[r59] Rep. Milo Smith's bills pass out of the House over to the Senate (3/29/2011)

Tuesday, March 29, 2011

Start Date: 3/29/2011 All Day
End Date: 3/29/2011

STATEHOUSE - Rep. Milo Smith (R-Columbus) had two bills pass out of the House once session resumed Monday night. He authored House Bill 1288 and co-authored House Bill 1583. Both of these bills focus on property taxes.

"I was glad to see work recommence Monday so these bills could be heard on the House floor," said Rep. Smith. "These bills focus on tax matters that needed to be examined and enhanced.'

House Bill 1288 provides that a civil taxing unit's maximum permissible property tax levy may not be reduced if the unit does not use its entire maximum levy authority in the preceding year. It also states that a school corporation's maximum permissible transportation levy may not be reduced if the school corporation does not use its entire maximum levy authority in the preceding year.

"This is a bill that local units of government within our communities will appreciate and I was pleased to see that all members of the House of Representatives felt the need for this bill and passed it by a unanimous vote out of the House and over to the Senate," said Rep. Smith.

HB 1583 states that the credit for excessive residential property taxes and the following property tax deductions are to be allowed in the year of a property transfer if the property is determined to be exempt in the year following the transfer year:

      • Homestead standard deduction
      • Homestead supplemental deduction
      • Mortgage deduction
      • Deduction for persons 65 or older
      • Deduction for veterans with a partial disability
      • Deduction for totally disabled veterans or veterans age 62 and partially disabled
      • Deductions for surviving spouses of WWI veterans
      • Deductions for WWI veterans
      • Deductions for rehabilitated residential real property
      • Deduction for rehabilitated property

Under current law, a homeowner's property tax deduction do not apply to taxes payable in the following year if the property is sold after March 1st. If the buyer is a qualifying homesteader, the buyer's deductions are effective for taxes payable in the following year.

Beginning with taxes payable in calendar year 2012 under this bill, the residential deductions that belonged to the seller and the 1% circuit breaker cap for homeowners would continue for property taxes payable in the following year if the property is sold to a buyer that is granted a property tax exemption for the next assessment date.

"This solves a problem that was created over the past few years," said Rep. Smith. "This bill allows us to make changes in the way property tax deductions are handled."

House Bill 1583 passed out of the House and over to the Senate by a vote of 97-1 and will now be heard in the Senate.