Bill Summary – FastDemocracy

OHIO LEGISLATIVE SERVICE COMMISSION
                                          Office of Research                            Legislative Budget
www.lsc.ohio.gov                            and Drafting                                      Office
                          H.B. 402                             Bill Analysis
                   135th General Assembly
                                                               Click here for H.B. 402’s Fiscal Note
 Version: As Introduced
 Primary Sponsor: Rep. Schmidt
 Effective date:
 Zachary P. Bowerman, Attorney
                                                    SUMMARY
                   ▪ Authorizes a property tax reduction in 2023 for properties with increased tax liability
                      relative to 2022.
                   ▪ Requires the Tax Commissioner to reimburse taxing authorities from the GRF for the
                      resulting lost revenue.
                                            DETAILED ANALYSIS
Temporary property tax reduction
        The bill authorizes a reduction in real property and manufactured home taxes on any
property owned continuously by the same owner from January 1, 2022 to December 31, 2023.
For real property, the reduction equals the amount by which tax liability in tax year 2023
exceeded tax liability in tax year 2022. For manufactured homes, the reduction equals the
amount by which manufactured home tax liability in 2024 exceeded the tax liability in 2023.
The difference in application is accounted for by the fact that manufactured home tax is payable
on a current-year basis, whereas property tax is payable in arrears. For owners that have paid
the taxes due in 2024, the amount by which those taxes should have been reduced under the bill
will be deducted from future tax payments. No application is required to receive the reduction.
        Not more than 15 days after the bill’s 90-day effective date, each county auditor must
certify the amount of the reduction on each property and manufactured home to the county
treasurer. The treasurer must then certify the total amount of reductions to the Tax
Commissioner who is required to reimburse that amount to each county from the GRF. Those
                                                                                                       November 14, 2024
Office of Research and Drafting             LSC                         Legislative Budget Office
payments will ultimately be paid to taxing authorities to hold them harmless for the loss of
revenue caused by the bill’s reduction.1
                                      HISTORY
                             Action                                   Date
    Introduced                                        02-07-24
ANHB0402IN-135/sb
1   Section 1.
P a g e |2                                                                             H.B. 402
                                                                                  As Introduced