As Reported by House Ways and Means Committee            1            

123rd General Assembly                                             4            

   Regular Session                               Am. S. B. No. 41  5            

      1999-2000                                                    6            


 SENATORS GARDNER-MUMPER-DRAKE-JOHNSON-BLESSING-DiDONATO-SPADA-    8            

   NEIN-WATTS-WHITE-LATTA-OELSLAGER-SCHAFRATH-ARMBRUSTER-RAY-      9            

  REPRESENTATIVES MOTTLEY-JOLIVETTE-HAINES-HOOD-AMSTUTZ-DISTEL-    10           

                            GRENDELL                               11           


_________________________________________________________________   12           

                          A   B I L L                                           

             To amend sections 322.01, 322.02, 322.03, 322.05,     14           

                and 322.06 and to enact section 322.07 of the      16           

                Revised Code to authorize lower real property and               

                manufactured home transfer tax rates for property  18           

                owners who receive the homestead exemption.                     




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        19           

      Section 1.  That sections 322.01, 322.02, 322.03, 322.05,    21           

and 322.06 be amended and section 322.07 of the Revised Code be    22           

enacted to read as follows:                                                     

      Sec. 322.01.  As used in sections 322.01 to 322.05 322.07    31           

of the Revised Code:                                               32           

      (A)  "Value" means, in the case of any deed not a gift in    34           

whole or part, the amount of the full consideration therefor,      35           

paid or to be paid for the real estate described in the deed,      36           

including the amount of any liens thereon, with the following      37           

exceptions:                                                        38           

      (1)  The amount owed on a debt secured by a mortgage which   40           

has been of record at least twelve months prior to the date of     41           

the conveyance and which is assumed by the purchaser;              42           

      (2)  The difference between the full amount of               44           

consideration and the unpaid balance owed to the seller at the     45           

time of the conveyance of property to a third party under a land   46           

installment contract that has been of record at least twelve       47           

                                                          2      


                                                                 
months prior to the date of conveyance.                            48           

      (B)  "Value" means, in the case of a manufactured or mobile  51           

home that is not a gift in whole or in part, the amount of the     52           

full consideration paid or to be paid for the home, including the  53           

amounts of any liens thereon.                                      54           

      (C)  "Value" means, in the case of a gift in whole or part,  56           

the estimated price the real estate described in the deed, or the  58           

manufactured or mobile home, would bring in the open market and    60           

under the then existing and prevailing market conditions in a      61           

sale between a willing seller and a willing buyer, both            62           

conversant with the property and with prevailing general price     63           

levels.                                                                         

      (D)  "Deed" means any deed, instrument, or writing by which  65           

any real property or any interest in real property is granted,     66           

assigned, transferred, or otherwise conveyed except that it does   67           

not include any deed, instrument, or writing which grants,         68           

assigns, transfers, or otherwise conveys any real property or      69           

interests in real property exempted from the fee required by       70           

division (F)(3) of section 319.54 of the Revised Code.             71           

      (E)  "Manufactured home" has the same meaning as in          74           

division (C)(4) of section 3781.06 of the Revised Code.            75           

      (F)  "Mobile home" has the same meaning as in division (O)   78           

of section 4501.01 of the Revised Code.                            79           

      Sec. 322.02.  (A)  For the purpose of paying the costs of    88           

enforcing and administering the tax and providing additional       89           

general revenue for the county, any county may levy and collect a  90           

tax to be known as the real property transfer tax on each deed     91           

conveying real property or any interest in real property located   92           

wholly or partially within the boundaries of such THE county at a  94           

rate not to exceed thirty cents per hundred dollars for each one                

hundred dollars or fraction thereof of the value of the real       95           

property or interest in real property located within the           96           

boundaries of the county granted, assigned, transferred, or        97           

otherwise conveyed by such THE deed.  Such THE tax shall be        99           

                                                          3      


                                                                 
levied pursuant to a resolution adopted by the board of county     100          

commissioners of such THE county and, EXCEPT AS PROVIDED IN        102          

DIVISION (A) OF SECTION 322.07 OF THE REVISED CODE, shall be                    

levied at a uniform rate upon all deeds as defined in division     103          

(D) of section 322.01 of the Revised Code.  Prior to the adoption  105          

of any such resolution, the board of county commissioners shall    106          

conduct two public hearings thereon, the second hearing to be not  107          

less than three nor more than ten days after the first.  Notice    108          

of the date, time, and place of such THE hearings shall be given   109          

by publication in a newspaper of general circulation in the        110          

county once a week on the same day of the week for two             111          

consecutive weeks, the second publication being not less than ten  112          

nor more than thirty days prior to the first hearing.  Such THE    113          

tax shall be levied upon the grantor named in the deed and shall   115          

be paid by the grantor for the use of the county to the county     116          

auditor at the time of the delivery of the deed as provided in     117          

section 319.202 of the Revised Code and prior to the presentation  118          

of the deed to the recorder of the county for recording.           119          

      (B)  No resolution levying a real property transfer tax      121          

pursuant to this section of the Revised Code or a manufactured     123          

home transfer tax pursuant to section 322.06 of the Revised Code   124          

shall be effective sooner than thirty days following its adoption  125          

and such.  SUCH A resolution is subject to a referendum as         126          

provided in sections 305.31 to 305.41 of the Revised Code, unless  127          

such THE resolution is adopted as an emergency measure necessary   128          

for the immediate preservation of the public peace, health, or     129          

safety, in which case it shall go into immediate effect.  Such AN  130          

emergency measure must receive an affirmative vote of all of the   131          

members of the board of commissioners, and shall state the         132          

reasons for such THE necessity.  A resolution may direct the       133          

board of elections to submit the question of levying the tax to    134          

the electors of the county at the next primary or general          135          

election in the county occurring not less than seventy-five days   136          

after such THE resolution is certified to the board.  No such      137          

                                                          4      


                                                                 
resolution shall go into effect unless approved by a majority of   138          

those voting upon it.                                                           

      No real property transfer tax levied pursuant to this        140          

section shall be applicable with respect to the conveyance of      141          

real property unless such conveyance takes place on or after       142          

January 1, 1968.                                                   143          

      Sec. 322.03.  The funds collected by a county levying a      152          

real property transfer tax or a manufactured home transfer tax     153          

pursuant to sections 322.01 to 322.06 322.07 of the Revised Code   154          

shall be allocated and disbursed as follows:                       155          

      (A)  First, for payment of the costs incurred by the county  157          

in the administration and enforcement of the tax;                  158          

      (B)  The balance remaining after payment of the expenses     160          

referred to in division (A) of this section shall be deposited in  161          

the county general fund to be expended for any purpose for which   162          

general fund moneys of the county may be used, including the       163          

acquisition or construction of permanent improvements, or in the   164          

bond retirement fund for the payment of debt service charges on                 

notes or bonds of the county issued for the acquisition or         165          

construction of permanent improvements.  The amounts to be         166          

deposited in each of such THE funds shall be determined by the     167          

board of county commissioners.                                                  

      Sec. 322.05.  The levy of any excise, income, property,      176          

real property, or manufactured home transfer tax or fee by the     177          

state or by any political subdivision thereof OF THE STATE shall   178          

not be construed as preempting the power of a county to levy a     179          

real property or manufactured home transfer tax pursuant to        180          

sections 322.01 to 322.06 322.07 of the Revised Code.              181          

      Sec. 322.06.  (A)  For the purpose of paying the costs of    191          

enforcing and administering the tax and providing additional       192          

general revenue for the county, any county may levy and collect a  193          

tax to be known as the manufactured home transfer tax on each      194          

certificate of title that conveys, by resale on or after January   195          

1, 2000, a used manufactured home or used mobile home, as defined  196          

                                                          5      


                                                                 
in division (A)(6) of section 5739.0210 of the Revised Code,       197          

located wholly or partially within the boundaries of the county.   199          

      (B)  The tax shall be assessed at a rate equal to the real   202          

property transfer tax rate of the county as adopted and levied by  203          

the county pursuant to section 322.02 of the Revised Code.         204          

      (C)  The EXCEPT AS PROVIDED IN DIVISION (B) OF SECTION       206          

322.07 OF THE REVISED CODE, THE manufactured home transfer tax     207          

shall be levied at a uniform rate.  THE TAX SHALL BE LEVIED        208          

pursuant to a resolution adopted by the board of county            210          

commissioners of the county in the manner prescribed by division   211          

(A) of section 322.02 of the Revised Code.                                      

      (D)  The tax shall be levied upon the grantor named on the   214          

certificate of title and paid to the auditor of the county in      215          

which the home is located at the time of the delivery of the       216          

certificate of title and shall be for the use of the county.       217          

      Sec. 322.07.  (A)  BY RESOLUTION THE BOARD OF COUNTY         220          

COMMISSIONERS MAY PRESCRIBE A LOWER RATE FOR THE REAL PROPERTY     221          

TRANSFER TAX LEVIED UNDER SECTION 322.02 OF THE REVISED CODE THAN               

THE UNIFORM RATE THAT IS OTHERWISE LEVIED.  THE LOWER RATE SHALL   223          

APPLY TO ANY DEED CONVEYING A HOMESTEAD FOR WHICH THE GRANTOR HAS               

OBTAINED A CERTIFICATE OF REDUCTION IN TAXES UNDER SECTION         224          

323.154 OF THE REVISED CODE FOR A REDUCTION UNDER DIVISION (A) OF  225          

SECTION 323.152 OF THE REVISED CODE.                                            

      (B)  A BOARD OF COUNTY COMMISSIONERS THAT PRESCRIBES A       228          

LOWER REAL PROPERTY TRANSFER TAX RATE UNDER DIVISION (A) OF THIS   229          

SECTION SHALL PRESCRIBE THE SAME LOWER RATE FOR THE MANUFACTURED   230          

HOME TRANSFER TAX IF IT LEVIES A MANUFACTURED HOME TRANSFER TAX    231          

UNDER SECTION 322.06 OF THE REVISED CODE.  THE LOWER MANUFACTURED  234          

HOME TRANSFER TAX RATE SHALL APPLY TO ANY CERTIFICATE OF TITLE     235          

CONVEYING A USED MANUFACTURED OR USED MOBILE HOME FOR WHICH THE    236          

GRANTOR HAS OBTAINED A CERTIFICATE OF REDUCTION IN ASSESSABLE      237          

VALUE UNDER SECTION 4503.067 OF THE REVISED CODE.                  240          

      Section 2.  That existing sections 322.01, 322.02, 322.03,   242          

322.05, and 322.06 of the Revised Code are hereby repealed.        243