Bill Text: OH HB556 | 2013-2014 | 130th General Assembly | Introduced

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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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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 556

Representative Rogers 

Cosponsors: Representatives Cera, Ashford, Gerberry, Patterson, O'Brien, Lundy, Antonio 

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A BILL

To amend sections 319.02 and 323.152 of the Revised

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Code to restore the application of the 10% and

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2.5% property tax rollbacks to tax levies approved

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on or after the effective date of Am. Sub. H.B. 59

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of the 130th General Assembly.

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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 by	28
qualifying levies against each parcel of real property that is	29
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
For the purposes of this division:	37

(1) "Qualifying levy" means a levy approved at an election	38
held before September 29, 2013; a levy within the ten-mill	39
limitation; a levy provided for by the charter of a municipal	40
corporation that was levied on the tax list for tax year 2013; a	41
subsequent renewal of any such levy; or a subsequent substitute	42
for such a levy under section 5705.199 of the Revised Code.	43

(2) "Qualifying levy" does not include any replacement	44
imposed under section 5705.192 of the Revised Code of any levy	45
described in division (B)(1) of this section.	46

(C) Except as otherwise provided in sections 323.152,	47
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

(D)(C) The tax commissioner may adopt rules governing the	70
administration of the partial exemption provided for by this	71
section.	72

(E)(D) The determination of whether property qualifies for	73
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;

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(b) A person who is sixty-five years of age or older;

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(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 by qualifying levies on the homestead or the manufactured	162
or mobile home after applying section 319.301 of the Revised Code.	163
For the purposes of this division, "qualifying levy" has the same	164
meaning as in section 319.302 of the Revised Code.	165

(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