Bill Text: OH HB556 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: To restore the application of the 10% and 2.5% property tax rollbacks to tax levies approved on or after the effective date of Am. Sub. H.B. 59 of the 130th General Assembly.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2014-05-21 - To Ways and Means [HB556 Detail]
Download: Ohio-2013-HB556-Introduced.html
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Representative Rogers
Cosponsors:
Representatives Cera, Ashford, Gerberry, Patterson, O'Brien, Lundy, Antonio
To amend sections 319.02 and 323.152 of the Revised | 1 |
Code to restore the application of the 10% and | 2 |
2.5% property tax rollbacks to tax levies approved | 3 |
on or after the effective date of Am. Sub. H.B. 59 | 4 |
of the 130th General Assembly. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 319.302 and 323.152 of the Revised | 6 |
Code be amended to read as follows: | 7 |
Sec. 319.302. (A)(1) Real property that is not intended | 8 |
primarily for use in a business activity shall qualify for a | 9 |
partial exemption from real property taxation. For purposes of | 10 |
this partial exemption, "business activity" includes all uses of | 11 |
real property, except farming; leasing property for farming; | 12 |
occupying or holding property improved with single-family, | 13 |
two-family, or three-family dwellings; leasing property improved | 14 |
with single-family, two-family, or three-family dwellings; or | 15 |
holding vacant land that the county auditor determines will be | 16 |
used for farming or to develop single-family, two-family, or | 17 |
three-family dwellings. For purposes of this partial exemption, | 18 |
"farming" does not include land used for the commercial production | 19 |
of timber that is receiving the tax benefit under section 5713.23 | 20 |
or 5713.31 of the Revised Code and all improvements connected with | 21 |
such commercial production of timber. | 22 |
(2) Each year, the county auditor shall review each parcel of | 23 |
real property to determine whether it qualifies for the partial | 24 |
exemption provided for by this section as of the first day of | 25 |
January of the current tax year. | 26 |
(B) After complying with section 319.301 of the Revised Code, | 27 |
the county auditor shall reduce the remaining sums to be levied | 28 |
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listed on the general tax list and duplicate of real and public | 30 |
utility property for the current tax year and that qualifies for | 31 |
partial exemption under division (A) of this section, and against | 32 |
each manufactured and mobile home that is taxed pursuant to | 33 |
division (D)(2) of section 4503.06 of the Revised Code and that is | 34 |
on the manufactured home tax list for the current tax year, by ten | 35 |
per cent, to provide a partial exemption for that parcel or home. | 36 |
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323.158, 505.06, and 715.263 of the Revised Code, the amount of | 48 |
the taxes remaining after any such reduction shall be the real and | 49 |
public utility property taxes charged and payable on each parcel | 50 |
of real property, including property that does not qualify for | 51 |
partial exemption under division (A) of this section, and the | 52 |
manufactured home tax charged and payable on each manufactured or | 53 |
mobile home, and shall be the amounts certified to the county | 54 |
treasurer for collection. Upon receipt of the real and public | 55 |
utility property tax duplicate, the treasurer shall certify to the | 56 |
tax commissioner the total amount by which the real property taxes | 57 |
were reduced under this section, as shown on the duplicate. Such | 58 |
reduction shall not directly or indirectly affect the | 59 |
determination of the principal amount of notes that may be issued | 60 |
in anticipation of any tax levies or the amount of bonds or notes | 61 |
for any planned improvements. If after application of sections | 62 |
5705.31 and 5705.32 of the Revised Code and other applicable | 63 |
provisions of law, including divisions (F) and (I) of section | 64 |
321.24 of the Revised Code, there would be insufficient funds for | 65 |
payment of debt charges on bonds or notes payable from taxes | 66 |
reduced by this section, the reduction of taxes provided for in | 67 |
this section shall be adjusted to the extent necessary to provide | 68 |
funds from such taxes. | 69 |
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administration of the partial exemption provided for by this | 71 |
section. | 72 |
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partial exemption under division (A) of this section is solely for | 74 |
the purpose of allowing the partial exemption under division (B) | 75 |
of this section. | 76 |
Sec. 323.152. In addition to the reduction in taxes required | 77 |
under section 319.302 of the Revised Code, taxes shall be reduced | 78 |
as provided in divisions (A) and (B) of this section. | 79 |
(A)(1) Division (A) of this section applies to any of the | 80 |
following persons: | 81 |
(a) A person who is permanently and totally disabled; | 82 |
(b) A person who is sixty-five years of age or older; | 83 |
(c) A person who is the surviving spouse of a deceased person | 84 |
who was permanently and totally disabled or sixty-five years of | 85 |
age or older and who applied and qualified for a reduction in | 86 |
taxes under this division in the year of death, provided the | 87 |
surviving spouse is at least fifty-nine but not sixty-five or more | 88 |
years of age on the date the deceased spouse dies. | 89 |
(2) Real property taxes on a homestead owned and occupied, or | 90 |
a homestead in a housing cooperative occupied, by a person to whom | 91 |
division (A) of this section applies shall be reduced for each | 92 |
year for which an application for the reduction has been approved. | 93 |
The reduction shall equal one of the following amounts, as | 94 |
applicable to the person: | 95 |
(a) If the person received a reduction under division (A) of | 96 |
this section for tax year 2006, the greater of the reduction for | 97 |
that tax year or the amount computed under division (A)(3) of this | 98 |
section; | 99 |
(b) If the person received a reduction under division (A) of | 100 |
this section for tax year 2013 or under section 4503.065 of the | 101 |
Revised Code for tax year 2014 or the person is the surviving | 102 |
spouse of such a person and the surviving spouse is at least | 103 |
fifty-nine years of age on the date the deceased spouse dies, the | 104 |
amount computed under division (A)(3) of this section. For | 105 |
purposes of divisions (A)(2)(b) and (c) of this section, a person | 106 |
receives a reduction under division (A) of this section or under | 107 |
section 4503.065 of the Revised Code for tax year 2013 or 2014, | 108 |
respectively, if the person files a late application for that | 109 |
respective tax year that is approved by the county auditor under | 110 |
section 323.153 or 4503.066 of the Revised Code. | 111 |
(c) If the person is not described in division (A)(2)(a) or | 112 |
(b) of this section and the person's total income does not exceed | 113 |
thirty thousand dollars, as adjusted under division (A)(4) of this | 114 |
section, the amount computed under division (A)(3) of this | 115 |
section. | 116 |
(3) The amount of the reduction under division (A)(3) of this | 117 |
section equals the product of the following: | 118 |
(a) Twenty-five thousand dollars of the true value of the | 119 |
property in money; | 120 |
(b) The assessment percentage established by the tax | 121 |
commissioner under division (B) of section 5715.01 of the Revised | 122 |
Code, not to exceed thirty-five per cent; | 123 |
(c) The effective tax rate used to calculate the taxes | 124 |
charged against the property for the current year, where | 125 |
"effective tax rate" is defined as in section 323.08 of the | 126 |
Revised Code; | 127 |
(d) The quantity equal to one minus the sum of the percentage | 128 |
reductions in taxes received by the property for the current tax | 129 |
year under section 319.302 of the Revised Code and division (B) of | 130 |
section 323.152 of the Revised Code. | 131 |
(4) Each calendar year, the tax commissioner shall adjust the | 132 |
total income threshold described in division (A)(2)(c) of this | 133 |
section by completing the following calculations in September of | 134 |
each year: | 135 |
(a) Determine the percentage increase in the gross domestic | 136 |
product deflator determined by the bureau of economic analysis of | 137 |
the United States department of commerce from the first day of | 138 |
January of the preceding calendar year to the last day of December | 139 |
of the preceding calendar year; | 140 |
(b) Multiply that percentage increase by the total income | 141 |
threshold for the current tax year; | 142 |
(c) Add the resulting product to the total income threshold | 143 |
for the current tax year; | 144 |
(d) Round the resulting sum to the nearest multiple of one | 145 |
hundred dollars. | 146 |
The commissioner shall certify the amount resulting from the | 147 |
adjustment to each county auditor not later than the first day of | 148 |
December each year. The certified amount applies to the following | 149 |
tax year for persons described in division (A)(2)(c) of this | 150 |
section. The commissioner shall not make the adjustment in any | 151 |
calendar year in which the amount resulting from the adjustment | 152 |
would be less than the total income threshold for the current tax | 153 |
year. | 154 |
(B) To provide a partial exemption, real property taxes on | 155 |
any homestead, and manufactured home taxes on any manufactured or | 156 |
mobile home on which a manufactured home tax is assessed pursuant | 157 |
to division (D)(2) of section 4503.06 of the Revised Code, shall | 158 |
be reduced for each year for which an application for the | 159 |
reduction has been approved. The amount of the reduction shall | 160 |
equal two and one-half per cent of the amount of taxes to be | 161 |
levied | 162 |
or mobile home after applying section 319.301 of the Revised Code. | 163 |
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(C) The reductions granted by this section do not apply to | 166 |
special assessments or respread of assessments levied against the | 167 |
homestead, and if there is a transfer of ownership subsequent to | 168 |
the filing of an application for a reduction in taxes, such | 169 |
reductions are not forfeited for such year by virtue of such | 170 |
transfer. | 171 |
(D) The reductions in taxable value referred to in this | 172 |
section shall be applied solely as a factor for the purpose of | 173 |
computing the reduction of taxes under this section and shall not | 174 |
affect the total value of property in any subdivision or taxing | 175 |
district as listed and assessed for taxation on the tax lists and | 176 |
duplicates, or any direct or indirect limitations on indebtedness | 177 |
of a subdivision or taxing district. If after application of | 178 |
sections 5705.31 and 5705.32 of the Revised Code, including the | 179 |
allocation of all levies within the ten-mill limitation to debt | 180 |
charges to the extent therein provided, there would be | 181 |
insufficient funds for payment of debt charges not provided for by | 182 |
levies in excess of the ten-mill limitation, the reduction of | 183 |
taxes provided for in sections 323.151 to 323.159 of the Revised | 184 |
Code shall be proportionately adjusted to the extent necessary to | 185 |
provide such funds from levies within the ten-mill limitation. | 186 |
(E) No reduction shall be made on the taxes due on the | 187 |
homestead of any person convicted of violating division (D) or (E) | 188 |
of section 323.153 of the Revised Code for a period of three years | 189 |
following the conviction. | 190 |
Section 2. That existing sections 319.302 and 323.152 of the | 191 |
Revised Code are hereby repealed. | 192 |