As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 39 5
1997-1998 6
REPRESENTATIVES MOTTLEY-BATCHELDER-GARDNER-HARRIS-SHOEMAKER-PADGETT- 8
SCHULER-HAGAN-THOMAS-CATES-VESPER-TERWILLEGER-KRUPINSKI-LEWIS- 9
OLMAN-WHALEN-PRINGLE-MALLORY-NETZLEY-BOYD-BRITTON-LAWRENCE- 10
LUCAS-BUCHY-REID-BATEMAN-OPFER-MYERS-ROMAN-MEAD-TAYLOR-FOX 11
13
A B I L L
To amend section 4505.06 of the Revised Code to 15
authorize the clerks of the courts of common 16
pleas to accept additional methods of payment 17
for motor vehicle title taxes and to establish 18
procedures to ensure collection of the funds. 19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That section 4505.06 of the Revised Code be 23
amended to read as follows: 24
Sec. 4505.06. (A) Application for a certificate of title 33
shall be made upon a form prescribed by the registrar of motor 34
vehicles, and shall be sworn to before a notary public or other 35
officer empowered to administer oaths. The application shall be 36
filed with the clerk of the court of common pleas of the county 37
in which the applicant resides if the applicant is a resident of 38
this state or, if not a resident, in the county in which the 39
transaction is consummated. The application shall be accompanied 40
by the fee prescribed in section 4505.09 of the Revised Code; and 41
if a certificate of title previously has been issued for the 42
motor vehicle in this state, it shall be accompanied by that 43
certificate of title duly assigned, unless otherwise provided in 44
this chapter. If a certificate of title previously has not been 45
issued for the motor vehicle in this state, the application, 46
unless otherwise provided in this chapter, shall be accompanied 47
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by a manufacturer's or importer's certificate or by a certificate 48
of title, bill of sale, or other evidence of ownership required 50
by the law of another state from which the motor vehicle was 51
brought into this state. If the application refers to a motor 52
vehicle last previously registered in another state, the 53
application also shall be accompanied by the physical inspection 54
certificate required by section 4505.061 of the Revised Code. If 55
the application is made by two persons regarding a motor vehicle 56
in which they wish to establish joint ownership with right of 57
survivorship they may do so as provided in section 2106.17 of the 58
Revised Code. The clerk shall retain the evidence of title 59
presented by the applicant and on which the certificate of title 60
is issued. The clerk shall use reasonable diligence in 61
ascertaining whether or not the facts in the application are true 62
by checking the application and documents accompanying it with 63
the records of motor vehicles in the clerk's office; if satisfied 64
that the applicant is the owner of the motor vehicle and that the 65
application is in the proper form, the clerk, within five 66
business days after the application is filed, shall issue a
certificate of title over the clerk's signature and sealed with 68
the clerk's seal. For purposes of the transfer of a certificate
of title, if the clerk is satisfied that the secured party has 69
duly discharged a lien notation, but has not canceled the lien 70
notation with the clerk of the county of origin, the clerk may 71
cancel the lien notation on the automated title processing system 72
and notify the clerk of the county of origin. 73
In the case of the sale of a motor vehicle by a dealer or a 75
manufactured home broker to a general buyer or user, the 76
certificate of title shall be obtained in the name of the buyer 77
by the dealer or the manufactured home broker upon application 78
signed by the buyer, and shall be issued within five business 79
days after the application for title is filed with the clerk. 80
In all other cases, except as provided in division (D)(2) 82
of section 4505.11 of the Revised Code, such certificates shall 83
3
be obtained by the buyer. In all cases of transfer of a motor 85
vehicle, the application for certificate of title shall be filed 86
within thirty days after the assignment or delivery of the motor 87
vehicle. If an application for a certificate of title is not 88
filed within that period, the clerk shall collect a fee of five 89
dollars for the issuance of the certificate, except that no such 90
fee shall be required from a motor vehicle salvage dealer, as 91
defined in division (A) of section 4738.01 of the Revised Code, 92
who immediately surrenders the certificate of title for
cancellation. The fee shall be in addition to all other fees 93
established by this chapter, and shall be retained by the clerk. 94
The registrar shall provide, on the certificate of title form 95
prescribed by section 4505.07 of the Revised Code, language 96
necessary to give evidence of the date on which the assignment or 97
delivery of the motor vehicle was made. 98
(B) The clerk, except as provided in this section, shall 100
refuse to accept for filing any application for a certificate of 101
title and shall refuse to issue a certificate of title unless the 102
dealer or manufactured home broker or the applicant, in cases in 103
which the certificate shall be obtained by the buyer, submits 104
with the application payment of the tax levied by or pursuant to 105
Chapters 5739. and 5741. of the Revised Code by cash, certified 106
check, draft, or money order payable to the clerk,. The clerk 107
also may accept payment by a corporate check of a new motor 108
vehicle dealer licensed under Chapter 4517. of the Revised Code. 109
Upon payment of the tax IN ACCORDANCE WITH DIVISION (E) OF THIS 110
SECTION, the clerk shall issue a receipt prescribed by the 111
registrar and agreed upon by the tax commissioner showing payment 112
of the tax or a receipt issued by the commissioner showing the 113
payment of the tax. When submitting payment of the tax to the 114
clerk, a dealer shall retain any discount to which the dealer is
entitled under section 5739.12 of the Revised Code. 115
For receiving and disbursing such taxes paid to the clerk, 117
the clerk may retain a poundage fee of one and one one-hundredth 118
4
per cent, which shall be paid into the certificate of title 119
administration fund created by section 325.33 of the Revised 121
Code.
In the case of casual sales of motor vehicles, as defined 123
in section 4517.01 of the Revised Code, the price for the purpose 125
of determining the tax shall be the purchase price on the 126
assigned certificate of title executed by the seller and filed 127
with the clerk by the buyer on a form to be prescribed by the 128
registrar, which shall be prima-facie evidence of the amount for 129
the determination of the tax.
(C)(1) If the transferor indicates on the certificate of 131
title that the odometer reflects mileage in excess of the 132
designed mechanical limit of the odometer, the clerk shall enter 133
the phrase "exceeds mechanical limits" following the mileage 134
designation. If the transferor indicates on the certificate of 135
title that the odometer reading is not the actual mileage, the 136
clerk shall enter the phrase "nonactual: warning - odometer 138
discrepancy" following the mileage designation. The clerk shall
use reasonable care in transferring the information supplied by 140
the transferor, but is not liable for any errors or omissions of 141
the clerk or those of the clerk's deputies in the performance of 142
the clerk's duties created by this chapter.
The registrar shall prescribe an affidavit in which the 144
transferor shall swear to the true selling price and, except as 145
provided in this division, the true odometer reading of the motor 146
vehicle. The registrar may prescribe an affidavit in which the 147
seller and buyer provide information pertaining to the odometer 148
reading of the motor vehicle in addition to that required by this 149
section, as such information may be required by the United States 150
secretary of transportation by rule prescribed under authority of 151
subchapter IV of the "Motor Vehicle Information and Cost Savings 152
Act," 86 Stat. 961 (1972), 15 U.S.C. 1981. 153
(2) Division (C)(1) of this section does not require the 156
giving of information concerning the odometer and odometer 157
5
reading of a motor vehicle when ownership of a motor vehicle is 158
being transferred as a result of a bequest, under the laws of 159
intestate succession, to a surviving spouse pursuant to section 160
2106.17, 2106.18, or 4505.10 of the Revised Code, or in 161
connection with the creation of a security interest. 162
(D) When the transfer to the applicant was made in some 164
other state or in interstate commerce, the clerk, except as 165
provided in this section, shall refuse to issue any certificate 166
of title unless the tax imposed by or pursuant to Chapter 5741. 168
of the Revised Code has been paid as evidenced by a receipt 169
issued by the tax commissioner, or unless the applicant submits 170
with the application payment of the tax by cash, certified check, 171
draft, or money order payable to. UPON PAYMENT OF THE TAX IN 172
ACCORDANCE WITH DIVISION (E) OF THIS SECTION, the clerk, who 173
shall issue a receipt prescribed by the registrar and agreed upon 175
by the tax commissioner, showing payment of the tax. For 176
receiving and disbursing such taxes paid to the clerk, the clerk 177
may retain a poundage fee of one per cent. When the vendor is 178
not regularly engaged in the business of selling motor vehicles, 179
the vendor shall not be required to purchase a vendor's license 180
or make reports concerning such sales.
(E) THE CLERK SHALL ACCEPT ANY PAYMENT OF A TAX IN CASH, 182
OR BY CERTIFIED CHECK, DRAFT, OR MONEY ORDER PAYABLE TO THE CLERK 183
AND SUBMITTED WITH AN APPLICATION FOR A CERTIFICATE OF TITLE 185
UNDER DIVISION (B) OR (D) OF THIS SECTION. THE CLERK ALSO MAY 186
ACCEPT PAYMENT OF THE TAX BY CORPORATE, BUSINESS, OR PERSONAL 187
CHECK, CREDIT CARD, ELECTRONIC TRANSFER CARD, DEBIT CARD, OR ANY 188
OTHER ACCEPTED FORM OF PAYMENT MADE PAYABLE TO THE CLERK. THE 189
CLERK MAY REQUIRE BONDS, GUARANTEES, OR LETTERS OF CREDIT TO 191
ENSURE THE COLLECTION OF CORPORATE, BUSINESS, OR PERSONAL CHECKS. 192
ANY SERVICE FEE CHARGED FOR THE USE OF ANY FORM OF PAYMENT SHALL
BE ASSESSED BY THE CLERK UPON THE APPLICANT AS AN ADDITIONAL FEE; 193
UPON COLLECTION, THE ADDITIONAL FEES SHALL BE PAID BY THE CLERK 195
INTO THE CERTIFICATE OF TITLE ADMINISTRATION FUND CREATED IN 196
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SECTION 325.33 OF THE REVISED CODE. 197
THE CLERK SHALL MAKE A GOOD FAITH EFFORT TO COLLECT ANY 199
PAYMENT OF TAXES DUE BUT NOT MADE BECAUSE THE PAYMENT WAS 200
RETURNED OR DISHONORED, BUT THE CLERK IS NOT PERSONALLY LIABLE 201
FOR THE PAYMENT OF UNCOLLECTED TAXES. THE CLERK SHALL NOTIFY THE 203
TAX COMMISSIONER OF ANY SUCH PAYMENT OF TAXES THAT IS DUE BUT NOT
MADE AND SHALL DEDUCT THAT AMOUNT FROM THE CLERK'S PERIODIC 204
REMITTANCE OF TAX PAYMENTS. THE COMMISSIONER SHALL CERTIFY THE 205
AMOUNT OF THE UNCOLLECTED TAXES TO THE ATTORNEY GENERAL FOR 206
COLLECTION IN THE SAME MANNER AS OTHER DEBTS OWED TO THE STATE. 207
ANY PERSON WHO PRESENTS PAYMENT THAT IS RETURNED OR 209
DISHONORED FOR ANY REASON IS LIABLE TO THE CLERK FOR PAYMENT OF A 210
PENALTY OVER AND ABOVE THE AMOUNT OF THE TAXES DUE. THE CLERK 211
SHALL DETERMINE THE AMOUNT OF THE PENALTY, WHICH SHALL BE NO 212
GREATER THAN THAT AMOUNT NECESSARY TO COMPENSATE THE CLERK FOR 213
BANKING CHARGES, LEGAL FEES, OR OTHER EXPENSES INCURRED BY THE
CLERK IN COLLECTING THE RETURNED OR DISHONORED PAYMENT. THE 214
REMEDIES AND PROCEDURES PROVIDED IN THIS SECTION ARE IN ADDITION 215
TO ANY OTHER AVAILABLE CIVIL OR CRIMINAL REMEDIES. 216
THE CLERK ALSO MAY NOTIFY THE REGISTRAR OF ANY TAXES DUE 218
BUT NOT MADE BECAUSE OF A RETURNED OR DISHONORED PAYMENT AND THE 219
REGISTRAR SHALL CANCEL THE REGISTRATION OF ANY MOTOR VEHICLE 220
OWNED BY THE PERSON OWING THE TAXES UNTIL THE TAXES AND ALL 222
PENALTIES INCURRED HAVE BEEN PAID IN FULL. THE REGISTRAR SHALL
ASSESS A FIVE DOLLAR PROCESSING FEE FOR REINSTATEMENT OF ANY 223
CANCELED REGISTRATION TO COVER THE COSTS OF THE BUREAU OF MOTOR 224
VEHICLES IN ADMINISTERING THIS SECTION. SUBSEQUENTLY COLLECTED 225
PENALTIES, POUNDAGE, AND TITLE FEES, LESS ANY TITLE FEE DUE THE 227
STATE, FROM RETURNED OR DISHONORED PAYMENTS COLLECTED BY THE 228
CLERK SHALL BE PAID INTO THE CERTIFICATE OF TITLE ADMINISTRATION
FUND. SUBSEQUENTLY COLLECTED TAXES, LESS POUNDAGE, SHALL BE SENT 229
BY THE CLERK TO THE TREASURER OF STATE AT THE NEXT SCHEDULED 230
PERIODIC REMITTANCE OF TAX PAYMENTS, WITH SUCH INFORMATION AS THE 231
COMMISSIONER MAY REQUIRE. THE CLERK MAY ABATE ALL OR ANY PART OF 232
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ANY PENALTY ASSESSED UNDER DIVISION (E) OF THIS SECTION. 233
(F) In the following cases, the clerk shall accept for 235
filing such application and shall issue a certificate of title 236
without requiring payment or evidence of payment of the tax: 237
(1) When the purchaser is this state or any of its 239
political subdivisions, a church, or an organization whose 240
purchases are exempted by section 5739.02 of the Revised Code; 241
(2) When the transaction in this state is not a retail 243
sale as defined by section 5739.01 of the Revised Code; 244
(3) When the purchase is outside this state or in 246
interstate commerce and the purpose of the purchaser is not to 247
use, store, or consume within the meaning of section 5741.01 of 248
the Revised Code; 249
(4) When the purchaser is the federal government; 251
(5) When the motor vehicle was purchased outside this 253
state for use outside this state; 254
(6) When the motor vehicle is purchased by a nonresident 256
of this state for immediate removal from this state, and will be 257
permanently titled and registered in another state, as provided 258
by division (B)(23) of section 5739.02 of the Revised Code, and 259
upon presentation of a copy of the affidavit provided by that 260
section, and a copy of the exemption certificate provided by 261
section 5739.03 of the Revised Code. 262
The clerk shall forward all payments of taxes, less 264
poundage fee, to the treasurer of state in a manner to be 265
prescribed by the tax commissioner and shall furnish such 266
information to the commissioner as the commissioner requires. 267
(F)(G) An application, as prescribed by the registrar and 270
agreed to by the tax commissioner, shall be filled out and sworn
to by the buyer of a motor vehicle in a casual sale. The 271
application shall contain the following notice in bold lettering: 272
"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You 273
are required by law to state the true selling price. A false 274
statement is in violation of section 2921.13 of the Revised Code 276
8
and is punishable by six months imprisonment or a fine of up to 277
one thousand dollars, or both. All transfers are audited by the 278
department of taxation. The seller and buyer must provide any 279
information requested by the department of taxation. The buyer
may be assessed any additional tax found to be due." 280
Section 2. That existing section 4505.06 of the Revised 283
Code is hereby repealed. 284
Section 3. Section 4505.06 of the Revised Code is 286
presented in this act as a composite of the section as amended by 287
both Am. Sub. H.B. 353 and Am. Sub. S.B. 182 of the 121st General 288
Assembly, with the new language of neither of the acts shown in 290
capital letters. This is in recognition of the principle stated 291
in division (B) of section 1.52 of the Revised Code that such 292
amendments are to be harmonized where not substantively 293
irreconcilable and constitutes a legislative finding that such is 294
the resulting version in effect prior to the effective date of 295
this act.