As Introduced

136th General Assembly

Regular Session H. B. No. 1022

2025-2026

Representatives Hiner, Thomas, D.

To amend sections 319.36, 323.132, and 5715.22 of the Revised Code and to amend Section 4 of H.B. 186 of the 136th General Assembly to modify the rules governing property tax refunds.

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

Section 1. That sections 319.36, 323.132, and 5715.22 of the Revised Code be amended to read as follows:

Sec. 319.36. If, after having delivered a duplicate to the county treasurer for collection, the county auditor is satisfied that any tax, assessment, recoupment charge, or any part thereof has been erroneously charged as a result of a clerical error as defined in section 319.35 of the Revised Code, the county auditor shall give the person so charged a certificate to that effect to be presented to the treasurer, who shall deduct the amount from such tax, assessment, or charge. If, at any time, the auditor discovers that erroneous taxes, assessments, or charges have been charged or collected in previous years as a result of a clerical error, except for public utility taxes covered under section 5727.471 of the Revised Code, the auditor shall call the attention of the county board of revision to such charge or collection at a regular or special session of the board. If the board finds that taxes, assessments, or charges have been erroneously charged or collected, as a result of a clerical error, it shall certify that finding to the county auditor. Upon receipt of the board's certification, and in all cases where the tax commissioner has certified such a determination under section 5711.32 of the Revised Code, the auditor shall do one of the following:

(A) In the event of erroneous charges that have not been collected, give the person so charged a certificate of erroneous assessments to be presented to the treasurer, who shall deduct the amount from such taxes, assessments, or charges;

(B) In the event of erroneous charges that have been collected, do one of the following:

(1) If the amount of the overpayment exceeds twenty-five dollars, and if the person that paid the erroneous charges applies for a refund within sixty days after receipt of the board's or tax commissioner's certification, that person may require the auditor to do either of the following:

(a) Draw a warrant on the treasurer in favor of the person paying the erroneous charges, or the personal representative of the person paying the erroneous charges, for the full amount of the taxes, assessments so charged and collected with any applicable interest thereon as prescribed by division (E) of this section or by section 5719.041 of the Revised Code;

(2)(b) Refund a portion of the overpayment and any interest and prorate the remaining balance as a credit against future taxes that may be charged to the person;.

(3) (2) In all other cases, the auditor may, at the auditor's discretion, select either of the methods described in division (B)(1)(a) or (b) of this section or do either of the following:

(a) Prorate the full amount of the overpayment and any interest as a credit against future taxes that may be charged to the person that paid the erroneous charges;

(4)(b) Enter into a written undertaking with the person providing for refund of the overpayment in installments. The terms of such an undertaking shall include the amount payable and the due date of each installment, including the due date of the final payment, which shall not be later than two years after the due date of the first installment. Notwithstanding section 5719.041 of the Revised Code to the contrary, any applicable interest on the overpayment allowed under that section shall not accrue beyond the day on which the undertaking is entered into.

If proceeding under division (B)(2) of this section, the auditor shall advise the person of the decision within sixty days after receipt of the board's or tax commissioner's certification.

(C) The auditor shall have discretion as to which method to use and shall advise the person of the decision within sixty days after receipt of the board's or tax commissioner's certification. The auditor shall draw a warrant for payment of any refund under division (B)(1)(B)(1)(a) or (2)(b) of this section within ninety days after receipt of the certification. Any amount to be credited under division (B)(2)(B)(1)(b) or (3)(2)(a) of this section shall be applied to all or a part of the taxes otherwise due from the person on any property tax due dates after the date on which the certification was received, but shall not be spread over more than the next ten ensuing due dates. If any portion of the overpayment has not been refunded or credited by the tenth such tax due date or by a time when the auditor determines that the person and the property of the person are not shown on any tax list for the county, the auditor immediately shall draw a warrant to refund that portion.

Interest allowed under division (E) of this section or by section 5719.041 of the Revised Code shall continue to accrue on portions of overpayments credited against future taxes until the last day of the month preceding the day the portion of the overpayment is credited, and shall be computed separately on each portion credited. In computing the interest on a portion of an overpayment credited against current taxes due, the portion shall be considered to have been credited on the last day on which those taxes may be paid without penalty.

(D) The treasurer shall pay a refund warrant from the undivided general property tax fund and such refund or any prorated refund credit, including interest paid thereon, shall be properly apportioned by the auditor among the subdivision accounts to which the overpayment originally was paid. When the auditor finds that there are insufficient funds present in the undivided tax fund to the credit of any subdivision account for the full repayment of a refund, the auditor may draw a warrant in an amount not exceeding the amount present and the balance, with accrued interest, shall be paid as funds become available. In no instance shall taxes that are to be apportioned to any one subdivision be used to refund erroneous payments that have been previously distributed to any other subdivision. Except for taxes required to be refunded by the county auditor pursuant to division (A) of section 5711.32 of the Revised Code, no taxes or assessments shall be refunded unless they have been erroneously charged or collected in the five years next preceding the discovery of such charge or collection by the auditor.

(E) In the event of an erroneous tax, assessment, or charge against real property, the county auditor shall add the accrued interest to the overpayment, which interest becomes part of the overpayment. The interest accrues on the overpayment from the first day of the month following the date of overpayment until the last day of the month preceding the date of the drawing of the warrant pursuant to division (A) of this section. The date of overpayment with respect to persons who pay their real property taxes in two installments is the date of the second installment payment. The rate at which the interest accrues is the rate per calendar month, rounded to the nearest one-hundredth of one per cent, equal to one-twelfth of the rate per annum prescribed by section 5703.47 of the Revised Code for the calendar year that includes the month for which the charge accrues. The interest shall be paid on a pro-rata basis from the fund or funds to which the overpayment was credited.

(F) The payment of interest under division (E) of this section shall not be made on an overpayment resulting from a reduction in the appraised true value, other than such a reduction resulting from the correction of a clerical error.

Sec. 323.132. If one-half of the current taxes charged against an entry of real estate is not paid on or before the thirty-first day of December of the year for which they are charged or on or before the last day for such payment as extended pursuant to section 323.17 of the Revised Code, that amount, together with the penalty charged under division (A)(1) of section 323.121 of the Revised Code and all delinquent taxes or installment thereof charged against such entry may be paid at any time prior to the date on which tax bills for the second half collection are mailed and delivered, without at the same time requiring payment of the second half of such taxes.

If the total amount of such current taxes, delinquent taxes, and all installment payments due under section 323.31 of the Revised Code are not paid on or before the twentieth day of June, next thereafter, or on or before the last day for that payment as extended pursuant to section 323.17 of the Revised Code, the balance of the amount of such taxes, plus all penalties and interest imposed by section 323.121 of the Revised Code, constitutes the delinquent taxes on such entry, which shall be placed on the delinquent land list and duplicate pursuant to section 5721.011 of the Revised Code and shall be collected in the manner prescribed by law, unless the property against which such taxes are charged is the subject of an application for exemption from taxation pursuant to section 5715.27 of the Revised Code.

A taxpayer may tender, and the treasurer shall accept, the full amount of delinquent taxes charged against an entry of real estate without having to tender at the same time the payment of any current taxes that are due and payable.

A county treasurer may accept partial payments of taxes. Any overpayment shall be refunded by the treasurer in the manner most convenient to the treasurer. When the amount tendered and accepted is less than the amount due, the unpaid balance shall be treated as other unpaid taxes, and, except when the unpaid amount is the penalty or interest and charges on the unpaid taxes, the treasurer shall notify the taxpayer of such deficiency.

If the taxpayer files with the payment of taxes a copy of an application to the tax commissioner for remission of penalty, or the payment is received within ten days after the last day the taxes may be paid without penalty, the county treasurer shall accept a partial payment in which the only unpaid amount is the penalty for late payment.

If, at any time, and having been provided such documentation as may be found acceptable by the county treasurer, the county treasurer determines that due to a clerical error, a taxpayer has overpaid either the first one-half or second one-half payment of current taxes as charged on the tax list and duplicate, the treasurer may refund the amount of the overpayment to the taxpayer in the manner most convenient to the treasurershall proceed in the same manner as is prescribed in section 319.36 of the Revised Code for the refunding or crediting of overpayments.

Sec. 5715.22. (A) If upon consideration of any complaint against the valuation or assessment of real property filed under section 5715.19 of the Revised Code, or any appeal from the determination on such complaint, it is found that the amount of taxes, assessments, or recoupment charges paid for the year to which the complaint relates was in excess of the amount due, then, whether or not the payment of said taxes, assessments, or charges was made under protest or duress, the county auditor shall, within thirty days after the certification to the auditor of the final action upon such complaint or appeal, credit do one of the following:

(1) If the amount of the overpayment exceeds twenty-five dollars, then upon application of the person overpaying such taxes, the auditor shall forthwith draw a warrant on the county treasurer in favor of that person for the amount of the overpayment.

(2) In all other cases, the auditor may either proceed as described in division (A)(1) of this section or credit the amount of such overpayment upon the amount of any taxes, assessments, or charges then due from the person having made such overpayment, and at . At the next or any succeeding settlement the amount of any such credit shall be deducted from the amounts of any taxes, assessments, or charges distributable to the county or any taxing unit therein in the same proportions that the amount of real and public utility property taxes levied by the county or each taxing unit in the county in the preceding tax year bears to the amount of such taxes levied by the county and all such units in the county in the preceding tax year. If after such credit has been made, there remains any balance of such overpayment, or if there are no taxes, assessments, or charges due from such person, upon application of the person overpaying such taxes the auditor shall forthwith draw a warrant on the county treasurer in favor of the person who has made such overpayment for the amount of proceed as described in division (A)(1) of this section with respect to such balance. The

(B) The treasurer shall pay such a refund warrant from the general revenue fund of the county. If there is insufficient money in said general revenue fund to make such payment, the treasurer shall pay such warrant out of any undivided tax funds thereafter received by the treasurer for distribution to any county or any taxing unit therein in the same proportions that the amount of real and public utility property taxes levied by the county or each taxing unit in the preceding tax year bears to the amount of such taxes levied by the county and all such units in the preceding tax year, and the amount paid from the undivided tax funds shall be deducted from the money otherwise distributable to such county or other taxing unit of the county at the next or any succeeding settlement. At the next or any succeeding settlement after the refunding of such taxes, assessments, or charges, the treasurer shall reimburse the general revenue fund of the county for any payment made from such fund by deducting the amount of such payment from the money otherwise distributable to the county or other taxing unit in the county in the same proportions that the amount of real and public utility property taxes levied by the county or each taxing unit in the county in the preceding tax year bears to the amount of such taxes levied by the county and all such units in the preceding tax year.

Section 2. That existing sections 319.36, 323.132, and 5715.22 of the Revised Code are hereby repealed.

Section 3. That Section 4 of H.B. 186 of the 136th General Assembly be amended to read as follows:

Sec. 4. (A) All terms used in this section have the same meanings as in section 319.303 of the Revised Code, as enacted by this actH.B 186 of the 136th General Assembly.

(B) Within sixty days after the effective date of this sectionMarch 20, 2026, the Tax Commissioner shall do all of the following:

(1) For all property located in a county that underwent a reappraisal or triennial update in tax year 2023 or 2024, determine whether the property would have been eligible for a reduction in taxes under section 319.303 of the Revised Code for that tax year if that section had been in effect for that tax year;

(2) For all property that would have been eligible for a reduction in taxes, as determined under division (B)(1) of this section, compute the credit factor that would have been calculated for that property in the tax year in which the property was subject to the reappraisal or triennial update as if this act H.B. 186 of the 136th General Assembly had been in effect for that tax year;

(3) Certify the credit factors determined under division (B)(2) of this section to the appropriate county auditors.

(C) Notwithstanding section 319.303 of the Revised Code, as enacted by this actH.B. 186 of the 136th General Assembly, property that was located in a county that underwent a reappraisal or triennial update in tax year 2023 and for which a credit factor is certified under division (B)(3) of this section is eligible for a reduction in taxes for tax year 2025, in the case of property on the real property tax list, or tax year 2026, in the case of property on the manufactured home tax list. The reduction shall equal the product obtained by multiplying that credit factor by the taxes charged and payable against the property for that tax year.

(D) Notwithstanding section 319.303 of the Revised Code, as enacted by this actH.B. 186 of the 136th General Assembly, property that was located in a county that underwent a reappraisal or triennial update in tax year 2024 and for which a credit factor is certified under division (B)(3) of this section is eligible for a reduction in taxes for tax years 2025 and 2026, in the case of property on the real property tax list, or tax years 2026 and 2027, in the case of property on the manufactured home tax list. The reduction shall equal the product obtained by multiplying that credit factor by the taxes charged and payable against the property for each such tax year.

(E) Notwithstanding section 319.303 of the Revised Code, as enacted by this actH.B. 186 of the 136th General Assembly, the Tax Commissioner, rather than county auditors, shall compute the credit factor for property that is located in a county that is undergoing a reappraisal or triennial update in tax year 2025 and that is eligible for the reduction in taxes under that section. Within sixty days after the effective date of this sectionMarch 20, 2026, the Commissioner shall determine whether property located in such counties is eligible for the reduction and, if so, compute the credit factor for that property. The Commissioner shall certify the credit factors determined under division (E) of this section to the appropriate county auditors.

(F) Within thirty days after the effective date of this sectionMarch 20, 2026, each county auditor shall certify to the Tax Commissioner, in the form prescribed by the Commissioner, each of the following for each school district and each joint vocational school district with territory in the county:

(1) The total value of qualifying nonbusiness property;

(2) The total value of qualifying business property;

(3) The taxes charged and payable, as described in division (A)(5)(a) of section 319.303 of the Revised Code, as enacted by this actH.B. 186 of the 136th General Assembly, for the property described in divisions (F)(1) and (2) of this section;

(4) The taxes charged and payable, as described in division (A)(5)(b) of section 319.303 of the Revised Code, as enacted by this actH.B. 186 of the 136th General Assembly, for the property described in divisions (F)(1) and (2) of this section;

(5) The floor tax revenue for the property described in divisions (F)(1) and (2) of this section.

If the county is scheduled to undergo a reappraisal or triennial update for tax year 2025, the certifications required in division (F) of this section shall be for that tax year. If the county is not scheduled to undergo a reappraisal or triennial update for that tax year, the certifications shall be for the tax year in which the county most recently underwent a reappraisal or triennial update.

(G) Notwithstanding any provision of the Revised Code to the contrary, the reduction authorized for any property under this section or section 319.303 of the Revised Code for tax year 2025, in the case of property on the real property tax list, or tax year 2026, in the case of property on the manufactured home tax list, shall be applied entirely against the second-half tax bill issued for such property for that respective tax year. To the extent that such reduction has resulted in a taxpayer overpayment for the applicable tax year, the county treasurer shall proceed in the same manner as is prescribed for the refunding or crediting of overpayments under section 319.36 of the Revised Code, as amended by this act.

Section 4. That existing Section 4 of H.B. 186 of the 136th General Assembly is hereby repealed.

Section 5. The amendment by this act of sections 319.36, 323.132, and 5715.22 of the Revised Code applies to property tax overpayments required to be refunded or credited on or after the effective date of this section.