HB 608: Modify the law governing property taxes and other local taxes

Ohio House Bill 608

136th General Assembly

Regular Session

To amend sections $323.12, 323.13, 325.31, 4503.06, 5709.56, and 5713.01 and to enact sections 323.123 and 5705.171 of the Revised Code to modify the law governing property taxes and other local taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections $323.12, 323.13, 325.31, 4503.06, 5709.56, and 5713.01 be amended and sections 323.123 and 5705.171 of the Revised Code be enacted to read as follows:

Sec. 323.12.

(A) Each-Subject to division (D) of this section, each person charged with taxes shall pay to the county treasurer the full amount of such taxes on or before the thirty-first day of December, or shall pay one-half of the current taxes together with the full amount of any delinquent taxes before such date, and the remaining half on or before the twentieth day of June next ensuing.

When taxes are paid by installments, each payment shall be apportioned among the several funds for which taxes have been assessed.

(B) A tax is paid on or before the dates set forth in this section if the tax payment is received by the county treasurer or if prepayments are applied by the treasurer toward the payment of taxes as provided by section 321.45 of the Revised Code on or before the last day for payment of such tax, or if the tax payment is received after such date in an envelope that was postmarked by the United States postal service on or before the last day for payment of such tax. In the event there is more than one date of postmark on the envelope, the earliest date imprinted by the United States postal service shall be the date of payment. A private meter postmark on an envelope is not a valid postmark for purposes of establishing the date of payment of such tax.

(C) The treasurer may delay the closing of the treasurer's books for any collection period for the purpose of receiving and processing such payments.

(D) If either payment due date described in division (A) of this section, plus any extension authorized under section 323.17 of the Revised Code, would result in the tax bill being mailed or delivered less than thirty days before that date, as required under section 323.13 of the Revised Code, the payment date, or the extended payment date, shall be extended so as to preserve that thirty-day requirement.

Sec. 323.123.

(A) This section applies to any real property or manufactured or mobile home that does not have any delinquent taxes, as defined in section 323.01 or 4503.06 of the Revised Code, charged against the property or home.

(B) The owner of real property or a manufactured or mobile home to which this section applies may submit an application to the county treasurer for an extension for the payment of taxes and assessments charged against the property or home for the current tax year, or, for manufactured home tax, for the ensuing tax year. The original application and any subsequent application shall be in a form prescribed or approved by the tax commissioner and shall be filed on or before the thirty-first day of December of the current or ensuing year, as applicable, for which the extension is sought.

An application for an extension under this section constitutes a continuing application for an extension of tax payments for each tax year in which the property or home continues to meet the requirements prescribed in division (A) of this section.

(C) If the county treasurer determines that the applicant qualifies for an extension under this section, the county treasurer shall enter into a contract with the applicant pursuant to which the applicant agrees to make payments of taxes and assessments due in the ensuing year in either four or twelve equal installments due by the twentieth day of every third month or each month of that year, as applicable, in lieu of the due dates prescribed in section 323.12 or 4503.06 of the Revised Code. The treasurer shall certify such a contract to the county auditor. This contract becomes void if an installment payment is not received by the treasurer when due under that agreement. The treasurer shall notify an applicant and certify to the county auditor that a contract entered into under this section has become void. Any unpaid taxes due for that year after the agreement is voided shall be remitted by the applicant by the later of thirty days after the notice of the voided contract is sent to the applicant by the county treasurer contract or the date by which second half taxes are due under section 323.12 of the Revised Code. Any such taxes not remitted by that date constitute delinquent taxes.

Notwithstanding sections $319.49, 323.01, 323.121, 323.132, 4503.06, 5721.01, and 5721.011 of the Revised Code, taxes and assessments, payment of which has been extended pursuant to an agreement entered into under this section, do not constitute delinquent taxes and shall not be placed on the delinquent land list or delinquent manufactured home tax list unless the contract becomes void.

(D) Notwithstanding section 323.131 of the Revised Code, a county treasurer shall include a notice of, and information about, the extension provided in this section on or with tax bills mailed or delivered under section 323.13 or 4503.06 of the Revised Code and, if the treasurer maintains a web site, on the treasurer's web site.

Sec. 323.13.

(A) (1) Except as provided in section 323.134 of the Revised Code, immediately upon receipt of any tax duplicate from the county auditor, but not less than twenty-thirty days prior to the last date on which the first one-half taxes may be paid without penalty as prescribed in section 323.12 or 323.17 of the Revised Code, the county treasurer shall cause to be prepared and mailed or delivered to each person charged on such duplicate with taxes or to an agent designated by such person, the tax bill prescribed by the commissioner of tax equalization under section 323.131 of the Revised Code. When taxes are paid by installments, the county treasurer shall mail or deliver to each person charged on such duplicate or the agent designated by such person, a second tax bill showing the amount due at the time of the second tax collection. The second-half tax bill shall be mailed or delivered at least twenty-thirty days prior to the close of the second-half tax collection period. The treasurer shall maintain a record of the person or agent to whom each bill is mailed or delivered.

(2) A county treasurer may adopt a policy authorizing persons required to receive a tax bill under division (A) (1) of this section to request to receive the bill at an electronic mail address or telephone number capable of receiving the bill. A person who has made such a request may, at any time, rescind that request by providing the county treasurer with written notice of that rescission and a current mailing address to which the tax bill may be delivered. The request shall terminate upon a change in the name of the person charged with the taxes pursuant to section 319.20 of the Revised Code. A county treasurer may rescind a policy adopted under division (A) (2) of this section by providing notice to all persons who requested to receive electronic delivery of tax bills under division (A) (2) of this section or division (D) (6) (a) of section 4503.06 of the Revised Code not later than thirty days before that rescission. Such notice shall be sent to the electronic mail address or telephone number provided by each person and shall inform the person that future tax bills will be mailed or delivered to the mailing address on file with the county treasurer and that the person may update that mailing address with written notice to the treasurer.

Electronic mail addresses and telephone numbers submitted to the county treasurer pursuant to division (A) (2) of this section or division (D) (6) (a) of section 4503.06 of the Revised Code are not public records for purposes of section 149.43 of the Revised Code.

Nothing in division (A) (2) of this section or division (D) (6) (a) of section 4503.06 of the Revised Code authorizes a county treasurer to impose a fee or charge to receive a tax bill by mail against a person that does not make an electronic delivery request under either of those divisions.

(B) After delivery of the delinquent land duplicate as prescribed in section 5721.011 of the Revised Code, the county treasurer may prepare and mail to each person in whose name property therein is listed an additional tax bill showing the total amount of delinquent taxes appearing on such duplicate against such property. The tax bill shall include a notice that the interest charge prescribed by division (B) of section 323.121 of the Revised Code has begun to accrue.

(C) A change in the mailing address, electronic mail address, or telephone number of any tax bill shall be made in writing to the county treasurer.

(D) Upon certification by the county auditor of the apportionment of taxes following the transfer of a part of a tract or lot of real estate, and upon request by the owner of any transferred or remaining part of such tract or parcel, the treasurer shall cause to be prepared and mailed or delivered to such owner a tax bill for the taxes allocated to the owner's part, together with the penalties, interest, and other charges.

(E) Failure to receive any bill required by this section does not excuse failure or delay to pay any taxes shown on such bill or, except as provided in division (B) (1) of section 5715.39 of the Revised Code, avoid any penalty, interest, or charge for such delay.

Sec. 5709.56.

(A) As used in this section:

(1) "Pre-residential development property" means a subdivided parcel of unimproved real property on which construction of one or more residential buildings is planned but has not yet commenced. The construction of streets, sidewalks, curbs, or driveways or the installation of water, sewer, or other utility lines on a subdivided parcel does not cause construction of a residential building to commence for purposes of division (A) (1) or (B) of this section. "Pre-residential development property" does not include a parcel, any portion of the value of which is exempted from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.

(2) "Residential building" means a building or structure any part of which is to be used as a dwelling.

(3) "Unexempted value" means, for any subdivided parcel, one of the following:

(a) Except as provided in division (A) (3) (b) of this section, the purchase price of the original property multiplied by a fraction, the numerator of which is the true value in money of the subdivided parcel for the tax year the subdivided parcel first appears on the tax list and the denominator of which is the true value in money of all subdivided parcels subdivided from that original parcel for that tax year.

(b) If a subdivided parcel exempted under this section is itself subdivided, the "unexempted value" of the newly subdivided parcel equals the unexempted value, as defined in division (A) (3) (a) of this section, of the parcel from which the newly subdivided parcel was subdivided for the tax year preceding the tax year the newly subdivided parcel first appears on the tax list multiplied by a fraction, the numerator of which is the true value in money of the newly subdivided parcel for the tax year it first appears on the tax list and the denominator of which is the true value in money for that year of all newly subdivided parcels resulting from the most recent subdivision.

(4) "Subdivided parcel" means a parcel resulting from the subdivision of original property pursuant to a plat subdividing that property presented to the county auditor under section 5713.18 of the Revised Code.

(5) "Original property" means the parcel from which a subdivided parcel is subdivided.

(6) "Qualifying owner" means the owner of pre-residential development property for any portion of a tax year ending on or after October 3, 2023, that includes the date a plat subdividing land including such property is presented to the county auditor under section 5713.18 of the Revised Code, or any other person to which title to the property is transferred, without consideration, by another qualifying owner.

(7) "Purchase price" means the price at which the property was most recently sold in an arm's length transaction, as described in section 5713.03 of the Revised Code.

(B) Subject to section 5715.27 of the Revised Code, any increase in taxable value above the unexempted value of pre-residential development property owned by a qualifying owner is exempted from taxation beginning with the first tax year the pre-residential development property appears on the tax list after a plat subdividing land including that property is presented to the county auditor under section 5713.18 of the Revised Code and for each of the seven-nine ensuing tax years, except that the exemption shall not apply beginning with the tax year that begins after the tax year in which the earliest of the following occurs:

(1) Construction of a residential building on that property commences;

(2) Title to the property is transferred for consideration by a qualifying owner to another person;

(3) Any portion of the value of that property is exempted from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.

(C) A county auditor shall not approve an application for an exemption authorized under this section unless the qualifying owner certifies that the parcel that is the subject of the exemption satisfies the requirements of division (A) (1) of this section for pre-residential development property.

(D) (1) If a parcel subject to the partial exemption authorized by this section is valued at its current value for agricultural use under section 5713.31 of the Revised Code, the county auditor shall regularly inspect the parcel to determine whether a conversion of land devoted exclusively to agricultural use, as defined in section 5713.30 of the Revised Code, has occurred. Nothing in this section shall be construed to limit the authority of a county auditor to levy any recoupment charge pursuant to sections 5713.34 and 5713.35 of the Revised Code.

(2) Nothing in this section shall be construed to allow a parcel that is not land devoted exclusively to agricultural use, as defined in section 5713.30 of the Revised Code, to be valued at its current value for agricultural use under section 5713.31 of the Revised Code.

(3) Nothing in this section shall be construed to authorize a parcel subject to the partial exemption authorized by this section to be valued and assessed for taxation in any manner other than in accordance with Section 36 of Article II or Section 2 of Article XII, Ohio Constitution, as applicable to the parcel.

Sec. 5713.01.

(A) Each county shall be the unit for assessing real estate for taxation purposes. The county auditor shall be the assessor of all the real estate in the auditor's county for purposes of taxation, but this section does not affect the power conferred by Chapter 5727. of the Revised Code upon the tax commissioner regarding the valuation and assessment of real property used in railroad operations.

(B) The auditor shall assess all the real estate situated in the county at its taxable value in accordance with sections 5713.03, 5713.31, and 5715.01 of the Revised Code and with the rules and methods applicable to the auditor's county adopted, prescribed, and promulgated by the tax commissioner. The auditor shall view and appraise or cause to be viewed and appraised at its true value in money, each lot or parcel of real estate, including land devoted exclusively to agricultural use, and the improvements located thereon at least once in each six-year period and the taxable values required to be derived therefrom shall be placed on the auditor's tax list and the county treasurer's duplicate for the tax year ordered by the commissioner pursuant to section 5715.34 of the Revised Code. The commissioner may grant an extension of one year or less if the commissioner finds that good cause exists for the extension. When the auditor so views and appraises, the auditor may enter each structure located thereon to determine by actual view what improvements have been made therein or additions made thereto since the next preceding valuation. The auditor shall revalue and assess at any time all or any part of the real estate in such county, including land devoted exclusively to agricultural use, where the auditor finds that the true or taxable values thereof have changed, and when a conservation easement is created under sections 5301.67 to 5301.70 of the Revised Code. The auditor may increase or decrease the true or taxable value of any lot or parcel of real estate in any township, municipal corporation, or other taxing district by an amount which will cause all real property on the tax list to be valued as required by law, or the auditor may increase or decrease the aggregate value of all real property, or any class of real property, in the county, township, municipal corporation, or other taxing district, or in any ward or other division of a municipal corporation by a per cent or amount which will cause all property to be properly valued and assessed for taxation in accordance with Section 36, Article II, Section 2, Article XII, Ohio Constitution, this section, and sections 5713.03, 5713.31, and 5715.01 of the Revised Code.

(C) When the auditor determines to reappraise all the real estate in the county or any class thereof, when the tax commissioner orders an increase in the aggregate true or taxable value of the real estate in any taxing subdivision, or when the taxable value of real estate is increased by the application of a uniform taxable value per cent of true value pursuant to the order of the commissioner, the auditor shall advertise the completion of the reappraisal or equalization action in a newspaper of general circulation in the county once a week for the three consecutive weeks next preceding the issuance of the tax bills, or as provided in section 7.16 of the Revised Code for the two consecutive weeks next preceding the issuance of the tax bills. When the auditor changes the In a tax year in which section 5715.24 of the Revised Code applies in the county or in any other tax year when the true or taxable value of any individual parcels of real estateparcel is changed, the county auditor shall notify the owner of the real estateeach affected parcel, or the person in whose name the same stands charged on the duplicate, by mail or in person, of the changes the auditor has made in the assessments of such property, how to contact the auditor for questions, how to contest assessments informally or under section 5715.19 of the Revised Code, and information about qualifications for the tax reductions authorized under sections 319.302, 323.152, and 4503.065 of the Revised Code. Such notice shall be given at least thirty days prior to the issuance of the tax bills. Failure to receive notice shall not invalidate any proceeding under this section.

(D) The auditor shall make the necessary abstracts from books of the auditor's office containing descriptions of real estate in such county, together with such platbooks and lists of transfers of title to land as the auditor deems necessary in the performance of the auditor's duties in valuing such property for taxation. Such abstracts, platbooks, and lists shall be in such form and detail as the tax commissioner prescribes.

(E) The auditor, with the approval of the tax commissioner, may appoint and employ such experts, deputies, clerks, or other employees as the auditor deems necessary to the performance of the auditor's duties as assessor, or, with the approval of the tax commissioner, the auditor may enter into a contract with an individual, partnership, firm, company, or corporation to do all or any part of the work; the amount to be expended in the payment of the compensation of such employees shall be fixed by the board of county commissioners. If, in the opinion of the auditor, the board of county commissioners fails to provide a sufficient amount for the compensation of such employees, the auditor may apply to the tax commissioner for an additional allowance, and the additional amount of compensation allowed by the commissioner shall be certified to the board of county commissioners, and the same shall be final. The salaries and compensation of such experts, deputies, clerks, and employees shall be paid upon the warrant of the auditor out of the general fund or the real estate assessment fund of the county, or both. If the salaries and compensation are in whole or in part fixed by the commissioner, they shall constitute a charge against the county regardless of the amount of money in the county treasury levied or appropriated for such purposes.

(F) Any contract for goods or services related to the auditor's duties as assessor, including contracts for mapping, computers, and reproduction on any medium of any documents, records, photographs, microfiche, or magnetic tapes, but not including contracts for the professional services of an appraiser, shall be awarded pursuant to the competitive bidding procedures set forth in sections 307.86 to 307.92 of the Revised Code and shall be paid for, upon the warrant of the auditor, from the real estate assessment fund.

(G) Experts, deputies, clerks, and other employees, in addition to their other duties, shall perform such services as the auditor directs in ascertaining such facts, description, location, character, dimensions of buildings and improvements, and other circumstances reflecting upon the value of real estate as will aid the auditor in fixing its true and taxable value and, in the case of land valued in accordance with section 5713.31 of the Revised Code, its current agricultural use value. The auditor may also summon and examine any person under oath in respect to any matter pertaining to the value of any real property within the county.

Section 2.

That existing sections $323.12, 323.13, 325.31, 4503.06, 5709.56, and 5713.01 of the Revised Code are hereby repealed.

Section 3.

(A) The enactment by this act of section 323.123 of the Revised Code applies, in the case of property on the real property tax list, to tax years ending on or after the effective date of this section and, in the case of property on the manufactured home tax list, to tax years beginning on or after the effective date of this section.

(B) The amendment by this act of section 5709.56 of the Revised Code applies to exemption applications approved after the effective date of this section. That amendment also applies to exemption applications that were approved before that date without the owner having to file another exemption application.