130th Ohio General Assembly
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S. B. No. 127  As Introduced
As Introduced

130th General Assembly
Regular Session
2013-2014
S. B. No. 127


Senator Jordan 



A BILL
To amend sections 319.202, 323.155, and 5713.041 and to enact section 323.16 of the Revised Code to create a property tax and a manufactured home tax reduction for parents of home schooled children equal to the taxes levied by the school district on the homestead of the parent.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1.  That sections 319.202, 323.155, and 5713.041 be amended and section 323.16 of the Revised Code be enacted to read as follows:
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 (G)(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 323.16 or 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 323.16 or 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 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) The grantor shall pay the fee required by division (G)(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 (G)(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) The auditor shall indorse each conveyance on its face to indicate the amount of the conveyance fee and compliance with this section and if the property is residential rental property include a statement that the grantee shall file with the county auditor the information required under division (A) or (C) of section 5323.02 of the Revised Code. 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) In order to achieve uniform administration and collection of the transfer fee required by division (G)(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.
(F) As used in this section, "residential rental property" has the same meaning as in section 5323.01 of the Revised Code.
Sec. 323.155.  The tax bill prescribed under section 323.131 of the Revised Code shall indicate the net amount of taxes due following the reductions in taxes under sections 319.301, 319.302, and 323.152, and 323.16 of the Revised Code.
Any reduction in taxes under section 323.152 of the Revised Code shall be disregarded as income or resources in determining eligibility for any program or calculating any payment under Title LI of the Revised Code.
Sec. 323.16.  (A) As used in this section:
(1)(a) "Homestead" means a dwelling, including a multiple-unit dwelling, a unit in a housing cooperative as defined in section 323.151 of the Revised Code, or a manufactured home or mobile home as defined in section 4501.01 of the Revised Code, owned and occupied by the home school parent as the home school parent's principal place of abode.
(b) 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.
(c) An owner includes a holder of one of the 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.
(d) If a home school parent owns more than one dwelling in the same school district simultaneously during the taxable year, the dwelling the home school parent occupies as an abode for the plurality of the year shall be the taxpayer's homestead for the purposes of this section.
(e) The tax commissioner shall adopt rules for the uniform classification of real property and manufactured or mobile homes as homesteads for the purposes of this section.
(2) "Home school parent" means the parent of a child who meets all of the following criteria:
(a) The child is of compulsory school age.
(b) The child is entitled to attend school in this state.
(c) For the majority of the year for which the tax reduction is sought under this section, the child receives instruction at home by a person qualified to teach the branches in which instruction is required, and such additional branches, as the advancement and needs of the child may require.
(d) The superintendent of the city or exempted village school district or the educational service center in which the child resides and the homestead is located excuses the child from school attendance under division (A)(2) of section 3321.04 of the Revised Code.
(3) "Parent" and "compulsory school age" have the same meanings as in section 3321.01 of the Revised Code.
(B)(1) In addition to the reduction in taxes permitted or required under sections 319.302, 323.152, or 4503.065 of the Revised Code, the real property taxes or the manufactured home taxes on a homestead owned and occupied by a home school parent shall be reduced for each year for which an application for the reduction has been approved under division (D) of this section.
(2) The reduction in taxes shall equal the product obtained by multiplying the following:
(a) The effective tax rate levied by the city, local, or exempted village school district in which the homestead is located on real property classified as residential/agricultural by the county auditor under section 5713.041 of the Revised Code for the taxable year as published by the county treasurer under section 323.08 of the Revised Code;
(b) The taxable value of the homestead, or in the case of a manufactured home, the assessable value of the homestead.
(3) If any part of a homestead is used to conduct a trade or business, the tax reduction calculated under division (B)(2) of this section shall be reduced in proportion to the portion of the homestead used to conduct a trade or business.
(C)(1) To obtain a reduction in taxes under division (B) of this section, a home school parent shall file an application with the county auditor of the county in which the home school parent's homestead is located. If the home school parent is seeking a reduction in real property taxes, the application is due after the first Monday in January and not later than the first Monday in June of the year for which the reduction is sought. If the home school parent is seeking a reduction in manufactured home taxes, the application is due after the first Monday in January and not later than the first Monday in June of the year preceding the year for which the reduction is sought.
(2) The application shall be in the form of a signed statement on a document, 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. The application shall contain a statement that conviction of willfully falsifying information to obtain a reduction in taxes or failing to comply with this section results in the revocation of the right to reduction for a period of three years.
(3) The application shall be accompanied by a certified copy of the papers showing the qualifications of the person instructing the child at home executed and filed under division (A)(2) of section 3321.04 of the Revised Code by the superintendent of the city or exempted village school district or the educational service center in which the child resides.
(4) A home school parent may file a late application for a tax reduction after the first Monday in January and not later than the first Monday in June of the year immediately following the year in which the application was due under division (C)(1) of this section. 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 applicable tax year had the applicant's application been timely filed and approved.
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 by section 5715.22 of the Revised Code for making refunds of overpayments.
(5) 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 this section.
(D)(1) The county auditor shall approve or deny an application for reduction submitted by a home school parent under division (C) of this section and shall so notify the applicant not later than the first Monday in October following receipt of the application. Notification shall be provided on a form prescribed by the tax commissioner. If the application is approved, upon issuance of the notification the county auditor shall record the amount of the reduction in taxes in the appropriate column on the general tax list and duplicate of real and public utility property or on the manufactured home tax list. If the application is denied, the notification shall inform the applicant of the reasons for the denial.
(2) If an applicant believes that the application for reduction has been improperly denied or that the reduction is for less than that to which the applicant is entitled, the applicant 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 or manufactured home 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.
(3) Notwithstanding any other provisions of this section, the county auditor may not approve any application for a tax reduction under this section for any tax year before tax year 2014.
(E) 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 provided in those sections, 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 this section shall be proportionally adjusted to the extent necessary to provide such funds from levies within the ten-mill limitation.
(F) The spouse of a home school parent who receives a reduction under this section may not receive a reduction under this section for a different homestead for the same tax year.
(G) The county auditor, when issuing a warrant on the county treasurer under section 319.16 of the Revised Code for the proportion of real property taxes and manufactured home taxes payable to a city, local, or exempted village school district after the settlement of taxes under divisions (A) and (C) of section 321.24 of the Revised Code, shall reduce the amount payable to the school district by the total tax reductions allowed under this section during the collection period by home school parents on homesteads within the school district. The county treasurer shall reduce payment to the treasurer of the school district under section 321.31 of the Revised Code in accordance with the warrant issued by the county auditor.
Sec. 5713.041.  Each separate parcel of real property shall be classified by the county auditor according to its principal, current use. Vacant lots and tracts of land upon which there are no structures or improvements shall be classified in accordance with their location and their highest and best probable legal use. In the case of lands containing or producing minerals, the minerals or any rights to the minerals that are listed and taxed separately from such lands shall be separately classified if the lands are also used for agricultural purposes, whether or not the fee of the soil and the right to the minerals are owned by and assessed for taxation against the same person. For purposes of this section, lands and improvements thereon used for residential or agricultural purposes shall be classified as residential/agricultural real property, and all other lands and improvements thereon and minerals or rights to minerals shall be classified as nonresidential/agricultural real property. Each year the auditor shall reclassify each parcel of real property whose principal, current use has changed from the preceding year to a use appropriate to classification in the other class. Except as otherwise provided in division (B)(2) of section 323.16, division (B) of section 5709.40, division (B) of section 5709.41, division (A)(2) of section 5709.73, or division (D) of section 5709.77 of the Revised Code, the classification required by this section is solely for the purpose of making the reductions in taxes required by section 319.301 of the Revised Code, and this section shall not apply for purposes of classifying real property for any other purpose authorized or required by law or by rule of the tax commissioner.
The commissioner shall adopt rules governing the classification of property under this section, and no property shall be so classified except in accordance with such rules.
Section 2.  That existing sections 319.202, 323.155, and 5713.041 of the Revised Code are hereby repealed.
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