As Passed by the Senate 1
122nd General Assembly 4
Regular Session S. B. No. 59 5
1997-1998 6
SENATORS NEIN-LATTA-GAETH-DiDONATO-GARDNER-WHITE-B. JOHNSON- 8
KEARNS-HERINGTON-DIX-McLIN 9
11
A B I L L
To amend sections 321.45, 323.12, 323.31, 5711.33, 13
5715.39, and 5719.03 and to enact section 321.48 14
of the Revised Code to permit all real property 15
taxpayers to participate in a system for 16
prepayment of taxes and to make other changes to
the county treasurer law. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 321.45, 323.12, 323.31, 5711.33, 21
5715.39, and 5719.03 be amended and section 321.48 of the Revised 23
Code be enacted to read as follows:
Sec. 321.45. (A) As used in this section: 32
(1) "Taxpayer" means any person in whose name a parcel of 34
residential property is listed on the tax duplicate. 35
(2) "Prepayment" means any amount given to the county 37
treasurer by a taxpayer under this section for the treasurer to 38
apply as payment of the taxpayer's total taxes due in accordance 39
with this section. 40
(3) "Taxes," "delinquent taxes," and "current taxes" have 42
the same meanings as in section 323.01 of the Revised Code. 43
(4) "Duplicate" means the treasurer's duplicate of real 45
and public utility property. 46
(5) "Total taxes due" means all delinquent taxes and that 48
portion of current taxes that, in order to avoid a penalty, are 49
required to be paid by the next date that is the last date on 50
which an installment of taxes may be paid without penalty. 51
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(6) "Residential property" means single family dwellings, 53
duplexes, doubles, and apartment buildings with not more than six 54
units and the land on which those dwellings are located. 55
(B)(1) A county treasurer may enter into a written 57
agreement with any taxpayer, upon mutually agreed upon ON terms 58
and conditions, under which both of the following occur: 60
(a) The taxpayer agrees to tender prepayments of taxes on 62
a parcel of residential property for which he THE TAXPAYER is the 65
taxpayer;
(b) The treasurer agrees to accept the prepayments and 67
hold them either in an escrow fund or a separate depository 68
account until the last day that an installment of current taxes 69
may be paid without penalty, at which time he THE TREASURER 71
further agrees to apply, in payment of the total taxes due on the 73
parcel, an amount of the prepayments that equals the total taxes 74
due on the parcel. IF A DISCOUNT IS NOT GIVEN UNDER DIVISION 76
(B)(2) OF THIS SECTION, ANY EARNINGS ON PREPAYMENTS IN AN ESCROW 77
FUND OR DEPOSITORY ACCOUNT SHALL BE PAID TO THE CREDIT OF A 78
SPECIAL INTEREST ACCOUNT TO BE USED BY THE TREASURER ONLY FOR THE 79
PAYMENT OF THE EXPENSES INCURRED IN ESTABLISHING AND 80
ADMINISTERING THE SYSTEM FOR COLLECTING PREPAYMENTS UNDER 81
DIVISION (B)(1) OF THIS SECTION. 82
(2) In addition to providing for the items enumerated in 84
division (B)(1) of this section, the agreement may provide for 85
the treasurer to invest prepayments held in the escrow FUND or 86
depository account, subject to Chapter 135. of the Revised Code, 87
and apply the investment earnings thereon, after deducting an 88
amount to pay the expenses incurred by the treasurer in 89
establishing and administering the prepayment system, as a 90
discount against the total taxes due of each taxpayer entering 91
into such an agreement. The balance applied to the discounts 92
shall be apportioned among taxpayers in such a manner that the 93
discount credited to a taxpayer for each parcel of residential 94
real property for which taxes are prepaid is commensurate with 95
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the amount of current taxes due and the length of time current 96
taxes are held in escrow. Discounts accruing to prepayments made 97
for a tax year shall be applied against total taxes due for the 98
ensuing tax year. No discount shall be apportioned to a taxpayer 99
who fails to pay the total taxes due or fails to make prepayments 100
pursuant to the terms of the agreement. 101
(C) A prepayment accepted by a treasurer under an 103
agreement under division (B) of this section does not constitute 104
a payment of taxes until it is applied toward the payment of 105
taxes as provided in this section. A separate prepayment 106
agreement is required for each parcel of residential property, 107
except that a taxpayer who makes prepayments on more than one 108
parcel may enter into a single agreement covering all of the 109
parcels. The single agreement shall specify the manner in which 110
each prepayment shall be apportioned among the parcels. The 111
treasurer shall keep a separate record for each parcel showing 112
the date and amount of each prepayment. 113
(D) No treasurer shall fail to apply prepayments toward 115
the payment of taxes as required pursuant to an agreement entered 116
INTO under division (B) of this section; however, the total 117
amount of prepayments shall equal or exceed the total taxes due, 118
less any discount applied for a previous period under division 119
(B)(2) of this section. 120
(E) The treasurer shall give each person who makes a tax 122
prepayment in person at the office of the county treasurer a 123
receipt in the form that the prepayment agreement requires. The 124
treasurer shall give a receipt to a person who makes a tax 125
prepayment to the treasurer by mail only if the taxpayer encloses 126
with the prepayment an addressed envelope with sufficient 127
postage, in which case the treasurer shall insert a receipt for 128
the prepayment in that envelope and deposit it in the mail. The 129
treasurer may refund any amount tendered as a prepayment if the 130
taxpayer so requests and files with the treasurer an affidavit 131
and the supporting documents the treasurer requires providing 132
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that the taxpayer no longer owns the property. The request for 133
the refund shall be made prior to the date of the mailing of a 134
tax bill and escrow statement to the taxpayer. If a taxpayer who 135
has entered into a prepayment agreement pursuant to this section 136
dies before the last day on which an installment of current taxes 137
may be paid without penalty, the treasurer may refund the amount 138
of any prepayments made by that taxpayer to the executor or 139
administrator of the taxpayer's estate. 140
(F) If the treasurer has received any prepayments from a 142
taxpayer, the treasurer shall add to the tax bill required by 143
section 323.13 of the Revised Code a tax escrow statement that 144
shall specify the total amount of prepayments received by the 145
treasurer on or before the date the statement was prepared, the 146
balance of total taxes due for which no prepayment has been 147
received, the amount of any discount to be applied to total taxes 148
due, and the date the statement was prepared. 149
(G) If the total amount of a taxpayer's prepayments to the 151
treasurer made on or before the final date an installment of 152
taxes may be paid without penalty do not equal or exceed the 153
total taxes due on that date, the taxpayer is not relieved of any 154
late penalty or interest otherwise due pursuant to section 155
323.121 of the Revised Code. If the treasurer fails to apply 156
prepayments received by his THE TREASURER'S office in accordance 157
with the terms of an agreement and the total amount of the 159
taxpayer's prepayments equals or exceeds the total taxes due, the 160
taxpayer is relieved of any late penalty or interest imposed 161
under section 323.121 of the Revised Code. 162
(H) The office of the county treasurer shall bear all of 164
the costs of establishing and administering a system for 165
collecting prepayments as permitted by this section. 166
(I) Before the county treasurer commences a prepayment 168
system, the tax commissioner shall approve all procedures and 169
forms to be used in the system. 170
(J) The treasurer may enter into any agreements necessary 172
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to enable the taxpayer to make prepayments of taxes to the office 173
of the treasurer through the electronic transfer of funds from an 174
account in the name of the taxpayer at a financial institution. 175
Sec. 321.48. A COUNTY TREASURER MAY ASSESS A FEE NOT 177
EXCEEDING AN AMOUNT EQUAL TO FIVE DOLLARS PLUS ANY AMOUNT PASSED 178
ON FROM A FINANCIAL INSTITUTION ON A DRAWER OR INDORSER FOR EACH 179
CHECK, DRAFT, OR MONEY ORDER RETURNED OR DISHONORED, OR AUTOMATIC 181
BANK TRANSFER DECLINED, DUE TO INSUFFICIENT FUNDS OR FOR ANY 182
OTHER REASON. THE COUNTY TREASURER SHALL DEPOSIT IN THE GENERAL 183
FUND OF THE COUNTY ANY FEE COLLECTED UNDER THIS SECTION. 184
Sec. 323.12. (A) Each person charged with taxes shall pay 193
to the county treasurer the full amount of such taxes on or 194
before the thirty-first day of December, or shall pay one-half of 195
the current taxes together with the full amount of any delinquent 196
taxes before such date, and the remaining half on or before the 197
twentieth day of June next ensuing. 198
When taxes are paid by installments, each payment shall be 200
apportioned among the several funds for which taxes have been 201
assessed. 202
(B) A tax is paid on or before the dates set forth in this 204
section if the tax payment is received by the county treasurer or 205
if prepayments are applied by the treasurer toward the payment of 206
taxes as provided by section 321.45 of the Revised Code on or 207
before the last day for payment of such tax, or if the tax 208
payment is received after such date in an envelope that was 209
postmarked by the UNITED STATES postal service on or before the 211
last day for payment of such tax. In the event there is more 212
than one date of postmark on the envelope, the earliest date 213
imprinted by the UNITED STATES postal service shall be the date 214
of payment. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A 215
VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT 216
OF SUCH TAX.
(C) The treasurer may delay the closing of his THE 218
TREASURER'S books for any collection period for the purpose of 220
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receiving and processing such payments. 221
Sec. 323.31. (A) Delinquent taxes charged against any 230
entry of real property may be paid pursuant to this division by 231
the person who owns the real property or is a vendee in 232
possession under a purchase agreement or land contract after 233
entering into a written undertaking with the county treasurer in 234
a form prescribed or approved by the tax commissioner. The 235
undertaking may be entered into at any time prior to the county 236
prosecuting attorney's commencement of foreclosure proceedings 237
pursuant to section 323.25 or 5721.18 of the Revised Code, or 238
commencement of foreclosure and forfeiture proceedings pursuant 239
to section 5721.14 of the Revised Code. A duplicate copy of each 240
such undertaking shall be filed with the county auditor, who 241
shall attach such THE copy to the delinquent land tax certificate 243
or delinquent vacant land tax certificate, or who shall enter an 244
asterisk in the margin next to the entry for the tract or lot on 245
the master list of delinquent tracts or master list of delinquent 246
vacant tracts, prior to filing it with the prosecuting attorney 247
under section 5721.13 of the Revised Code. If the undertaking is 248
entered into after the certificate or the master list has been 249
filed with the prosecuting attorney, the treasurer shall file the 250
duplicate copy with the prosecuting attorney. 251
An undertaking entered into under this division shall 253
provide for the payment of delinquent taxes in installments over 254
a period not to exceed five years beginning on the earliest date 255
delinquent taxes that are the subject of the undertaking were 256
included in a certification under section 5721.011 of the Revised 257
Code; however, a person entering into an undertaking WHO OWNS AND 259
OCCUPIES RESIDENTIAL REAL PROPERTY may request, and the treasurer 262
shall allow, an undertaking providing for payment in installments 264
over a period of no fewer than two years beginning on that date. 265
For
FOR each undertaking, the county treasurer shall determine, 268
and shall specify in the undertaking, the number of installments, 269
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the amount of each installment, and the schedule for payment of 270
the installments. EACH
Each installment payment shall be apportioned among the 272
several funds for which taxes have been assessed and shall be 273
applied to the items of taxes charged in the order in which they 274
became due. 275
When an installment payment is not received by the 277
treasurer when due or any current taxes charged against the 278
property become delinquent, the undertaking becomes void unless 279
the treasurer permits a new undertaking to be entered into; if 280
the treasurer does not permit a new undertaking to be entered 281
into, the treasurer shall certify to the auditor that the 282
undertaking has become void. A new undertaking entered into 283
under this paragraph shall provide for payment of the outstanding 284
balance of delinquent taxes over a period that, when added to the 285
periods of any previous undertakings that had elapsed prior to 286
their becoming void, does not exceed ten years. 287
Upon receipt of such a certification, the auditor shall 289
destroy his THE duplicate copy of the undertaking. If such copy 290
has been filed with the prosecuting attorney, the auditor 292
immediately shall deliver the certification to the prosecuting 293
attorney, who shall attach it to the appropriate certificate and 294
the duplicate copy of the voided undertaking or strike through 295
the asterisk entered in the margin of the master list next to the 296
entry for the tract or lot that is the subject of the voided 297
undertaking. The prosecuting attorney then shall institute a 298
proceeding to foreclose the lien of the state in accordance with 299
section 323.25 or 5721.18 of the Revised Code or, in the case of 300
delinquent vacant land, shall institute a foreclosure proceeding 301
in accordance with section 323.25 or 5721.18 of the Revised Code, 302
or a foreclosure and forfeiture proceeding in accordance with 303
section 5721.14 of the Revised Code. 304
(B) Within ten days after the date prescribed by section 306
323.12 or 323.17 of the Revised Code for payment of the first 307
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half installment of the current taxes, any person failing to pay 308
the amount required by such date, with the consent of the 309
treasurer, may enter into a written undertaking with the 310
treasurer, in a form prescribed by the tax commissioner, to pay 311
all current taxes pursuant to this division. The agreement shall 312
provide for the entire amount of such taxes to be paid in three 313
or fewer installments before the date set by section 323.12 or 314
323.17 of the Revised Code for the payment of the second 315
installment of such taxes. Each payment made under this division 316
shall be not less than one-third of the total amount of the 317
current taxes, unless the collection of a particular tax has been 318
legally enjoined, or unless at any scheduled payment date less 319
than one-third of the total amount remains unpaid, in which case 320
the total balance shall be paid. 321
If a payment is not received by the treasurer when due 323
under the terms of an undertaking made under this division, the 324
treasurer may permit the taxpayer to make the payment at a later 325
date, provided the payment is received before the date set by 326
section 323.12 or 323.17 of the Revised Code for the payment of 327
the second installment of current taxes. If the total taxes 328
arranged to be paid pursuant to such an undertaking are not 329
received before such date, the undertaking shall become void and 330
the treasurer shall proceed to collect all unpaid taxes then due 331
by any other means provided by law. 332
Sec. 5711.33. (A)(1) When a county treasurer receives a 341
certificate from a county auditor pursuant to division (A) of 342
section 5711.32 of the Revised Code charging him THE TREASURER 343
with the collection of an amount of taxes due as the result of a 345
deficiency assessment, he THE TREASURER shall immediately prepare 347
and mail a tax bill to the taxpayer owing such tax. The tax bill 349
shall contain the name of the taxpayer; the taxable value, tax 350
rate, and taxes charged for each year being assessed; the total 351
amount of taxes due; the final date payment may be made without 352
additional penalty; and any other information the treasurer 353
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considers pertinent or necessary. Taxes due and payable as a 354
result of a deficiency assessment, less any amount specifically 355
excepted from collection under division (B) of section 5711.32 of 356
the Revised Code, shall be paid with interest thereon as 357
prescribed by section 5719.041 of the Revised Code on or before 358
the sixtieth day following the date of issuance of the 359
certificate by the county auditor. The balance of taxes found 360
due and payable after a final determination by the tax 361
commissioner or a final judgment of the board of tax appeals or 362
any court to which such final judgment may be appealed, shall be 363
paid with interest thereon as prescribed by section 5719.041 of 364
the Revised Code on or before the sixtieth day following the date 365
of certification by the auditor to the treasurer pursuant to 366
division (C) of section 5711.32 of the Revised Code of such final 367
determination or judgment. Such final dates for payment shall be 368
determined and exhibited on the tax bill by the treasurer. 369
(2) If on or before the sixtieth day following the date of 371
a certification of a deficiency assessment under division (A) of 372
section 5711.32 of the Revised Code or of a certification of a 373
final determination or judgment under division (C) of section 374
5711.32 of the Revised Code, the taxpayer pays the full amount of 375
taxes and interest due at the time of the receipt of 376
certification with respect to that assessment, determination, or 377
judgment, no interest shall accrue or be charged with respect to 378
that assessment, determination, or judgment for the period that 379
begins on the first day of the month in which the certification 380
is made and that ends on the last day of the month preceding the 381
month in which such sixtieth day occurs. 382
(B) When the taxes charged, as mentioned in division (A) 384
of this section, are not paid within the time prescribed by such 385
division, a penalty of ten per cent of the amount due and unpaid 386
and interest for the period described in division (A)(2) of this 387
section shall accrue at the time the treasurer closes his THE 388
TREASURER'S office for business on the last day so prescribed, 390
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but if the taxes are paid within ten days subsequent to the last 391
day prescribed, the treasurer shall waive the collection of and 392
the auditor shall remit one-half of the penalty. The treasurer 393
shall not thereafter accept less than the full amount of taxes 394
and penalty except as otherwise authorized by law. Such penalty 395
shall be distributed in the same manner and at the same time as 396
the tax upon which it has accrued. The whole amount collected 397
shall be included in the next succeeding settlement of 398
appropriate taxes.
(C) When the taxes charged, as mentioned in division (A) 400
of this section, remain unpaid after the final date for payment 401
prescribed by such division, such charges shall be deemed to be 402
delinquent taxes. The county auditor shall cause such charges, 403
including the penalty which THAT has accrued pursuant to this 404
section, to be added to the delinquent tax duplicate in 406
accordance with section 5719.04 of the Revised Code. 407
(D) The county auditor, upon consultation with the county 409
treasurer, shall remit a penalty imposed under division (B) of 410
this section or division (C) of section 5719.03 of the Revised 411
Code for the late payment of taxes when: 412
(1) The taxpayer could not make timely payment of the tax 414
because of the negligence or error of the auditor or treasurer in 415
the performance of a statutory duty relating to the levy or 416
collection of such tax. 417
(2) In cases other than those described in division (D)(1) 419
of this section, the taxpayer failed to receive a tax bill or a 420
correct tax bill, and the taxpayer made a good faith effort to 421
obtain such bill within thirty days after the last day for 422
payment of the tax. 423
(3) The tax was not timely paid because of the death or 425
serious injury of the taxpayer, or his THE TAXPAYER'S confinement 427
in a hospital within sixty days preceding the last day for 428
payment of the tax, if, in any case, the tax was subsequently 430
paid within sixty days after the last day for payment of such 432
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tax.
(4) The taxpayer demonstrates to the satisfaction of the 434
auditor that the full payment was properly deposited in the mail 435
in sufficient time for the envelope to be postmarked by the 437
UNITED STATES postal service on or before the last day for 438
payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS 439
NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF 440
PAYMENT OF SUCH TAX.
(E) The taxpayer may, upon application, MAY request the 442
tax commissioner to review the denial of the remission of a 443
penalty by the auditor. The commissioner shall consider the 444
application, determine whether the penalty should be remitted, 445
and certify his THE determination to the taxpayer and to the 447
treasurer and auditor who shall correct the tax list and 448
duplicate accordingly. The commissioner shall issue orders and 449
instructions for the uniform implementation of this section by 450
all auditors and treasurers, and such orders and instructions 451
shall be followed by such officers. 452
Sec. 5715.39. The tax commissioner may remit real property 461
taxes, penalties, and interest found by him THE COMMISSIONER to 462
have been illegally assessed. The commissioner also may remit 463
any penalty charged against any real property that was the 464
subject of an application for exemption from taxation under 465
section 5715.27 of the Revised Code if the commissioner 466
determines that the applicant requested such exemption in good 467
faith. The commissioner shall include notice of the remission in 468
his THE COMMISSIONER'S certification to the county auditor 469
required under that section. 470
The commissioner, on application by a taxpayer, shall remit 472
a penalty for late payment of any real property taxes when: 473
(A) The taxpayer could not make timely payment of the tax 475
because of the negligence or error of the auditor or treasurer in 476
the performance of a statutory duty relating to the levy or 477
collection of such tax. 478
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(B) In cases other than those described in division (A) of 480
this section, the taxpayer failed to receive a tax bill or a 481
correct tax bill, and the taxpayer made a good faith effort to 482
obtain such bill within thirty days after the last day for 483
payment of the tax. 484
(C) The tax was not timely paid because of the death or 486
serious injury of the taxpayer, or his THE TAXPAYER'S confinement 488
in a hospital within sixty days preceding the last day for
payment of the tax, if, in any case, the tax was subsequently 489
paid within sixty days after the last day for payment of such 490
tax.
(D) The taxpayer demonstrates to the satisfaction of the 492
commissioner that the full payment was properly deposited in the 493
mail in sufficient time for the envelope to be postmarked by the 494
UNITED STATES postal service on or before the last day for 496
payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS
NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF 497
PAYMENT OF SUCH TAX. 498
The commissioner shall consider the application, determine 500
whether the penalty should be remitted, and certify his THE 501
determination to the taxpayer, to the county treasurer, and to 503
the county auditor, who shall correct the tax list and duplicate
accordingly. 504
This section shall not provide to the taxpayer any remedy 506
with respect to any matter which he THAT THE TAXPAYER may be 507
authorized to complain of under the provisions of sections 508
5715.19, 5717.02, and 5727.47 of the Revised Code. 510
Applications for remission, and documents of any kind 512
related to those applications, filed with the tax commissioner 513
under this section, are public records within the meaning of 514
section 149.43 of the Revised Code, unless otherwise excepted 515
under that section. 516
Sec. 5719.03. (A) The county auditor shall preserve all 525
receipts showing the advance payment of taxes. At the time of 526
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making up the general personal and the classified tax list and 527
duplicate, he THE AUDITOR shall enter thereon opposite the name 528
of each person charged with taxes the amount of the advance 530
payment made, as a credit against the amount of taxes charged 531
thereon against such person. 532
(B) Each person charged with taxes on a general personal 534
property or a classified property tax duplicate shall pay the 535
full amount of such taxes, less the amount of advance payment 536
credited on the duplicate, on or before the twentieth day of 537
September, or a day as extended pursuant to section 5719.031 of 538
the Revised Code. 539
(C) A tax is paid on or before the dates set forth in this 541
section if the tax payment is received by the county treasurer on 542
or before the last day for payment of such tax, or is received 543
after such date in an envelope that was postmarked by the UNITED 544
STATES postal service on or before the last day for payment of 546
such tax. In the event there is more than one date of postmark 547
on the envelope, the earliest date imprinted by the UNITED STATES 549
postal service shall be the date of payment. A PRIVATE METER 550
POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF 551
ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.
(D) When an installment of taxes is not paid within the 553
time prescribed by this section, or within the time so prescribed 554
as extended pursuant to section 5719.031 of the Revised Code, a 555
penalty of ten per cent of the amount due and unpaid shall accrue 556
when the county treasurer closes his THE TREASURER'S office for 557
business on the last day so prescribed, but if the taxes are paid 559
within ten days subsequent to the last day prescribed, the 560
treasurer shall waive the collection of, and the auditor shall 561
remit one-half of, the penalty. The treasurer shall not 562
thereafter accept less than the full amount of taxes and penalty, 563
except as provided in division (E) of this section or section 564
5719.05, 5711.32, or 5711.33 of the Revised Code. 565
(E) Any partial payment of taxes tendered to a county 567
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treasurer may be accepted if the treasurer determines that the 568
amount tendered was intended by the taxpayer to be equal to the 569
amount due but is more or less than such amount as a result of 570
what appears to the treasurer to be an obvious taxpayer error. 571
The treasurer may accept a partial payment in which the only 572
unpaid amount is the amount of a penalty for late payment 573
provided the taxpayer files with the payment a copy of his THE 574
TAXPAYER'S application to the auditor for a remission of the 576
penalty or the payment is received within ten days of the last 577
date the taxes could have been paid without penalty. Any 578
overpayment shall be refunded by the treasurer in the manner most 579
convenient to the treasurer. When the amount tendered and 580
accepted is less than the amount due, the unpaid balance shall be 581
treated as other unpaid taxes, and, except when the unpaid amount 582
is the penalty, the treasurer shall notify the taxpayer of such 583
deficiency.
Section 2. That existing sections 321.45, 323.12, 323.31, 585
5711.33, 5715.39, and 5719.03 of the Revised Code are hereby 586
repealed. 587