As Introduced 1
122nd General Assembly 4
Regular Session S. B. No. 59 5
1997-1998 6
SENATORS NEIN-LATTA 8
10
A B I L L
To amend sections 321.45, 323.12, 323.31, 5711.33, 12
5715.39, and 5719.03 and to enact section 321.48 13
of the Revised Code to permit all real property 14
taxpayers to participate in a system for 15
prepayment of taxes and to make other changes to
the county treasurer law. 16
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That sections 321.45, 323.12, 323.31, 5711.33, 20
5715.39, and 5719.03 be amended and section 321.48 of the Revised 22
Code be enacted to read as follows:
Sec. 321.45. (A) As used in this section: 31
(1) "Taxpayer" means any person in whose name a parcel of 33
residential property is listed on the tax duplicate. 34
(2) "Prepayment" means any amount given to the county 36
treasurer by a taxpayer under this section for the treasurer to 37
apply as payment of the taxpayer's total taxes due in accordance 38
with this section. 39
(3) "Taxes," "delinquent taxes," and "current taxes" have 41
the same meanings as in section 323.01 of the Revised Code. 42
(4) "Duplicate" means the treasurer's duplicate of real 44
and public utility property. 45
(5) "Total taxes due" means all delinquent taxes and that 47
portion of current taxes that, in order to avoid a penalty, are 48
required to be paid by the next date that is the last date on 49
which an installment of taxes may be paid without penalty. 50
(6) "Residential property" means single family dwellings, 52
2
duplexes, doubles, and apartment buildings with not more than six 53
units and the land on which those dwellings are located. 54
(B)(1) A county treasurer may enter into a written 56
agreement with any taxpayer, upon mutually agreed upon ON terms 57
and conditions, under which both of the following occur: 59
(a) The taxpayer agrees to tender prepayments of taxes on 61
a parcel of residential property for which he THE TAXPAYER is the 64
taxpayer;
(b) The treasurer agrees to accept the prepayments and 66
hold them either in an escrow fund or a separate depository 67
account until the last day that an installment of current taxes 68
may be paid without penalty, at which time he THE TREASURER 70
further agrees to apply, in payment of the total taxes due on the 72
parcel, an amount of the prepayments that equals the total taxes 73
due on the parcel. IF A DISCOUNT IS NOT GIVEN UNDER DIVISION 75
(B)(2) OF THIS SECTION, ANY EARNINGS ON PREPAYMENTS IN AN ESCROW 76
FUND OR DEPOSITORY ACCOUNT SHALL BE PAID TO THE CREDIT OF A 77
SPECIAL INTEREST ACCOUNT TO BE USED BY THE TREASURER ONLY FOR THE 78
PAYMENT OF THE EXPENSES INCURRED IN ESTABLISHING AND 79
ADMINISTERING THE SYSTEM FOR COLLECTING PREPAYMENTS UNDER 80
DIVISION (B)(1) OF THIS SECTION. 81
(2) In addition to providing for the items enumerated in 83
division (B)(1) of this section, the agreement may provide for 84
the treasurer to invest prepayments held in the escrow FUND or 85
depository account, subject to Chapter 135. of the Revised Code, 86
and apply the investment earnings thereon, after deducting an 87
amount to pay the expenses incurred by the treasurer in 88
establishing and administering the prepayment system, as a 89
discount against the total taxes due of each taxpayer entering 90
into such an agreement. The balance applied to the discounts 91
shall be apportioned among taxpayers in such a manner that the 92
discount credited to a taxpayer for each parcel of residential 93
real property for which taxes are prepaid is commensurate with 94
the amount of current taxes due and the length of time current 95
3
taxes are held in escrow. Discounts accruing to prepayments made 96
for a tax year shall be applied against total taxes due for the 97
ensuing tax year. No discount shall be apportioned to a taxpayer 98
who fails to pay the total taxes due or fails to make prepayments 99
pursuant to the terms of the agreement. 100
(C) A prepayment accepted by a treasurer under an 102
agreement under division (B) of this section does not constitute 103
a payment of taxes until it is applied toward the payment of 104
taxes as provided in this section. A separate prepayment 105
agreement is required for each parcel of residential property, 106
except that a taxpayer who makes prepayments on more than one 107
parcel may enter into a single agreement covering all of the 108
parcels. The single agreement shall specify the manner in which 109
each prepayment shall be apportioned among the parcels. The 110
treasurer shall keep a separate record for each parcel showing 111
the date and amount of each prepayment. 112
(D) No treasurer shall fail to apply prepayments toward 114
the payment of taxes as required pursuant to an agreement entered 115
INTO under division (B) of this section; however, the total 116
amount of prepayments shall equal or exceed the total taxes due, 117
less any discount applied for a previous period under division 118
(B)(2) of this section. 119
(E) The treasurer shall give each person who makes a tax 121
prepayment in person at the office of the county treasurer a 122
receipt in the form that the prepayment agreement requires. The 123
treasurer shall give a receipt to a person who makes a tax 124
prepayment to the treasurer by mail only if the taxpayer encloses 125
with the prepayment an addressed envelope with sufficient 126
postage, in which case the treasurer shall insert a receipt for 127
the prepayment in that envelope and deposit it in the mail. The 128
treasurer may refund any amount tendered as a prepayment if the 129
taxpayer so requests and files with the treasurer an affidavit 130
and the supporting documents the treasurer requires providing 131
that the taxpayer no longer owns the property. The request for 132
4
the refund shall be made prior to the date of the mailing of a 133
tax bill and escrow statement to the taxpayer. If a taxpayer who 134
has entered into a prepayment agreement pursuant to this section 135
dies before the last day on which an installment of current taxes 136
may be paid without penalty, the treasurer may refund the amount 137
of any prepayments made by that taxpayer to the executor or 138
administrator of the taxpayer's estate. 139
(F) If the treasurer has received any prepayments from a 141
taxpayer, the treasurer shall add to the tax bill required by 142
section 323.13 of the Revised Code a tax escrow statement that 143
shall specify the total amount of prepayments received by the 144
treasurer on or before the date the statement was prepared, the 145
balance of total taxes due for which no prepayment has been 146
received, the amount of any discount to be applied to total taxes 147
due, and the date the statement was prepared. 148
(G) If the total amount of a taxpayer's prepayments to the 150
treasurer made on or before the final date an installment of 151
taxes may be paid without penalty do not equal or exceed the 152
total taxes due on that date, the taxpayer is not relieved of any 153
late penalty or interest otherwise due pursuant to section 154
323.121 of the Revised Code. If the treasurer fails to apply 155
prepayments received by his THE TREASURER'S office in accordance 156
with the terms of an agreement and the total amount of the 158
taxpayer's prepayments equals or exceeds the total taxes due, the 159
taxpayer is relieved of any late penalty or interest imposed 160
under section 323.121 of the Revised Code. 161
(H) The office of the county treasurer shall bear all of 163
the costs of establishing and administering a system for 164
collecting prepayments as permitted by this section. 165
(I) Before the county treasurer commences a prepayment 167
system, the tax commissioner shall approve all procedures and 168
forms to be used in the system. 169
(J) The treasurer may enter into any agreements necessary 171
to enable the taxpayer to make prepayments of taxes to the office 172
5
of the treasurer through the electronic transfer of funds from an 173
account in the name of the taxpayer at a financial institution. 174
Sec. 321.48. A COUNTY TREASURER MAY ASSESS A FEE NOT 176
EXCEEDING AN AMOUNT EQUAL TO FIVE DOLLARS PLUS ANY AMOUNT PASSED 177
ON FROM A FINANCIAL INSTITUTION ON A DRAWER OR INDORSER FOR EACH 178
CHECK, DRAFT, OR MONEY ORDER RETURNED OR DISHONORED, OR AUTOMATIC 180
BANK TRANSFER DECLINED, DUE TO INSUFFICIENT FUNDS OR FOR ANY 181
OTHER REASON. THE COUNTY TREASURER SHALL DEPOSIT IN THE GENERAL 182
FUND OF THE COUNTY ANY FEE COLLECTED UNDER THIS SECTION. 183
Sec. 323.12. (A) Each person charged with taxes shall pay 192
to the county treasurer the full amount of such taxes on or 193
before the thirty-first day of December, or shall pay one-half of 194
the current taxes together with the full amount of any delinquent 195
taxes before such date, and the remaining half on or before the 196
twentieth day of June next ensuing. 197
When taxes are paid by installments, each payment shall be 199
apportioned among the several funds for which taxes have been 200
assessed. 201
(B) A tax is paid on or before the dates set forth in this 203
section if the tax payment is received by the county treasurer or 204
if prepayments are applied by the treasurer toward the payment of 205
taxes as provided by section 321.45 of the Revised Code on or 206
before the last day for payment of such tax, or if the tax 207
payment is received after such date in an envelope that was 208
postmarked by the UNITED STATES postal service on or before the 210
last day for payment of such tax. In the event there is more 211
than one date of postmark on the envelope, the earliest date 212
imprinted by the UNITED STATES postal service shall be the date 213
of payment. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A 214
VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT 215
OF SUCH TAX.
(C) The treasurer may delay the closing of his THE 217
TREASURER'S books for any collection period for the purpose of 219
receiving and processing such payments. 220
6
Sec. 323.31. (A) Delinquent taxes charged against any 229
entry of real property may be paid pursuant to this division by 230
the person who owns the real property or is a vendee in 231
possession under a purchase agreement or land contract after 232
entering into a written undertaking with the county treasurer in 233
a form prescribed or approved by the tax commissioner. The 234
undertaking may be entered into at any time prior to the county 235
prosecuting attorney's commencement of foreclosure proceedings 236
pursuant to section 323.25 or 5721.18 of the Revised Code, or 237
commencement of foreclosure and forfeiture proceedings pursuant 238
to section 5721.14 of the Revised Code. A duplicate copy of each 239
such undertaking shall be filed with the county auditor, who 240
shall attach such THE copy to the delinquent land tax certificate 242
or delinquent vacant land tax certificate, or who shall enter an 243
asterisk in the margin next to the entry for the tract or lot on 244
the master list of delinquent tracts or master list of delinquent 245
vacant tracts, prior to filing it with the prosecuting attorney 246
under section 5721.13 of the Revised Code. If the undertaking is 247
entered into after the certificate or the master list has been 248
filed with the prosecuting attorney, the treasurer shall file the 249
duplicate copy with the prosecuting attorney. 250
An undertaking entered into under this division shall 252
provide for the payment of delinquent taxes in installments over 253
a period not to exceed five years beginning on the earliest date 254
delinquent taxes that are the subject of the undertaking were 255
included in a certification under section 5721.011 of the Revised 256
Code; however, a person entering into an undertaking WHO OWNS AND 258
OCCUPIES RESIDENTIAL REAL PROPERTY may request, and the treasurer 261
shall allow, an undertaking providing for payment in installments 263
over a period of no fewer than two years beginning on that date. 264
For
FOR each undertaking, the county treasurer shall determine, 267
and shall specify in the undertaking, the number of installments, 268
the amount of each installment, and the schedule for payment of 269
7
the installments. EACH
Each installment payment shall be apportioned among the 271
several funds for which taxes have been assessed and shall be 272
applied to the items of taxes charged in the order in which they 273
became due. 274
When an installment payment is not received by the 276
treasurer when due or any current taxes charged against the 277
property become delinquent, the undertaking becomes void unless 278
the treasurer permits a new undertaking to be entered into; if 279
the treasurer does not permit a new undertaking to be entered 280
into, the treasurer shall certify to the auditor that the 281
undertaking has become void. A new undertaking entered into 282
under this paragraph shall provide for payment of the outstanding 283
balance of delinquent taxes over a period that, when added to the 284
periods of any previous undertakings that had elapsed prior to 285
their becoming void, does not exceed ten years. 286
Upon receipt of such a certification, the auditor shall 288
destroy his THE duplicate copy of the undertaking. If such copy 289
has been filed with the prosecuting attorney, the auditor 291
immediately shall deliver the certification to the prosecuting 292
attorney, who shall attach it to the appropriate certificate and 293
the duplicate copy of the voided undertaking or strike through 294
the asterisk entered in the margin of the master list next to the 295
entry for the tract or lot that is the subject of the voided 296
undertaking. The prosecuting attorney then shall institute a 297
proceeding to foreclose the lien of the state in accordance with 298
section 323.25 or 5721.18 of the Revised Code or, in the case of 299
delinquent vacant land, shall institute a foreclosure proceeding 300
in accordance with section 323.25 or 5721.18 of the Revised Code, 301
or a foreclosure and forfeiture proceeding in accordance with 302
section 5721.14 of the Revised Code. 303
(B) Within ten days after the date prescribed by section 305
323.12 or 323.17 of the Revised Code for payment of the first 306
half installment of the current taxes, any person failing to pay 307
8
the amount required by such date, with the consent of the 308
treasurer, may enter into a written undertaking with the 309
treasurer, in a form prescribed by the tax commissioner, to pay 310
all current taxes pursuant to this division. The agreement shall 311
provide for the entire amount of such taxes to be paid in three 312
or fewer installments before the date set by section 323.12 or 313
323.17 of the Revised Code for the payment of the second 314
installment of such taxes. Each payment made under this division 315
shall be not less than one-third of the total amount of the 316
current taxes, unless the collection of a particular tax has been 317
legally enjoined, or unless at any scheduled payment date less 318
than one-third of the total amount remains unpaid, in which case 319
the total balance shall be paid. 320
If a payment is not received by the treasurer when due 322
under the terms of an undertaking made under this division, the 323
treasurer may permit the taxpayer to make the payment at a later 324
date, provided the payment is received before the date set by 325
section 323.12 or 323.17 of the Revised Code for the payment of 326
the second installment of current taxes. If the total taxes 327
arranged to be paid pursuant to such an undertaking are not 328
received before such date, the undertaking shall become void and 329
the treasurer shall proceed to collect all unpaid taxes then due 330
by any other means provided by law. 331
Sec. 5711.33. (A)(1) When a county treasurer receives a 340
certificate from a county auditor pursuant to division (A) of 341
section 5711.32 of the Revised Code charging him THE TREASURER 342
with the collection of an amount of taxes due as the result of a 344
deficiency assessment, he THE TREASURER shall immediately prepare 346
and mail a tax bill to the taxpayer owing such tax. The tax bill 348
shall contain the name of the taxpayer; the taxable value, tax 349
rate, and taxes charged for each year being assessed; the total 350
amount of taxes due; the final date payment may be made without 351
additional penalty; and any other information the treasurer 352
considers pertinent or necessary. Taxes due and payable as a 353
9
result of a deficiency assessment, less any amount specifically 354
excepted from collection under division (B) of section 5711.32 of 355
the Revised Code, shall be paid with interest thereon as 356
prescribed by section 5719.041 of the Revised Code on or before 357
the sixtieth day following the date of issuance of the 358
certificate by the county auditor. The balance of taxes found 359
due and payable after a final determination by the tax 360
commissioner or a final judgment of the board of tax appeals or 361
any court to which such final judgment may be appealed, shall be 362
paid with interest thereon as prescribed by section 5719.041 of 363
the Revised Code on or before the sixtieth day following the date 364
of certification by the auditor to the treasurer pursuant to 365
division (C) of section 5711.32 of the Revised Code of such final 366
determination or judgment. Such final dates for payment shall be 367
determined and exhibited on the tax bill by the treasurer. 368
(2) If on or before the sixtieth day following the date of 370
a certification of a deficiency assessment under division (A) of 371
section 5711.32 of the Revised Code or of a certification of a 372
final determination or judgment under division (C) of section 373
5711.32 of the Revised Code, the taxpayer pays the full amount of 374
taxes and interest due at the time of the receipt of 375
certification with respect to that assessment, determination, or 376
judgment, no interest shall accrue or be charged with respect to 377
that assessment, determination, or judgment for the period that 378
begins on the first day of the month in which the certification 379
is made and that ends on the last day of the month preceding the 380
month in which such sixtieth day occurs. 381
(B) When the taxes charged, as mentioned in division (A) 383
of this section, are not paid within the time prescribed by such 384
division, a penalty of ten per cent of the amount due and unpaid 385
and interest for the period described in division (A)(2) of this 386
section shall accrue at the time the treasurer closes his THE 387
TREASURER'S office for business on the last day so prescribed, 389
but if the taxes are paid within ten days subsequent to the last 390
10
day prescribed, the treasurer shall waive the collection of and 391
the auditor shall remit one-half of the penalty. The treasurer 392
shall not thereafter accept less than the full amount of taxes 393
and penalty except as otherwise authorized by law. Such penalty 394
shall be distributed in the same manner and at the same time as 395
the tax upon which it has accrued. The whole amount collected 396
shall be included in the next succeeding settlement of 397
appropriate taxes.
(C) When the taxes charged, as mentioned in division (A) 399
of this section, remain unpaid after the final date for payment 400
prescribed by such division, such charges shall be deemed to be 401
delinquent taxes. The county auditor shall cause such charges, 402
including the penalty which THAT has accrued pursuant to this 403
section, to be added to the delinquent tax duplicate in 405
accordance with section 5719.04 of the Revised Code. 406
(D) The county auditor, upon consultation with the county 408
treasurer, shall remit a penalty imposed under division (B) of 409
this section or division (C) of section 5719.03 of the Revised 410
Code for the late payment of taxes when: 411
(1) The taxpayer could not make timely payment of the tax 413
because of the negligence or error of the auditor or treasurer in 414
the performance of a statutory duty relating to the levy or 415
collection of such tax. 416
(2) In cases other than those described in division (D)(1) 418
of this section, the taxpayer failed to receive a tax bill or a 419
correct tax bill, and the taxpayer made a good faith effort to 420
obtain such bill within thirty days after the last day for 421
payment of the tax. 422
(3) The tax was not timely paid because of the death or 424
serious injury of the taxpayer, or his THE TAXPAYER'S confinement 426
in a hospital within sixty days preceding the last day for 427
payment of the tax, if, in any case, the tax was subsequently 429
paid within sixty days after the last day for payment of such 431
tax.
11
(4) The taxpayer demonstrates to the satisfaction of the 433
auditor that the full payment was properly deposited in the mail 434
in sufficient time for the envelope to be postmarked by the 436
UNITED STATES postal service on or before the last day for 437
payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS 438
NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF 439
PAYMENT OF SUCH TAX.
(E) The taxpayer may, upon application, MAY request the 441
tax commissioner to review the denial of the remission of a 442
penalty by the auditor. The commissioner shall consider the 443
application, determine whether the penalty should be remitted, 444
and certify his THE determination to the taxpayer and to the 446
treasurer and auditor who shall correct the tax list and 447
duplicate accordingly. The commissioner shall issue orders and 448
instructions for the uniform implementation of this section by 449
all auditors and treasurers, and such orders and instructions 450
shall be followed by such officers. 451
Sec. 5715.39. The tax commissioner may remit real property 460
taxes, penalties, and interest found by him THE COMMISSIONER to 461
have been illegally assessed. The commissioner also may remit 462
any penalty charged against any real property that was the 463
subject of an application for exemption from taxation under 464
section 5715.27 of the Revised Code if the commissioner 465
determines that the applicant requested such exemption in good 466
faith. The commissioner shall include notice of the remission in 467
his THE COMMISSIONER'S certification to the county auditor 468
required under that section. 469
The commissioner, on application by a taxpayer, shall remit 471
a penalty for late payment of any real property taxes when: 472
(A) The taxpayer could not make timely payment of the tax 474
because of the negligence or error of the auditor or treasurer in 475
the performance of a statutory duty relating to the levy or 476
collection of such tax. 477
(B) In cases other than those described in division (A) of 479
12
this section, the taxpayer failed to receive a tax bill or a 480
correct tax bill, and the taxpayer made a good faith effort to 481
obtain such bill within thirty days after the last day for 482
payment of the tax. 483
(C) The tax was not timely paid because of the death or 485
serious injury of the taxpayer, or his THE TAXPAYER'S confinement 487
in a hospital within sixty days preceding the last day for
payment of the tax, if, in any case, the tax was subsequently 488
paid within sixty days after the last day for payment of such 489
tax.
(D) The taxpayer demonstrates to the satisfaction of the 491
commissioner that the full payment was properly deposited in the 492
mail in sufficient time for the envelope to be postmarked by the 493
UNITED STATES postal service on or before the last day for 495
payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS
NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF 496
PAYMENT OF SUCH TAX. 497
The commissioner shall consider the application, determine 499
whether the penalty should be remitted, and certify his THE 500
determination to the taxpayer, to the county treasurer, and to 502
the county auditor, who shall correct the tax list and duplicate
accordingly. 503
This section shall not provide to the taxpayer any remedy 505
with respect to any matter which he THAT THE TAXPAYER may be 506
authorized to complain of under the provisions of sections 507
5715.19, 5717.02, and 5727.47 of the Revised Code. 509
Applications for remission, and documents of any kind 511
related to those applications, filed with the tax commissioner 512
under this section, are public records within the meaning of 513
section 149.43 of the Revised Code, unless otherwise excepted 514
under that section. 515
Sec. 5719.03. (A) The county auditor shall preserve all 524
receipts showing the advance payment of taxes. At the time of 525
making up the general personal and the classified tax list and 526
13
duplicate, he THE AUDITOR shall enter thereon opposite the name 527
of each person charged with taxes the amount of the advance 529
payment made, as a credit against the amount of taxes charged 530
thereon against such person. 531
(B) Each person charged with taxes on a general personal 533
property or a classified property tax duplicate shall pay the 534
full amount of such taxes, less the amount of advance payment 535
credited on the duplicate, on or before the twentieth day of 536
September, or a day as extended pursuant to section 5719.031 of 537
the Revised Code. 538
(C) A tax is paid on or before the dates set forth in this 540
section if the tax payment is received by the county treasurer on 541
or before the last day for payment of such tax, or is received 542
after such date in an envelope that was postmarked by the UNITED 543
STATES postal service on or before the last day for payment of 545
such tax. In the event there is more than one date of postmark 546
on the envelope, the earliest date imprinted by the UNITED STATES 548
postal service shall be the date of payment. A PRIVATE METER 549
POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF 550
ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.
(D) When an installment of taxes is not paid within the 552
time prescribed by this section, or within the time so prescribed 553
as extended pursuant to section 5719.031 of the Revised Code, a 554
penalty of ten per cent of the amount due and unpaid shall accrue 555
when the county treasurer closes his THE TREASURER'S office for 556
business on the last day so prescribed, but if the taxes are paid 558
within ten days subsequent to the last day prescribed, the 559
treasurer shall waive the collection of, and the auditor shall 560
remit one-half of, the penalty. The treasurer shall not 561
thereafter accept less than the full amount of taxes and penalty, 562
except as provided in division (E) of this section or section 563
5719.05, 5711.32, or 5711.33 of the Revised Code. 564
(E) Any partial payment of taxes tendered to a county 566
treasurer may be accepted if the treasurer determines that the 567
14
amount tendered was intended by the taxpayer to be equal to the 568
amount due but is more or less than such amount as a result of 569
what appears to the treasurer to be an obvious taxpayer error. 570
The treasurer may accept a partial payment in which the only 571
unpaid amount is the amount of a penalty for late payment 572
provided the taxpayer files with the payment a copy of his THE 573
TAXPAYER'S application to the auditor for a remission of the 575
penalty or the payment is received within ten days of the last 576
date the taxes could have been paid without penalty. Any 577
overpayment shall be refunded by the treasurer in the manner most 578
convenient to the treasurer. When the amount tendered and 579
accepted is less than the amount due, the unpaid balance shall be 580
treated as other unpaid taxes, and, except when the unpaid amount 581
is the penalty, the treasurer shall notify the taxpayer of such 582
deficiency.
Section 2. That existing sections 321.45, 323.12, 323.31, 584
5711.33, 5715.39, and 5719.03 of the Revised Code are hereby 585
repealed. 586