As Passed by the House                        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-TIBERI-CATES-D.MILLER-VERICH-BARNES-PERRY-SUTTON-      11           

  OGG-HARTNETT-DePIERO-MAIER-BARRETT-ROMAN-PATTON-YOUNG-CLANCY-    12           

O'BRIEN-BRADING-PADGETT-SALERNO-WILLAMOWSKI-EVANS-GARDNER-NETZLEY-  13           

BOYD-JONES-SULZER-TERWILLEGER-CALLENDER-THOMAS-DAMSCHRODER-BRITTON  13           


_________________________________________________________________   15           

                          A   B I L L                                           

             To amend sections 322.01, 322.02, 322.03, 322.05,     17           

                and 322.06 and to enact section 322.07 of the      19           

                Revised Code to authorize lower real property and               

                manufactured home transfer tax rates for property  21           

                owners who receive the homestead exemption.                     




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        22           

      Section 1.  That sections 322.01, 322.02, 322.03, 322.05,    24           

and 322.06 be amended and section 322.07 of the Revised Code be    25           

enacted to read as follows:                                                     

      Sec. 322.01.  As used in sections 322.01 to 322.05 322.07    34           

of the Revised Code:                                               35           

      (A)  "Value" means, in the case of any deed not a gift in    37           

whole or part, the amount of the full consideration therefor,      38           

paid or to be paid for the real estate described in the deed,      39           

including the amount of any liens thereon, with the following      40           

exceptions:                                                        41           

      (1)  The amount owed on a debt secured by a mortgage which   43           

has been of record at least twelve months prior to the date of     44           

the conveyance and which is assumed by the purchaser;              45           

      (2)  The difference between the full amount of               47           

                                                          2      


                                                                 
consideration and the unpaid balance owed to the seller at the     48           

time of the conveyance of property to a third party under a land   49           

installment contract that has been of record at least twelve       50           

months prior to the date of conveyance.                            51           

      (B)  "Value" means, in the case of a manufactured or mobile  54           

home that is not a gift in whole or in part, the amount of the     55           

full consideration paid or to be paid for the home, including the  56           

amounts of any liens thereon.                                      57           

      (C)  "Value" means, in the case of a gift in whole or part,  59           

the estimated price the real estate described in the deed, or the  61           

manufactured or mobile home, would bring in the open market and    63           

under the then existing and prevailing market conditions in a      64           

sale between a willing seller and a willing buyer, both            65           

conversant with the property and with prevailing general price     66           

levels.                                                                         

      (D)  "Deed" means any deed, instrument, or writing by which  68           

any real property or any interest in real property is granted,     69           

assigned, transferred, or otherwise conveyed except that it does   70           

not include any deed, instrument, or writing which grants,         71           

assigns, transfers, or otherwise conveys any real property or      72           

interests in real property exempted from the fee required by       73           

division (F)(3) of section 319.54 of the Revised Code.             74           

      (E)  "Manufactured home" has the same meaning as in          77           

division (C)(4) of section 3781.06 of the Revised Code.            78           

      (F)  "Mobile home" has the same meaning as in division (O)   81           

of section 4501.01 of the Revised Code.                            82           

      Sec. 322.02.  (A)  For the purpose of paying the costs of    91           

enforcing and administering the tax and providing additional       92           

general revenue for the county, any county may levy and collect a  93           

tax to be known as the real property transfer tax on each deed     94           

conveying real property or any interest in real property located   95           

wholly or partially within the boundaries of such THE county at a  97           

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

hundred dollars or fraction thereof of the value of the real       98           

                                                          3      


                                                                 
property or interest in real property located within the           99           

boundaries of the county granted, assigned, transferred, or        100          

otherwise conveyed by such THE deed.  Such THE tax shall be        102          

levied pursuant to a resolution adopted by the board of county     103          

commissioners of such THE county and, EXCEPT AS PROVIDED IN        105          

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

levied at a uniform rate upon all deeds as defined in division     106          

(D) of section 322.01 of the Revised Code.  Prior to the adoption  108          

of any such resolution, the board of county commissioners shall    109          

conduct two public hearings thereon, the second hearing to be not  110          

less than three nor more than ten days after the first.  Notice    111          

of the date, time, and place of such THE hearings shall be given   112          

by publication in a newspaper of general circulation in the        113          

county once a week on the same day of the week for two             114          

consecutive weeks, the second publication being not less than ten  115          

nor more than thirty days prior to the first hearing.  Such THE    116          

tax shall be levied upon the grantor named in the deed and shall   118          

be paid by the grantor for the use of the county to the county     119          

auditor at the time of the delivery of the deed as provided in     120          

section 319.202 of the Revised Code and prior to the presentation  121          

of the deed to the recorder of the county for recording.           122          

      (B)  No resolution levying a real property transfer tax      124          

pursuant to this section of the Revised Code or a manufactured     126          

home transfer tax pursuant to section 322.06 of the Revised Code   127          

shall be effective sooner than thirty days following its adoption  128          

and such.  SUCH A resolution is subject to a referendum as         129          

provided in sections 305.31 to 305.41 of the Revised Code, unless  130          

such THE resolution is adopted as an emergency measure necessary   131          

for the immediate preservation of the public peace, health, or     132          

safety, in which case it shall go into immediate effect.  Such AN  133          

emergency measure must receive an affirmative vote of all of the   134          

members of the board of commissioners, and shall state the         135          

reasons for such THE necessity.  A resolution may direct the       136          

board of elections to submit the question of levying the tax to    137          

                                                          4      


                                                                 
the electors of the county at the next primary or general          138          

election in the county occurring not less than seventy-five days   139          

after such THE resolution is certified to the board.  No such      140          

resolution shall go into effect unless approved by a majority of   141          

those voting upon it.                                                           

      No real property transfer tax levied pursuant to this        143          

section shall be applicable with respect to the conveyance of      144          

real property unless such conveyance takes place on or after       145          

January 1, 1968.                                                   146          

      Sec. 322.03.  The funds collected by a county levying a      155          

real property transfer tax or a manufactured home transfer tax     156          

pursuant to sections 322.01 to 322.06 322.07 of the Revised Code   157          

shall be allocated and disbursed as follows:                       158          

      (A)  First, for payment of the costs incurred by the county  160          

in the administration and enforcement of the tax;                  161          

      (B)  The balance remaining after payment of the expenses     163          

referred to in division (A) of this section shall be deposited in  164          

the county general fund to be expended for any purpose for which   165          

general fund moneys of the county may be used, including the       166          

acquisition or construction of permanent improvements, or in the   167          

bond retirement fund for the payment of debt service charges on                 

notes or bonds of the county issued for the acquisition or         168          

construction of permanent improvements.  The amounts to be         169          

deposited in each of such THE funds shall be determined by the     170          

board of county commissioners.                                                  

      Sec. 322.05.  The levy of any excise, income, property,      179          

real property, or manufactured home transfer tax or fee by the     180          

state or by any political subdivision thereof OF THE STATE shall   181          

not be construed as preempting the power of a county to levy a     182          

real property or manufactured home transfer tax pursuant to        183          

sections 322.01 to 322.06 322.07 of the Revised Code.              184          

      Sec. 322.06.  (A)  For the purpose of paying the costs of    194          

enforcing and administering the tax and providing additional       195          

general revenue for the county, any county may levy and collect a  196          

                                                          5      


                                                                 
tax to be known as the manufactured home transfer tax on each      197          

certificate of title that conveys, by resale on or after January   198          

1, 2000, a used manufactured home or used mobile home, as defined  199          

in division (A)(6) of section 5739.0210 of the Revised Code,       200          

located wholly or partially within the boundaries of the county.   202          

      (B)  The tax shall be assessed at a rate equal to the real   205          

property transfer tax rate of the county as adopted and levied by  206          

the county pursuant to section 322.02 of the Revised Code.         207          

      (C)  The EXCEPT AS PROVIDED IN DIVISION (B) OF SECTION       209          

322.07 OF THE REVISED CODE, THE manufactured home transfer tax     210          

shall be levied at a uniform rate.  THE TAX SHALL BE LEVIED        211          

pursuant to a resolution adopted by the board of county            213          

commissioners of the county in the manner prescribed by division   214          

(A) of section 322.02 of the Revised Code.                                      

      (D)  The tax shall be levied upon the grantor named on the   217          

certificate of title and paid to the auditor of the county in      218          

which the home is located at the time of the delivery of the       219          

certificate of title and shall be for the use of the county.       220          

      Sec. 322.07.  (A)  BY RESOLUTION THE BOARD OF COUNTY         223          

COMMISSIONERS MAY PRESCRIBE A LOWER RATE FOR THE REAL PROPERTY     224          

TRANSFER TAX LEVIED UNDER SECTION 322.02 OF THE REVISED CODE THAN               

THE UNIFORM RATE THAT IS OTHERWISE LEVIED.  THE LOWER RATE SHALL   226          

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

OBTAINED A CERTIFICATE OF REDUCTION IN TAXES UNDER SECTION         227          

323.154 OF THE REVISED CODE FOR A REDUCTION UNDER DIVISION (A) OF  228          

SECTION 323.152 OF THE REVISED CODE.                                            

      (B)  A BOARD OF COUNTY COMMISSIONERS THAT PRESCRIBES A       231          

LOWER REAL PROPERTY TRANSFER TAX RATE UNDER DIVISION (A) OF THIS   232          

SECTION SHALL PRESCRIBE THE SAME LOWER RATE FOR THE MANUFACTURED   233          

HOME TRANSFER TAX IF IT LEVIES A MANUFACTURED HOME TRANSFER TAX    234          

UNDER SECTION 322.06 OF THE REVISED CODE.  THE LOWER MANUFACTURED  237          

HOME TRANSFER TAX RATE SHALL APPLY TO ANY CERTIFICATE OF TITLE     238          

CONVEYING A USED MANUFACTURED OR USED MOBILE HOME FOR WHICH THE    239          

GRANTOR HAS OBTAINED A CERTIFICATE OF REDUCTION IN ASSESSABLE      240          

                                                          6      


                                                                 
VALUE UNDER SECTION 4503.067 OF THE REVISED CODE.                  243          

      Section 2.  That existing sections 322.01, 322.02, 322.03,   245          

322.05, and 322.06 of the Revised Code are hereby repealed.        246