As Reported by the House Transportation and Public Safety Committee 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 39 5
1997-1998 6
REPRESENTATIVES MOTTLEY-BATCHELDER-GARDNER-HARRIS-SHOEMAKER- 8
PADGETT-SCHULER-HAGAN-THOMAS-CATES-VESPER-TERWILLEGER- 9
KRUPINSKI-LEWIS-OLMAN-WHALEN-PRINGLE-MALLORY-NETZLEY-BOYD- 10
BRITTON-LAWRENCE-LUCAS-BUCHY-REID-BATEMAN-OPFER-MYERS- 11
ROMAN-MEAD-TAYLOR-FOX-METELSKY-CAREY-SCHURING-CLANCY-BENDER 12
14
A B I L L
To amend section 4505.06 of the Revised Code to 16
authorize the clerks of the courts of common 17
pleas to accept additional methods of payment 18
for motor vehicle title taxes and to establish 19
procedures to ensure collection of the funds. 20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That section 4505.06 of the Revised Code be 24
amended to read as follows: 25
Sec. 4505.06. (A) Application for a certificate of title 34
shall be made upon a form prescribed by the registrar of motor 35
vehicles, and shall be sworn to before a notary public or other 36
officer empowered to administer oaths. The application shall be 37
filed with the clerk of the court of common pleas of the county 38
in which the applicant resides if the applicant is a resident of 39
this state or, if not a resident, in the county in which the 40
transaction is consummated. The application shall be accompanied 41
by the fee prescribed in section 4505.09 of the Revised Code; and 42
if a certificate of title previously has been issued for the 43
motor vehicle in this state, it shall be accompanied by that 44
certificate of title duly assigned, unless otherwise provided in 45
this chapter. If a certificate of title previously has not been 46
issued for the motor vehicle in this state, the application, 47
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unless otherwise provided in this chapter, shall be accompanied 48
by a manufacturer's or importer's certificate or by a certificate 49
of title, bill of sale, or other evidence of ownership required 51
by the law of another state from which the motor vehicle was 52
brought into this state. If the application refers to a motor 53
vehicle last previously registered in another state, the 54
application also shall be accompanied by the physical inspection 55
certificate required by section 4505.061 of the Revised Code. If 56
the application is made by two persons regarding a motor vehicle 57
in which they wish to establish joint ownership with right of 58
survivorship they may do so as provided in section 2106.17 of the 59
Revised Code. The clerk shall retain the evidence of title 60
presented by the applicant and on which the certificate of title 61
is issued. The clerk shall use reasonable diligence in 62
ascertaining whether or not the facts in the application are true 63
by checking the application and documents accompanying it with 64
the records of motor vehicles in the clerk's office; if satisfied 65
that the applicant is the owner of the motor vehicle and that the 66
application is in the proper form, the clerk, within five 67
business days after the application is filed, shall issue a
certificate of title over the clerk's signature and sealed with 69
the clerk's seal. For purposes of the transfer of a certificate
of title, if the clerk is satisfied that the secured party has 70
duly discharged a lien notation, but has not canceled the lien 71
notation with the clerk of the county of origin, the clerk may 72
cancel the lien notation on the automated title processing system 73
and notify the clerk of the county of origin. 74
In the case of the sale of a motor vehicle by a dealer or a 76
manufactured home broker to a general buyer or user, the 77
certificate of title shall be obtained in the name of the buyer 78
by the dealer or the manufactured home broker upon application 79
signed by the buyer, and shall be issued within five business 80
days after the application for title is filed with the clerk. 81
In all other cases, except as provided in division (D)(2) 83
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of section 4505.11 of the Revised Code, such certificates shall 84
be obtained by the buyer. In all cases of transfer of a motor 86
vehicle, the application for certificate of title shall be filed 87
within thirty days after the assignment or delivery of the motor 88
vehicle. If an application for a certificate of title is not 89
filed within that period, the clerk shall collect a fee of five 90
dollars for the issuance of the certificate, except that no such 91
fee shall be required from a motor vehicle salvage dealer, as 92
defined in division (A) of section 4738.01 of the Revised Code, 93
who immediately surrenders the certificate of title for
cancellation. The fee shall be in addition to all other fees 94
established by this chapter, and shall be retained by the clerk. 95
The registrar shall provide, on the certificate of title form 96
prescribed by section 4505.07 of the Revised Code, language 97
necessary to give evidence of the date on which the assignment or 98
delivery of the motor vehicle was made. 99
(B) The clerk, except as provided in this section, shall 101
refuse to accept for filing any application for a certificate of 102
title and shall refuse to issue a certificate of title unless the 103
dealer or manufactured home broker or the applicant, in cases in 104
which the certificate shall be obtained by the buyer, submits 105
with the application payment of the tax levied by or pursuant to 106
Chapters 5739. and 5741. of the Revised Code by cash, certified 107
check, draft, or money order payable to the clerk,. The clerk 108
also may accept payment by a corporate check of a new motor 109
vehicle dealer licensed under Chapter 4517. of the Revised Code. 110
Upon payment of the tax IN ACCORDANCE WITH DIVISION (E) OF THIS 111
SECTION, the clerk shall issue a receipt prescribed by the 112
registrar and agreed upon by the tax commissioner showing payment 113
of the tax or a receipt issued by the commissioner showing the 114
payment of the tax. When submitting payment of the tax to the 115
clerk, a dealer shall retain any discount to which the dealer is
entitled under section 5739.12 of the Revised Code. 116
For receiving and disbursing such taxes paid to the clerk, 118
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the clerk may retain a poundage fee of one and one one-hundredth 119
per cent, which shall be paid into the certificate of title 120
administration fund created by section 325.33 of the Revised 122
Code.
In the case of casual sales of motor vehicles, as defined 124
in section 4517.01 of the Revised Code, the price for the purpose 126
of determining the tax shall be the purchase price on the 127
assigned certificate of title executed by the seller and filed 128
with the clerk by the buyer on a form to be prescribed by the 129
registrar, which shall be prima-facie evidence of the amount for 130
the determination of the tax.
(C)(1) If the transferor indicates on the certificate of 132
title that the odometer reflects mileage in excess of the 133
designed mechanical limit of the odometer, the clerk shall enter 134
the phrase "exceeds mechanical limits" following the mileage 135
designation. If the transferor indicates on the certificate of 136
title that the odometer reading is not the actual mileage, the 137
clerk shall enter the phrase "nonactual: warning - odometer 139
discrepancy" following the mileage designation. The clerk shall
use reasonable care in transferring the information supplied by 141
the transferor, but is not liable for any errors or omissions of 142
the clerk or those of the clerk's deputies in the performance of 143
the clerk's duties created by this chapter.
The registrar shall prescribe an affidavit in which the 145
transferor shall swear to the true selling price and, except as 146
provided in this division, the true odometer reading of the motor 147
vehicle. The registrar may prescribe an affidavit in which the 148
seller and buyer provide information pertaining to the odometer 149
reading of the motor vehicle in addition to that required by this 150
section, as such information may be required by the United States 151
secretary of transportation by rule prescribed under authority of 152
subchapter IV of the "Motor Vehicle Information and Cost Savings 153
Act," 86 Stat. 961 (1972), 15 U.S.C. 1981. 154
(2) Division (C)(1) of this section does not require the 157
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giving of information concerning the odometer and odometer 158
reading of a motor vehicle when ownership of a motor vehicle is 159
being transferred as a result of a bequest, under the laws of 160
intestate succession, to a surviving spouse pursuant to section 161
2106.17, 2106.18, or 4505.10 of the Revised Code, or in 162
connection with the creation of a security interest. 163
(D) When the transfer to the applicant was made in some 165
other state or in interstate commerce, the clerk, except as 166
provided in this section, shall refuse to issue any certificate 167
of title unless the tax imposed by or pursuant to Chapter 5741. 169
of the Revised Code has been paid as evidenced by a receipt 170
issued by the tax commissioner, or unless the applicant submits 171
with the application payment of the tax by cash, certified check, 172
draft, or money order payable to. UPON PAYMENT OF THE TAX IN 173
ACCORDANCE WITH DIVISION (E) OF THIS SECTION, the clerk, who 174
shall issue a receipt prescribed by the registrar and agreed upon 176
by the tax commissioner, showing payment of the tax. For 177
receiving and disbursing such taxes paid to the clerk, the clerk 178
may retain a poundage fee of one AND ONE-HUNDREDTHS per cent. 179
When the vendor is not regularly engaged in the business of 180
selling motor vehicles, the vendor shall not be required to 181
purchase a vendor's license or make reports concerning such 182
sales.
(E) THE CLERK SHALL ACCEPT ANY PAYMENT OF A TAX IN CASH, 184
OR BY CERTIFIED CHECK, DRAFT, OR MONEY ORDER PAYABLE TO THE CLERK 185
AND SUBMITTED WITH AN APPLICATION FOR A CERTIFICATE OF TITLE 187
UNDER DIVISION (B) OR (D) OF THIS SECTION. THE CLERK ALSO MAY 188
ACCEPT PAYMENT OF THE TAX BY CORPORATE, BUSINESS, OR PERSONAL 189
CHECK, CREDIT CARD, ELECTRONIC TRANSFER OR WIRE TRANSFER, DEBIT 190
CARD, OR ANY OTHER ACCEPTED FORM OF PAYMENT MADE PAYABLE TO THE 191
CLERK. THE CLERK MAY REQUIRE BONDS, GUARANTEES, OR LETTERS OF 192
CREDIT TO ENSURE THE COLLECTION OF CORPORATE, BUSINESS, OR 193
PERSONAL CHECKS. ANY SERVICE FEE CHARGED BY A THIRD PARTY TO A 194
CLERK FOR THE USE OF ANY FORM OF PAYMENT MAY BE PAID BY THE CLERK 195
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FROM THE CERTIFICATE OF TITLE ADMINISTRATION FUND CREATED IN 196
SECTION 325.33 OF THE REVISED CODE, OR MAY BE ASSESSED BY THE 197
CLERK UPON THE APPLICANT AS AN ADDITIONAL FEE. UPON COLLECTION, 198
THE ADDITIONAL FEES SHALL BE PAID BY THE CLERK INTO THAT
CERTIFICATE OF TITLE ADMINISTRATION FUND. 199
THE CLERK SHALL MAKE A GOOD FAITH EFFORT TO COLLECT ANY 201
PAYMENT OF TAXES DUE BUT NOT MADE BECAUSE THE PAYMENT WAS 202
RETURNED OR DISHONORED, BUT THE CLERK IS NOT PERSONALLY LIABLE 203
FOR THE PAYMENT OF UNCOLLECTED TAXES OR UNCOLLECTED FEES. THE 204
CLERK SHALL NOTIFY THE TAX COMMISSIONER OF ANY SUCH PAYMENT OF 205
TAXES THAT IS DUE BUT NOT MADE AND SHALL FURNISH SUCH INFORMATION 206
TO THE COMMISSIONER AS THE COMMISSIONER REQUIRES. THE CLERK 207
SHALL DEDUCT THE AMOUNT OF TAXES DUE BUT NOT PAID FROM THE 208
CLERK'S PERIODIC REMITTANCE OF TAX PAYMENTS, IN ACCORDANCE WITH
PROCEDURES AGREED UPON BY THE TAX COMMISSIONER. THE COMMISSIONER 209
MAY COLLECT TAXES DUE BY ASSESSMENT IN THE MANNER PROVIDED IN 210
SECTION 5739.13 OF THE REVISED CODE.
ANY PERSON WHO PRESENTS PAYMENT THAT IS RETURNED OR 212
DISHONORED FOR ANY REASON IS LIABLE TO THE CLERK FOR PAYMENT OF A 213
PENALTY OVER AND ABOVE THE AMOUNT OF THE TAXES DUE. THE CLERK 214
SHALL DETERMINE THE AMOUNT OF THE PENALTY, WHICH SHALL BE NO 215
GREATER THAN THAT AMOUNT NECESSARY TO COMPENSATE THE CLERK FOR 216
BANKING CHARGES, LEGAL FEES, OR OTHER EXPENSES INCURRED BY THE
CLERK IN COLLECTING THE RETURNED OR DISHONORED PAYMENT. THE 217
REMEDIES AND PROCEDURES PROVIDED IN THIS SECTION ARE IN ADDITION 218
TO ANY OTHER AVAILABLE CIVIL OR CRIMINAL REMEDIES. SUBSEQUENTLY 219
COLLECTED PENALTIES, POUNDAGE, AND TITLE FEES, LESS ANY TITLE FEE 221
DUE THE STATE, FROM RETURNED OR DISHONORED PAYMENTS COLLECTED BY
THE CLERK SHALL BE PAID INTO THE CERTIFICATE OF TITLE 222
ADMINISTRATION FUND. SUBSEQUENTLY COLLECTED TAXES, LESS 223
POUNDAGE, SHALL BE SENT BY THE CLERK TO THE TREASURER OF STATE AT 224
THE NEXT SCHEDULED PERIODIC REMITTANCE OF TAX PAYMENTS, WITH SUCH 225
INFORMATION AS THE COMMISSIONER MAY REQUIRE. THE CLERK MAY ABATE
ALL OR ANY PART OF ANY PENALTY ASSESSED UNDER THIS DIVISION. 226
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(F) In the following cases, the clerk shall accept for 228
filing such application and shall issue a certificate of title 229
without requiring payment or evidence of payment of the tax: 230
(1) When the purchaser is this state or any of its 232
political subdivisions, a church, or an organization whose 233
purchases are exempted by section 5739.02 of the Revised Code; 234
(2) When the transaction in this state is not a retail 236
sale as defined by section 5739.01 of the Revised Code; 237
(3) When the purchase is outside this state or in 239
interstate commerce and the purpose of the purchaser is not to 240
use, store, or consume within the meaning of section 5741.01 of 241
the Revised Code; 242
(4) When the purchaser is the federal government; 244
(5) When the motor vehicle was purchased outside this 246
state for use outside this state; 247
(6) When the motor vehicle is purchased by a nonresident 249
of this state for immediate removal from this state, and will be 250
permanently titled and registered in another state, as provided 251
by division (B)(23) of section 5739.02 of the Revised Code, and 252
upon presentation of a copy of the affidavit provided by that 253
section, and a copy of the exemption certificate provided by 254
section 5739.03 of the Revised Code. 255
The clerk shall forward all payments of taxes, less 257
poundage fee, to the treasurer of state in a manner to be 258
prescribed by the tax commissioner and shall furnish such 259
information to the commissioner as the commissioner requires. 260
(F)(G) An application, as prescribed by the registrar and 263
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 264
application shall contain the following notice in bold lettering: 265
"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You 266
are required by law to state the true selling price. A false 267
statement is in violation of section 2921.13 of the Revised Code 269
and is punishable by six months imprisonment or a fine of up to 270
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one thousand dollars, or both. All transfers are audited by the 271
department of taxation. The seller and buyer must provide any 272
information requested by the department of taxation. The buyer
may be assessed any additional tax found to be due." 273
Section 2. That existing section 4505.06 of the Revised 276
Code is hereby repealed. 277
Section 3. Section 4505.06 of the Revised Code is 279
presented in this act as a composite of the section as amended by 280
both Am. Sub. H.B. 353 and Am. Sub. S.B. 182 of the 121st General 281
Assembly, with the new language of neither of the acts shown in 283
capital letters. This is in recognition of the principle stated 284
in division (B) of section 1.52 of the Revised Code that such 285
amendments are to be harmonized where not substantively 286
irreconcilable and constitutes a legislative finding that such is 287
the resulting version in effect prior to the effective date of 288
this act.