HB 673

As Introduced
136th General Assembly
   Regular Session  H. B. No. 673
       2025-2026
  Representative Stephens
  To amend sections 323.152, 323.153, 323.156,  1
  323.158, and 5747.85 of the Revised Code to  2
  expand the statewide owner-occupied residence  3
  property tax credit to all tax levies.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 323.152, 323.153, 323.156,  5
323.158, and 5747.85 of the Revised Code be amended to read as  6
follows:  7
     Sec. 323.152. In addition to the reduction in taxes  8
required under sections 319.302, 319.303, and 319.304 of the  9
Revised Code, taxes shall be reduced as provided in divisions  10
(A) and (B) of this section.  11
     (A)(1)(a) Division (A)(1) of this section applies to any  12
of the following persons:  13
     (i) A person who is permanently and totally disabled;  14
     (ii) A person who is sixty-five years of age or older;  15
     (iii) A person who is the surviving spouse of a deceased  16
person who was permanently and totally disabled or sixty-five  17
years of age or older and who applied and qualified for a  18
reduction in taxes under this division in the year of death,  19
H. B. No. 673  Page 2
As Introduced
provided the surviving spouse is at least fifty-nine but not  20
sixty-five or more years of age on the date the deceased spouse  21
dies.  22
        (b) Real property taxes on a homestead owned and occupied,  23
or a homestead in a housing cooperative occupied, by a person to  24
whom division (A)(1) of this section applies shall be reduced  25
for each year for which an application for the reduction has  26
been approved. The reduction shall equal one of the following  27
amounts, as applicable to the person:  28
        (i) If the person received a reduction under division (A)  29
(1) of this section for tax year 2006, the greater of the  30
reduction for that tax year or the amount computed under  31
division (A)(1)(c) of this section;  32
        (ii) If the person received, for any homestead, a  33
reduction under division (A)(1) of this section for tax year  34
2013 or under division (A) of section 4503.065 of the Revised  35
Code for tax year 2014 or the person is the surviving spouse of  36
such a person and the surviving spouse is at least fifty-nine  37
years of age on the date the deceased spouse dies, the amount  38
computed under division (A)(1)(c) of this section.  39
        (iii) If the person is not described in division (A)(1)(b)  40
(i) or (ii) of this section and the person's total income does  41
not exceed thirty thousand dollars, as adjusted under division  42
(A)(1)(d) of this section, the amount computed under division  43
(A)(1)(c) of this section.  44
        (c) The amount of the reduction under division (A)(1)(c)  45
of this section equals the product of the following:  46
        (i) Twenty-five thousand dollars of the true value of the  47
property in money, as adjusted under division (A)(1)(d) of this  48
H. B. No. 673  Page 3
As Introduced
section;  49
        (ii) The assessment percentage established by the tax  50
commissioner under division (B) of section 5715.01 of the  51
Revised Code, not to exceed thirty-five per cent;  52
        (iii) The effective tax rate used to calculate the taxes  53
charged against the property for the current year, where  54
"effective tax rate" is defined as in section 323.08 of the  55
Revised Code;  56
        (iv) The quantity equal to one minus the sum of the  57
percentage reductions in taxes received by the property for the  58
current tax year under sections 319.302 and 319.303 of the  59
Revised Code and division (B) of section 323.152 of the Revised  60
Code.  61
        (d) The tax commissioner shall adjust the total income  62
threshold described in division (A)(1)(b)(iii) and the reduction  63
amounts described in divisions (A)(1)(c)(i), (A)(2), and (A)(3)  64
of this section by completing the following calculations in  65
September of each year:  66
        (i) Determine the percentage increase in the gross  67
domestic product deflator determined by the bureau of economic  68
analysis of the United States department of commerce from the  69
first day of January of the preceding calendar year to the last  70
day of December of the preceding calendar year;  71
        (ii) Multiply that percentage increase by the total income  72
threshold or reduction amount for the current tax year, as  73
applicable;  74
        (iii) Add the resulting product to the total income  75
threshold or the reduction amount, as applicable, for the  76
current tax year;  77
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As Introduced
       (iv) Round the resulting sum to the nearest multiple of  78
one hundred dollars.  79
       The commissioner shall certify the amount resulting from  80
each adjustment to each county auditor not later than the first  81
day of December each year. The certified total income threshold  82
amount applies to the following tax year for persons described  83
in division (A)(1)(b)(iii) of this section. The certified  84
reduction amount applies to the following tax year. The  85
commissioner shall not make the applicable adjustment in any  86
calendar year in which the amount resulting from the adjustment  87
would be less than the total income threshold or the reduction  88
amount for the current tax year.  89
       (2)(a) Real property taxes on a homestead owned and  90
occupied, or a homestead in a housing cooperative occupied, by a  91
disabled veteran shall be reduced for each year for which an  92
application for the reduction has been approved. The reduction  93
shall equal the product obtained by multiplying fifty thousand  94
dollars of the true value of the property in money, as adjusted  95
under division (A)(1)(d) of this section, by the amounts  96
described in divisions (A)(1)(c)(ii) to (iv) of this section.  97
The reduction is in lieu of any reduction under section 323.158  98
of the Revised Code or division (A)(1), (2)(b), or (3) of this  99
section. The reduction applies to only one homestead owned and  100
occupied by a disabled veteran.  101
       (b) Real property taxes on a homestead owned and occupied,  102
or a homestead in a housing cooperative occupied, by the  103
surviving spouse of a disabled veteran shall be reduced for each  104
year an application for exemption is approved. The reduction  105
shall equal to the amount of the reduction authorized under  106
division (A)(2)(a) of this section.  107
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As Introduced
       The reduction is in lieu of any reduction under section  108
323.158 of the Revised Code or division (A)(1), (2)(a), or (3)  109
of this section. The reduction applies to only one homestead  110
owned and occupied by the surviving spouse of a disabled  111
veteran. A homestead qualifies for a reduction in taxes under  112
division (A)(2)(b) of this section beginning in one of the  113
following tax years:  114
       (i) For a surviving spouse described in division (L)(1) of  115
section 323.151 of the Revised Code, the year the disabled  116
veteran dies;  117
       (ii) For a surviving spouse described in division (L)(2)  118
of section 323.151 of the Revised Code, the first year on the  119
first day of January of which the total disability rating  120
described in division (F) of that section has been received for  121
the deceased spouse.  122
       In either case, the reduction shall continue through the  123
tax year in which the surviving spouse dies or remarries.  124
       (3) Real property taxes on a homestead owned and occupied,  125
or a homestead in a housing cooperative occupied, by the  126
surviving spouse of a public service officer killed in the line  127
of duty shall be reduced for each year for which an application  128
for the reduction has been approved. The reduction shall equal  129
the product obtained by multiplying fifty thousand dollars of  130
the true value of the property in money, as adjusted under  131
division (A)(1)(d) of this section, by the amounts described in  132
divisions (A)(1)(c)(ii) to (iv) of this section. The reduction  133
is in lieu of any reduction under section 323.158 of the Revised  134
Code or division (A)(1) or (2) of this section. The reduction  135
applies to only one homestead owned and occupied by such a  136
surviving spouse. A homestead qualifies for a reduction in taxes  137
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As Introduced
under division (A)(3) of this section for the tax year in which  138
the public service officer dies through the tax year in which  139
the surviving spouse dies or remarries.  140
       (B)(1) As used in division (B) of this section,  141
"qualifying levy" has the same meaning as in section 319.302 of  142
the Revised Code.  143
       (2) To provide a partial exemption, real property taxes on  144
any homestead, and manufactured home taxes on any manufactured  145
or mobile home on which a manufactured home tax is assessed  146
pursuant to division (D)(2) of section 4503.06 of the Revised  147
Code, shall be reduced for each year for which an application  148
for the reduction has been approved. The amount of the reduction  149
shall equal one of the following percentages of the amount of  150
taxes to be levied by qualifying levies on the homestead or the  151
manufactured or mobile home after applying section 319.301 of  152
the Revised Code:  153
       (a) For the first tax year to which this amendment  154
applies, 5.70%;  155
       (b) For the following tax year, 8.92%;  156
       (c) For the second following tax year, 12.15%;  157
       (d) For the third following tax year and every year  158
thereafter, 15.38%.  159
       (3)(2) A board of county commissioners, by resolution, may  160
authorize a partial exemption from the real property taxes or  161
manufactured home taxes on any property or manufactured or  162
mobile home that receives the partial exemption under division  163
(B)(2)(B)(1) of this section. The resolution shall specify the  164
amount of the partial exemption, which may equal up to two and  165
one-half per cent of the amount of taxes to be levied by  166
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As Introduced
qualifying levies, as that term is defined in section 319.302 of  167
the Revised Code, on the property or home after applying section  168
319.301 of the Revised Code. The partial exemption shall be  169
applied concurrently with the partial exemption under division  170
(B)(2)(B)(1) of this section, and no application shall be  171
required under section 323.153 of the Revised Code to obtain the  172
partial exemption authorized pursuant to this section.  173
       The board shall certify a copy of the resolution, or a  174
copy of any resolution repealing or modifying the partial  175
exemption's authorization, to the county auditor and tax  176
commissioner within thirty days after its adoption. If the  177
resolution is adopted on or before the first day of July of a  178
tax year, the partial exemption shall first apply or cease to  179
apply, in the case of real property taxes, to that tax year or,  180
in the case of manufactured home taxes, the following tax year.  181
If the resolution is adopted after the first day of July of a  182
tax year, the partial exemption shall first apply or cease to  183
apply, in the case of real property taxes, to the following tax  184
year or, in the case of manufactured home taxes, the second  185
succeeding tax year.  186
       (C) The reductions granted by this section do not apply to  187
special assessments or respread of assessments levied against  188
the homestead, and if there is a transfer of ownership  189
subsequent to the filing of an application for a reduction in  190
taxes, such reductions are not forfeited for such year by virtue  191
of such transfer.  192
       (D) The reductions in taxable value referred to in this  193
section shall be applied solely as a factor for the purpose of  194
computing the reduction of taxes under this section and shall  195
not affect the total value of property in any subdivision or  196
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As Introduced
taxing district as listed and assessed for taxation on the tax  197
lists and duplicates, or any direct or indirect limitations on  198
indebtedness of a subdivision or taxing district. If after  199
application of sections 5705.31 and 5705.32 of the Revised Code,  200
including the allocation of all levies within the ten-mill  201
limitation to debt charges to the extent therein provided, there  202
would be insufficient funds for payment of debt charges not  203
provided for by levies in excess of the ten-mill limitation, the  204
reduction of taxes provided for in sections 323.151 to 323.159  205
of the Revised Code shall be proportionately adjusted to the  206
extent necessary to provide such funds from levies within the  207
ten-mill limitation.  208
       (E) No reduction shall be made on the taxes due on the  209
homestead of any person convicted of violating division (D) or  210
(E) of section 323.153 of the Revised Code for a period of three  211
years following the conviction.  212
       Sec. 323.153. (A) To obtain a reduction in real property  213
taxes under division (A) or (B)(2)(B)(1) of section 323.152 of  214
the Revised Code or in manufactured home taxes under division  215
(B)(2)(B)(1) of section 323.152 of the Revised Code, the owner  216
shall file an application with the county auditor of the county  217
in which the owner's homestead is located.  218
       To obtain a reduction in real property taxes under  219
division (A) of section 323.152 of the Revised Code, the  220
occupant of a homestead in a housing cooperative shall file an  221
application with the nonprofit corporation that owns and  222
operates the housing cooperative, in accordance with this  223
paragraph. Not later than the first day of March each year, the  224
corporation shall obtain applications from the county auditor's  225
office and provide one to each new occupant. Not later than the  226
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As Introduced
first day of May, any occupant who may be eligible for a  227
reduction in taxes under division (A) of section 323.152 of the  228
Revised Code shall submit the completed application to the  229
corporation. Not later than the fifteenth day of May, the  230
corporation shall file all completed applications, and the  231
information required by division (B) of section 323.159 of the  232
Revised Code, with the county auditor of the county in which the  233
occupants' homesteads are located. Continuing applications shall  234
be furnished to an occupant in the manner provided in division  235
(C)(4) of this section.  236
       (1) An application for reduction based upon a physical  237
disability shall be accompanied by a certificate signed by a  238
physician, and an application for reduction based upon a mental  239
disability shall be accompanied by a certificate signed by a  240
physician or psychologist licensed to practice in this state,  241
attesting to the fact that the applicant is permanently and  242
totally disabled. The certificate shall be in a form that the  243
tax commissioner requires and shall include the definition of  244
permanently and totally disabled as set forth in section 323.151  245
of the Revised Code. An application for reduction based upon a  246
disability certified as permanent and total by a state or  247
federal agency having the function of so classifying persons  248
shall be accompanied by a certificate from that agency.  249
       An application by a disabled veteran or the surviving  250
spouse of a disabled veteran for the reduction under division  251
(A)(2)(a) or (b) of section 323.152 of the Revised Code shall be  252
accompanied by a letter or other written confirmation from the  253
United States department of veterans affairs, or its predecessor  254
or successor agency, showing that the veteran qualifies as a  255
disabled veteran.  256
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As Introduced
       An application by the surviving spouse of a public service  257
officer killed in the line of duty for the reduction under  258
division (A)(3) of section 323.152 of the Revised Code shall be  259
accompanied by a letter or other written confirmation from an  260
employee or officer of the board of trustees of a retirement or  261
pension fund in this state or another state or from the chief or  262
other chief executive of the department, agency, or other  263
employer for which the public service officer served when killed  264
in the line of duty affirming that the public service officer  265
was killed in the line of duty.  266
       An application for a reduction under division (A) of  267
section 323.152 of the Revised Code constitutes a continuing  268
application for a reduction in taxes for each year in which the  269
dwelling is the applicant's homestead.  270
       (2) An application for a reduction in taxes under division  271
(B)(2)(B)(1) of section 323.152 of the Revised Code shall be  272
filed only if the homestead or manufactured or mobile home was  273
transferred in the preceding year or did not qualify for and  274
receive the reduction in taxes under that division for the  275
preceding tax year. The application for homesteads transferred  276
in the preceding year shall be incorporated into any form used  277
by the county auditor to administer the tax law in respect to  278
the conveyance of real property pursuant to section 319.20 of  279
the Revised Code or of used manufactured homes or used mobile  280
homes as defined in section 5739.0210 of the Revised Code. The  281
owner of a manufactured or mobile home who has elected under  282
division (D)(4) of section 4503.06 of the Revised Code to be  283
taxed under division (D)(2) of that section for the ensuing year  284
may file the application at the time of making that election.  285
The application shall contain a statement that failure by the  286
applicant to affirm on the application that the dwelling on the  287
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As Introduced
property conveyed is the applicant's homestead prohibits the  288
owner from receiving the reduction in taxes until a proper  289
application is filed within the period prescribed by division  290
(A)(3) of this section. Such an application constitutes a  291
continuing application for a reduction in taxes for each year in  292
which the dwelling is the applicant's homestead.  293
       (3) Failure to receive a new application filed under  294
division (A)(1) or (2) or notification under division (C) of  295
this section after an application for reduction has been  296
approved is prima-facie evidence that the original applicant is  297
entitled to the reduction in taxes calculated on the basis of  298
the information contained in the original application. The  299
original application and any subsequent application, including  300
any late application, shall be in the form of a signed statement  301
and shall be filed on or before the thirty-first day of December  302
of the year for which the reduction is sought. The original  303
application and any subsequent application for a reduction in  304
manufactured home taxes shall be filed in the year preceding the  305
year for which the reduction is sought. The statement shall be  306
on a form, devised and supplied by the tax commissioner, which  307
shall require no more information than is necessary to establish  308
the applicant's eligibility for the reduction in taxes and the  309
amount of the reduction, and, except for homesteads that are  310
units in a housing cooperative, shall include an affirmation by  311
the applicant that ownership of the homestead was not acquired  312
from a person, other than the applicant's spouse, related to the  313
owner by consanguinity or affinity for the purpose of qualifying  314
for the real property or manufactured home tax reduction  315
provided for in division (A) or (B)(2)(B)(1) of section 323.152  316
of the Revised Code. The form shall contain a statement that  317
conviction of willfully falsifying information to obtain a  318
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As Introduced
reduction in taxes or failing to comply with division (C) of  319
this section results in the revocation of the right to the  320
reduction for a period of three years. In the case of an  321
application for a reduction in taxes for persons described in  322
division (A)(1)(b)(iii) of section 323.152 of the Revised Code,  323
the form shall contain a statement that signing the application  324
constitutes a delegation of authority by the applicant to the  325
tax commissioner or the county auditor, individually or in  326
consultation with each other, to examine any tax or financial  327
records relating to the income of the applicant as stated on the  328
application for the purpose of determining eligibility for the  329
exemption or a possible violation of division (D) or (E) of this  330
section.  331
       (B) A late application for a tax reduction for the year  332
preceding the year in which an original application is filed, or  333
for a reduction in manufactured home taxes for the year in which  334
an original application is filed, may be filed with the original  335
application. If the county auditor determines the information  336
contained in the late application is correct, the auditor shall  337
determine the amount of the reduction in taxes to which the  338
applicant would have been entitled for the preceding tax year  339
had the applicant's application been timely filed and approved  340
in that year.  341
       The amount of such reduction shall be treated by the  342
auditor as an overpayment of taxes by the applicant and shall be  343
refunded in the manner prescribed in section 5715.22 of the  344
Revised Code for making refunds of overpayments. The county  345
auditor shall certify the total amount of the reductions in  346
taxes made in the current year under this division to the tax  347
commissioner, who shall treat the full amount thereof as a  348
reduction in taxes for the preceding tax year and shall make  349
H. B. No. 673  Page 13
As Introduced
reimbursement to the county therefor in the manner prescribed by  350
section 323.156 of the Revised Code, from money appropriated for  351
that purpose.  352
       (C)(1) If, in any year after an application has been filed  353
under division (A)(1) or (2) of this section, the owner does not  354
qualify for a reduction in taxes on the homestead or on the  355
manufactured or mobile home set forth on such application, the  356
owner shall notify the county auditor that the owner is not  357
qualified for a reduction in taxes.  358
       (2) If, in any year after an application has been filed  359
under division (A)(1) of this section, the occupant of a  360
homestead in a housing cooperative does not qualify for a  361
reduction in taxes on the homestead, the occupant shall notify  362
the county auditor that the occupant is not qualified for a  363
reduction in taxes or file a new application under division (A)  364
(1) of this section.  365
       (3) If the county auditor or county treasurer discovers  366
that an owner of property or occupant of a homestead in a  367
housing cooperative not entitled to the reduction in taxes under  368
division (A) or (B)(2)(B)(1) of section 323.152 of the Revised  369
Code failed to notify the county auditor as required by division  370
(C)(1) or (2) of this section, a charge shall be imposed against  371
the property in the amount by which taxes were reduced under  372
that division for each tax year the county auditor ascertains  373
that the property was not entitled to the reduction and was  374
owned by the current owner or, in the case of a homestead in a  375
housing cooperative, occupied by the current occupant. Interest  376
shall accrue in the manner prescribed by division (B) of section  377
323.121 or division (G)(2) of section 4503.06 of the Revised  378
Code on the amount by which taxes were reduced for each such tax  379
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As Introduced
year as if the reduction became delinquent taxes at the close of  380
the last day the second installment of taxes for that tax year  381
could be paid without penalty. The county auditor shall notify  382
the owner or occupant, by ordinary mail, of the charge, of the  383
owner's or occupant's right to appeal the charge, and of the  384
manner in which the owner or occupant may appeal. The owner or  385
occupant may appeal the imposition of the charge and interest by  386
filing an appeal with the county board of revision not later  387
than the last day prescribed for payment of real and public  388
utility property taxes under section 323.12 of the Revised Code  389
following receipt of the notice and occurring at least ninety  390
days after receipt of the notice. The appeal shall be treated in  391
the same manner as a complaint relating to the valuation or  392
assessment of real property under Chapter 5715. of the Revised  393
Code. The charge and any interest shall be collected as other  394
delinquent taxes.  395
       (4) Each year during January, the county auditor shall  396
furnish by ordinary mail a continuing application to each person  397
receiving a reduction under division (A) of section 323.152 of  398
the Revised Code. The continuing application shall be used to  399
report changes in total income, ownership, occupancy,  400
disability, and other information earlier furnished the auditor  401
relative to the reduction in taxes on the property. The  402
continuing application shall be returned to the auditor not  403
later than the thirty-first day of December; provided, that if  404
such changes do not affect the status of the homestead exemption  405
or the amount of the reduction to which the owner is entitled  406
under division (A) of section 323.152 of the Revised Code or to  407
which the occupant is entitled under section 323.159 of the  408
Revised Code, the application does not need to be returned.  409
       (5) Each year during February, the county auditor, except  410
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As Introduced
as otherwise provided in this paragraph, shall furnish by  411
ordinary mail an original application to the owner, as of the  412
first day of January of that year, of a homestead or a  413
manufactured or mobile home that transferred during the  414
preceding calendar year and that qualified for and received a  415
reduction in taxes under division (B)(2)(B)(1) of section  416
323.152 of the Revised Code for the preceding tax year. In order  417
to receive the reduction under that division, the owner shall  418
file the application with the county auditor not later than the  419
thirty-first day of December. If the application is not timely  420
filed, the auditor shall not grant a reduction in taxes for the  421
homestead for the current year, and shall notify the owner that  422
the reduction in taxes has not been granted, in the same manner  423
prescribed under section 323.154 of the Revised Code for  424
notification of denial of an application. Failure of an owner to  425
receive an application does not excuse the failure of the owner  426
to file an original application. The county auditor is not  427
required to furnish an application under this paragraph for any  428
homestead for which application has previously been made on a  429
form incorporated into any form used by the county auditor to  430
administer the tax law in respect to the conveyance of real  431
property or of used manufactured homes or used mobile homes, and  432
an owner who previously has applied on such a form is not  433
required to return an application furnished under this  434
paragraph.  435
       (D) No person shall knowingly make a false statement for  436
the purpose of obtaining a reduction in the person's real  437
property or manufactured home taxes under section 323.152 of the  438
Revised Code.  439
       (E) No person shall knowingly fail to notify the county  440
auditor of changes required by division (C) of this section that  441
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As Introduced
have the effect of maintaining or securing a reduction in taxes  442
under section 323.152 of the Revised Code.  443
       (F) No person shall knowingly make a false statement or  444
certification attesting to any person's physical or mental  445
condition for purposes of qualifying such person for tax relief  446
pursuant to sections 323.151 to 323.159 of the Revised Code.  447
       Sec. 323.156. (A) Within thirty days after a settlement of  448
taxes under divisions (A) and (C) of section 321.24 of the  449
Revised Code, the county treasurer shall certify to the tax  450
commissioner one-half of the total amount of taxes on real  451
property that were reduced pursuant to divisions (A) and (B)(2)  452
(B)(1) of section 323.152 of the Revised Code for the preceding  453
tax year. The commissioner, within thirty days of the receipt of  454
such certifications, shall provide for payment to the county  455
treasurer, from the general revenue fund, of the amount  456
certified, which shall be credited upon receipt to the county's  457
undivided income tax fund, and an amount equal to two per cent  458
of the amount by which taxes were reduced, which shall be  459
credited upon receipt to the county general fund as a payment to  460
the county auditor and treasurer for the costs of administering  461
the exemption provided under sections 323.151 to 323.159 of the  462
Revised Code.  463
       (B) On or before the second Monday in September of each  464
year, the county treasurer shall certify to the tax commissioner  465
the total amount by which the manufactured home taxes levied in  466
that year were reduced pursuant to division (B)(2)(B)(1) of  467
section 323.152 of the Revised Code, as evidenced by the  468
certificates of reduction and the tax duplicate certified to the  469
county treasurer by the county auditor. The commissioner, within  470
ninety days after the receipt of such certifications, shall  471
H. B. No. 673  Page 17
As Introduced
provide for payment to the county treasurer, from the general  472
revenue fund, of the amount certified, which shall be credited  473
upon receipt to the county's undivided income tax fund, and an  474
amount equal to two per cent of the amount by which taxes were  475
reduced, which shall be credited upon receipt to the county  476
general fund as a payment to the county auditor and treasurer  477
for the costs of administering the exemption provided under  478
sections 323.151 to 323.159 of the Revised Code.  479
       (C) Immediately upon receipt of funds into the county  480
undivided income tax fund under this section, the auditor shall  481
distribute the full amount thereof among the taxing districts in  482
the county as though the total had been paid as taxes by each  483
person for whom taxes were reduced under sections 323.151 to  484
323.159 of the Revised Code.  485
       Sec. 323.158. (A) As used in this section, "qualifying  486
county" means a county to which both of the following apply:  487
       (1) At least one major league professional athletic team  488
plays its home schedule in the county for the season beginning  489
in 1996;  490
       (2) The majority of the electors of the county, voting at  491
an election held in 1996, approved a referendum on a resolution  492
of the board of county commissioners levying a sales and use tax  493
under sections 5739.026 and 5741.023 of the Revised Code.  494
       (B) On or before December 31, 1996, the board of county  495
commissioners of a qualifying county may adopt a resolution  496
under this section. The resolution shall grant a partial real  497
property tax exemption to each homestead in the county that also  498
receives the tax reduction under division (B)(2)(B)(1) of  499
section 323.152 of the Revised Code. The partial exemption shall  500
H. B. No. 673  Page 18
As Introduced
take the form of the reduction by a specified percentage each  501
year of the real property taxes on the homestead. The resolution  502
shall specify the percentage, which may be any amount. The board  503
may include in the resolution a condition that the partial  504
exemption will apply only upon the receipt by the county of  505
additional revenue from a source specified in the resolution.  506
The resolution shall specify the tax year in which the partial  507
exemption first applies, which may be the tax year in which the  508
resolution takes effect as long as the resolution takes effect  509
before the county auditor certifies the tax duplicate of real  510
and public utility property for that tax year to the county  511
treasurer. Upon adopting the resolution, the board shall certify  512
copies of it to the county auditor and the tax commissioner.  513
       (C) After complying with sections 319.301, 319.302,  514
319.303, 319.304, and 323.152 of the Revised Code, the county  515
auditor shall reduce the remaining sum to be levied against a  516
homestead by the percentage called for in the resolution adopted  517
under division (B) of this section. The auditor shall certify  518
the amount of taxes remaining after the reduction to the county  519
treasurer for collection as the real property taxes charged and  520
payable on the homestead.  521
       (D) For each tax year, the county auditor shall certify to  522
the board of county commissioners the total amount by which real  523
property taxes were reduced under this section. At the time of  524
each semi-annual settlement of real property taxes between the  525
county auditor and county treasurer, the board of county  526
commissioners shall pay to the auditor one-half of that total  527
amount. Upon receipt of the payment, the county auditor shall  528
distribute it among the various taxing districts in the county  529
as if it had been levied, collected, and settled as real  530
property taxes. The board of county commissioners shall make the  531
H. B. No. 673  Page 19
As Introduced
payment from the county general fund or from any other county  532
revenue that may be used for that purpose. In making the  533
payment, the board may use revenue from taxes levied by the  534
county to provide additional general revenue under sections  535
5739.021 and 5741.021 of the Revised Code or to provide  536
additional revenue for the county general fund under sections  537
5739.026 and 5741.023 of the Revised Code.  538
       (E) The partial exemption under this section shall not  539
directly or indirectly affect the determination of the principal  540
amount of notes that may be issued in anticipation of a tax levy  541
or the amount of securities that may be issued for any permanent  542
improvements authorized in conjunction with a tax levy.  543
       (F) At any time, the board of county commissioners may  544
adopt a resolution amending or repealing the partial exemption  545
granted under this section. Upon adopting a resolution amending  546
or repealing the partial exemption, the board shall certify  547
copies of it to the county auditor and the tax commissioner. The  548
resolution shall specify the tax year in which the amendment or  549
repeal first applies, which may be the tax year in which the  550
resolution takes effect as long as the resolution takes effect  551
before the county auditor certifies the tax duplicate of real  552
and public utility property for that tax year to the county  553
treasurer.  554
       (G) If a person files a late application for a tax  555
reduction under division (B)(2)(B)(1) of section 323.152 of the  556
Revised Code for the preceding year, and is granted the  557
reduction, the person also shall receive the reduction under  558
this section for the preceding year. The county auditor shall  559
credit the amount of the reduction against the person's current  560
year taxes, and shall include the amount of the reduction in the  561
H. B. No. 673  Page 20
As Introduced
amount certified to the board of county commissioners under  562
division (D) of this section.  563
       Sec. 5747.85. (A) As used in this section:  564
       (1) "Homeownership savings account" and "program period"  565
have the same meanings as in section 135.70 of the Revised Code.  566
       (2) "Account owner" means "eligible participant" as  567
defined by section 135.70 of the Revised Code.  568
       (3) "Contributor" means the account owner or a parent,  569
spouse, sibling, stepparent, or grandparent of the account owner  570
who deposits funds into the homeownership savings account.  571
       (4) "Lifetime contribution limit" means twenty-five  572
thousand dollars of contributions per contributor per  573
homeownership savings account. If an account owner opens one or  574
more additional homeownership savings accounts, a contributor's  575
lifetime contribution limit for the additional accounts shall be  576
reduced by any contributions previously made by the contributor  577
to an account owned by that account owner.  578
       (5) "Eligible expenses" means unreimbursed expenses paid  579
by the account owner for home purchase costs for the account  580
owner's primary residence and account fees imposed on the  581
account owner.  582
       (6) "Primary residence" means a homestead located in this  583
state that is or will be the account owner's principal place of  584
residence at the time the eligible expenses are incurred and for  585
which the account owner receives or will receive a reduction in  586
real property taxes or manufactured home taxes under division  587
(B)(2)(B)(1) of section 323.152 of the Revised Code.  588
       (7) "Homestead" means a homestead, as defined in section  589
H. B. No. 673  Page 21
As Introduced
323.151 of the Revised Code, or a manufactured or mobile home  590
that is owned and occupied as a home by an individual whose  591
domicile is in this state and upon which the manufactured home  592
tax is assessed pursuant to division (D)(2) of section 4503.06  593
of the Revised Code.  594
       (8) "Home purchase costs" means "eligible home costs" as  595
defined in section 135.70 of the Revised Code.  596
       (9) "Employer contribution" means the amount an employer  597
contributes to a homeownership savings account.  598
       (B) In computing Ohio adjusted gross income, a deduction  599
from federal adjusted gross income is allowed to a contributor  600
for amounts contributed to a homeownership savings account to  601
the extent that the amounts contributed have not already been  602
deducted in computing the contributor's federal or Ohio adjusted  603
gross income for the taxable year. The deduction shall equal the  604
amount of contributions made by the taxpayer and, if filing a  605
joint return, the taxpayer's spouse, except that the deduction  606
shall not exceed, for any taxable year, ten thousand dollars for  607
spouses filing a joint return or five thousand dollars for all  608
other taxpayers for each homeownership savings account to which  609
contributions are made. If a taxpayer files a joint return, the  610
deduction amount attributable to contributions made by each  611
spouse shall not exceed five thousand dollars for each  612
homeownership savings account to which contributions are made. A  613
contributor is not entitled to a deduction under this section to  614
the extent the deduction causes the contributor to exceed the  615
lifetime contribution limit. No deduction is allowed under this  616
section for the transfer of funds from one homeownership savings  617
account to another homeownership savings account.  618
       (C) In computing Ohio adjusted gross income, a deduction  619
H. B. No. 673  Page 22
As Introduced
from federal adjusted gross income is allowed to an account  620
owner for the following items:  621
       (1) Interest earned on a homeownership savings account to  622
the extent the interest has not been otherwise deducted or  623
excluded in computing an account owner's federal or Ohio  624
adjusted gross income.  625
       (2) Employer contributions made by an employer to an  626
account owner's homeownership savings account to the extent the  627
employer contributions have not been otherwise deducted or  628
excluded in computing an account owner's federal or Ohio  629
adjusted gross income.  630
       (D) The tax commissioner may request that a taxpayer  631
claiming a deduction calculated under division (B) or (C) of  632
this section furnish information necessary to support the claim  633
for the deduction under this section, and no deduction shall be  634
allowed unless the requested information is provided.  635
       (E) No deduction is permitted under division (B) or (C) of  636
this section for contributions made or interest earned after the  637
conclusion of a homeownership savings account's program period.  638
       (F) The commissioner may adopt rules necessary to  639
administer this section.  640
       Section 2. That existing sections 323.152, 323.153,  641
323.156, 323.158, and 5747.85 of the Revised Code are hereby  642
repealed.  643
       Section 3. The amendment by this act of sections 323.152,  644
323.153, 323.156, 323.158, and 5747.85 of the Revised Code  645
applies, in the case of real property taxes, to tax years ending  646
on or after the effective date of this section or, in the case  647
of manufactured home taxes, to tax years beginning on or after  648
H. B. No. 673  Page 23
As Introduced
that effective date.  649