5703-25-46 Tax reduction factor; certification; composite factor.

As used in this rule and rule 5703-25-47 of the Administrative Code,"composite tax reduction factor" means the total percentage reduction in the taxes charged against each tract, lot, or parcel in a given class of real property located in a given taxing district provided under section 319.301 of the Revised Code and rule 5703-25-45 of the Administrative Code.

(A) At the time the county auditor submits the abstract of real property as required under section 5715.23 of the Revised Code, the auditor shall furnish the information required by the tax commissioner to compute the tax reduction factors or adjustments under divisions (D) and (E) of section 319.301 of the Revised Code. The auditor shall supplement this information as requested by the commissioner, or by the last day of November if a tax approved at the November election is to be extended on the current year's tax list and duplicate.

(B)

(1) Upon receiving the necessary information from the auditor the commissioner shall determine the tax reduction factor for each tax for each class of real property as required under rule 5703-25-45 of the Administrative Code. The commissioner shall certify the tax reduction factors to the county auditor and the county treasurer as soon as the commissioner determines them.

(2) In addition, for each class of real property, the commissioner shall determine a composite tax reduction factor for each taxing district as provided in paragraph (C) of this rule. The commissioner shall certify the composite tax reduction factors to the county auditor and the county treasurer as soon as he determines them.

(C) The purpose of the composite tax reduction factor computed under this paragraph is to provide a total percentage reduction in taxes to be applied uniformly to the real property in each class of real property in a taxing district for the collection of taxes only.

The commissioner shall compute the composite tax reduction factor for each class of real property in each taxing district as follows:

(1) Multiply each tax reduction factor applied to a tax levied for the current year in the district by a quotient, the numerator of which is the number of tax mills of the levy to which that factor applies and the denominator of which is the total number of mills levied on the district;

(2) Cumulate the products obtained in paragraph (C)(1) of this rule.

The sum obtained in this paragraph is the composite tax reduction factor.

(D) In preparing the tax list and duplicate, the county auditor shall extend on the tax list and duplicate the composite tax reduction factor for all property in each class of real property in a taxing district certified under paragraph (B)(2) of this rule for that class in that taxing district.

(E) In preparing the tax bill required under section 323.131 of the Revised Code, the county treasurer shall use the composite tax reduction factor certified under paragraph (B)(2) of this rule for the appropriate class of real property and taxing district. The treasurer shall certify to the commissioner a list of the composite tax reduction factors actually used on the tax bills sent pursuant to section 323.13 of the Revised Code.

(F) No county auditor shall use a composite tax reduction factor other than the composite tax reduction factor certified to the auditor under paragraph (B)(2) of this rule, and no county treasurer shall prepare a tax bill using a composite tax reduction factor other than the appropriate composite tax reduction factor certified to the treasurer under paragraph (B)(2) of this rule.

(G) If a tax reduction factor or composite tax reduction factor appears to be illegal or erroneous, the county auditor shall notify the tax commissioner, who shall recompute the factor and certify it to the county auditor as provided in paragraph (B)(2) of this rule.

Eff 3-20-88; 9-18-03
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: RC 319.301
Replaces: 5705-7-02
R.C. 119.032 review dates: 09/18/2008