130th Ohio General Assembly
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S. B. No. 198  As Introduced
As Introduced

126th General Assembly
Regular Session
2005-2006
S. B. No. 198


Senators Schuler, Miller, Cates 



A BILL
To amend sections 319.202, 319.302, 323.01, 323.152, 323.153, 323.156, 323.157, 323.159, 323.99, and 5713.011 and to enact sections 113.25, 135.90, 323.16, 323.161, 323.162, 323.163, 323.164, 323.165, and 5703.471 of the Revised Code to permit elderly and disabled taxpayers with limited incomes to defer payment of real property taxes due on their homesteads.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 319.202, 319.302, 323.01, 323.152, 323.153, 323.156, 323.157, 323.159, 323.99, and 5713.011 be amended and sections 113.25, 135.90, 323.16, 323.161, 323.162, 323.163, 323.164, 323.165, and 5703.471 of the Revised Code be enacted to read as follows:
Sec. 113.25. On or before the last day of November each year, the treasurer of state shall determine the average rate of return on the state's total average investment portfolio for the twelve months ending on the last day of the preceding September, and shall certify the rate to the director of budget and management and the tax commissioner for the purposes of sections 323.156, 323.16 to 323.165, and 5703.471 of the Revised Code.
Sec. 135.90. The treasurer of state shall invest public money in notes issued by the director of budget and management under division (B) of section 323.156 of the Revised Code, as required by that division. Not more than three per cent of the state's total investment portfolio may be invested in those notes at any time.
Sec. 319.202.  Before the county auditor indorses any real property conveyance or manufactured or mobile home conveyance presented to the auditor pursuant to section 319.20 of the Revised Code or registers any manufactured or mobile home conveyance pursuant to section 4503.061 of the Revised Code, the grantee or the grantee's representative shall submit in triplicate a statement, prescribed by the tax commissioner, and other information as the county auditor may require, declaring the value of real property or manufactured or mobile home conveyed, except that when the transfer is exempt under division (F)(3) of section 319.54 of the Revised Code only a statement of the reason for the exemption shall be required. Each statement submitted under this section shall contain the information required under divisions (A) and (B) of this section.
(A) Each statement submitted under this section shall either:
(1) Contain an affirmation by the grantee that the grantor has been asked by the grantee or the grantee's representative whether to the best of the grantor's knowledge either the preceding or the current year's taxes on the real property or the current or following year's taxes on the manufactured or mobile home conveyed will be reduced under division (A) of section 323.152 or under section 4503.065 of the Revised Code and that the grantor indicated that to the best of the grantor's knowledge the taxes will not be so reduced; or
(2) Be accompanied by a sworn or affirmed instrument stating:
(a) To the best of the grantor's knowledge the real property or the manufactured or mobile home that is the subject of the conveyance is eligible for and will receive a reduction in taxes for or payable in the current year under division (A) of section 323.152 or under section 4503.065 of the Revised Code and that the reduction or reductions will be reflected in the grantee's taxes;
(b) The estimated amount of such reductions that will be reflected in the grantee's taxes;
(c) That the grantor and the grantee have considered and accounted for the total estimated amount of such reductions to the satisfaction of both the grantee and the grantor. The auditor shall indorse the instrument, return it to the grantee or the grantee's representative, and provide a copy of the indorsed instrument to the grantor or the grantor's representative.
(B) Each For the conveyance of real property, each statement submitted under this section shall either:
(1) Contain an affirmation by the grantee that the grantor has been asked by the grantee or the grantee's representative whether to the best of the grantor's knowledge the real property conveyed qualified for the current agricultural use valuation under section 5713.30 of the Revised Code either for the preceding or the current year and that the grantor indicated that to the best of the grantor's knowledge the property conveyed was not so qualified; or
(2) Be accompanied by a sworn or affirmed instrument stating:
(a) To the best of the grantor's knowledge the real property conveyed was qualified for the current agricultural use valuation under section 5713.30 of the Revised Code either for the preceding or the current year;
(b) To the extent that the property will not continue to qualify for the current agricultural use valuation either for the current or the succeeding year, that the property will be subject to a recoupment charge equal to the tax savings in accordance with section 5713.34 of the Revised Code;
(c) That the grantor and the grantee have considered and accounted for the total estimated amount of such recoupment, if any, to the satisfaction of both the grantee and the grantor. The auditor shall indorse the instrument, forward it to the grantee or the grantee's representative, and provide a copy of the indorsed instrument to the grantor or the grantor's representative.
(C) For the conveyance of real property or a manufactured or mobile home presented to the auditor under section 319.20 of the Revised Code, each statement submitted under this section shall either:
(1) Contain an affirmation by the grantee that the grantor has been asked by the grantee or the grantee's representative whether, to the best of the grantor's knowledge, payment of taxes charged against the real property conveyed for the current or any preceding year has been deferred under section 323.161 of the Revised Code and whether, to the best of the grantor's knowledge, those taxes have been recouped pursuant to section 323.164 of the Revised Code at the time of the conveyance, and that the grantor indicated that payment of taxes was not deferred, or was deferred but the taxes have been recouped pursuant to section 323.164 of the Revised Code; or
(2) Be accompanied by a sworn or affirmed instrument stating:
(a) That, to the best of the grantor's knowledge, payment of taxes charged against the real property conveyed for the current or any preceding year has been deferred under section 323.161 of the Revised Code, those taxes have not been recouped pursuant to section 323.164 of the Revised Code, and the property is subject to a recoupment charge under that section;
(b) That the grantor and the grantee have considered and accounted for the total estimated amount of that recoupment, if any, to the satisfaction of both the grantee and the grantor.
The county auditor shall endorse the instrument, forward it to the grantee or the grantee's representative, and provide a copy of the endorsed instrument to the grantor or the grantor's representative.
(D) The grantor shall pay the fee required by division (F)(3) of section 319.54 of the Revised Code; and, in the event the board of county commissioners of the county has levied a real property or a manufactured home transfer tax pursuant to Chapter 322. of the Revised Code, the amount required by the real property or manufactured home transfer tax so levied. If the conveyance is exempt from the fee provided for in division (F)(3) of section 319.54 of the Revised Code and the tax, if any, levied pursuant to Chapter 322. of the Revised Code, the reason for such exemption shall be shown on the statement. "Value" means, in the case of any deed or certificate of title not a gift in whole or part, the amount of the full consideration therefor, paid or to be paid for the real estate or manufactured or mobile home described in the deed or title, including the amount of any mortgage or vendor's lien thereon. If property sold under a land installment contract is conveyed by the seller under such contract to a third party and the contract has been of record at least twelve months prior to the date of conveyance, "value" means the unpaid balance owed to the seller under the contract at the time of the conveyance, but the statement shall set forth the amount paid under such contract prior to the date of conveyance. In the case of a gift in whole or part, "value" means the estimated price the real estate or manufactured or mobile home described in the deed or certificate of title would bring in the open market and under the then existing and prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and with prevailing general price levels. No person shall willfully falsify the value of property conveyed.
(D)(E) The auditor shall indorse each conveyance on its face to indicate the amount of the conveyance fee and compliance with this section. The auditor shall retain the original copy of the statement of value, forward to the tax commissioner one copy on which shall be noted the most recent assessed value of the property, and furnish one copy to the grantee or the grantee's representative.
(E)(F) In order to achieve uniform administration and collection of the transfer fee required by division (F)(3) of section 319.54 of the Revised Code, the tax commissioner shall adopt and promulgate rules for the administration and enforcement of the levy and collection of such fee.
Sec. 319.302.  After complying with section 319.301 of the Revised Code, the county auditor shall reduce the remaining sums to be levied against each parcel of real property listed on the general tax list and duplicate of real and public utility property for the current tax year, and against each manufactured and mobile home that is taxed pursuant to division (D)(2) of section 4503.06 of the Revised Code and that is on the manufactured home tax list for the current tax year, by ten per cent. Except as otherwise provided in sections 323.152, 323.158, 323.161, 505.06, and 715.263 of the Revised Code, the amount of the taxes remaining after such reduction shall be the real and public utility property taxes charged and payable, and the manufactured home tax charged and payable, on each property and shall be the amounts certified to the county treasurer for collection. Upon receipt of the tax duplicate, the treasurer shall certify to the tax commissioner the total amount by which taxes were reduced under this section, as shown on the duplicate. Such reduction shall not directly or indirectly affect the determination of the principal amount of notes that may be issued in anticipation of any tax levies or the amount of bonds or notes for any planned improvements. If after application of sections 5705.31 and 5705.32 of the Revised Code and other applicable provisions of law, including divisions (F) and (I) of section 321.24 of the Revised Code, there would be insufficient funds for payment of debt charges on bonds or notes payable from taxes reduced by this section, the reduction of taxes provided for in this section shall be adjusted to the extent necessary to provide funds from such taxes.
Sec. 323.01.  Except as otherwise provided, as used in Chapter 323. of the Revised Code:
(A) "Subdivision" means any county, township, school district, or municipal corporation.
(B) "Municipal corporation" includes charter municipalities.
(C) "Taxes" means the total amount of all charges against an entry appearing on a tax list and the duplicate thereof that was prepared and certified in accordance with section 319.28 of the Revised Code, including taxes levied against real estate; taxes on property whose value is certified pursuant to section 5727.23 of the Revised Code; recoupment charges applied pursuant to section 323.164 or 5713.35 of the Revised Code; all assessments; penalties and interest charged pursuant to section 323.121 of the Revised Code; charges added pursuant to section 319.35 of the Revised Code; and all of such charges which that remain unpaid from any previous tax year.
(D) "Current taxes" means all taxes charged against an entry on the general tax list and duplicate of real and public utility property that have not appeared on such list and duplicate for any prior tax year and any penalty thereon charged by division (A) of section 323.121 of the Revised Code. Current taxes, whether or not they have been certified delinquent, become delinquent taxes if they remain unpaid after the last day prescribed for payment of the second installment of current taxes without penalty, unless payment is deferred under section 323.161 of the Revised Code.
(E) "Delinquent taxes" means:
(1) Any taxes charged against an entry on the general tax list and duplicate of real and public utility property that were charged against an entry on such list and duplicate for a prior tax year, and any penalties and interest charged against such taxes.
(2) Any current taxes charged on the general tax list and duplicate of real and public utility property that remain unpaid after the last day prescribed for payment of the second installment of such taxes without penalty, whether or not they have been certified delinquent, and any penalties and interest charged against such taxes.
(3) A recoupment charge levied under section 323.164 of the Revised Code, if the charge remains unpaid after the last day prescribed for payment of the second installment of taxes for the tax year in which the charge is required to be paid pursuant to that section, and any penalties and interest that have accrued on the recoupment charge under that section.
(F) "Current tax year" means, with respect to particular taxes, the calendar year in which the first installment of taxes is due prior to any extension granted under section 323.17 of the Revised Code.
(G) "Liquidated claim" means:
(1) Any sum of money due and payable, upon a written contractual obligation executed between the subdivision and the taxpayer, but excluding any amount due on general and special assessment bonds and notes;
(2) Any sum of money due and payable, for disability financial assistance or disability medical assistance provided under Chapter 5115. of the Revised Code that is furnished to or in behalf of a subdivision, provided that such claim is recognized by a resolution or ordinance of the legislative body of such subdivision;
(3) Any sum of money advanced and paid to or received and used by a subdivision, pursuant to a resolution or ordinance of such subdivision or its predecessor in interest, and the moral obligation to repay which sum, when in funds, shall be recognized by resolution or ordinance by the subdivision.
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 amount obtained by multiplying the tax rate for the tax year for which the certificate is issued by the reduction in taxable value shown in the following schedule:
Reduce Taxable Value
Total Income by the Lesser of:

$11,900 or less $5,000 or seventy-five per cent
More than $11,900 but not more than $17,500 $3,000 or sixty per cent
More than $17,500 but not more than $23,000 $1,000 or twenty-five per cent
More than $23,000 -0-

(3) Each calendar year, the tax commissioner shall adjust the foregoing schedule by completing the following calculations in September of each year:
(a) Determine the percentage increase in the gross domestic product deflator determined by the bureau of economic analysis of the United States department of commerce from the first day of January of the preceding calendar year to the last day of December of the preceding calendar year;
(b) Multiply that percentage increase by each of the total income amounts, and by each dollar amount by which taxable value is reduced, for the current tax year;
(c) Add the resulting product to each of the total income amounts, and to each of the dollar amounts by which taxable value is reduced, for the current tax year;
(d)(i) Except as provided in division (A)(3)(d)(ii) of this section, round the resulting sum to the nearest multiple of one hundred dollars;
(ii) If rounding the resulting sum to the nearest multiple of one hundred dollars under division (A)(3)(d)(i) of this section does not increase the dollar amounts by which taxable value is reduced, the resulting sum instead shall be rounded to the nearest multiple of ten dollars.
The commissioner shall certify the amounts resulting from the adjustment to each county auditor not later than the first day of December each year. The certified amounts apply to the following tax year. The commissioner shall not make the adjustment in any calendar year in which the amounts resulting from the adjustment would be less than the total income amounts, or less than the dollar amounts by which taxable value is reduced, for the current tax year.
(B) 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 one-fourth of the amount by which the taxes charged and payable on the homestead or the manufactured or mobile home are reduced for such year under section 319.302 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)(E) or (D)(F) of section 323.153 of the Revised Code for a period of three years following the conviction.
Sec. 323.153.  (A)(1) 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.
(2) 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)(E)(4) of this section.
(3) To defer the payment of taxes under section 323.161 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.
(4) An application to obtain a reduction in real property taxes under division (A)(1) or (2) of this section and an application to defer the payment of taxes under division (A)(3) of this section shall be filed on separate forms devised for those respective purposes.
(B)(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. Such an
(2) An application constitutes a continuing application for a reduction in taxes under division (A) of section 323.152 of the Revised Code constitutes a continuing application for each year in which the dwelling is the applicant's homestead and the amount of the reduction in taxable value to which the applicant is entitled does not exceed either the amount or percentage of the reduction to which the applicant was entitled for the year in which the application was first filed.
(2)(3) 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)(C)(2) 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)(4) An application to defer the payment of taxes under section 323.161 of the Revised Code shall be filed for each year the owner elects to defer the payment of taxes. During January of each year, the county auditor shall mail an application to defer the payment of taxes to each owner who receives a reduction in taxes under division (A) of section 323.152 of the Revised Code, and to any other owner who has elected a deferral for a prior year that has not been terminated under section 323.163 of the Revised Code.
(C)(1) Failure to receive a new application filed under division (A)(B)(1) or, (2), or (3) or notification under division (C)(E) 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)(B)(1) or (2) or notification under division (C)(E) 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
(2) Each original application and any subsequent application to obtain a reduction in taxes or to defer the payment of taxes, including any each late application to obtain a reduction in taxes, 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 An 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 An 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 Each statement shall be on a form, devised and supplied by the tax commissioner, which shall require no more that includes all of the following:
(a) Only such information than as is necessary to establish the applicant's eligibility for the a reduction in taxes and the amount of the reduction, and, for, or for a deferral of taxes;
(b) 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 or manufactured or mobile home 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 or for a deferral of taxes under section 323.161 of the Revised Code;
(c) A statement that conviction of willfully falsifying information to obtain a reduction in or deferral of taxes or failing to comply with division (C)(E) of this section results in the revocation of the right to the reduction or deferral for a period of three years. In;
(d) Statements that interest will accrue on the amount of taxes deferred by the applicant, and that deferred taxes, accrued interest, and other charges may constitute a lien upon the homestead once the deferral is terminated and may reduce the equity of the owner or of the owner's estate in the homestead;
(e) In the case of an application for deferral of taxes under section 323.161 of the Revised Code, an acknowledgement that the statements described in division (C)(2)(d) of this section have been read and are understood by the applicant, and a space in which the applicant shall sign the acknowledgment and in which another person shall affirm by the other person's signature that the other person witnessed the applicant's signature;
(f) In the case of an application for a reduction in taxes under division (A) of section 323.152 or for deferral of taxes under section 323.161 of the Revised Code, the form shall contain a statement that signing the application constitutes a delegation of authority by the applicant to the county auditor to examine any financial records relating to income earned by the applicant as stated on the application for the purpose of determining a possible violation of division (D)(F) or (E)(G) of this section.
(B)(3) The county auditor shall not approve an application for deferral of taxes unless the applicant has signed the acknowledgement described in division (C)(2)(e) of this section and the signature has been witnessed by another person whose signature appears on the application. The county auditor shall not disapprove an application for deferral of taxes solely because unpaid or delinquent taxes stand charged against the applicant's homestead.
(D) 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)(E)(1) If, in any year after an application for a reduction in taxes has been filed under division (A)(B)(1) or, (2), or (3) 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, or qualifies for a reduction in taxes that is to be based upon a reduction in taxable value less than either the percentage or amount of the reduction in taxable value to which the owner was entitled in the year the application was filed, the owner shall notify the county auditor that the owner is not qualified for a reduction in taxes or file a new application for a reduction in taxes under division (A)(B)(1) or, (2), or (3) of this section.
(2) If, in any year after an application for a reduction in taxes has been filed under division (A)(B)(1) or (2) 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 for a reduction in taxes under division (A)(B)(1) or (2) of this section.
(3) If the county auditor or county treasurer discovers that the owner of property not entitled to the reduction in taxes under division (B) of section 323.152 of the Revised Code failed to notify the county auditor as required by division (C)(E)(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. 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.
(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 total income that would have the effect of increasing or decreasing the reduction in taxable value to which the person is entitled, 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)(F) 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, or a deferral of taxes under section 323.161 of the Revised Code.
(E)(G) No person shall knowingly fail to notify the county auditor of changes required by division (C)(E) of this section that have the effect of maintaining or securing a reduction in taxable value of homestead property or a reduction in taxes in excess of the reduction allowed under section 323.152 of the Revised Code, or that disqualify the person's homestead for deferral of taxes under section 323.161 of the Revised Code.
(F)(H) 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 and 323.16 to 323.165 of the Revised Code.
Sec. 323.156. (A) 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. 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 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 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.
(B)(1) 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 taxes deferred under section 323.161 of the Revised Code for the preceding tax year, as evidenced by the deferred tax list. Not later than the last day of March and September each year, the tax commissioner shall certify to the director of budget and management the total of the amounts most recently certified by all county treasurers. If the amount certified to the director exceeds the balance in the tax deferral fund created under section 323.165 of the Revised Code, the director shall devise a note representing a promise to pay from the tax deferral fund an amount equal to the excess, and present the note to the treasurer of state within fifteen days after receiving the certification from the tax commissioner. The treasurer of state shall purchase the note subject to the limitation prescribed by section 135.90 of the Revised Code on the amount the treasurer of state may invest in notes. The director shall credit the proceeds from the sale of the note to the tax deferral fund. The note shall bear interest at the rate prescribed under section 113.25 of the Revised Code. The director shall determine the maximum maturity of the note on the basis of the director's estimate of the availability of future balances in the tax deferral fund arising from the deposit of recoupment charges paid under section 323.165 of the Revised Code. The note shall be callable by the director at any time prior to maturity. The notes do not represent a security interest in the homesteads of persons who have elected to defer the payment of taxes under sections 323.16 to 323.165 of the Revised Code.
(2) After the tax commissioner has made the certification to the director of budget and management, but not later than thirty days after receiving certifications from the county treasurers, the tax commissioner shall provide for payment to each county treasurer the amount that treasurer certified. The payment shall be made from the tax deferral fund and shall be credited upon receipt to the county undivided income tax fund. An amount equal to two per cent of the amount certified shall be paid from the general revenue fund to the county general fund as a payment to the county auditor and county treasurer to compensate their offices for the costs of administering sections 323.16 to 323.165 of the Revised Code.
(C) 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 or deferred under section 323.161 of the Revised Code.
Sec. 323.157.  Each county treasurer and county auditor shall employ the assistants, clerks, and other employees necessary to carry out the duties imposed by sections 323.151 to 323.159 323.165 of the Revised Code. The tax commissioner shall promulgate rules necessary to facilitate the reduction or deferral of taxes on homesteads, reimbursement by the state, the determination of "total income," and the administration of sections 323.151 to 323.159 323.165 of the Revised Code.
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) 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)(2) 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)(2) 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.
Sec. 323.16. As used in sections 323.16 to 323.165 of the Revised Code:
(A) "Deferred taxes" means taxes charged to a tax year against a homestead that the owner has elected to defer payment of under sections 323.16 to 323.165 of the Revised Code.
(B) "Homestead" and "total income" have the same meanings as in section 323.151 of the Revised Code.
(C) "Taxes charged" means the current taxes charged against a homestead after accounting for all reductions required under sections 319.301 and 319.302 and, if applicable, section 323.152, 323.158, 4503.065, or 4503.0610 of the Revised Code.
(D) "Qualifying total income" means the total income amount above which a reduction in taxes is not authorized under division (A) of section 323.152 of the Revised Code.
Sec. 323.161. (A) An owner of a homestead who receives a reduction in taxes under division (A) of section 323.152 of the Revised Code for a tax year may defer the payment of taxes on the homestead for that tax year. The owner shall apply for the deferral under section 323.153 of the Revised Code.
(B) For each person who has elected and who is qualified to defer the payment of taxes on the person's homestead, the county auditor shall enter the amount of taxes charged for the current tax year upon the deferred tax list compiled under section 323.162 of the Revised Code and enter a notation upon the tax list and duplicate that taxes for the homestead have been deferred under sections 323.16 to 323.165 of the Revised Code. Unpaid or delinquent taxes from a previous tax year that stand charged against the homestead shall remain on the tax list and duplicate and shall remain payable as prescribed by this chapter. Such taxes shall not be entered upon the deferred tax list. Taxes entered upon the deferred tax list are payable as prescribed by sections 323.163 and 323.164 of the Revised Code and do not constitute unpaid taxes or delinquent taxes under this chapter, Chapter 5721., or any other provision of the Revised Code governing the collection or enforcement of taxes on real property, except as otherwise provided under section 323.164 of the Revised Code.
Sec. 323.162. (A) The county auditor shall compile and maintain a deferred tax list. The county auditor shall enter the following quantities on the deferred tax list opposite each entry on the list:
(1) The amount of taxes deferred for the current tax year;
(2) The cumulative amount of taxes deferred for the current year and for each prior year taxes have been deferred, excluding any amounts that have been paid under section 323.165 of the Revised Code;
(3) The interest that will have accrued to the taxes deferred for the current year, assuming that one-half of those taxes will not be paid as current taxes at the time prescribed for payment of the first installment of taxes under section 323.12 of the Revised Code;
(4) The cumulative interest that has accrued to the amount described in division (A)(2) of this section.
(B) The interest required to be computed under divisions (A)(3) and (4) of this section shall be computed at the rates per annum prescribed by section 5703.471 of the Revised Code.
(C) In addition to the information required by this section, the county auditor shall enter on the deferred tax list any information the tax commissioner may require to be maintained in the list to ensure the proper administration of sections 323.16 to 323.165 of the Revised Code.
Sec. 323.163. (A) Upon the occurrence of any of the events described in divisions (A)(1) to (5) of this section, payment of taxes shall not be deferred on the owner's homestead for any tax year following the tax year in which the event occurs, and taxes the payment of which has been deferred become payable as prescribed in this section and section 323.164 of the Revised Code:
(1) The owner of the homestead dies, subject to division (B) of this section.
(2) The owner ceases to own and occupy the property as a homestead.
(3) The owner's total income exceeds the qualifying total income.
(4) The sum of the amounts described in divisions (A)(2) and (4) of section 323.162 of the Revised Code exceeds eighty per cent of the true value in money of the homestead as indicated on the current tax list of real and public utility property.
(5) The owner terminates the deferral by filing written notice with the county auditor.
(B) If the title to the homestead passes to the surviving spouse upon the death of the decedent spouse and the surviving spouse qualifies for the deferral of taxes under section 323.161 of the Revised Code, deferral of taxes charged against the homestead shall continue until one of the events described in divisions (A)(1) to (5) of this section occurs with respect to the surviving spouse. If a surviving spouse's claim to the title to the homestead is contingent, but the surviving spouse otherwise qualifies for a deferral, the executor or administrator of the deceased spouse's estate may file an application with the county auditor to have the deferral continued on behalf of the surviving spouse until the spouse holds title to the homestead. In either event, the surviving spouse becomes the owner of the homestead for purposes of sections 323.16 to 323.165 of the Revised Code upon the title passing to the surviving spouse. If the surviving spouse does not subsequently obtain title to the homestead pursuant to such proceedings, the deferral on behalf of the surviving spouse shall be discontinued in the tax year following that in which the decedent's death occurred. The auditor shall correct the taxes charged for each year during which the surviving spouse's claim to the title to the homestead was contingent and shall make corrections in the tax list and duplicate and in the deferred tax list as though the original entries were erroneous.
If the title to the homestead does not pass to the surviving spouse upon the death of the decedent spouse or the surviving spouse does not qualify for deferral of taxes under section 323.161 of the Revised Code, the surviving spouse may elect to continue to defer those taxes deferred by election of the deceased spouse and interest accruing thereto until the surviving spouse dies, ceases to own and occupy the property as a homestead, or terminates the deferral as provided in division (A)(5) of this section, but no deferral resulting from the original application shall be provided to the surviving spouse for any tax year following that for which the deceased spouse last elected deferral.
(C) If the owner of a homestead who has elected to defer payment of taxes under section 323.161 of the Revised Code, or an executor, administrator, guardian, or trustee with responsibility for the homestead, intends to convey the homestead to another person; if the title to the homestead passes by operation of law or a previously executed instrument; or if it is determined that the surviving spouse does not become owner of the homestead, the owner, executor, administrator, guardian, or trustee, with that intention or having direct knowledge of that passage of title or determination, shall notify the county auditor of the intention and resulting conveyance, the passage of title, or the determination.
(D) If the county auditor receives notice or otherwise determines that the homestead is to be conveyed to another person other than in the manner required under section 319.202 of the Revised Code, the auditor shall demand of the grantor or the responsible executor, administrator, guardian, or trustee, and any person who is known to be scheduled to disburse moneys in connection with the closing of a sale of the homestead, that a sufficient amount be paid to the auditor to recoup an amount equal to the charge that otherwise would be levied against the homestead under section 323.164 of the Revised Code. If that amount is not paid to the county treasurer as required by that section, the charge shall be levied against the homestead and is a lien against it in the hands of the purchaser and any successor owners, regardless of notice or knowledge, until the amount is paid. Any person on whom demand was made who does not make the demanded payment out of money received as a result of a sale of the property is personally liable for the amount of the demand, and the county treasurer shall certify the amount to the prosecuting attorney, who shall bring a civil action for the recovery thereof in the court of common pleas.
Sec. 323.164. (A) Upon the termination of a deferral under section 323.163 of the Revised Code because of the occurrence of one of the events described in division (A)(1) or (2) of that section, the county auditor shall levy a charge against the homestead to recoup the taxes deferred on the homestead. The recoupment charge shall equal the sum of the following quantities:
(1) The cumulative amount of deferred taxes;
(2) The cumulative interest that has accrued to the amount of deferred taxes at the rates per annum prescribed under division (A) of section 5703.471 of the Revised Code for the period beginning on the first day of January of the tax year following the year in which the owner elected to defer payment of taxes and ending on the last day of the month preceding the month in which the charge levied by this section is required to be paid;
(3) Two per cent of the amount of deferred taxes to reimburse the state general revenue fund for the payment to the county general fund under division (B) of section 323.156 of the Revised Code;
(4) The recovery charge determined under division (B) of section 5703.471 of the Revised Code.
The county auditor shall place the recoupment charge amount as a separate item on the next tax list and duplicate the auditor prepares, and the recoupment charge shall be collected by the county treasurer in the same manner and at the same time as other real property taxes on that list and duplicate are collected.
If the recoupment charge is not paid when due, the charge constitutes unpaid taxes, and the penalties and interest prescribed by section 323.121 of the Revised Code shall accrue on the charge in the same manner as penalties and interest accrue under that section on unpaid taxes.
When the recoupment charge and any penalties and interest are collected, the county treasurer shall pay the charge to the treasurer of state, who shall credit the amount paid under division (A)(3) of this section to the general revenue fund and the remainder of the charge to the tax deferral fund created under section 323.165 of the Revised Code. Penalties and interest charged for the late payment of the recoupment charge shall be apportioned among the various taxing authorities as are other penalties and interest charged under section 323.121 of the Revised Code.
The recoupment charge levied by this section constitutes a lien of the state against the homestead as of the first day of January of the tax year in which the charge is levied and shall continue until discharged as provided by law. The county auditor shall file the lien for recording as other tax liens are recorded.
(B) If the deferral of taxes is terminated under division (A)(3), (4), or (5) of section 323.163 of the Revised Code, the owner may pay all or a portion of the deferred taxes pursuant to section 323.165 of the Revised Code or may elect to continue to defer payment of the taxes that had been deferred prior to the termination until the occurrence of one of the events described in division (A)(1) or (2) of section 323.163 of the Revised Code. The interest prescribed by division (A) of this section shall continue to accrue on the amount of taxes deferred for the period beginning on the first day of January of the tax year following the year in which the owner elected to defer payment of taxes and ending on the last day of the month preceding the month in which the recoupment charge is paid.
Sec. 323.165.  At any time prior to the day the recoupment charge levied under section 323.164 of the Revised Code is required to be paid, a person who has elected to defer the payment of taxes under section 323.161 of the Revised Code may pay to the county treasurer all or a portion of the total amount of deferred taxes. The county auditor shall compute interest, the two per cent charge, and the recovery charge prescribed by divisions (A)(2), (3), and (4) of section 323.164 of the Revised Code on the amount of the deferred taxes that are paid under this section and either charge the interest and charges at the time the payment is made, add the interest and charges to any deferred taxes that remain outstanding, or enter the interest and charges on the tax list and duplicate as a separate charge against the homestead, as directed by that person. The county treasurer shall give the person a receipt indicating the amount of deferred taxes or interest paid.
Not later than thirty days after receiving a payment of deferred taxes, charges, or interest under this section, the county treasurer shall remit the amount collected to the treasurer of state. The treasurer of state shall credit the two per cent charges received to the general revenue fund and shall credit the remainder of the payment to the tax deferral fund, which is hereby created in the state treasury for the purpose of distribution pursuant to section 323.156 of the Revised Code.
Sec. 323.99.  Whoever violates division (D), (E), or (F), (G), or (H) of section 323.153 or division (B) of section 323.159 of the Revised Code is guilty of a misdemeanor of the fourth degree.
Sec. 5703.471. (A) On or before the last day of December of each year, the tax commissioner shall fix the rate at which interest shall accrue on taxes deferred under sections 323.16 to 323.165 of the Revised Code for the following calendar year. The rate shall equal the rate certified most recently by the treasurer of state under section 113.25 of the Revised Code. The tax commissioner shall make the rate available to county auditors upon request.
(B) On or before the last day of January each year, the tax commissioner shall estimate the total amount of recoupment charges levied under section 323.165 of the Revised Code that have become uncollectible during the preceding calendar year, and determine the percentage that amount is of all the recoupment charges that became payable during that period. For each recoupment charge payable during the twelve months beginning on the first day of February and ending on the last day of the following January, the recovery charge under division (A)(4) of section 323.164 of the Revised Code shall equal the percentage so determined multiplied by the sum of the amounts under divisions (A)(1), (2), and (3) of that section. Upon the tax commissioner's request, each county treasurer shall provide the tax commissioner with information allowing the tax commissioner to estimate the amount of recoupment charges that have become uncollectible.
Sec. 5713.011.  If the county auditor determines under section 5713.01 of the Revised Code that the construction of a dwelling on a previously vacant parcel of land is now available for use or that an additional dwelling is constructed on a parcel of land and is now available for use, the county auditor, by ordinary mail, shall send to the owner of the dwelling a notice that the applicant may apply for a reduction in taxes under division (A)(2) (B)(3) of section 323.153 of the Revised Code. The notice shall be substantially in the form of the notice prescribed under division (C)(2) of section 323.131 of the Revised Code.
Section 2. That existing sections 319.202, 319.302, 323.01, 323.152, 323.153, 323.156, 323.157, 323.159, 323.99, and 5713.011 of the Revised Code are hereby repealed.
Section 3. (A) Sections 1 and 2 of this act apply to tax years 2005 and thereafter.
(B) Not later than September 30, 2005, each county auditor shall mail to each person whose homestead taxes are reduced under division (A) of section 323.152 of the Revised Code for tax year 2005 an application upon which that person may elect to defer the payment of taxes as permitted under sections 323.16 to 323.165 of the Revised Code, as enacted by this act.
Section 4. Sections 323.153 and 323.156 of the Revised Code are presented in this act as composites of the sections 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 composites are the resulting versions of the sections in effect prior to the effective dates of the sections as presented in this act.
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