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S. B. No. 306 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Mumper, Seitz, Wagoner
A BILL
To amend sections 135.804, 323.151, and 323.159 of the
Revised
Code to change the definition of "housing
cooperative" for the purposes of the county
homestead tax exemptions and property tax payment
link deposit programs for low-to-moderate income
senior citizens and permanently disabled citizens
and to expand the definition of a homestead to
include settlors of irrevocable inter vivos
trusts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 135.804, 323.151, and 323.159 of the
Revised
Code be amended to read as follows:
Sec. 135.804. As used in sections 135.804 to 135.807 of the
Revised Code:
(A) "Taxes" has the same meaning as in section 323.01 of the
Revised Code.
(B) "Eligible borrower" means a person meeting all of the
following:
(1) The person is the owner of a homestead that is not
charged with more than two years' worth of certified delinquent
taxes.
(2) The person had total income in the year prior to
submitting an application for a reduced rate loan under a property
tax payment linked deposit program of the lesser of fifty thousand
dollars or the total income limit established pursuant to section
135.805 of the Revised Code by the board of county commissioners
as an eligibility requirement for participation in a property tax
payment linked deposit program.
(3) The person meets all other eligibility requirements
established pursuant to section 135.805 of the Revised Code by the
board of county commissioners for participation in a property tax
payment linked deposit program.
(C) "Eligible lending institution" means a financial
institution that meets all of the following:
(1) The financial institution is eligible to make loans to
individuals that are secured by mortgages, including mortgages
commonly known as reverse mortgages.
(2) The financial institution has an office located within
the territorial limits of the county.
(3) The financial institution is an eligible public
depository described in section 135.32 of the Revised Code into
which the county's investing authority may deposit the public
moneys of the county.
(4) The financial institution has entered into an agreement
described in division (B)(4) of section 135.805 of the Revised
Code with the investing authority of the county to participate in
the property tax payment linked deposit program.
(D)(1) "Homestead" means either of the following:
(1)(a) A dwelling, including a unit in
a multiple-unit
dwelling
and a manufactured home or
mobile home taxed as real
property
pursuant to division (B) of
section 4503.06 of the
Revised Code,
owned and
occupied as a
home by an individual whose
domicile is in
this state and who has
not acquired ownership from
a person, other
than the
individual's spouse,
related by
consanguinity or affinity
for the purpose of
qualifying for a
property tax payment linked
deposit program.
(2)(b) A unit in a housing cooperative that is occupied as a
home,
but not owned, by an individual whose domicile is in this
state.
(2) The homestead shall include
so much of the land
surrounding
it, not exceeding one acre, as is
reasonably necessary
for the use
of the dwelling or unit as a
home. An owner includes a
holder of
one of the several
estates in fee, a vendee in
possession under a
purchase
agreement or a land contract, a
mortgagor, a life tenant,
one or more tenants
with a right of
survivorship, tenants in
common, and a settlor of
a revocable or
irrevocable inter vivos trust holding the
title to a homestead
occupied by the settlor as of right under the
trust.
(E) "Housing cooperative" means a housing complex of at
least
two
hundred fifty units that is owned and operated by a
nonprofit
corporation that issues a share of the corporation's
stock to an
individual, entitling the individual to live in a unit
of the
complex, and
collects a monthly maintenance fee from the
individual to
maintain, operate, and pay the taxes of the complex.
(F) "Investing authority" and "public moneys" have the same
meanings as in section 135.31 of the Revised Code.
(G) "Lien certificate" means the certificate described in
section 135.807 of the Revised Code.
(H) "Old age and survivors benefits received pursuant to
the
'Social Security Act'" or "tier I railroad retirement
benefits
received pursuant to the 'Railroad Retirement Act'"
means:
(1) Old age
benefits
payable under the social security or
railroad retirement
laws in
effect on the last day of the calendar
year prior to the
year for
which a reduced rate loan under a
property tax payment linked deposit program is applied for, or, if
no such
benefits are payable that year, old age benefits payable
the first
succeeding year in which old age benefits under the
social
security or railroad retirement laws are payable, except
in
those
cases where a change in social security or railroad
retirement
benefits results in a reduction in income.
(a) Survivors benefits payable under the social security
or
railroad retirement laws in effect on the last day of the
calendar
year prior to the year for which a reduced rate loan under a
property tax payment linked deposit program is applied for, or, if
no such benefits are payable that year,
survivors
benefits payable
the first succeeding year in which
survivors
benefits are payable;
or
(b) Old age benefits of the deceased spouse, as determined
under division (H)(1) of this section, upon which the
surviving
spouse's survivors benefits are based under the social
security or
railroad retirement laws, except in those cases where
a change in
benefits would cause a reduction in income.
Survivors benefits are those described in division
(H)(2)(b)
of this section only if the deceased spouse received
old age
benefits in the year in which the deceased spouse died. If the
deceased spouse did not receive old age benefits in the year in
which the deceased spouse died, then survivors benefits are those
described in division (H)(2)(a) of this section.
(I) "Permanently and totally disabled" means a person who, on
the first day of January of the year that a reduced rate loan
under a property tax payment linked deposit program is applied
for, has some impairment in body or mind
that makes the person
unable to work at any substantially
remunerative
employment that
the person reasonably is able to
perform
and
that will,
with
reasonable probability, continue for
an indefinite period of
at
least twelve months without any present
indication of recovery
therefrom or has been certified as
permanently and totally
disabled by a state or federal agency
having the function of so
classifying persons.
(J) "Property tax payment linked deposit program" means a
county-wide countywide program authorized under section 135.805 of
the Revised Code and established by the board of county
commissioners of a county pursuant to that section.
(K) "Sixty-five years of age or older" means a person who
has
attained age sixty-four prior to the first day of January of
the
year of application for a reduced rate loan under a property tax
payment linked deposit program.
(L) "Total income" means the adjusted gross income of the
owner and the owner's spouse for the year preceding the year
in
which
application for a reduced rate loan under a property tax
payment linked deposit program is made, as determined
under
the
"Internal Revenue Code of 1986," 100 Stat. 2085, 26
U.S.C.A.
1, as
amended, adjusted as follows:
(1) Subtract the amount of disability benefits included in
adjusted gross income, but not to exceed fifty-two hundred
dollars;
(2) Add old age and survivors benefits received pursuant
to
the "Social Security Act" that are not included in adjusted
gross
income;
(3) Add retirement, pension, annuity, or other retirement
payments or benefits not included in adjusted gross income;
(4) Add tier I and tier II railroad retirement benefits
received pursuant to the "Railroad Retirement Act," 50 Stat. 307,
45 U.S.C.A. 228;
(5) Add interest on federal, state, and local government
obligations;
(6) For a person who received a reduced rate loan under a
property tax payment linked deposit program for a
prior year on
the basis of being permanently and totally disabled
and whose
current
application for a reduced rate loan is made on the
basis
of age, subtract the
following amount:
(a) If the person received disability benefits that were not
included in adjusted gross income in the year preceding the first
year in
which the person applied for a reduced rate loan on the
basis of
age, subtract an
amount equal to the disability benefits
the
person received in that preceding
year, to the extent included
in
total income in the current year and not
subtracted under
division
(L)(1) of this section in the current year;
(b) If the person received disability benefits that were
included
in adjusted gross income in the year preceding the first
year in which the
person applied for a reduced rate loan on the
basis of
age, subtract an amount equal
to the amount of disability
benefits
that were subtracted pursuant to division
(L)(1) of this
section
in that preceding year, to the extent included
in total
income in
the current year and not subtracted under division
(L)(1) of this
section in the current year.
Disability benefits that are paid by the department of
veterans affairs or
a
branch of the armed forces of the United
States on account
of an injury or disability shall not be included
in total income.
Sec. 323.151. As used in sections 323.151 to 323.159
of
the
Revised Code:
(A)(1) "Homestead" means either of the following:
(1)(a) A dwelling, including a unit in
a multiple-unit
dwelling
and a manufactured home or
mobile home taxed as real
property
pursuant to division (B) of
section 4503.06 of the
Revised Code,
owned and
occupied as a
home by an individual whose
domicile is in
this state and who has
not acquired ownership from
a person, other
than the
individual's spouse,
related by
consanguinity or affinity
for the purpose of
qualifying for the
real property tax reduction
provided in
section 323.152 of the
Revised Code.
(2)(b) A unit in a housing cooperative that is occupied as a
home,
but not owned, by an individual whose domicile is in this
state.
(2) The homestead shall include
so much of the land
surrounding
it, not exceeding one acre, as is
reasonably necessary
for the use
of the dwelling or unit as a
home. An owner includes a
holder of
one of the several
estates in fee, a vendee in
possession under a
purchase
agreement or a land contract, a
mortgagor, a life tenant,
one or more tenants
with a right of
survivorship, tenants in
common, and a settlor of
a revocable or
irrevocable inter vivos trust holding the
title to a homestead
occupied by the settlor as of right under the
trust. The tax
commissioner shall adopt rules for the uniform
classification and
valuation of real property or portions of real
property as
homesteads.
(B) "Sixty-five years of age or older" means a person who
has
attained age sixty-four prior to the first day of January of
the
year of application for reduction in real estate taxes.
(C) "Permanently and totally disabled" means a person who
has, on
the first day of January of the year of application for
reduction
in real estate taxes, some impairment in body or mind
that makes
the person unable to work at any substantially
remunerative
employment that the person is reasonably able to
perform
and
that
will,
with reasonable probability, continue for
an indefinite
period of
at least twelve months without any
present
indication of
recovery
therefrom or has been certified as
permanently and
totally
disabled by a state or federal agency
having the function
of so
classifying persons.
(D) "Housing cooperative" means a housing complex of at
least
two
hundred fifty units that is owned and operated by a
nonprofit
corporation that issues a share of the corporation's
stock to an
individual, entitling the individual to live in a unit
of the
complex, and
collects a monthly maintenance fee from the
individual to
maintain, operate, and pay the taxes of the complex.
Sec. 323.159. (A) As used in this section:
(1) "Applicant" means the person who occupies a homestead in
a
housing cooperative.
(2) "Homestead" has the same meaning as in division (A)(2)(1)
of
section 323.151 of the Revised Code.
(B) Not later than the first day of May each year, any
nonprofit
corporation that owns and operates a housing cooperative
shall determine the
amount of property taxes it paid for the
housing cooperative for the preceding
tax year and shall attribute
to each homestead in the housing cooperative a
portion of the
total property taxes as if the homestead's
occupant paid the
taxes. The taxes attributed to each homestead
shall be based on
the percentage that the square footage of the
homestead is of the
total square footage of the housing
cooperative and on other
reasonable factors that reflect the value
of the homestead. Not
later than the fifteenth day of May each
year, the corporation
shall file this information with the county auditor,
along with
any
applications submitted to it under division (A) of section
323.153
of the Revised Code. No nonprofit corporation that owns
and
operates a housing cooperative shall fail to file with the
county auditor
the information required by this division and
division (A)
of section 323.153 of the Revised Code.
(C) On or before the day the county auditor has completed the
duties imposed by sections 319.30 to 319.302 of the Revised
Code,
the auditor shall issue a certificate of reduction in taxes for
each applicant who has complied with section 323.153
of the
Revised Code and whose homestead the auditor finds is
entitled to
a
reduction in real property taxes for that year under division
(A)
of section 323.152 of the Revised Code. The county auditor
shall
calculate the taxable value of each applicant's homestead as
if the homestead
was owned by the applicant and shall use the
information provided
by the nonprofit corporation under division
(B) of this section to
determine the reduction in taxable value to
be attributed to the
homestead.
The certificate shall state the taxable value, on the first
day of
January of that year, attributed to each homestead in the
housing
cooperative; the reduction in taxable value and reduction
in taxes attributed
to the
homestead; the total amount of the
reduction in taxable value for
the housing cooperative based on
all certificates issued under
this section for homesteads in the
housing cooperative; the
nonprofit corporation's total reduction
in taxes for that year
under division (A) of section 323.152 of
the Revised
Code; the tax
rate that is applicable against the
housing cooperative for that year; and any
other information the
tax commissioner requires. The county auditor shall
prepare three
copies of the original certificate. Upon the issuance of such a
certificate, the county auditor shall forward two copies and the
original to the county treasurer and retain one copy. The county
auditor also shall record the amount of reduction in taxes in the
appropriate column on the general tax list and duplicate of real
and public utility property.
(D) On receipt of the notice from the county auditor under
division (C) of this section, the nonprofit corporation that owns
and operates the housing cooperative shall reduce the monthly
maintenance fee
for each homestead
for which an applicant received
a certificate of reduction under
this section for the year
following the year for which the certificate was
issued. The
reduction in the monthly maintenance fee
shall equal one-twelfth
of the reduction in taxes
attributed to the homestead by the
county auditor under division
(C) of this section.
(E) If an application, late application, or continuing
application is not approved, or if the county auditor otherwise
determines that a homestead does not qualify for a reduction in
taxes under division (A) of section 323.152 of the Revised
Code,
the auditor shall notify the applicant, and the nonprofit
corporation that
owns
and operates the housing cooperative, of the
reasons for denial not later than
the
first Monday in October. If
the applicant believes that the
application for reduction has been
improperly denied, or the nonprofit
corporation that owns and
operates the housing cooperative
believes that the reduction is
for less than that to which the
housing cooperative is entitled,
the applicant or housing
cooperative, respectively, may file an
appeal with the county
board of revision not later than the date
of closing of the
collection for the first half of real and public
utility property
taxes. 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.
Section 2. That existing sections 135.804, 323.151, and
323.159 of the
Revised Code are hereby repealed.
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