As Reported by the Senate Ways and Means and Economic Development Committee

126th General Assembly Regular Session 2005-2006

Sub. H. B. No. 390

Representatives Taylor, Brinkman, Brown, Gibbs, Gilb, Hood, Kilbane, Trakas, Hagan, Blessing, Schaffer, Latta, Aslanides, Bubp, Carano, Cassell, Collier, Core, Domenick, Evans, C., Faber, Garrison, Hartnett, Key, Raussen, Reidelbach, Reinhard, Schneider, Seitz, Uecker, Widowfield, Willamowski, Yuko 

Senators Spada, Zurz, Fingerhut, Dann, Amstutz, Austria 

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A BILL

To amend sections 109.082, 131.02, 2329.07, 5703.06,

1

5735.03, and 5749.02, to enact sections 131.022,

2

2305.26, and 5703.58, and to repeal section

3

5733.18 of the Revised Code to place a time limit

4

on the collection of certain finalized but

5

outstanding tax liabilities, to restore and

6

lengthen a prior statute of limitation on certain

7

statutory liens, to restore a former requirement

8

that the state must periodically take affirmative

9

action to keep alive judgment liens in the state's

10

favor, and to provide "innocent spouse relief"

11

from joint and several liability for income taxes

12

under a compromise of claim.

13

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

Section 1.  That sections 109.082, 131.02, 2329.07, 5703.06,	14
5735.03, and 5749.02 be amended and sections 131.022, 2305.26, and	15
5703.58 of the Revised Code be enacted to read as follows:	16

Sec. 109.082.  The attorney general shall appoint one or more	17
problem resolution officers from among the employees of the office	18
of the attorney general. These officers shall receive and review	19
inquiries and complaints concerning collections made pursuant to	20
Chapters 5733., 5739., 5741., and 5747., and 5751. of the Revised	21
Code regarding which the taxpayer has been unable to obtain	22
satisfactory information after several attempts to communicate	23
with the employee of the office assigned to the taxpayer's	24
collection case or the employee's immediate supervisor, or the	25
special counsel assigned to the case.	26

Sec. 131.02. (A) Whenever any amount is payable to the state,	27
the officer, employee, or agent responsible for administering the	28
law under which the amount is payable shall immediately proceed to	29
collect the amount or cause the amount to be collected and shall	30
pay the amount into the state treasury or into the appropriate	31
custodial fund in the manner set forth pursuant to section 113.08	32
of the Revised Code. Except as otherwise provided in this	33
division, if the amount is not paid within forty-five days after	34
payment is due, the officer, employee, or agent shall certify the	35
amount due to the attorney general, in the form and manner	36
prescribed by the attorney general, and notify the director of	37
budget and management thereof. In the case of an amount payable by	38
a student enrolled in a state institution of higher education, the	39
amount shall be certified within the later of forty-five days	40
after the amount is due or the tenth day after the beginning of	41
the next academic semester, quarter, or other session following	42
the session for which the payment is payable. The attorney general	43
may assess the collection cost to the amount certified in such	44
manner and amount as prescribed by the attorney general.	45

(B)(1) The attorney general shall give immediate notice by	46
mail or otherwise to the party indebted of the nature and amount	47
of the indebtedness.	48

(2) If the amount payable to this state arises from a tax	49
levied under Chapter 5733., 5739., 5741., or 5747., or 5751. of	50
the Revised Code, the notice also shall specify all of the	51
following:	52

(a) The assessment or case number;

53

(b) The tax pursuant to which the assessment is made;

54

(c) The reason for the liability, including, if applicable,	55
that a penalty or interest is due;	56

(d) An explanation of how and when interest will be added to	57
the amount assessed;	58

(e) That the attorney general and tax commissioner, acting	59
together, have the authority, but are not required, to compromise	60
the claim and accept payment over a reasonable time, if such	61
actions are in the best interest of the state.	62

(C) The attorney general shall collect the claim or secure a	63
judgment and issue an execution for its collection.	64

(D) Each claim shall bear interest, from the day on which the	65
claim became due, at the rate per annum required by section	66
5703.47 of the Revised Code.	67

(E) The attorney general and the chief officer of the agency	68
reporting a claim, acting together, may do any of the following if	69
such action is in the best interests of the state:	70

(1) Compromise the claim;

71

(2) Extend for a reasonable period the time for payment of	72
the claim by agreeing to accept monthly or other periodic	73
payments. The agreement may require security for payment of the	74
claim.	75

(3) Add fees to recover the cost of processing checks or	76
other draft instruments returned for insufficient funds and the	77
cost of providing electronic payment options.	78

(F)(1) Except as provided in division (F)(2) of this section,	79
if the attorney general finds, after investigation, that any claim	80
due and owing to the state is uncollectible, the attorney general,	81
with the consent of the chief officer of the agency reporting the	82
claim, may do the following:	83

(a) Sell, convey, or otherwise transfer the claim to one or	84
more private entities for collection;	85

(b) Cancel the claim or cause it to be cancelledcanceled.

86

(2) The attorney general shall cancel or cause to be	87
cancelledcanceled an unsatisfied claim on the date that is forty	88
years after the date the claim is certified.	89

(3) No action shall be commenced to collect any tax payable	90
to the state that is administered by the tax commissioner, whether	91
or not such tax is subject to division (B) of this section, or any	92
penalty, interest, or additional charge on such tax, after the	93
expiration of the period ending on the later of the dates	94
specified in divisions (F)(3)(a) and (b) of this section, provided	95
that such period shall be extended by the period of any stay to	96
such collection or by any other period to which the parties	97
mutually agree:	98

(a) Seven years after the assessment of the tax, penalty,	99
interest, or additional charge is issued.	100

(b) Four years after the assessment of the tax, penalty,	101
interest, or additional charge becomes final. For the purposes of	102
division (F)(3)(b) of this section, the assessment becomes final	103
at the latest of the following: upon expiration of the period to	104
petition for reassessment, or if applicable, to appeal a final	105
determination of the commissioner or decision of the board of tax	106
appeals or a court, or, if applicable, upon decision of the United	107
States supreme court.	108

For the purposes of division (F)(3) of this section, an	109
action to collect a tax debt is commenced at the time when any	110
action, including any action in aid of execution on a judgment,	111
commences after a certified copy of the tax commissioner's entry	112
making an assessment final has been filed in the office of the	113
clerk of court of common pleas in the county in which the taxpayer	114
resides or has its principal place of business in this state, or	115
in the office of the clerk of court of common pleas of Franklin	116
county, as provided in section 5739.13, 5741.14, 5747.13, or	117
5751.09 of the Revised Code or in any other applicable law	118
requiring such a filing. If an assessment has not been issued and	119
there is no time limitation on the issuance of an assessment under	120
applicable law, an action to collect a tax debt commences when the	121
action is filed in the courts of this state to collect the	122
liability.	123

(4) If information contained in a claim that is sold,	124
conveyed, or transferred to a private entity pursuant to this	125
section is confidential pursuant to federal law or a section of	126
the Revised Code that implements a federal law governing	127
confidentiality, such information remains subject to that law	128
during and following the sale, conveyance, or transfer.	129

Sec. 131.022. Not later than April 30, 2007, and not later	130
than that date every other year thereafter, the attorney general	131
shall prepare and file a report with the clerk of the house of	132
representatives, the clerk of the senate, and the chairpersons of	133
the respective standing committees of the senate and house of	134
representatives that are primarily responsible for considering tax	135
assessment and collection matters. The report shall address the	136
tax collection efforts of the office of the attorney general for	137
the previous two calendar years. In particular, the report shall	138
specify what types of debts have been collected, what types of	139
debts are outstanding, and generally what actions have been taken	140
on the outstanding debts owed to the state.	141

Sec. 2305.26.  (A) An action by the state or an agency or	142
political subdivision of the state to enforce a lien upon real or	143
personal property created under and by virtue of section 1901.21,	144
2505.13, 2937.25, 4123.76, 4123.78, 4141.23, 4509.60, or 5719.04	145
of the Revised Code shall be brought within twelve years from the	146
date when the lien or notice of continuation of the lien has been	147
filed in the office of the county recorder.	148

(B)(1) Except as otherwise provided in division (B)(2) of	149
this section, beginning February 1, 2007, a notice of continuation	150
of lien may be filed in the office of the county recorder within	151
six months prior to the expiration of the twelve-year period	152
following the original filing of the lien or the filing of the	153
notice of continuation of the lien as specified in division (A) of	154
this section. The notice must identify the original notice of lien	155
and state that the original lien is still effective. Upon timely	156
filing of a notice of continuation of lien, the effectiveness of	157
the original lien is continued for twelve years after the last	158
date on which the lien was effective, whereupon it lapses, unless	159
another notice of continuation of lien is filed prior to the	160
lapse. Succeeding notices of continuation of lien may be filed in	161
the same manner to continue the effectiveness of the original	162
lien.	163

(2) As used in division (B)(2) of this section, "interim	164
period" means the period beginning September 26, 2003, and ending	165
the day before the effective date of Sub. H.B. 390 of the 126th	166
general assembly.	167

Division (B)(2) of this section applies only to liens	168
enforceable by an action subject to the limitation of division (A)	169
of this section on September 25, 2003, as this section existed on	170
that date, and notice of continuation of which would have had to	171
have been filed under division (B) of this section, as this	172
section existed on that date, during the interim period if this	173
section had been in effect during the interim period.	174

Notice of continuation of such a lien may be filed as	175
otherwise provided in division (B)(1) of this section, except the	176
notice shall be filed within six months prior to the expiration of	177
three years following the expiration of the six-year period within	178
which such notice was required to have been filed under this	179
section as this section existed on September 25, 2003, or by	180
February 1, 2007, whichever is later.	181

(C) The recorder shall mark each notice of continuation of	182
lien with a consecutive file number and with the date of filing	183
and shall hold the notice open for public inspection. In addition,	184
the recorder shall index the notices according to the names of the	185
person against whom they are effective, and shall note in the	186
index the file numbers of the notices. Except in cases of liens	187
arising under section 5719.04 of the Revised Code, the recorder	188
shall mark the record of the original lien "continued" and note	189
thereon the date on which the notice of continuation of lien was	190
filed. The recorder may remove a lapsed lien or lapsed notice of	191
continuation of lien from the file and destroy it. For any	192
services performed under this section, the county recorder shall	193
charge and collect the fees set forth in section 317.32 of the	194
Revised Code.	195

(D) A notice of continuation of lien must be signed and filed	196
by the clerk of the court or the magistrate in cases of liens	197
arising under sections 1901.21, 2505.13, and 2937.25 of the	198
Revised Code, by the industrial commission in cases of liens	199
arising under sections 4123.76 and 4123.78 of the Revised Code, by	200
the director of job and family services in cases of liens arising	201
under section 4141.23 of the Revised Code, by the registrar of	202
motor vehicles in cases of liens arising under section 4509.60 of	203
the Revised Code, and by the county auditor in cases of liens	204
arising under section 5719.04 of the Revised Code.	205

Sec. 2329.07. (A)(1) If neither execution on a judgment	206
rendered in a court of record or certified to the clerk of the	207
court of common pleas in the county in which the judgment was	208
rendered is issued, nor a certificate of judgment for obtaining a	209
lien upon lands and tenements is issued and filed, as provided in	210
sections 2329.02 and 2329.04 of the Revised Code, within five	211
years from the date of the judgment or within five years from the	212
date of the issuance of the last execution thereon or the issuance	213
and filing of the last such certificate, whichever is later, then,	214
unless the judgment is in favor of the state, the judgment shall	215
be dormant and shall not operate as a lien upon the estate of the	216
judgment debtor.	217

(2) If the judgment is in favor of the state, the judgment	218
shall not become dormant and shall not cease to operate as a lien	219
against the estate of the judgment debtor provided that either	220
execution on the judgment is issued or a certificate of judgment	221
is issued and filed, as provided in sections 2329.02 and 2329.04	222
of the Revised Code, within ten years from the date of the	223
judgment or within twelve years from the date of the issuance of	224
the last execution thereon or the issuance and filing of the last	225
such certificate, whichever is later, except as otherwise provided	226
in division (C) of this section.	227

(B) If, in any county other than that in which a judgment was	228
rendered, the judgment has become a lien by reason of the filing,	229
in the office of the clerk of the court of common pleas of that	230
county, of a certificate of the judgment as provided in sections	231
2329.02 and 2329.04 of the Revised Code, and if no execution is	232
issued for the enforcement of the judgment within that county, or	233
no further certificate of the judgment is filed in that county,	234
within five years or, if the judgment is in favor of the state,	235
within twelve years from the date of issuance of the last	236
execution for the enforcement of the judgment within that county	237
or the date of filing of the last certificate in that county,	238
whichever is the later, then the judgment shall cease to operate	239
as a lien upon lands and tenements of the judgment debtor within	240
that county, unless the judgment is in favor of the state, in	241
which case the judgment shall not become dormant, except as	242
otherwise provided in division (C) of this section.	243

(C)(1) As used in division (C) of this section, "interim	244
period" means the period beginning September 26, 2003, and ending	245
the day before the effective date of Sub. H.B. 390 of the 126th	246
general assembly.	247

(2) Division (C) of this section applies only to judgments in	248
favor of the state that are subject to this section and to which	249
both of the following apply:	250

(a) The first issuance of execution on the judgment, or the	251
first issuance and filing of the certificate of judgment, was	252
issued or issued and filed within the ten-year period provided in	253
this section before the beginning of the interim period;	254

(b) Subsequent issuance of execution on the judgment or	255
subsequent issuance and filing of the certificate of judgment	256
would have been required during the interim period in order to	257
keep the lien from becoming dormant under this section as this	258
section existed on September 25, 2003, and as if this section as	259
it existed on that date had been in effect during the interim	260
period.	261

(3) Such a judgment shall not become dormant and shall not	262
cease to operate as a lien against the estate of the judgment	263
debtor if either execution on the judgment is issued or a	264
certificate of judgment is issued and filed, as provided in	265
sections 2329.02 and 2329.04 of the Revised Code, within three	266
years after the expiration of the ten-year period following	267
issuance of the last execution on the judgment or following the	268
issuance and filing of the last such certificate, whichever is	269
later.	270

Sec. 5703.06. (A) As used in this section, "claim" means a	271
claim for an amount payable to this state that arises under a	272
statute administered by the tax commissioner and that has been	273
certified to the attorney general for collection under section	274
131.02 of the Revised Code.	275

(B) The tax commissioner and the attorney general shall	276
consider the following standards when ascertaining with respect to	277
a claim whether a compromise or payment-over-time agreement is in	278
the best interests of the state under division (E) of section	279
131.02 of the Revised Code:	280

(1) There exists a doubt as to whether the claim can be	281
collected.	282

(2) There exists a substantial probability that, upon payment	283
of the claim and submission of a timely application for refund	284
with respect to that payment, the commissioner would refund an	285
amount that was illegally or erroneously paid.	286

(3) There exists an economic hardship such that a compromise	287
or agreement would facilitate effective tax administration.	288

(4) There exists a joint assessment of spouses, one of whom	289
is an innocent spouse, provided that any relief under this	290
standard shall only affect the claim as to the innocent spouse. A	291
spouse granted relief under 6015 of the Internal Revenue Code with	292
regard to any income item is rebuttably presumed to be an innocent	293
spouse with regard to that income item to the extent that income	294
item is included in or otherwise affects the computation of the	295
tax imposed under section 5747.02 of the Revised Code or any	296
penalty or interest on that tax.	297

(5) Any other standard to which the commissioner and attorney	298
general jointly agree.	299

(C) The rejection of a compromise or payment-over-time	300
agreement proposed by a taxpayer with respect to a claim shall not	301
be appealable.	302

(D) A compromise or payment-over-time agreement with respect	303
to a claim shall be binding upon and shall inure to the benefit of	304
only the parties to the compromise or agreement, and shall not	305
extinguish or otherwise affect the liability of any other person	306
or governmental entity.	307

(E) A compromise or payment-over-time agreement with respect	308
to a claim shall be void if the taxpayer defaults under the	309
compromise or agreement or if the compromise or agreement was	310
obtained by fraud or by misrepresentation of a material fact. Any	311
amount that was due prior to the compromise or agreement and is	312
unpaid shall remain due, and any interest that would have accrued	313
in the absence of the compromise or agreement shall continue to	314
accrue and be due.	315

Sec. 5703.58.  (A) Subject to division (C) of this section,	316
the tax commissioner shall not make or issue an assessment for any	317
tax payable to the state that is administered by the tax	318
commissioner, or any penalty, interest, or additional charge on	319
such tax, after the expiration of ten years, including any	320
extension, from the date the tax return or report was due when	321
such amount was not reported and paid, provided that the ten-year	322
period shall be extended by the period of any lawful stay to such	323
assessment. As used in this section, "assessment" has the same	324
meaning as in section 5703.50 of the Revised Code.	325

(B) This section does not apply to either of the following:

326

(1) Any amount collected for the state by a vendor or seller	327
under Chapter 5739. or 5741. of the Revised Code or withheld by an	328
employer under Chapter 5747. of the Revised Code.	329

(2) Any person who fraudulently attempts to avoid such tax.

330

(C) This section does not authorize the assessment or	331
collection of a tax for which the applicable period of limitation	332
prescribed by law has expired and for which no valid assessment	333
has been made and served as prescribed by law.	334

Sec. 5735.03.  Every motor fuel dealer shall file with the	335
tax commissioner a surety bond of not less than five thousand	336
dollars, but may be required by the tax commissioner to submit a	337
surety bond equal to three months' average tax liability, on a	338
form approved by and with a surety satisfactory to the	339
commissioner, upon which the motor fuel dealer shall be the	340
principal obligor and the state shall be the obligee, conditioned	341
upon the prompt filing of true reports and the payment by the	342
motor fuel dealer to the treasurer of state of all motor fuel	343
excise taxes levied by the state, provided that after notice is	344
received from the state by the surety of the delinquency of any	345
taxes, if the surety pays the taxes within thirty days after the	346
receipt of the notice no penalties or interest shall be charged	347
against the surety. If the surety does not pay the taxes within	348
thirty days, but does pay within ninety days from the date of the	349
receipt of notice from the state by the surety, no penalty shall	350
be assessed against the surety but the surety shall pay interest	351
at the rate of six per cent per annum on the unpaid taxes from the	352
date the taxes are due and payable. If the surety does not pay	353
within ninety days then the surety shall be liable for interest	354
and penalties, and the tax commissioner may cancel all bonds	355
issued by the surety.	356

The commissioner may increase or reduce the amount of the	357
bond required to be filed by any licensed motor fuel dealer. If	358
the commissioner finds that it is necessary to increase the bond	359
to assure payment of the tax, the bond may be increased to an	360
amount equal to three months/average liability or fifty thousand	361
dollars, whichever is greater.	362

If liability upon the bond thus filed by the motor fuel	363
dealer with the commissioner is discharged or reduced, whether by	364
judgment rendered, payment made, or otherwise, or if, in the	365
opinion of the commissioner any surety on the bond theretofore	366
given has become unsatisfactory or unacceptable, the commissioner	367
may require the motor fuel dealer to file a new bond with	368
satisfactory sureties in the same amount, and if a new bond is not	369
filed the commissioner shall forthwith cancel the license of the	370
motor fuel dealer. If a new bond is furnished by the motor fuel	371
dealer, the commissioner shall cancel and surrender the bond of	372
the motor fuel dealer for which the new bond is substituted.	373

A surety on a bond furnished by a motor fuel dealer shall be	374
released from all liability to the state accruing on the bond	375
after the expiration of sixty days from the date upon which the	376
surety lodges with the commissioner a written request to be	377
released. The request shall not operate to release the surety	378
from any liability already accrued, or which accrues before the	379
expiration of the sixty-day period. The commissioner shall	380
promptly on receipt of notice of the request notify the motor fuel	381
dealer who furnished the bond and, unless the motor fuel dealer on	382
or before the expiration of the sixty-day period files with the	383
commissioner a new bond with a surety satisfactory to the	384
commissioner in the amount and form provided in this section, the	385
commissioner shall forthwith cancel the license of the motor fuel	386
dealer. If the new bond is furnished by said motor fuel dealer,	387
the commissioner shall cancel and surrender the bond of the motor	388
fuel dealer for which the new bond is substituted.	389

The commissioner, in lieu of any surety bond required by this	390
section, may accept a deposit by a motor fuel dealer of cash. Any	391
cash thus accepted shall be deposited with the treasurer of state	392
to be held by the treasurer of state, in the same manner as other	393
cash required to be deposited with the treasurer of state under	394
the laws of the state, for the account of such motor fuel dealer	395
and subject to any lawful claim of the state for any excise tax	396
upon motor fuel, and penalties and interest thereon levied by the	397
laws of this state. The state shall have a lien upon cash thus	398
deposited for the amount of any motor fuel excise taxes and	399
penalty and interest due to the state from the motor fuel dealer	400
in whose behalf they were deposited. The amount of cash to be thus	401
accepted shall in all respects be determined in the same manner as	402
provided in this section for the amount of surety bonds. Any cash	403
deposited shall be subject to levy upon execution to satisfy any	404
judgment secured in any action by the state to recover any motor	405
fuel excise taxes, and penalties and interest found to be due to	406
the state from such motor fuel dealer. The cash shall be released	407
by the treasurer of state upon certificate of the commissioner	408
that the license of the motor fuel dealer in whose behalf they	409
have been deposited has been canceled or that other security has	410
been accepted in lieu thereof, and that the state asserts no claim	411
thereto.	412

Where any person is accepted by the commissioner as surety	413
upon any bond required to be filed by this section, a statement of	414
the surety under oath shall be filed with the commissioner showing	415
real estate owned by the surety, together with all liens and	416
encumbrances thereon, as shown by the records of the county	417
auditor and county recorder of the county in which the property is	418
located, which statement shall also show that the appraised value	419
of the interest and equity of the surety is at least double the	420
face value of the bond, and thereupon the commissioner shall file	421
with the recorder of the county a certificate, under the seal of	422
the commissioner, setting forth the name of the motor fuel dealer	423
in whose behalf the bond is given and the amount of the bond,	424
together with a description of the parcel of real estate owned in	425
the county by the person accepted as surety, which certificate	426
shall be recorded by such recorder, and thereupon the amount of	427
the bond shall become a lien upon said property and shall so	428
continue until satisfied or released upon certificate of the	429
commissioner, which certificate of release shall be furnished when	430
other security has been offered by the motor fuel dealer and	431
accepted by the commissioner, or when the license of the motor	432
fuel dealer, in whose behalf the property was pledged as security,	433
has been cancelled and it is found by the commissioner that the	434
licensed motor fuel dealer has paid to the state all excise taxes	435
upon motor fuel payable by the licensed motor fuel dealer under	436
the laws of this state, together with all penalties, interest and	437
fines accruing by reason of any failure on the part of the motor	438
fuel dealer to make accurate reports of receipts of taxable motor	439
fuel and to pay the taxes, penalties, interest, and fines accruing	440
in connection therewith. The commissioner may issue a certificate	441
of partial release of the lien on real estate of the surety where	442
property of an equivalent amount has been substituted, or it	443
appears that the value of the property remaining subject to the	444
lien is satisfactory in amount to the commissioner. If any person	445
accepted as surety whose real estate has been subjected to a lien	446
desires to terminate the liability to the state, the person	447
accepted as a surety may file with the commissioner a written	448
request to be released. The commissioner shall promptly notify the	449
motor fuel dealer of the surety's request, and unless the motor	450
fuel dealer on or before the expiration of sixty days after	451
receipt of such notice files with the commissioner a new bond with	452
a surety satisfactory to the commissioner in the amount and form	453
provided in this section the commissioner shall forthwith cancel	454
the license of said motor fuel dealer. Promptly upon the	455
expiration of sixty days after receipt from the surety of such	456
written request for release, or upon the filing of a new and	457
acceptable bond with satisfactory sureties by the motor fuel	458
dealer, the commissioner shall determine whether the surety is	459
subject to any claim of the state for any unpaid taxes and	460
penalties and interest upon motor fuel under the laws of this	461
state by reason of the relationship as surety, and if no liability	462
is asserted the commissioner shall furnish to said surety a	463
certificate under the seal of the commissioner stating that no	464
liability is thus asserted and describing the property owned by	465
the surety subject to the lien of the state for any taxes and	466
penalties, and said certificate upon presentation shall be	467
recorded by the recorder of the county in which said property is	468
located and shall operate from the date of recording as a release	469
of the property therein described from such lien.	470

Sec. 5749.02.  (A) For the purpose of providing revenue to	471
administer the state's coal mining and reclamation regulatory	472
program, to meet the environmental and resource management needs	473
of this state, and to reclaim land affected by mining, an excise	474
tax is hereby levied on the privilege of engaging in the severance	475
of natural resources from the soil or water of this state. The tax	476
shall be imposed upon the severer and shall be:	477

(1) Seven cents per ton of coal;

478

(2) Four cents per ton of salt;

479

(3) Two cents per ton of limestone or dolomite;

480

(4) Two cents per ton of sand and gravel;

481

(5) Ten cents per barrel of oil;

482

(6) Two and one-half cents per thousand cubic feet of natural	483
gas;	484

(7) One cent per ton of clay, sandstone or conglomerate,	485
shale, gypsum, or quartzite.	486

(B) Of the moneys received by the treasurer of state from the	487
tax levied in division (A)(1) of this section, six and	488
three-tenths per cent shall be credited to the geological mapping	489
fund created in section 1505.09 of the Revised Code, fourteen and	490
two-tenths per cent shall be credited to the reclamation	491
forfeiture fund created in section 1513.18 of the Revised Code,	492
fifty-seven and nine-tenths per cent shall be credited to the coal	493
mining administration and reclamation reserve fund created in	494
section 1513.181 of the Revised Code, and the remainder shall be	495
credited to the unreclaimed lands fund created in section 1513.30	496
of the Revised Code. When, at any time during a fiscal year, the	497
chief of the division of mineral resources management finds that	498
the balance of the coal mining administration and reclamation	499
reserve fund is below two million dollars, the chief shall certify	500
that fact to the director of budget and management. Upon receipt	501
of the chief's certification, the director shall direct the tax	502
commissioner to instead credit to the coal mining administration	503
and reclamation reserve fund during the remainder of the fiscal	504
year for which the certification is made the fourteen and	505
two-tenths per cent of the moneys collected from the tax levied in	506
division (A)(1) of this section and otherwise required by this	507
division to be credited to the reclamation forfeiture fund.	508

Fifteen per cent of the moneys received by the treasurer of	509
state from the tax levied in division (A)(2) of this section shall	510
be credited to the geological mapping fund and the remainder shall	511
be credited to the unreclaimed lands fund.	512

Of the moneys received by the treasurer of state from the tax	513
levied in divisions (A)(3) and (4) of this section, seven and	514
five-tenths per cent shall be credited to the geological mapping	515
fund, forty-two and five-tenths per cent shall be credited to the	516
unreclaimed lands fund, and the remainder shall be credited to the	517
surface mining fund created in section 1514.06 of the Revised	518
Code.	519

Of the moneys received by the treasurer of state from the tax	520
levied in divisions (A)(5) and (6) of this section, ninety per	521
cent shall be credited to the oil and gas well fund created in	522
section 1509.02 of the Revised Code and ten per cent shall be	523
credited to the geological mapping fund. All of the moneys	524
received by the treasurer of state from the tax levied in division	525
(A)(7) of this section shall be credited to the surface mining	526
fund.	527

(C) For the purpose of paying the state's expenses for	528
reclaiming mined lands that the operator failed to reclaim under a	529
coal mining and reclamation permit issued under Chapter 1513. of	530
the Revised Code, or under a surface mining permit issued under	531
Chapter 1514. of the Revised Code, for which the operator's bond	532
is not sufficient to pay the state's expense for reclamation,	533
there is hereby levied an excise tax on the privilege of engaging	534
in the severance of coal from the soil or water of this state in	535
addition to the taxes levied by divisions (A)(1) and (D) of this	536
section. The tax shall be imposed at the rate of one cent per ton	537
of coal. Moneys received by the treasurer of state from the tax	538
levied under this division shall be credited to the reclamation	539
forfeiture fund created in section 1513.18 of the Revised Code.	540

(D) For the purpose of paying the state's expenses for	541
reclaiming coal mined lands that the operator failed to reclaim in	542
accordance with Chapter 1513. of the Revised Code under a coal	543
mining and reclamation permit issued after April 10, 1972, but	544
before September 1, 1981, for which the operator's bond is not	545
sufficient to pay the state's expense for reclamation and paying	546
the expenses for administering the state's coal mining and	547
reclamation regulatory program, there is hereby levied an excise	548
tax on the privilege of engaging in the severance of coal from the	549
soil or water of this state in addition to the taxes levied by	550
divisions (A)(1) and (C) of this section. The tax shall be imposed	551
at the rate of one cent per ton of coal as prescribed in this	552
division. Moneys received by the treasurer of state from the tax	553
levied by this division shall be credited to the reclamation	554
forfeiture fund created in section 1513.18 of the Revised Code.	555

When, at the close of any fiscal year, the chief finds that	556
the balance of the reclamation forfeiture fund, plus estimated	557
transfers to it from the coal mining and reclamation reserve fund	558
under section 1513.181 of the Revised Code, plus the estimated	559
revenues from the tax levied by this division for the remainder of	560
the calendar year that includes the close of the fiscal year, are	561
sufficient to complete the reclamation of such lands, the purposes	562
for which the tax under this division is levied shall be deemed	563
accomplished at the end of that calendar year. The chief, within	564
thirty days after the close of the fiscal year, shall certify	565
those findings to the tax commissioner, and the tax shall cease to	566
be imposed after the last day of that calendar year.	567

(E) On the day fixed for the payment of the severance taxes	568
required to be paid by this section, the taxes with any penalties	569
or interest on them shall become a lien on all property of the	570
taxpayer in this state whether the property is employed by the	571
taxpayer in the prosecution of its business or is in the hands of	572
an assignee, trustee, or receiver for the benefit of creditors or	573
stockholders. The lien shall continue until the taxes and any	574
penalties or interest thereon are paid.	575

Upon failure of the taxpayer to pay a tax on the day fixed	576
for payment, the tax commissioner may file, for which no filing	577
fee shall be charged, in the office of the county recorder in each	578
county in this state in which the taxpayer owns or has a	579
beneficial interest in real estate, notice of the lien containing	580
a brief description of the real estate. The lien shall not be	581
valid as against any mortgagee, purchaser, or judgment creditor	582
whose rights have attached prior to the time the notice is filed	583
in the county in which the real estate that is the subject of the	584
mortgage, purchase, or judgment lien is located. The notice shall	585
be recorded in a book kept by the recorder called the "severance	586
tax lien record" and indexed under the name of the taxpayer	587
charged with the tax. When the tax has been paid, the tax	588
commissioner shall furnish to the taxpayer an acknowledgement of	589
payment, which the taxpayer may record with the recorder of each	590
county in which notice of the lien has been filed.	591

Section 2. That existing sections 109.082, 131.02, 2329.07,	592
5703.06, 5735.03, and 5749.02 and section 5733.18 of the Revised	593
Code are hereby repealed.	594

Section 3. The amendment or enactment by this act of sections	595
109.082, 131.02, 5703.06, and 5703.58 of the Revised Code apply to	596
assessments made, or if no assessment was made, to liabilities	597
arising, before, on, or after the effective date of this act.	598
However, the statute of limitations to collection in section	599
131.02 of the Revised Code, as amended by this act, and to	600
assessment in section 5703.58 of the Revised Code, as enacted by	601
this act, expire not earlier than three years after the effective	602
date of this act, notwithstanding any provisions in such sections	603
to the contrary.	604