As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 180

Senator Gentile 

Cosponsors: Senators Brown, Kearney, Sawyer, Schiavoni, Turner 

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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 extend eligibility for the homestead

3

exemption to elderly or disabled homeowners who

4

did not receive the exemption for 2013 and have

5

$30,000 or more in Ohio adjusted gross income.

6

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

Section 1. That sections 323.151, 323.152, 323.153, 4503.064,	7
4503.065, and 4503.066 of the Revised Code be amended to read as	8
follows:	9

Sec. 323.151.  As used in sections 323.151 to 323.159 of the	10
Revised Code:	11

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

12

(a) A dwelling, including a unit in a multiple-unit dwelling	13
and a manufactured home or mobile home taxed as real property	14
pursuant to division (B) of section 4503.06 of the Revised Code,	15
owned and occupied as a home by an individual whose domicile is in	16
this state and who has not acquired ownership from a person, other	17
than the individual's spouse, related by consanguinity or affinity	18
for the purpose of qualifying for the real property tax reduction	19
provided in section 323.152 of the Revised Code.	20

(b) A unit in a housing cooperative that is occupied as a	21
home, but not owned, by an individual whose domicile is in this	22
state.	23

(2) The homestead shall include so much of the land	24
surrounding it, not exceeding one acre, as is reasonably necessary	25
for the use of the dwelling or unit as a home. An owner includes a	26
holder of one of the several estates in fee, a vendee in	27
possession under a purchase agreement or a land contract, a	28
mortgagor, a life tenant, one or more tenants with a right of	29
survivorship, tenants in common, and a settlor of a revocable or	30
irrevocable inter vivos trust holding the title to a homestead	31
occupied by the settlor as of right under the trust. The tax	32
commissioner shall adopt rules for the uniform classification and	33
valuation of real property or portions of real property as	34
homesteads.	35

(B) "Sixty-five years of age or older" means a person who has	36
attained age sixty-four prior to the first day of January of the	37
year of application for reduction in real estate taxes.	38

(C) "Total income" means Ohio adjusted gross income of the	39
owner and the owner's spouse for the year preceding the year in	40
which application for a reduction in taxes is made, as determined	41
under division (A) of section 5747.01 of the Revised Code.	42

(D) "Permanently and totally disabled" means a person who	43
has, on the first day of January of the year of application for	44
reduction in real estate taxes, some impairment in body or mind	45
that makes the person unable to work at any substantially	46
remunerative employment that the person is reasonably able to	47
perform and that will, with reasonable probability, continue for	48
an indefinite period of at least twelve months without any present	49
indication of recovery therefrom or has been certified as	50
permanently and totally disabled by a state or federal agency	51
having the function of so classifying persons.	52

(E)(D) "Housing cooperative" means a housing complex of at	53
least two units that is owned and operated by a nonprofit	54
corporation that issues a share of the corporation's stock to an	55
individual, entitling the individual to live in a unit of the	56
complex, and collects a monthly maintenance fee from the	57
individual to maintain, operate, and pay the taxes of the complex.	58

Sec. 323.152.  In addition to the reduction in taxes required	59
under section 319.302 of the Revised Code, taxes shall be reduced	60
as provided in divisions (A) and (B) of this section.	61

(A)(1) Division (A) of this section applies to any of the	62
following persons:	63

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

64

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

65

(c) A person who is the surviving spouse of a deceased person	66
who was permanently and totally disabled or sixty-five years of	67
age or older and who applied and qualified for a reduction in	68
taxes under this division in the year of death, provided the	69
surviving spouse is at least fifty-nine but not sixty-five or more	70
years of age on the date the deceased spouse dies.	71

(2) Real property taxes on a homestead owned and occupied, or	72
a homestead in a housing cooperative occupied, by a person to whom	73
division (A) of this section applies shall be reduced for each	74
year for which an application for the reduction has been approved.	75
The reduction shall equal one of the following amounts, as	76
applicable to the person:	77

(a) If the person received a reduction under division (A) of	78
this section for tax year 2006, the greater of the reduction for	79
that tax year or the amount computed under division (A)(3)(2)(b)	80
of this section;	81

(b) If the person received a reduction under division (A) of	82
this section for tax year 2013 or under section 4503.066 of the	83
Revised Code for tax year 2014, the amount computed under division	84
(A)(3) of this section. For purposes of divisions (A)(2)(b) and	85
(c) of this section, a person receives a reduction under division	86
(A) of this section or under section 4503.065 of the Revised Code	87
for tax year 2013 or 2014, respectively, if the person files a	88
late application for that respective tax year that is approved by	89
the county auditor under section 323.153 or 4503.066 of the	90
Revised Code.	91

(c) If the person did not receive a reduction under division	92
(A) of this section or under section 4503.066 of the Revised Code	93
for tax year 2013 and the person's total income does not exceed	94
thirty thousand dollars, as adjusted under division (A)(4) of this	95
section, the amount computed under division (A)(3) of this	96
section.	97

(3) The amount of the reduction under division (A)(3) of this	98
section equals the product of the following:	99

(a)(i) Twenty-five thousand dollars of the true value of the	100
property in money;	101

(b)(ii) The assessment percentage established by the tax	102
commissioner under division (B) of section 5715.01 of the Revised	103
Code, not to exceed thirty-five per cent;	104

(c)(iii) The effective tax rate used to calculate the taxes	105
charged against the property for the current year, where	106
"effective tax rate" is defined as in section 323.08 of the	107
Revised Code;	108

(d)(iv) The quantity equal to one minus the sum of the	109
percentage reductions in taxes received by the property for the	110
current tax year under section 319.302 of the Revised Code and	111
division (B) of section 323.152 of the Revised Code.	112

(4) Each calendar year, the tax commissioner shall adjust the	113
total income threshold described in division (A)(2)(c) of this	114
section by completing the following calculations in September of	115
each year:	116

(a) Determine the percentage increase in the gross domestic	117
product deflator determined by the bureau of economic analysis of	118
the United States department of commerce from the first day of	119
January of the preceding calendar year to the last day of December	120
of the preceding calendar year;	121

(b) Multiply that percentage increase by the total income	122
threshold for the current tax year;	123

(c) Add the resulting product to the total income threshold	124
for the current tax year;	125

(d) Round the resulting sum to the nearest multiple of one	126
hundred dollars.	127

The commissioner shall certify the amount resulting from the	128
adjustment to each county auditor not later than the first day of	129
December each year. The certified amount applies to the following	130
tax year for persons described in division (A)(2)(c) of this	131
section. The commissioner shall not make the adjustment in any	132
calendar year in which the amount resulting from the adjustment	133
would be less than the total income threshold for the current tax	134
year.	135

(B) To provide a partial exemption, real property taxes on	136
any homestead, and manufactured home taxes on any manufactured or	137
mobile home on which a manufactured home tax is assessed pursuant	138
to division (D)(2) of section 4503.06 of the Revised Code, shall	139
be reduced for each year for which an application for the	140
reduction has been approved. The amount of the reduction shall	141
equal two and one-half per cent of the amount of taxes to be	142
levied by qualifying levies on the homestead or the manufactured	143
or mobile home after applying section 319.301 of the Revised Code.	144
For the purposes of this division, "qualifying levy" has the same	145
meaning as in section 319.302 of the Revised Code.	146

(C) The reductions granted by this section do not apply to	147
special assessments or respread of assessments levied against the	148
homestead, and if there is a transfer of ownership subsequent to	149
the filing of an application for a reduction in taxes, such	150
reductions are not forfeited for such year by virtue of such	151
transfer.	152

(D) The reductions in taxable value referred to in this	153
section shall be applied solely as a factor for the purpose of	154
computing the reduction of taxes under this section and shall not	155
affect the total value of property in any subdivision or taxing	156
district as listed and assessed for taxation on the tax lists and	157
duplicates, or any direct or indirect limitations on indebtedness	158
of a subdivision or taxing district. If after application of	159
sections 5705.31 and 5705.32 of the Revised Code, including the	160
allocation of all levies within the ten-mill limitation to debt	161
charges to the extent therein provided, there would be	162
insufficient funds for payment of debt charges not provided for by	163
levies in excess of the ten-mill limitation, the reduction of	164
taxes provided for in sections 323.151 to 323.159 of the Revised	165
Code shall be proportionately adjusted to the extent necessary to	166
provide such funds from levies within the ten-mill limitation.	167

(E) No reduction shall be made on the taxes due on the	168
homestead of any person convicted of violating division (D) or (E)	169
of section 323.153 of the Revised Code for a period of three years	170
following the conviction.	171

Sec. 323.153.  (A) To obtain a reduction in real property	172
taxes under division (A) or (B) of section 323.152 of the Revised	173
Code or in manufactured home taxes under division (B) of section	174
323.152 of the Revised Code, the owner shall file an application	175
with the county auditor of the county in which the owner's	176
homestead is located.	177

To obtain a reduction in real property taxes under division	178
(A) of section 323.152 of the Revised Code, the occupant of a	179
homestead in a housing cooperative shall file an application with	180
the nonprofit corporation that owns and operates the housing	181
cooperative, in accordance with this paragraph. Not later than the	182
first day of March each year, the corporation shall obtain	183
applications from the county auditor's office and provide one to	184
each new occupant. Not later than the first day of May, any	185
occupant who may be eligible for a reduction in taxes under	186
division (A) of section 323.152 of the Revised Code shall submit	187
the completed application to the corporation. Not later than the	188
fifteenth day of May, the corporation shall file all completed	189
applications, and the information required by division (B) of	190
section 323.159 of the Revised Code, with the county auditor of	191
the county in which the occupants' homesteads are located.	192
Continuing applications shall be furnished to an occupant in the	193
manner provided in division (C)(4) of this section.	194

(1) An application for reduction based upon a physical	195
disability shall be accompanied by a certificate signed by a	196
physician, and an application for reduction based upon a mental	197
disability shall be accompanied by a certificate signed by a	198
physician or psychologist licensed to practice in this state,	199
attesting to the fact that the applicant is permanently and	200
totally disabled. The certificate shall be in a form that the tax	201
commissioner requires and shall include the definition of	202
permanently and totally disabled as set forth in section 323.151	203
of the Revised Code. An application for reduction based upon a	204
disability certified as permanent and total by a state or federal	205
agency having the function of so classifying persons shall be	206
accompanied by a certificate from that agency.	207

An application for a reduction under division (A) of section	208
323.152 of the Revised Code constitutes a continuing application	209
for a reduction in taxes for each year in which the dwelling is	210
the applicant's homestead.	211

(2) An application for a reduction in taxes under division	212
(B) of section 323.152 of the Revised Code shall be filed only if	213
the homestead or manufactured or mobile home was transferred in	214
the preceding year or did not qualify for and receive the	215
reduction in taxes under that division for the preceding tax year.	216
The application for homesteads transferred in the preceding year	217
shall be incorporated into any form used by the county auditor to	218
administer the tax law in respect to the conveyance of real	219
property pursuant to section 319.20 of the Revised Code or of used	220
manufactured homes or used mobile homes as defined in section	221
5739.0210 of the Revised Code. The owner of a manufactured or	222
mobile home who has elected under division (D)(4) of section	223
4503.06 of the Revised Code to be taxed under division (D)(2) of	224
that section for the ensuing year may file the application at the	225
time of making that election. The application shall contain a	226
statement that failure by the applicant to affirm on the	227
application that the dwelling on the property conveyed is the	228
applicant's homestead prohibits the owner from receiving the	229
reduction in taxes until a proper application is filed within the	230
period prescribed by division (A)(3) of this section. Such an	231
application constitutes a continuing application for a reduction	232
in taxes for each year in which the dwelling is the applicant's	233
homestead.	234

(3) Failure to receive a new application filed under division	235
(A)(1) or (2) or notification under division (C) of this section	236
after an application for reduction has been approved is	237
prima-facie evidence that the original applicant is entitled to	238
the reduction in taxes calculated on the basis of the information	239
contained in the original application. The original application	240
and any subsequent application, including any late application,	241
shall be in the form of a signed statement and shall be filed	242
after the first Monday in January and not later than the first	243
Monday in June. The original application and any subsequent	244
application for a reduction in real property taxes shall be filed	245
in the year for which the reduction is sought. The original	246
application and any subsequent application for a reduction in	247
manufactured home taxes shall be filed in the year preceding the	248
year for which the reduction is sought. The statement shall be on	249
a form, devised and supplied by the tax commissioner, which shall	250
require no more information than is necessary to establish the	251
applicant's eligibility for the reduction in taxes and the amount	252
of the reduction, and, except for homesteads that are units in a	253
housing cooperative, shall include an affirmation by the applicant	254
that ownership of the homestead was not acquired from a person,	255
other than the applicant's spouse, related to the owner by	256
consanguinity or affinity for the purpose of qualifying for the	257
real property or manufactured home tax reduction provided for in	258
division (A) or (B) of section 323.152 of the Revised Code. The	259
form shall contain a statement that conviction of willfully	260
falsifying information to obtain a reduction in taxes or failing	261
to comply with division (C) of this section results in the	262
revocation of the right to the reduction for a period of three	263
years. In the case of an application for a reduction in taxes for	264
persons described in division (A)(2)(c) of section 323.152 of the	265
Revised Code, the form shall contain a statement that signing the	266
application constitutes a delegation of authority by the applicant	267
to the tax commissioner or the county auditor, individually or in	268
consultation with each other, to examine any tax or financial	269
records relating to the income of the applicant as stated on the	270
application for the purpose of determining eligibility for the	271
exemption or a possible violation of division (D) or (E) of this	272
section.	273

(B) A late application for a tax reduction for the year	274
preceding the year in which an original application is filed, or	275
for a reduction in manufactured home taxes for the year in which	276
an original application is filed, may be filed with the original	277
application. If the county auditor determines the information	278
contained in the late application is correct, the auditor shall	279
determine the amount of the reduction in taxes to which the	280
applicant would have been entitled for the preceding tax year had	281
the applicant's application been timely filed and approved in that	282
year.	283

The amount of such reduction shall be treated by the auditor	284
as an overpayment of taxes by the applicant and shall be refunded	285
in the manner prescribed in section 5715.22 of the Revised Code	286
for making refunds of overpayments. On the first day of July of	287
each year, the county auditor shall certify the total amount of	288
the reductions in taxes made in the current year under this	289
division to the tax commissioner, who shall treat the full amount	290
thereof as a reduction in taxes for the preceding tax year and	291
shall make reimbursement to the county therefor in the manner	292
prescribed by section 323.156 of the Revised Code, from money	293
appropriated for that purpose.	294

(C)(1) If, in any year after an application has been filed	295
under division (A)(1) or (2) of this section, the owner does not	296
qualify for a reduction in taxes on the homestead or on the	297
manufactured or mobile home set forth on such application, the	298
owner shall notify the county auditor that the owner is not	299
qualified for a reduction in taxes.	300

(2) If, in any year after an application has been filed under	301
division (A)(1) of this section, the occupant of a homestead in a	302
housing cooperative does not qualify for a reduction in taxes on	303
the homestead, the occupant shall notify the county auditor that	304
the occupant is not qualified for a reduction in taxes or file a	305
new application under division (A)(1) of this section.	306

(3) If the county auditor or county treasurer discovers that	307
the owner of property not entitled to the reduction in taxes under	308
division (B) of section 323.152 of the Revised Code failed to	309
notify the county auditor as required by division (C)(1) of this	310
section, a charge shall be imposed against the property in the	311
amount by which taxes were reduced under that division for each	312
tax year the county auditor ascertains that the property was not	313
entitled to the reduction and was owned by the current owner.	314
Interest shall accrue in the manner prescribed by division (B) of	315
section 323.121 or division (G)(2) of section 4503.06 of the	316
Revised Code on the amount by which taxes were reduced for each	317
such tax year as if the reduction became delinquent taxes at the	318
close of the last day the second installment of taxes for that tax	319
year could be paid without penalty. The county auditor shall	320
notify the owner, by ordinary mail, of the charge, of the owner's	321
right to appeal the charge, and of the manner in which the owner	322
may appeal. The owner may appeal the imposition of the charge and	323
interest by filing an appeal with the county board of revision not	324
later than the last day prescribed for payment of real and public	325
utility property taxes under section 323.12 of the Revised Code	326
following receipt of the notice and occurring at least ninety days	327
after receipt of the notice. The appeal shall be treated in the	328
same manner as a complaint relating to the valuation or assessment	329
of real property under Chapter 5715. of the Revised Code. The	330
charge and any interest shall be collected as other delinquent	331
taxes.	332

(4) Each year during January, the county auditor shall	333
furnish by ordinary mail a continuing application to each person	334
receiving a reduction under division (A) of section 323.152 of the	335
Revised Code. The continuing application shall be used to report	336
changes in total income, ownership, occupancy, disability, and	337
other information earlier furnished the auditor relative to the	338
reduction in taxes on the property. The continuing application	339
shall be returned to the auditor not later than the first Monday	340
in June; provided, that if such changes do not affect the status	341
of the homestead exemption or the amount of the reduction to which	342
the owner is entitled under division (A) of section 323.152 of the	343
Revised Code or to which the occupant is entitled under section	344
323.159 of the Revised Code, the application does not need to be	345
returned.	346

(5) Each year during February, the county auditor, except as	347
otherwise provided in this paragraph, shall furnish by ordinary	348
mail an original application to the owner, as of the first day of	349
January of that year, of a homestead or a manufactured or mobile	350
home that transferred during the preceding calendar year and that	351
qualified for and received a reduction in taxes under division (B)	352
of section 323.152 of the Revised Code for the preceding tax year.	353
In order to receive the reduction under that division, the owner	354
shall file the application with the county auditor not later than	355
the first Monday in June. If the application is not timely filed,	356
the auditor shall not grant a reduction in taxes for the homestead	357
for the current year, and shall notify the owner that the	358
reduction in taxes has not been granted, in the same manner	359
prescribed under section 323.154 of the Revised Code for	360
notification of denial of an application. Failure of an owner to	361
receive an application does not excuse the failure of the owner to	362
file an original application. The county auditor is not required	363
to furnish an application under this paragraph for any homestead	364
for which application has previously been made on a form	365
incorporated into any form used by the county auditor to	366
administer the tax law in respect to the conveyance of real	367
property or of used manufactured homes or used mobile homes, and	368
an owner who previously has applied on such a form is not required	369
to return an application furnished under this paragraph.	370

(D) No person shall knowingly make a false statement for the	371
purpose of obtaining a reduction in the person's real property or	372
manufactured home taxes under section 323.152 of the Revised Code.	373

(E) No person shall knowingly fail to notify the county	374
auditor of changes required by division (C) of this section that	375
have the effect of maintaining or securing a reduction in taxes	376
under section 323.152 of the Revised Code.	377

(F) No person shall knowingly make a false statement or	378
certification attesting to any person's physical or mental	379
condition for purposes of qualifying such person for tax relief	380
pursuant to sections 323.151 to 323.159 of the Revised Code.	381

Sec. 4503.064.  As used in sections 4503.064 to 4503.069 of	382
the Revised Code:	383

(A) "Sixty-five years of age or older" means a person who	384
will be age sixty-five or older in the calendar year following the	385
year of application for reduction in the assessable value of the	386
person's manufactured or mobile home.	387

(B) "Permanently and totally disabled" means a person who, on	388
the first day of January of the year of application, including	389
late application, for reduction in the assessable value of a	390
manufactured or mobile home, has some impairment in body or mind	391
that makes the person unable to work at any substantially	392
remunerative employment which the person is reasonably able to	393
perform and which will, with reasonable probability, continue for	394
an indefinite period of at least twelve months without any present	395
indication of recovery therefrom or has been certified as	396
permanently and totally disabled by a state or federal agency	397
having the function of so classifying persons.	398

(C) "Homestead exemption" means the reduction in taxes	399
allowed under division (A) of section 323.152 of the Revised Code	400
for the year in which an application is filed under section	401
4503.066 of the Revised Code.	402

(D) "Manufactured home" has the meaning given in division	403
(C)(4) of section 3781.06 of the Revised Code, and includes a	404
structure consisting of two manufactured homes that were purchased	405
either together or separately and are combined to form a single	406
dwelling, but does not include a manufactured home that is taxed	407
as real property pursuant to division (B) of section 4503.06 of	408
the Revised Code.	409

(E) "Mobile home" has the meaning given in division (O) of	410
section 4501.01 of the Revised Code and includes a structure	411
consisting of two mobile homes that were purchased together or	412
separately and combined to form a single dwelling, but does not	413
include a mobile home that is taxed as real property pursuant to	414
division (B) of section 4503.06 of the Revised Code.	415

(F) "Late application" means an application filed with an	416
original application under division (A)(3) of section 4503.066 of	417
the Revised Code.	418

(G) "Total income" has the same meaning as in section 323.151	419
of the Revised Code.	420

Sec. 4503.065.  (A) This section applies to any of the	421
following persons:	422

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

423

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

424

(3) An individual who is the surviving spouse of a deceased	425
person who was permanently and totally disabled or sixty-five	426
years of age or older and who applied and qualified for a	427
reduction in assessable value under this section in the year of	428
death, provided the surviving spouse is at least fifty-nine but	429
not sixty-five or more years of age on the date the deceased	430
spouse dies.	431

(B) The manufactured home tax on a manufactured or mobile	432
home that is paid pursuant to division (C) of section 4503.06 of	433
the Revised Code and that is owned and occupied as a home by an	434
individual whose domicile is in this state and to whom this	435
section applies, shall be reduced for any tax year for which an	436
application for such reduction has been approved, provided the	437
individual did not acquire ownership from a person, other than the	438
individual's spouse, related by consanguinity or affinity for the	439
purpose of qualifying for the reduction. An owner includes a	440
settlor of a revocable or irrevocable inter vivos trust holding	441
the title to a manufactured or mobile home occupied by the settlor	442
as of right under the trust.	443

(1) For manufactured and mobile homes for which the tax	444
imposed by section 4503.06 of the Revised Code is computed under	445
division (D)(2) of that section, the reduction shall equal one of	446
the following amounts, as applicable to the person:	447

(a) If the person received a reduction under this section for	448
tax year 2007, the greater of the reduction for that tax year or	449
the amount computed under division (B)(2)(1)(b) of this section;	450

(b) If the person received a reduction under this section for	451
tax year 2014 or under division (A) of section 323.152 of the	452
Revised Code for tax year 2013, the amount computed under division	453
(B)(2) of this section. For purposes of divisions (B)(1)(b) and	454
(c) of this section, a person receives a reduction under this	455
section or division (A) of section 323.152 of the Revised Code for	456
tax year 2014 or 2013, respectively, if the person files a late	457
application for that respective tax year that is approved by the	458
county auditor under section 4503.066 or 323.153 of the Revised	459
Code.	460

(c) If the person did not receive a reduction under this	461
section for tax year 2014 or under division (A) of section 323.152	462
of the Revised Code for tax year 2013 and the person's total	463
income does not exceed thirty thousand dollars, as adjusted under	464
division (B)(5) of this section, the amount computed under	465
division (B)(2) of this section.	466

(2) The amount of the reduction under division (B)(2) of this	467
section equals the product of the following:	468

(a)(i) Twenty-five thousand dollars of the true value of the	469
property in money;	470

(b)(ii) The assessment percentage established by the tax	471
commissioner under division (B) of section 5715.01 of the Revised	472
Code, not to exceed thirty-five per cent;	473

(c)(iii) The effective tax rate used to calculate the taxes	474
charged against the property for the current year, where	475
"effective tax rate" is defined as in section 323.08 of the	476
Revised Code;	477

(d)(iv) The quantity equal to one minus the sum of the	478
percentage reductions in taxes received by the property for the	479
current tax year under section 319.302 of the Revised Code and	480
division (B) of section 323.152 of the Revised Code.	481

(3)(2) For manufactured and mobile homes for which the tax	482
imposed by section 4503.06 of the Revised Code is computed under	483
division (D)(1) of that section, the reduction shall equal one of	484
the following amounts, as applicable to the person:	485

(a) If the person received a reduction under this section for	486
tax year 2007, the greater of the reduction for that tax year or	487
the amount computed under division (B)(4)(2)(b) of this section;	488

(b) If the person received a reduction under this section for	489
tax year 2014 or under division (A) of section 323.152 of the	490
Revised Code for tax year 2013, the amount computed under division	491
(B)(4) of this section. For purposes of divisions (B)(3)(b) and	492
(c) of this section, a person receives a reduction under this	493
section or under division (A) of section 323.152 of the Revised	494
Code for tax year 2014 or 2013, respectively, if the person files	495
a late application for a refund of overpayments for that	496
respective tax year that is approved by the county auditor under	497
section 4503.066 of the Revised Code.	498

(c) If the person did not receive a reduction under this	499
section for tax year 2014 or under division (A) of section 323.152	500
of the Revised Code for tax year 2013 and the person's total	501
income does not exceed thirty thousand dollars, as adjusted under	502
division (B)(5) of this section, the amount computed under	503
division (B)(4) of this section.	504

(4) The amount of the reduction under division (B)(4) of this	505
section equals the product of the following:	506

(a)(i) Twenty-five thousand dollars of the cost to the owner,	507
or the market value at the time of purchase, whichever is greater,	508
as those terms are used in division (D)(1) of section 4503.06 of	509
the Revised Code;	510

(b)(ii) The percentage from the appropriate schedule in	511
division (D)(1)(b) of section 4503.06 of the Revised Code;	512

(c)(iii) The assessment percentage of forty per cent used in	513
division (D)(1)(b) of section 4503.06 of the Revised Code;	514

(d)(iv) The tax rate of the taxing district in which the home	515
has its situs.	516

(5) Each calendar year, the tax commissioner shall adjust the	517
income threshold described in divisions (B)(1)(c) and (B)(3)(c) of	518
this section by completing the following calculations in September	519
of each year:	520

(a) Determine the percentage increase in the gross domestic	521
product deflator determined by the bureau of economic analysis of	522
the United States department of commerce from the first day of	523
January of the preceding calendar year to the last day of December	524
of the preceding calendar year;	525

(b) Multiply that percentage increase by the total income	526
threshold for the ensuing tax year;	527

(c) Add the resulting product to the total income threshold	528
for the ensuing tax year;	529

(d) Round the resulting sum to the nearest multiple of one	530
hundred dollars.	531

The commissioner shall certify the amount resulting from the	532
adjustment to each county auditor not later than the first day of	533
December each year. The certified amount applies to the second	534
ensuing tax year. The commissioner shall not make the adjustment	535
in any calendar year in which the amount resulting from the	536
adjustment would be less than the total income threshold for the	537
ensuing tax year.	538

(C) If the owner or the spouse of the owner of a manufactured	539
or mobile home is eligible for a homestead exemption on the land	540
upon which the home is located, the reduction to which the owner	541
or spouse is entitled under this section shall not exceed the	542
difference between the reduction to which the owner or spouse is	543
entitled under division (B) of this section and the amount of the	544
reduction under the homestead exemption.	545

(D) No reduction shall be made with respect to the home of	546
any person convicted of violating division (C) or (D) of section	547
4503.066 of the Revised Code for a period of three years following	548
the conviction.	549

Sec. 4503.066.  (A)(1) To obtain a tax reduction under	550
section 4503.065 of the Revised Code, the owner of the home shall	551
file an application with the county auditor of the county in which	552
the home is located. An application for reduction in taxes based	553
upon a physical disability shall be accompanied by a certificate	554
signed by a physician, and an application for reduction in taxes	555
based upon a mental disability shall be accompanied by a	556
certificate signed by a physician or psychologist licensed to	557
practice in this state. The certificate shall attest to the fact	558
that the applicant is permanently and totally disabled, shall be	559
in a form that the department of taxation requires, and shall	560
include the definition of totally and permanently disabled as set	561
forth in section 4503.064 of the Revised Code. An application for	562
reduction in taxes based upon a disability certified as permanent	563
and total by a state or federal agency having the function of so	564
classifying persons shall be accompanied by a certificate from	565
that agency.	566

(2) Each application shall constitute a continuing	567
application for a reduction in taxes for each year in which the	568
manufactured or mobile home is occupied by the applicant. Failure	569
to receive a new application or notification under division (B) of	570
this section after an application for reduction has been approved	571
is prima-facie evidence that the original applicant is entitled to	572
the reduction calculated on the basis of the information contained	573
in the original application. The original application and any	574
subsequent application shall be in the form of a signed statement	575
and shall be filed not later than the first Monday in June. The	576
statement shall be on a form, devised and supplied by the tax	577
commissioner, that shall require no more information than is	578
necessary to establish the applicant's eligibility for the	579
reduction in taxes and the amount of the reduction to which the	580
applicant is entitled. The form shall contain a statement that	581
signing such application constitutes a delegation of authority by	582
the applicant to the tax commissioner or the county auditor,	583
individually or in consultation with each other, to examine any	584
tax or financial records that relate to the income of the	585
applicant as stated on the application for the purpose of	586
determining eligibility under, or possible violation of, division	587
(C) or (D) of this section. The form also shall contain a	588
statement that conviction of willfully falsifying information to	589
obtain a reduction in taxes or failing to comply with division (B)	590
of this section shall result in the revocation of the right to the	591
reduction for a period of three years.	592

(3) A late application for a reduction in taxes for the year	593
preceding the year for which an original application is filed may	594
be filed with an original application. If the auditor determines	595
that the information contained in the late application is correct,	596
the auditor shall determine both the amount of the reduction in	597
taxes to which the applicant would have been entitled for the	598
current tax year had the application been timely filed and	599
approved in the preceding year, and the amount the taxes levied	600
under section 4503.06 of the Revised Code for the current year	601
would have been reduced as a result of the reduction. When an	602
applicant is permanently and totally disabled on the first day of	603
January of the year in which the applicant files a late	604
application, the auditor, in making the determination of the	605
amounts of the reduction in taxes under division (A)(3) of this	606
section, is not required to determine that the applicant was	607
permanently and totally disabled on the first day of January of	608
the preceding year.	609

The amount of the reduction in taxes pursuant to a late	610
application shall be treated as an overpayment of taxes by the	611
applicant. The auditor shall credit the amount of the overpayment	612
against the amount of the taxes or penalties then due from the	613
applicant, and, at the next succeeding settlement, the amount of	614
the credit shall be deducted from the amount of any taxes or	615
penalties distributable to the county or any taxing unit in the	616
county that has received the benefit of the taxes or penalties	617
previously overpaid, in proportion to the benefits previously	618
received. If, after the credit has been made, there remains a	619
balance of the overpayment, or if there are no taxes or penalties	620
due from the applicant, the auditor shall refund that balance to	621
the applicant by a warrant drawn on the county treasurer in favor	622
of the applicant. The treasurer shall pay the warrant from the	623
general fund of the county. If there is insufficient money in the	624
general fund to make the payment, the treasurer shall pay the	625
warrant out of any undivided manufactured or mobile home taxes	626
subsequently received by the treasurer for distribution to the	627
county or taxing district in the county that received the benefit	628
of the overpaid taxes, in proportion to the benefits previously	629
received, and the amount paid from the undivided funds shall be	630
deducted from the money otherwise distributable to the county or	631
taxing district in the county at the next or any succeeding	632
distribution. At the next or any succeeding distribution after	633
making the refund, the treasurer shall reimburse the general fund	634
for any payment made from that fund by deducting the amount of	635
that payment from the money distributable to the county or other	636
taxing unit in the county that has received the benefit of the	637
taxes, in proportion to the benefits previously received. On the	638
second Monday in September of each year, the county auditor shall	639
certify the total amount of the reductions in taxes made in the	640
current year under division (A)(3) of this section to the tax	641
commissioner who shall treat that amount as a reduction in taxes	642
for the current tax year and shall make reimbursement to the	643
county of that amount in the manner prescribed in section 4503.068	644
of the Revised Code, from moneys appropriated for that purpose.	645

(B) If in any year for which an application for reduction in	646
taxes has been approved the owner no longer qualifies for the	647
reduction, the owner shall notify the county auditor that the	648
owner is not qualified for a reduction in taxes.	649

During January of each year, the county auditor shall furnish	650
each person whose application for reduction has been approved, by	651
ordinary mail, a form on which to report any changes in total	652
income, ownership, occupancy, disability, and other information	653
earlier furnished the auditor relative to the application. The	654
form shall be completed and returned to the auditor not later than	655
the first Monday in June if the changes would affect the person's	656
eligibility for the reduction.	657

(C) No person shall knowingly make a false statement for the	658
purpose of obtaining a reduction in taxes under section 4503.065	659
of the Revised Code.	660

(D) No person shall knowingly fail to notify the county	661
auditor of any change required by division (B) of this section	662
that has the effect of maintaining or securing a reduction in	663
taxes under section 4503.065 of the Revised Code.	664

(E) No person shall knowingly make a false statement or	665
certification attesting to any person's physical or mental	666
condition for purposes of qualifying such person for tax relief	667
pursuant to sections 4503.064 to 4503.069 of the Revised Code.	668

(F) Whoever violates division (C), (D), or (E) of this	669
section is guilty of a misdemeanor of the fourth degree.	670

Section 2.  That existing sections 323.151, 323.152, 323.153,	671
4503.064, 4503.065, and 4503.066 of the Revised Code are hereby	672
repealed.	673

Section 3. The amendment by this act of sections 323.151,	674
323.152, 323.153, 4503.064, 4503.065, and 4503.066 of the Revised	675
Code applies to all property taxes charged and payable after	676
January 1, 2013.	677