As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. 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
HOUSEHOLDER-ROBERTS-CORBIN-GARCIA-GRENDELL-WACHTMANN- 13
DAMSCHRODER-BRADING-SALERNO-CORE-TAVARES-HEALY-HOOD-COLONNA- 14
TIBERI-METZGER-SYKES-JOHNSON-VERICH-MASON-SUTTON-O'BRIEN- 15
WESTON-FORD-JONES-KREBS-SULZER-HAINES-KASPUTIS-SAWYER- 16
MAIER-PATTON-SENATORS OELSLAGER-WATTS-CARNES-LATTA- 17
WHITE-HOWARD-SCHAFRATH-DIX-GARDNER-GAETH 18
19
A B I L L
To amend section 4505.06 of the Revised Code to 21
authorize the clerks of the courts of common 22
pleas to accept additional methods of payment 23
for motor vehicle title taxes and to establish 24
procedures to ensure collection of the funds. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That section 4505.06 of the Revised Code be 29
amended to read as follows: 30
Sec. 4505.06. (A) Application for a certificate of title 39
shall be made upon a form prescribed by the registrar of motor 40
vehicles, and shall be sworn to before a notary public or other 41
officer empowered to administer oaths. The application shall be 42
filed with the clerk of the court of common pleas of the county 43
in which the applicant resides if the applicant is a resident of 44
this state or, if not a resident, in the county in which the 45
transaction is consummated. The application shall be accompanied 46
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by the fee prescribed in section 4505.09 of the Revised Code; and 47
if a certificate of title previously has been issued for the 48
motor vehicle in this state, it shall be accompanied by that 49
certificate of title duly assigned, unless otherwise provided in 50
this chapter. If a certificate of title previously has not been 51
issued for the motor vehicle in this state, the application, 52
unless otherwise provided in this chapter, shall be accompanied 53
by a manufacturer's or importer's certificate or by a certificate 54
of title, bill of sale, or other evidence of ownership required 56
by the law of another state from which the motor vehicle was 57
brought into this state. If the application refers to a motor 58
vehicle last previously registered in another state, the 59
application also shall be accompanied by the physical inspection 60
certificate required by section 4505.061 of the Revised Code. If 61
the application is made by two persons regarding a motor vehicle 62
in which they wish to establish joint ownership with right of 63
survivorship they may do so as provided in section 2106.17 of the 64
Revised Code. The clerk shall retain the evidence of title 65
presented by the applicant and on which the certificate of title 66
is issued. The clerk shall use reasonable diligence in 67
ascertaining whether or not the facts in the application are true 68
by checking the application and documents accompanying it with 69
the records of motor vehicles in the clerk's office; if satisfied 70
that the applicant is the owner of the motor vehicle and that the 71
application is in the proper form, the clerk, within five 72
business days after the application is filed, shall issue a
certificate of title over the clerk's signature and sealed with 74
the clerk's seal. For purposes of the transfer of a certificate
of title, if the clerk is satisfied that the secured party has 75
duly discharged a lien notation, but has not canceled the lien 76
notation with the clerk of the county of origin, the clerk may 77
cancel the lien notation on the automated title processing system 78
and notify the clerk of the county of origin. 79
In the case of the sale of a motor vehicle by a dealer or a 81
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manufactured home broker to a general buyer or user, the 82
certificate of title shall be obtained in the name of the buyer 83
by the dealer or the manufactured home broker upon application 84
signed by the buyer, and shall be issued within five business 85
days after the application for title is filed with the clerk. 86
In all other cases, except as provided in division (D)(2) 88
of section 4505.11 of the Revised Code, such certificates shall 89
be obtained by the buyer. In all cases of transfer of a motor 91
vehicle, the application for certificate of title shall be filed 92
within thirty days after the assignment or delivery of the motor 93
vehicle. If an application for a certificate of title is not 94
filed within that period, the clerk shall collect a fee of five 95
dollars for the issuance of the certificate, except that no such 96
fee shall be required from a motor vehicle salvage dealer, as 97
defined in division (A) of section 4738.01 of the Revised Code, 98
who immediately surrenders the certificate of title for
cancellation. The fee shall be in addition to all other fees 99
established by this chapter, and shall be retained by the clerk. 100
The registrar shall provide, on the certificate of title form 101
prescribed by section 4505.07 of the Revised Code, language 102
necessary to give evidence of the date on which the assignment or 103
delivery of the motor vehicle was made. 104
(B) The clerk, except as provided in this section, shall 106
refuse to accept for filing any application for a certificate of 107
title and shall refuse to issue a certificate of title unless the 108
dealer or manufactured home broker or the applicant, in cases in 109
which the certificate shall be obtained by the buyer, submits 110
with the application payment of the tax levied by or pursuant to 111
Chapters 5739. and 5741. of the Revised Code by cash, certified 112
check, draft, or money order payable to the clerk,. The clerk 113
also may accept payment by a corporate check of a new motor 114
vehicle dealer licensed under Chapter 4517. of the Revised Code. 115
Upon payment of the tax IN ACCORDANCE WITH DIVISION (E) OF THIS 116
SECTION, the clerk shall issue a receipt prescribed by the 117
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registrar and agreed upon by the tax commissioner showing payment 118
of the tax or a receipt issued by the commissioner showing the 119
payment of the tax. When submitting payment of the tax to the 120
clerk, a dealer shall retain any discount to which the dealer is
entitled under section 5739.12 of the Revised Code. 121
For receiving and disbursing such taxes paid to the clerk, 123
the clerk may retain a poundage fee of one and one one-hundredth 124
per cent, which shall be paid into the certificate of title 125
administration fund created by section 325.33 of the Revised 127
Code.
In the case of casual sales of motor vehicles, as defined 129
in section 4517.01 of the Revised Code, the price for the purpose 131
of determining the tax shall be the purchase price on the 132
assigned certificate of title executed by the seller and filed 133
with the clerk by the buyer on a form to be prescribed by the 134
registrar, which shall be prima-facie evidence of the amount for 135
the determination of the tax.
(C)(1) If the transferor indicates on the certificate of 137
title that the odometer reflects mileage in excess of the 138
designed mechanical limit of the odometer, the clerk shall enter 139
the phrase "exceeds mechanical limits" following the mileage 140
designation. If the transferor indicates on the certificate of 141
title that the odometer reading is not the actual mileage, the 142
clerk shall enter the phrase "nonactual: warning - odometer 144
discrepancy" following the mileage designation. The clerk shall
use reasonable care in transferring the information supplied by 146
the transferor, but is not liable for any errors or omissions of 147
the clerk or those of the clerk's deputies in the performance of 148
the clerk's duties created by this chapter.
The registrar shall prescribe an affidavit in which the 150
transferor shall swear to the true selling price and, except as 151
provided in this division, the true odometer reading of the motor 152
vehicle. The registrar may prescribe an affidavit in which the 153
seller and buyer provide information pertaining to the odometer 154
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reading of the motor vehicle in addition to that required by this 155
section, as such information may be required by the United States 156
secretary of transportation by rule prescribed under authority of 157
subchapter IV of the "Motor Vehicle Information and Cost Savings 158
Act," 86 Stat. 961 (1972), 15 U.S.C. 1981. 159
(2) Division (C)(1) of this section does not require the 162
giving of information concerning the odometer and odometer 163
reading of a motor vehicle when ownership of a motor vehicle is 164
being transferred as a result of a bequest, under the laws of 165
intestate succession, to a surviving spouse pursuant to section 166
2106.17, 2106.18, or 4505.10 of the Revised Code, or in 167
connection with the creation of a security interest. 168
(D) When the transfer to the applicant was made in some 170
other state or in interstate commerce, the clerk, except as 171
provided in this section, shall refuse to issue any certificate 172
of title unless the tax imposed by or pursuant to Chapter 5741. 174
of the Revised Code has been paid as evidenced by a receipt 175
issued by the tax commissioner, or unless the applicant submits 176
with the application payment of the tax by cash, certified check, 177
draft, or money order payable to. UPON PAYMENT OF THE TAX IN 178
ACCORDANCE WITH DIVISION (E) OF THIS SECTION, the clerk, who 179
shall issue a receipt prescribed by the registrar and agreed upon 181
by the tax commissioner, showing payment of the tax. For 182
receiving and disbursing such taxes paid to the clerk, the clerk 183
may retain a poundage fee of one per cent. When the vendor is 184
not regularly engaged in the business of selling motor vehicles, 186
the vendor shall not be required to purchase a vendor's license 187
or make reports concerning such sales.
(E) THE CLERK SHALL ACCEPT ANY PAYMENT OF A TAX IN CASH, 189
OR BY CERTIFIED CHECK, DRAFT, OR MONEY ORDER PAYABLE TO THE CLERK 190
AND SUBMITTED WITH AN APPLICATION FOR A CERTIFICATE OF TITLE 192
UNDER DIVISION (B) OR (D) OF THIS SECTION. THE CLERK ALSO MAY 193
ACCEPT PAYMENT OF THE TAX BY CORPORATE, BUSINESS, OR PERSONAL 194
CHECK, CREDIT CARD, ELECTRONIC TRANSFER OR WIRE TRANSFER, DEBIT 195
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CARD, OR ANY OTHER ACCEPTED FORM OF PAYMENT MADE PAYABLE TO THE 196
CLERK. THE CLERK MAY REQUIRE BONDS, GUARANTEES, OR LETTERS OF 197
CREDIT TO ENSURE THE COLLECTION OF CORPORATE, BUSINESS, OR 198
PERSONAL CHECKS. ANY SERVICE FEE CHARGED BY A THIRD PARTY TO A 199
CLERK FOR THE USE OF ANY FORM OF PAYMENT MAY BE PAID BY THE CLERK 200
FROM THE CERTIFICATE OF TITLE ADMINISTRATION FUND CREATED IN 201
SECTION 325.33 OF THE REVISED CODE, OR MAY BE ASSESSED BY THE 202
CLERK UPON THE APPLICANT AS AN ADDITIONAL FEE. UPON COLLECTION, 203
THE ADDITIONAL FEES SHALL BE PAID BY THE CLERK INTO THAT
CERTIFICATE OF TITLE ADMINISTRATION FUND. 204
THE CLERK SHALL MAKE A GOOD FAITH EFFORT TO COLLECT ANY 206
PAYMENT OF TAXES DUE BUT NOT MADE BECAUSE THE PAYMENT WAS 207
RETURNED OR DISHONORED, BUT THE CLERK IS NOT PERSONALLY LIABLE 208
FOR THE PAYMENT OF UNCOLLECTED TAXES OR UNCOLLECTED FEES. THE 209
CLERK SHALL NOTIFY THE TAX COMMISSIONER OF ANY SUCH PAYMENT OF 210
TAXES THAT IS DUE BUT NOT MADE AND SHALL FURNISH SUCH INFORMATION 211
TO THE COMMISSIONER AS THE COMMISSIONER REQUIRES. THE CLERK 212
SHALL DEDUCT THE AMOUNT OF TAXES DUE BUT NOT PAID FROM THE 213
CLERK'S PERIODIC REMITTANCE OF TAX PAYMENTS, IN ACCORDANCE WITH
PROCEDURES AGREED UPON BY THE TAX COMMISSIONER. THE COMMISSIONER 214
MAY COLLECT TAXES DUE BY ASSESSMENT IN THE MANNER PROVIDED IN 215
SECTION 5739.13 OF THE REVISED CODE.
ANY PERSON WHO PRESENTS PAYMENT THAT IS RETURNED OR 217
DISHONORED FOR ANY REASON IS LIABLE TO THE CLERK FOR PAYMENT OF A 218
PENALTY OVER AND ABOVE THE AMOUNT OF THE TAXES DUE. THE CLERK 219
SHALL DETERMINE THE AMOUNT OF THE PENALTY, WHICH SHALL BE NO 220
GREATER THAN THAT AMOUNT NECESSARY TO COMPENSATE THE CLERK FOR 221
BANKING CHARGES, LEGAL FEES, OR OTHER EXPENSES INCURRED BY THE
CLERK IN COLLECTING THE RETURNED OR DISHONORED PAYMENT. THE 222
REMEDIES AND PROCEDURES PROVIDED IN THIS SECTION ARE IN ADDITION 223
TO ANY OTHER AVAILABLE CIVIL OR CRIMINAL REMEDIES. SUBSEQUENTLY 224
COLLECTED PENALTIES, POUNDAGE, AND TITLE FEES, LESS ANY TITLE FEE 226
DUE THE STATE, FROM RETURNED OR DISHONORED PAYMENTS COLLECTED BY
THE CLERK SHALL BE PAID INTO THE CERTIFICATE OF TITLE 227
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ADMINISTRATION FUND. SUBSEQUENTLY COLLECTED TAXES, LESS 228
POUNDAGE, SHALL BE SENT BY THE CLERK TO THE TREASURER OF STATE AT 229
THE NEXT SCHEDULED PERIODIC REMITTANCE OF TAX PAYMENTS, WITH SUCH 230
INFORMATION AS THE COMMISSIONER MAY REQUIRE. THE CLERK MAY ABATE
ALL OR ANY PART OF ANY PENALTY ASSESSED UNDER THIS DIVISION. 231
(F) In the following cases, the clerk shall accept for 233
filing such application and shall issue a certificate of title 234
without requiring payment or evidence of payment of the tax: 235
(1) When the purchaser is this state or any of its 237
political subdivisions, a church, or an organization whose 238
purchases are exempted by section 5739.02 of the Revised Code; 239
(2) When the transaction in this state is not a retail 241
sale as defined by section 5739.01 of the Revised Code; 242
(3) When the purchase is outside this state or in 244
interstate commerce and the purpose of the purchaser is not to 245
use, store, or consume within the meaning of section 5741.01 of 246
the Revised Code; 247
(4) When the purchaser is the federal government; 249
(5) When the motor vehicle was purchased outside this 251
state for use outside this state; 252
(6) When the motor vehicle is purchased by a nonresident 254
of this state for immediate removal from this state, and will be 255
permanently titled and registered in another state, as provided 256
by division (B)(23) of section 5739.02 of the Revised Code, and 257
upon presentation of a copy of the affidavit provided by that 258
section, and a copy of the exemption certificate provided by 259
section 5739.03 of the Revised Code. 260
The clerk shall forward all payments of taxes, less 262
poundage fee, to the treasurer of state in a manner to be 263
prescribed by the tax commissioner and shall furnish such 264
information to the commissioner as the commissioner requires. 265
(F)(G) An application, as prescribed by the registrar and 268
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 269
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application shall contain the following notice in bold lettering: 270
"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You 271
are required by law to state the true selling price. A false 272
statement is in violation of section 2921.13 of the Revised Code 274
and is punishable by six months imprisonment or a fine of up to 275
one thousand dollars, or both. All transfers are audited by the 276
department of taxation. The seller and buyer must provide any 277
information requested by the department of taxation. The buyer
may be assessed any additional tax found to be due." 278
Section 2. That existing section 4505.06 of the Revised 281
Code is hereby repealed. 282
Section 3. Section 4505.06 of the Revised Code is 284
presented in this act as a composite of the section as amended by 285
both Am. Sub. H.B. 353 and Am. Sub. S.B. 182 of the 121st General 286
Assembly, with the new language of neither of the acts shown in 288
capital letters. This is in recognition of the principle stated 289
in division (B) of section 1.52 of the Revised Code that such 290
amendments are to be harmonized where not substantively 291
irreconcilable and constitutes a legislative finding that such is 292
the resulting version in effect prior to the effective date of 293
this act.