestead, a 487
reduction under division (A) of this section for tax year 2014 or 488
under division (A)(1) of section 323.152 of the Revised Code for 489
tax year 2013 or the person is the surviving spouse of such a 490
person and the surviving spouse is at least fifty-nine years of 491
age on the date the deceased spouse dies, the amount computed 492
under division (B)(2)(A)(2)(b) of this section. For purposes of 493
divisions (B)(1)(b)(A)(2)(a)(ii) and (c)(iii) of this section, a 494
person receives a reduction under division (A) of this section or 495
division (A)(1) of section 323.152 of the Revised Code for tax 496
year 2014 or 2013, respectively, if the person files a late 497
application for that respective tax year that is approved by the 498
county auditor under section 4503.066 or 323.153 of the Revised 499
Code.500

       (c)(iii) If the person is not described in division 501
(B)(1)(a)(A)(2)(a)(i) or (b)(ii) of this section and the person's 502
total income does not exceed thirty thousand dollars, as adjusted 503
under division (B)(5)(A)(2)(e) of this section, the amount 504
computed under division (B)(2)(A)(2)(b) of this section.505

       (2)(b) The amount of the reduction under division 506
(B)(2)(A)(2)(b) of this section equals the product of the 507
following:508

       (a)(i) Twenty-five thousand dollars of the true value of the 509
property in money;510

       (b)(ii) The assessment percentage established by the tax 511
commissioner under division (B) of section 5715.01 of the Revised 512
Code, not to exceed thirty-five per cent;513

        (c)(iii) The effective tax rate used to calculate the taxes 514
charged against the property for the current year, where 515
"effective tax rate" is defined as in section 323.08 of the 516
Revised Code;517

       (d)(iv) The quantity equal to one minus the sum of the 518
percentage reductions in taxes received by the property for the 519
current tax year under section 319.302 of the Revised Code and 520
division (B) of section 323.152 of the Revised Code.521

       (3)(c) For manufactured and mobile homes for which the tax 522
imposed by section 4503.06 of the Revised Code is computed under 523
division (D)(1) of that section, the reduction shall equal one of 524
the following amounts, as applicable to the person:525

       (a)(i) If the person received a reduction under this section 526
for tax year 2007, the greater of the reduction for that tax year 527
or the amount computed under division (B)(4)(A)(2)(d) of this 528
section;529

       (b)(ii) If the person received, for any homestead, a 530
reduction under division (A) of this section for tax year 2014 or 531
under division (A)(1) of section 323.152 of the Revised Code for 532
tax year 2013 or the person is the surviving spouse of such a 533
person and the surviving spouse is at least fifty-nine years of 534
age on the date the deceased spouse dies, the amount computed 535
under division (B)(4)(A)(2)(d) of this section. For purposes of 536
divisions (B)(3)(b)(A)(2)(c)(ii) and (c)(iii) of this section, a 537
person receives a reduction under division (A) of this section or 538
under division (A)(1) of section 323.152 of the Revised Code for 539
tax year 2014 or 2013, respectively, if the person files a late 540
application for a refund of overpayments for that respective tax 541
year that is approved by the county auditor under section 4503.066 542
of the Revised Code.543

       (c)(iii) If the person is not described in division 544
(B)(3)(a)(A)(2)(c)(i) or (b)(ii) of this section and the person's 545
total income does not exceed thirty thousand dollars, as adjusted 546
under division (B)(5)(A)(2)(e) of this section, the amount 547
computed under division (B)(4)(A)(2)(d) of this section.548

       (4)(d) The amount of the reduction under division 549
(B)(4)(A)(2)(d) of this section equals the product of the 550
following:551

       (a)(i) Twenty-five thousand dollars of the cost to the owner, 552
or the market value at the time of purchase, whichever is greater, 553
as those terms are used in division (D)(1) of section 4503.06 of 554
the Revised Code;555

       (b)(ii) The percentage from the appropriate schedule in 556
division (D)(1)(b) of section 4503.06 of the Revised Code;557

       (c)(iii) The assessment percentage of forty per cent used in 558
division (D)(1)(b) of section 4503.06 of the Revised Code;559

       (d)(iv) The tax rate of the taxing district in which the home 560
has its situs.561

       (5)(e) Each calendar year, the tax commissioner shall adjust 562
the income threshold described in divisions 563
(B)(1)(c)(A)(2)(a)(iii) and (B)(3)(c)(A)(2)(c)(iii) of this 564
section by completing the following calculations in September of 565
each year:566

       (a)(i) Determine the percentage increase in the gross 567
domestic product deflator determined by the bureau of economic 568
analysis of the United States department of commerce from the 569
first day of January of the preceding calendar year to the last 570
day of December of the preceding calendar year;571

       (b)(ii) Multiply that percentage increase by the total income 572
threshold for the ensuing tax year;573

       (c)(iii) Add the resulting product to the total income 574
threshold for the ensuing tax year;575

       (d)(iv) Round the resulting sum to the nearest multiple of 576
one hundred dollars.577

       The commissioner shall certify the amount resulting from the 578
adjustment to each county auditor not later than the first day of 579
December each year. The certified amount applies to the second 580
ensuing tax year. The commissioner shall not make the adjustment 581
in any calendar year in which the amount resulting from the 582
adjustment would be less than the total income threshold for the 583
ensuing tax year.584

       (B) The manufactured home tax levied pursuant to division (C) 585
of section 4503.06 of the Revised Code on a manufactured or mobile 586
home that is owned and occupied by a disabled veteran shall be 587
reduced for any tax year for which an application for such 588
reduction has been approved, provided the disabled veteran did not 589
acquire ownership from a person, other than the disabled veteran's 590
spouse, related by consanguinity or affinity for the purpose of 591
qualifying for the reduction. An owner includes an owner within 592
the meaning of division (A)(2) of this section.593

        (1) For manufactured and mobile homes for which the tax 594
imposed by section 4503.06 of the Revised Code is computed under 595
division (D)(2) of that section, the reduction shall equal the 596
product obtained by multiplying fifty thousand dollars of the true 597
value of the property in money by the amounts described in 598
divisions (A)(2)(b)(ii) to (iv) of this section.599

        (2) For manufactured and mobile homes for which the tax 600
imposed by section 4503.06 of the Revised Code is computed under 601
division (D)(1) of that section, the reduction shall equal the 602
product obtained by multiplying fifty thousand dollars of the cost 603
to the owner, or the market value at the time of purchase, 604
whichever is greater, as those terms are used in division (D)(1) 605
of section 4503.06 of the Revised Code, by the amounts described 606
in divisions (A)(2)(d)(ii) to (iv) of this section.607

        The reduction is in lieu of any reduction under section 608
4503.0610 of the Revised Code or division (A) of this section. The 609
reduction applies to only one manufactured or mobile home owned 610
and occupied by a disabled veteran.611

       If a manufactured or mobile home qualifies for a reduction in 612
taxes under this division for the year in which the disabled 613
veteran dies, and the disabled veteran is survived by a spouse who 614
occupied the home when the disabled veteran died and who acquires 615
ownership of the home, the reduction shall continue through the 616
year in which the surviving spouse dies or remarries.617

       (C) If the owner or the spouse of the owner of a manufactured 618
or mobile home is eligible for a homestead exemption on the land 619
upon which the home is located, the reduction to which the owner 620
or spouse is entitled under this section shall not exceed the 621
difference between the reduction to which the owner or spouse is 622
entitled under division (A) or (B) of this section and the amount 623
of the reduction under the homestead exemption.624

       (D) No reduction shall be made with respect to the home of 625
any person convicted of violating division (C) or (D) of section 626
4503.066 of the Revised Code for a period of three years following 627
the conviction.628

       Sec. 4503.066.  (A)(1) To obtain a tax reduction under 629
section 4503.065 of the Revised Code, the owner of the home shall 630
file an application with the county auditor of the county in which 631
the home is located. An application for reduction in taxes based 632
upon a physical disability shall be accompanied by a certificate 633
signed by a physician, and an application for reduction in taxes 634
based upon a mental disability shall be accompanied by a 635
certificate signed by a physician or psychologist licensed to 636
practice in this state. The certificate shall attest to the fact 637
that the applicant is permanently and totally disabled, shall be 638
in a form that the department of taxation requires, and shall 639
include the definition of totally and permanently disabled as set 640
forth in section 4503.064 of the Revised Code. An application for 641
reduction in taxes based upon a disability certified as permanent 642
and total by a state or federal agency having the function of so 643
classifying persons shall be accompanied by a certificate from 644
that agency. An application by a disabled veteran for the 645
reduction under division (B) of section 4503.065 of the Revised 646
Code shall be accompanied by a letter or other written 647
confirmation from the United States department of veterans 648
affairs, or its predecessor or successor agency, showing that the 649
veteran qualifies as a disabled veteran.650

       (2) Each application shall constitute a continuing 651
application for a reduction in taxes for each year in which the 652
manufactured or mobile home is occupied by the applicant. Failure 653
to receive a new application or notification under division (B) of 654
this section after an application for reduction has been approved 655
is prima-facie evidence that the original applicant is entitled to 656
the reduction calculated on the basis of the information contained 657
in the original application. The original application and any 658
subsequent application shall be in the form of a signed statement 659
and shall be filed not later than the first Monday in June. The 660
statement shall be on a form, devised and supplied by the tax 661
commissioner, that shall require no more information than is 662
necessary to establish the applicant's eligibility for the 663
reduction in taxes and the amount of the reduction to which the 664
applicant is entitled. The form shall contain a statement that 665
signing such application constitutes a delegation of authority by 666
the applicant to the tax commissioner or the county auditor, 667
individually or in consultation with each other, to examine any 668
tax or financial records that relate to the income of the 669
applicant as stated on the application for the purpose of 670
determining eligibility under, or possible violation of, division 671
(C) or (D) of this section. The form also shall contain a 672
statement that conviction of willfully falsifying information to 673
obtain a reduction in taxes or failing to comply with division (B) 674
of this section shall result in the revocation of the right to the 675
reduction for a period of three years.676

       (3) A late application for a reduction in taxes for the year 677
preceding the year for which an original application is filed may 678
be filed with an original application. If the auditor determines 679
that the information contained in the late application is correct, 680
the auditor shall determine both the amount of the reduction in 681
taxes to which the applicant would have been entitled for the 682
current tax year had the application been timely filed and 683
approved in the preceding year, and the amount the taxes levied 684
under section 4503.06 of the Revised Code for the current year 685
would have been reduced as a result of the reduction. When an 686
applicant is permanently and totally disabled on the first day of 687
January of the year in which the applicant files a late 688
application, the auditor, in making the determination of the 689
amounts of the reduction in taxes under division (A)(3) of this 690
section, is not required to determine that the applicant was 691
permanently and totally disabled on the first day of January of 692
the preceding year.693

       The amount of the reduction in taxes pursuant to a late 694
application shall be treated as an overpayment of taxes by the 695
applicant. The auditor shall credit the amount of the overpayment 696
against the amount of the taxes or penalties then due from the 697
applicant, and, at the next succeeding settlement, the amount of 698
the credit shall be deducted from the amount of any taxes or 699
penalties distributable to the county or any taxing unit in the 700
county that has received the benefit of the taxes or penalties 701
previously overpaid, in proportion to the benefits previously 702
received. If, after the credit has been made, there remains a 703
balance of the overpayment, or if there are no taxes or penalties 704
due from the applicant, the auditor shall refund that balance to 705
the applicant by a warrant drawn on the county treasurer in favor 706
of the applicant. The treasurer shall pay the warrant from the 707
general fund of the county. If there is insufficient money in the 708
general fund to make the payment, the treasurer shall pay the 709
warrant out of any undivided manufactured or mobile home taxes 710
subsequently received by the treasurer for distribution to the 711
county or taxing district in the county that received the benefit 712
of the overpaid taxes, in proportion to the benefits previously 713
received, and the amount paid from the undivided funds shall be 714
deducted from the money otherwise distributable to the county or 715
taxing district in the county at the next or any succeeding 716
distribution. At the next or any succeeding distribution after 717
making the refund, the treasurer shall reimburse the general fund 718
for any payment made from that fund by deducting the amount of 719
that payment from the money distributable to the county or other 720
taxing unit in the county that has received the benefit of the 721
taxes, in proportion to the benefits previously received. On the 722
second Monday in September of each year, the county auditor shall 723
certify the total amount of the reductions in taxes made in the 724
current year under division (A)(3) of this section to the tax 725
commissioner who shall treat that amount as a reduction in taxes 726
for the current tax year and shall make reimbursement to the 727
county of that amount in the manner prescribed in section 4503.068 728
of the Revised Code, from moneys appropriated for that purpose.729

       (B) If in any year for which an application for reduction in 730
taxes has been approved the owner no longer qualifies for the 731
reduction, the owner shall notify the county auditor that the 732
owner is not qualified for a reduction in taxes.733

       During January of each year, the county auditor shall furnish 734
each person whose application for reduction has been approved, by 735
ordinary mail, a form on which to report any changes in total 736
income, ownership, occupancy, disability, and other information 737
earlier furnished the auditor relative to the application. The 738
form shall be completed and returned to the auditor not later than 739
the first Monday in June if the changes would affect the person's 740
eligibility for the reduction.741

       (C) No person shall knowingly make a false statement for the 742
purpose of obtaining a reduction in taxes under section 4503.065 743
of the Revised Code.744

       (D) No person shall knowingly fail to notify the county 745
auditor of any change required by division (B) of this section 746
that has the effect of maintaining or securing a reduction in 747
taxes under section 4503.065 of the Revised Code.748

       (E) No person shall knowingly make a false statement or 749
certification attesting to any person's physical or mental 750
condition for purposes of qualifying such person for tax relief 751
pursuant to sections 4503.064 to 4503.069 of the Revised Code.752

       (F) Whoever violates division (C), (D), or (E) of this 753
section is guilty of a misdemeanor of the fourth degree.754

       Section 2.  That existing sections 323.151, 323.152, 323.153, 755
4503.064, 4503.065, and 4503.066 of the Revised Code are hereby 756
repealed.757

       Section 3.  That the amendment by this act of sections 758
323.151, 323.152, 323.153, 4503.064, 4503.065, and 4503.066 of the 759
Revised Code applies to tax year 2014 and each tax year 760
thereafter.761