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S. B. No. 223 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Miller, R., Jacobson
A BILL
To amend sections 323.152, 323.153, and 323.156 of
the Revised Code to require county auditors to
make reasonable efforts to identify property
owners wrongfully receiving the 2.5% property tax
rollback, to limit the monetary charge against
violators to five years' worth of reductions plus
interest, to require 10% of monetary charge
collections to be credited to the rollback
enforcement fund, and to provide amnesty for
persons who report their illegal
receipt of the
rollback.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 323.152, 323.153, and 323.156 of the
Revised Code be amended to read as follows:
Sec. 323.152. In addition to the reduction in taxes
required
under section 319.302 of the Revised Code, taxes shall
be reduced
as provided in divisions (A) and
(B) of this section.
(A)(1) Division (A) of this
section applies to any of the
following:
(a) A person who is permanently and totally disabled;
(b) A person who is sixty-five years of age or older;
(c) A person who is the surviving spouse of a deceased
person
who was permanently and totally disabled or sixty-five
years of
age or older and who applied and qualified for a
reduction in
taxes under this division in the year of death,
provided the
surviving spouse is at least fifty-nine but not
sixty-five or more
years of
age on the date the deceased spouse
dies.
(2) Real property taxes on a homestead owned and occupied,
or
a
homestead in a housing cooperative occupied, by a
person to
whom
division (A) of this section
applies shall be reduced for
each
year for which the owner obtains a certificate of reduction
from
the county auditor under section 323.154 of the Revised
Code
or
for which the occupant obtains a certificate of reduction in
accordance with
section 323.159 of the Revised Code. The
reduction
shall equal the greater of the reduction granted for the tax year
preceding
the first tax year to which this section applies
pursuant to
Section 803.06 of Am. Sub. H.B. 119 of the 127th
general
assembly, if the taxpayer received a reduction for that
preceding
tax year, or the product of the following:
(a) Twenty-five thousand dollars of the true value of the
property in money;
(b) The assessment percentage established by the tax
commissioner under division (B) of section 5715.01 of the Revised
Code, not to exceed thirty-five per cent;
(c) The effective tax rate used to calculate the taxes
charged against the property for the current year, where
"effective tax rate" is defined as in section 323.08 of the
Revised Code;
(d) The quantity equal to one minus the sum of the percentage
reductions in taxes received by the property for the current tax
year under section 319.302 of the Revised Code and division (B) of
section 323.152 of the Revised Code.
(B) To provide a partial exemption, real property taxes on
any homestead, and manufactured
home
taxes on any manufactured or
mobile home on which a
manufactured home tax is
assessed pursuant
to division (D)(2) of
section 4503.06 of the
Revised Code, shall
be reduced for each
year for
which the owner obtains a certificate
of
reduction from
the county auditor under section 323.154 of the
Revised Code. The
amount of the reduction shall equal two and
one-half per cent
of the amount of taxes to be levied on the
homestead or the
manufactured or mobile home after applying
section 319.301 of the
Revised Code.
(C) The reductions granted by this section do not apply to
special assessments or respread of assessments levied against the
homestead, and if there is a transfer of ownership subsequent to
the filing of an application for a reduction in taxes, such
reductions are not forfeited for such year by virtue of such
transfer.
(D) The reductions in taxable value referred to in this
section
shall be applied solely as a factor for the purpose of
computing
the reduction of taxes under this section and shall not
affect
the total value of property in any subdivision or taxing
district
as listed and assessed for taxation on the tax lists and
duplicates, or any direct or indirect limitations on indebtedness
of a subdivision or taxing district. If after application of
sections 5705.31 and 5705.32 of the Revised Code, including the
allocation of all levies within the ten-mill limitation to debt
charges to the extent therein provided, there would be
insufficient funds for payment of debt charges not provided for
by
levies in excess of the ten-mill limitation, the reduction of
taxes provided for in sections 323.151 to 323.159 of
the Revised
Code shall be proportionately adjusted to the extent necessary
to
provide such funds from levies within the ten-mill limitation.
(E) No reduction shall be made on the taxes due on the
homestead of any person convicted of violating division (C) or
(D)
or (E) of section 323.153 of the Revised Code for a period of
three
years
following the conviction.
Sec. 323.153. (A) To obtain a reduction in real property
taxes under division (A) or (B) of section 323.152 of the Revised
Code or in manufactured home taxes under division (B) of section
323.152 of
the Revised Code, the owner shall file an application
with the county auditor
of the county in which the owner's
homestead is located.
To obtain a reduction in real property taxes under division
(A) of
section 323.152 of the Revised Code, the occupant of a
homestead
in a housing cooperative shall file an application with
the nonprofit
corporation that owns and operates the housing
cooperative, in
accordance with this paragraph. Not later than
the
first day of
March each year,
the corporation shall obtain
applications from the county auditor's office
and provide one to
each
new occupant. Not later than the first day of May, any
occupant who
may be
eligible for a reduction in taxes under
division (A) of section
323.152 of the Revised Code shall submit
the completed
application
to the corporation. Not later than the
fifteenth day of May, the
corporation shall
file all completed
applications, and the information required by division
(B) of
section 323.159 of the Revised Code, with
the county
auditor of
the county in which the occupants' homesteads are located.
Continuing applications shall be furnished to an occupant in the
manner
provided in
division (C)(4) of this section.
(1) An application for reduction based upon a physical
disability shall be accompanied by a certificate signed by a
physician, and an application for reduction based upon a mental
disability shall be accompanied by a certificate signed by a
physician or psychologist licensed to practice in this state,
attesting to the fact that the applicant is permanently and
totally disabled. The certificate shall be in a form that the
tax
commissioner requires and shall include the definition of
permanently and totally disabled as set forth in section 323.151
of the Revised Code. An application for reduction based upon a
disability certified as permanent and total by a state or federal
agency having the function of so classifying persons shall be
accompanied by a certificate from that agency.
An
application for a reduction under division (A) of section
323.152 of the Revised Code constitutes a continuing application
for a reduction
in taxes for each year in which the dwelling is
the applicant's
homestead.
(2) An application for a reduction in taxes under division
(B) of section 323.152 of the Revised Code shall
be filed only if
the homestead or manufactured or mobile home was transferred
in
the preceding year or did not
qualify for and receive the
reduction in taxes under that
division for the preceding tax year.
The application for homesteads transferred in the preceding year
shall be incorporated into any form used
by the county auditor to
administer the tax law in respect to the conveyance
of real
property pursuant to section 319.20 of the
Revised Code or of used
manufactured homes or used mobile homes as defined in section
5739.0210 of the Revised Code. The owner of a manufactured or
mobile home who has elected under division (D)(4) of section
4503.06 of the Revised Code to be taxed under division (D)(2) of
that section for the ensuing year may file the application at the
time of making that election. The application shall
contain a
statement that failure by
the applicant to affirm on the
application that the dwelling on the property
conveyed is the
applicant's homestead prohibits the owner from receiving
the
reduction in taxes until a proper application is filed within the
period
prescribed by division (A)(3) of this section. Such an
application
constitutes a continuing application for a reduction
in taxes for
each year in which the dwelling is the applicant's
homestead.
(3) Failure to receive a new application filed under
division
(A)(1) or (2) or notification under division (C) of this
section
after a certificate of reduction has been issued under
section
323.154 of the Revised Code, or failure to receive a new
application filed under division
(A)(1) or notification under
division
(C) of this section after a certificate of reduction has
been issued under section 323.159 of the Revised
Code,
is
prima-facie evidence that
the original applicant is entitled to
the reduction in taxes
calculated on the basis of the information
contained in
the original application. The original application
and any
subsequent application, including any late application,
shall be
in the form of a signed statement and shall be filed
after the
first Monday in January and not later than the first
Monday in
June. The original application and any subsequent
application for a reduction
in real property taxes shall be filed
in the year for which the reduction is
sought. The original
application and any subsequent application for a
reduction in
manufactured home taxes shall be filed in the year preceding the
year for which the reduction is sought. The statement shall be on
a form,
devised and supplied by
the tax commissioner, which shall
require no more information
than is necessary to establish the
applicant's eligibility for
the reduction in taxes and the amount
of the reduction, and, for a
certificate of reduction issued under
section 323.154 of the Revised
Code, shall
include an affirmation
by the applicant that ownership of the
homestead was not acquired
from a person, other than the applicant's
spouse, related to the
owner by consanguinity or affinity for the purpose
of qualifying
for the real property or manufactured home tax reduction
provided
for in division (A) or (B) of section 323.152 of the Revised Code.
The form shall contain a statement that conviction of willfully
falsifying information to obtain a reduction in taxes or failing
to comply with division (C) of this section results in the
revocation of the right to the reduction for a period of three
years.
(B) A late application for a tax reduction for the year
preceding the year in which an original application is filed, or
for a
reduction in manufactured home taxes for the year in which
an original
application is filed, may be filed with the original
application. If the
county auditor
determines the information
contained in the late application is
correct, the auditor shall
determine the amount of the
reduction in taxes to which the
applicant would have been entitled for the
preceding tax year had
the applicant's application been timely filed and
approved in that
year.
The amount of such reduction shall be treated by the
auditor
as an overpayment of taxes by the applicant and shall be
refunded
in the manner prescribed in section 5715.22 of the
Revised Code
for making refunds of overpayments. On the first
day of July of
each year, the county auditor shall certify the
total amount of
the reductions in taxes made in the current year
under this
division to the tax commissioner, who shall treat the
full amount
thereof as a reduction in taxes for the preceding tax
year and
shall make reimbursement to the county therefor in the
manner
prescribed by section 323.156 of the Revised Code, from
money
appropriated for that purpose.
(C)(1) If, in any year after an application has been filed
under division (A)(1) or (2) of this section, the
owner does not
qualify for a reduction in taxes on the homestead or on the
manufactured or mobile home set forth on such
application, the
owner shall
notify the county auditor that the
owner is not
qualified for a
reduction in taxes.
(2) If, in any year after an application has been filed
under
division (A) of this section, the occupant of a homestead
in a
housing cooperative does not qualify for a reduction in taxes
on
the
homestead, the occupant shall
notify the county auditor
that
the occupant is not qualified for a reduction
in taxes or
file a
new
application under division (A) of this section.
(3) The county auditor shall make reasonable attempts to
identify owners of property receiving the reduction in taxes under
division (B) of section 323.152 of the Revised Code that are not
entitled to the reduction. If the county auditor or county
treasurer discovers that
the owner of property not entitled to the
reduction in taxes
under
that division (B) of section
323.152 of
the Revised Code failed to
notify the
county auditor as required
by division
(C)(1) of this
section, a charge shall be
imposed
against the property in the
amount by which taxes were
reduced
under that division for each
tax year the county auditor
ascertains
that the property was not
entitled to the reduction and
was owned by
the current owner, but not for more than the five
most recent such years.
Interest shall accrue in the manner
prescribed by division (B) of
section 323.121
or division (G)(2)
of section 4503.06 of the
Revised Code on the amount by which
taxes
were
reduced for each
such tax year as if the reduction
became
delinquent taxes at
the
close of the last day the second
installment of taxes for that tax
year
could be paid
without
penalty. The county auditor shall
notify the owner,
by ordinary
mail, of the charge, of the owner's
right to appeal
the charge,
and of the manner in which the owner
may appeal.
The owner may
appeal the imposition of the charge and
interest by filing an
appeal with the county board of revision not
later than the last
day prescribed for payment of real and public
utility property
taxes under section 323.12 of the
Revised Code
following receipt
of the
notice and occurring at least ninety days
after receipt of
the
notice. The appeal shall be treated in the
same manner as a
complaint relating to the valuation or assessment
of real
property
under Chapter 5715. of
the Revised Code. The
charge and any
interest shall be
collected as other delinquent
taxes.
Ten per
cent of the amount collected shall be credited to the county
rollback enforcement fund, which shall be created in the county
treasury, for use by the county auditor to enforce compliance with
this section. The remainder shall be credited to the county
undivided income tax fund and distributed to taxing districts in
the county in the same manner as provided in section 323.156 of
the Revised Code.
(4) Each year during January, the county auditor shall
furnish
by ordinary mail a continuing application to each person
issued a
certificate of reduction under section 323.154 or 323.159
of
the Revised
Code with respect to a reduction in taxes under
division (A) of
section 323.152 of the Revised Code. The
continuing application
shall be used to report
changes in
ownership or occupancy of the
homestead, including
changes in or
revocation of a revocable
inter vivos trust, changes
in
disability, and other changes in
the information earlier
furnished
the auditor relative to
the reduction in taxes on the
property.
The continuing application
shall be returned to the
auditor not
later than the first Monday
in June; provided, that if
such
changes do not affect the status
of the homestead exemption
or the
amount of the reduction to
which the owner is entitled
under
division (A) of section 323.152
of the Revised Code or to
which
the occupant is entitled under section
323.159
of
the
Revised
Code, the application does not need to be
returned.
(5) Each year during February, the county auditor, except as
otherwise
provided in this paragraph, shall furnish
by ordinary
mail an original application to the owner, as of the
first day of
January of that year, of a homestead or a manufactured or mobile
home that transferred during the preceding calendar year and that
qualified
for and received a reduction in taxes under division (B)
of
section 323.152 of the Revised Code for the preceding tax year.
In order to receive the reduction under that division, the owner
shall file the application with the county auditor not later than
the first Monday in June. If the application is not timely
filed,
the auditor shall not grant a reduction in taxes for the
homestead
for the current year, and shall notify the owner that
the
reduction in taxes has not been granted, in the same manner
prescribed under section 323.154 of the Revised Code for
notification of denial of an application. Failure of an owner to
receive an application does not excuse the
failure of the owner to
file an original application.
The county auditor is not required
to furnish an
application under this paragraph for any homestead
for which
application has previously been made on a form
incorporated into
any form used by the county auditor to
administer the tax law in respect to the conveyance of real
property or of used manufactured homes or used mobile homes, and
an
owner who previously has applied on such a form
is not required
to return
an application furnished under this
paragraph.
(D) No person shall knowingly make a false statement for
the
purpose of obtaining a reduction in the person's real property or
manufactured home taxes under section 323.152 of the Revised Code.
(E) No person shall knowingly fail to notify the county
auditor of changes required by division (C) of this section that
have the effect of maintaining or securing a reduction in taxes
under section 323.152 of the Revised Code.
(F) No person shall knowingly make a false statement or
certification attesting to any person's physical or mental
condition for purposes of qualifying such person for tax relief
pursuant to sections 323.151 to 323.159 of the Revised
Code.
Sec. 323.156. Within thirty days after a settlement of
taxes
under divisions (A), (C), and (H) of section 321.24 of the
Revised
Code,
the county treasurer shall certify to the tax
commissioner
one-half of the total amount of taxes on real property
that were
reduced pursuant to section 323.152 of the Revised Code for the
preceding tax year, and one-half of the total amount of taxes on
manufactured and mobile homes that were reduced pursuant to
division (B) of
section 323.152 of the Revised
Code for the
current tax
year, as evidenced by the certificates of reduction
and the tax duplicate certified to the county treasurer
by the
county auditor, less ninety per cent of the amount collected
pursuant to division (C)(3) of section 323.153 of the Revised Code
since the treasurer's last certification under this section. The
commissioner,
within thirty days of the
receipt of such
certifications, shall provide for payment to the
county treasurer,
from the general revenue fund, of the net amount
certified, which
shall be credited upon receipt to the county's
undivided income
tax fund, and an amount equal to two per cent of
the net amount by
which taxes were reduced, which shall be credited
upon receipt to
the county general fund as a payment, in addition
to the fees and
charges authorized by sections 319.54 and 321.26
of the Revised
Code, to the county auditor and treasurer for the
costs of
administering the exemption provided under sections
323.151 to
323.159 of the Revised Code.
Immediately upon receipt of funds into the county undivided
income tax fund under this section, the auditor shall distribute
the full amount thereof among the taxing districts in the county
as though the total had been paid as taxes by each person for
whom
taxes were reduced under sections 323.151 to
323.159 of the
Revised Code.
Section 2. That existing sections 323.152, 323.153, and
323.156 of the Revised Code are hereby repealed.
Section 3. (A) The county auditor of each county shall
determine a date, to fall within one year after the effective date
of this act, by which owners of property located in the county who
currently receive the reduction in taxes under division (B) of
section 323.152 of the Revised Code must inform the county auditor
or county treasurer that the property might not be entitled to the
reduction. The property owner shall provide the auditor or
treasurer with the property owner's full name, the street address
of the property, and the month and year the owner last used the
property as the owner's homestead.
Property owners who so notify the county auditor or treasurer
on or before the date determined by the county auditor shall be
immune from prosecution for violation of division (D) or (E) of
section 323.153 of the Revised Code and shall not be subject to
the prohibition in division (E) of section 323.152 of the Revised
Code.
(B)(1) In lieu of the charges imposed in division (C)(3) of
section 323.153 of the Revised Code, if the county auditor
determines that property subject to the manufactured home tax in
division (C) of section 4503.06 of the Revised Code has improperly
received the reduction under division (B) of section 323.152 of
the Revised Code for the current tax year and one or more
preceding tax years, and that the owner of the property has
provided proper notice to the county auditor or treasurer pursuant
to division (A) of this section, the property owner shall be
subject to a charge equal to the reduction in taxes the property
received for the current tax year. If the property improperly
received the reduction only for the current tax year, no charge
shall be imposed so long as the owner provided proper notice under
division (A) of this section.
(2) In lieu of the charges imposed in division (C)(3) of
section 323.153 of the Revised Code, if the county auditor
determines that real property has improperly received the
reduction under division (B) of section 323.152 of the Revised
Code for the preceding tax year and one or more preceding tax
years, and that the owner of the property has provided proper
notice to the county auditor or treasurer pursuant to division (A)
of this section, the property owner shall be subject to a charge
equal to the reduction the property received for the preceding tax
year. If the property improperly received the reduction only for
the preceding tax year, no charge shall be imposed so long as the
owner provided proper notice under this section.
(C) A reasonable time before the date chosen by the county
auditor, the auditor shall publish notice reasonably calculated to
reach the property owners identified in division (A) of this
section. The notice shall state the purpose of the notice, the
relief available under this section, the deadline by which persons
must apply for the relief, how relief is to be applied for, and
the potential consequences of not doing so.
(D) Charges collected under this section shall be credited as
provided in division (C)(3) of section 323.153 of the Revised
Code.
Section 4. Section 323.156 of the Revised Code is
presented
in this act as a
composite of the section as amended by
both Am.
H.B. 595 and Am.
Sub. H.B. 672 of the 123rd General
Assembly. The
General Assembly,
applying the
principle stated in division (B)
of section 1.52 of
the Revised
Code that amendments are to be
harmonized if
reasonably capable of
simultaneous operation, finds
that the
composite is the resulting
version of the section in
effect
prior to the effective date of
the section as presented in
this
act.
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