130th Ohio General Assembly
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As Reported by the Senate Ways and Means Committee

122nd General Assembly
Regular Session
1997-1998
S. B. No. 59

SENATORS NEIN-LATTA


A BILL
To amend sections 321.45, 323.12, 323.31, 5711.33, 5715.39, and 5719.03 and to enact section 321.48 of the Revised Code to permit all real property taxpayers to participate in a system for prepayment of taxes and to make other changes to the county treasurer law.

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


Section 1. That sections 321.45, 323.12, 323.31, 5711.33, 5715.39, and 5719.03 be amended and section 321.48 of the Revised Code be enacted to read as follows:

Sec. 321.45. (A) As used in this section:

(1) "Taxpayer" means any person in whose name a parcel of residential property is listed on the tax duplicate.

(2) "Prepayment" means any amount given to the county treasurer by a taxpayer under this section for the treasurer to apply as payment of the taxpayer's total taxes due in accordance with this section.

(3) "Taxes," "delinquent taxes," and "current taxes" have the same meanings as in section 323.01 of the Revised Code.

(4) "Duplicate" means the treasurer's duplicate of real and public utility property.

(5) "Total taxes due" means all delinquent taxes and that portion of current taxes that, in order to avoid a penalty, are required to be paid by the next date that is the last date on which an installment of taxes may be paid without penalty.

(6) "Residential property" means single family dwellings, duplexes, doubles, and apartment buildings with not more than six units and the land on which those dwellings are located.

(B)(1) A county treasurer may enter into a written agreement with any taxpayer, upon mutually agreed upon ON terms and conditions, under which both of the following occur:

(a) The taxpayer agrees to tender prepayments of taxes on a parcel of residential property for which he THE TAXPAYER is the taxpayer;

(b) The treasurer agrees to accept the prepayments and hold them either in an escrow fund or a separate depository account until the last day that an installment of current taxes may be paid without penalty, at which time he THE TREASURER further agrees to apply, in payment of the total taxes due on the parcel, an amount of the prepayments that equals the total taxes due on the parcel. IF A DISCOUNT IS NOT GIVEN UNDER DIVISION (B)(2) OF THIS SECTION, ANY EARNINGS ON PREPAYMENTS IN AN ESCROW FUND OR DEPOSITORY ACCOUNT SHALL BE PAID TO THE CREDIT OF A SPECIAL INTEREST ACCOUNT TO BE USED BY THE TREASURER ONLY FOR THE PAYMENT OF THE EXPENSES INCURRED IN ESTABLISHING AND ADMINISTERING THE SYSTEM FOR COLLECTING PREPAYMENTS UNDER DIVISION (B)(1) OF THIS SECTION.

(2) In addition to providing for the items enumerated in division (B)(1) of this section, the agreement may provide for the treasurer to invest prepayments held in the escrow FUND or depository account, subject to Chapter 135. of the Revised Code, and apply the investment earnings thereon, after deducting an amount to pay the expenses incurred by the treasurer in establishing and administering the prepayment system, as a discount against the total taxes due of each taxpayer entering into such an agreement. The balance applied to the discounts shall be apportioned among taxpayers in such a manner that the discount credited to a taxpayer for each parcel of residential real property for which taxes are prepaid is commensurate with the amount of current taxes due and the length of time current taxes are held in escrow. Discounts accruing to prepayments made for a tax year shall be applied against total taxes due for the ensuing tax year. No discount shall be apportioned to a taxpayer who fails to pay the total taxes due or fails to make prepayments pursuant to the terms of the agreement.

(C) A prepayment accepted by a treasurer under an agreement under division (B) of this section does not constitute a payment of taxes until it is applied toward the payment of taxes as provided in this section. A separate prepayment agreement is required for each parcel of residential property, except that a taxpayer who makes prepayments on more than one parcel may enter into a single agreement covering all of the parcels. The single agreement shall specify the manner in which each prepayment shall be apportioned among the parcels. The treasurer shall keep a separate record for each parcel showing the date and amount of each prepayment.

(D) No treasurer shall fail to apply prepayments toward the payment of taxes as required pursuant to an agreement entered INTO under division (B) of this section; however, the total amount of prepayments shall equal or exceed the total taxes due, less any discount applied for a previous period under division (B)(2) of this section.

(E) The treasurer shall give each person who makes a tax prepayment in person at the office of the county treasurer a receipt in the form that the prepayment agreement requires. The treasurer shall give a receipt to a person who makes a tax prepayment to the treasurer by mail only if the taxpayer encloses with the prepayment an addressed envelope with sufficient postage, in which case the treasurer shall insert a receipt for the prepayment in that envelope and deposit it in the mail. The treasurer may refund any amount tendered as a prepayment if the taxpayer so requests and files with the treasurer an affidavit and the supporting documents the treasurer requires providing that the taxpayer no longer owns the property. The request for the refund shall be made prior to the date of the mailing of a tax bill and escrow statement to the taxpayer. If a taxpayer who has entered into a prepayment agreement pursuant to this section dies before the last day on which an installment of current taxes may be paid without penalty, the treasurer may refund the amount of any prepayments made by that taxpayer to the executor or administrator of the taxpayer's estate.

(F) If the treasurer has received any prepayments from a taxpayer, the treasurer shall add to the tax bill required by section 323.13 of the Revised Code a tax escrow statement that shall specify the total amount of prepayments received by the treasurer on or before the date the statement was prepared, the balance of total taxes due for which no prepayment has been received, the amount of any discount to be applied to total taxes due, and the date the statement was prepared.

(G) If the total amount of a taxpayer's prepayments to the treasurer made on or before the final date an installment of taxes may be paid without penalty do not equal or exceed the total taxes due on that date, the taxpayer is not relieved of any late penalty or interest otherwise due pursuant to section 323.121 of the Revised Code. If the treasurer fails to apply prepayments received by his THE TREASURER'S office in accordance with the terms of an agreement and the total amount of the taxpayer's prepayments equals or exceeds the total taxes due, the taxpayer is relieved of any late penalty or interest imposed under section 323.121 of the Revised Code.

(H) The office of the county treasurer shall bear all of the costs of establishing and administering a system for collecting prepayments as permitted by this section.

(I) Before the county treasurer commences a prepayment system, the tax commissioner shall approve all procedures and forms to be used in the system.

(J) The treasurer may enter into any agreements necessary to enable the taxpayer to make prepayments of taxes to the office of the treasurer through the electronic transfer of funds from an account in the name of the taxpayer at a financial institution.

Sec. 321.48. A COUNTY TREASURER MAY ASSESS A FEE NOT EXCEEDING AN AMOUNT EQUAL TO FIVE DOLLARS PLUS ANY AMOUNT PASSED ON FROM A FINANCIAL INSTITUTION ON A DRAWER OR INDORSER FOR EACH CHECK, DRAFT, OR MONEY ORDER RETURNED OR DISHONORED, OR AUTOMATIC BANK TRANSFER DECLINED, DUE TO INSUFFICIENT FUNDS OR FOR ANY OTHER REASON. THE COUNTY TREASURER SHALL DEPOSIT IN THE GENERAL FUND OF THE COUNTY ANY FEE COLLECTED UNDER THIS SECTION.

Sec. 323.12. (A) Each person charged with taxes shall pay to the county treasurer the full amount of such taxes on or before the thirty-first day of December, or shall pay one-half of the current taxes together with the full amount of any delinquent taxes before such date, and the remaining half on or before the twentieth day of June next ensuing.

When taxes are paid by installments, each payment shall be apportioned among the several funds for which taxes have been assessed.

(B) A tax is paid on or before the dates set forth in this section if the tax payment is received by the county treasurer or if prepayments are applied by the treasurer toward the payment of taxes as provided by section 321.45 of the Revised Code on or before the last day for payment of such tax, or if the tax payment is received after such date in an envelope that was postmarked by the UNITED STATES postal service on or before the last day for payment of such tax. In the event there is more than one date of postmark on the envelope, the earliest date imprinted by the UNITED STATES postal service shall be the date of payment. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.

(C) The treasurer may delay the closing of his THE TREASURER'S books for any collection period for the purpose of receiving and processing such payments.

Sec. 323.31. (A) Delinquent taxes charged against any entry of real property may be paid pursuant to this division by the person who owns the real property or is a vendee in possession under a purchase agreement or land contract after entering into a written undertaking with the county treasurer in a form prescribed or approved by the tax commissioner. The undertaking may be entered into at any time prior to the county prosecuting attorney's commencement of foreclosure proceedings pursuant to section 323.25 or 5721.18 of the Revised Code, or commencement of foreclosure and forfeiture proceedings pursuant to section 5721.14 of the Revised Code. A duplicate copy of each such undertaking shall be filed with the county auditor, who shall attach such THE copy to the delinquent land tax certificate or delinquent vacant land tax certificate, or who shall enter an asterisk in the margin next to the entry for the tract or lot on the master list of delinquent tracts or master list of delinquent vacant tracts, prior to filing it with the prosecuting attorney under section 5721.13 of the Revised Code. If the undertaking is entered into after the certificate or the master list has been filed with the prosecuting attorney, the treasurer shall file the duplicate copy with the prosecuting attorney.

An undertaking entered into under this division shall provide for the payment of delinquent taxes in installments over a period not to exceed five years beginning on the earliest date delinquent taxes that are the subject of the undertaking were included in a certification under section 5721.011 of the Revised Code; however, a person entering into an undertaking WHO OWNS AND OCCUPIES RESIDENTIAL REAL PROPERTY may request, and the treasurer shall allow, an undertaking providing for payment in installments over a period of no fewer than two years beginning on that date. For

FOR each undertaking, the county treasurer shall determine, and shall specify in the undertaking, the number of installments, the amount of each installment, and the schedule for payment of the installments. EACH

Each installment payment shall be apportioned among the several funds for which taxes have been assessed and shall be applied to the items of taxes charged in the order in which they became due.

When an installment payment is not received by the treasurer when due or any current taxes charged against the property become delinquent, the undertaking becomes void unless the treasurer permits a new undertaking to be entered into; if the treasurer does not permit a new undertaking to be entered into, the treasurer shall certify to the auditor that the undertaking has become void. A new undertaking entered into under this paragraph shall provide for payment of the outstanding balance of delinquent taxes over a period that, when added to the periods of any previous undertakings that had elapsed prior to their becoming void, does not exceed ten years.

Upon receipt of such a certification, the auditor shall destroy his THE duplicate copy of the undertaking. If such copy has been filed with the prosecuting attorney, the auditor immediately shall deliver the certification to the prosecuting attorney, who shall attach it to the appropriate certificate and the duplicate copy of the voided undertaking or strike through the asterisk entered in the margin of the master list next to the entry for the tract or lot that is the subject of the voided undertaking. The prosecuting attorney then shall institute a proceeding to foreclose the lien of the state in accordance with section 323.25 or 5721.18 of the Revised Code or, in the case of delinquent vacant land, shall institute a foreclosure proceeding in accordance with section 323.25 or 5721.18 of the Revised Code, or a foreclosure and forfeiture proceeding in accordance with section 5721.14 of the Revised Code.

(B) Within ten days after the date prescribed by section 323.12 or 323.17 of the Revised Code for payment of the first half installment of the current taxes, any person failing to pay the amount required by such date, with the consent of the treasurer, may enter into a written undertaking with the treasurer, in a form prescribed by the tax commissioner, to pay all current taxes pursuant to this division. The agreement shall provide for the entire amount of such taxes to be paid in three or fewer installments before the date set by section 323.12 or 323.17 of the Revised Code for the payment of the second installment of such taxes. Each payment made under this division shall be not less than one-third of the total amount of the current taxes, unless the collection of a particular tax has been legally enjoined, or unless at any scheduled payment date less than one-third of the total amount remains unpaid, in which case the total balance shall be paid.

If a payment is not received by the treasurer when due under the terms of an undertaking made under this division, the treasurer may permit the taxpayer to make the payment at a later date, provided the payment is received before the date set by section 323.12 or 323.17 of the Revised Code for the payment of the second installment of current taxes. If the total taxes arranged to be paid pursuant to such an undertaking are not received before such date, the undertaking shall become void and the treasurer shall proceed to collect all unpaid taxes then due by any other means provided by law.

Sec. 5711.33. (A)(1) When a county treasurer receives a certificate from a county auditor pursuant to division (A) of section 5711.32 of the Revised Code charging him THE TREASURER with the collection of an amount of taxes due as the result of a deficiency assessment, he THE TREASURER shall immediately prepare and mail a tax bill to the taxpayer owing such tax. The tax bill shall contain the name of the taxpayer; the taxable value, tax rate, and taxes charged for each year being assessed; the total amount of taxes due; the final date payment may be made without additional penalty; and any other information the treasurer considers pertinent or necessary. Taxes due and payable as a result of a deficiency assessment, less any amount specifically excepted from collection under division (B) of section 5711.32 of the Revised Code, shall be paid with interest thereon as prescribed by section 5719.041 of the Revised Code on or before the sixtieth day following the date of issuance of the certificate by the county auditor. The balance of taxes found due and payable after a final determination by the tax commissioner or a final judgment of the board of tax appeals or any court to which such final judgment may be appealed, shall be paid with interest thereon as prescribed by section 5719.041 of the Revised Code on or before the sixtieth day following the date of certification by the auditor to the treasurer pursuant to division (C) of section 5711.32 of the Revised Code of such final determination or judgment. Such final dates for payment shall be determined and exhibited on the tax bill by the treasurer.

(2) If on or before the sixtieth day following the date of a certification of a deficiency assessment under division (A) of section 5711.32 of the Revised Code or of a certification of a final determination or judgment under division (C) of section 5711.32 of the Revised Code, the taxpayer pays the full amount of taxes and interest due at the time of the receipt of certification with respect to that assessment, determination, or judgment, no interest shall accrue or be charged with respect to that assessment, determination, or judgment for the period that begins on the first day of the month in which the certification is made and that ends on the last day of the month preceding the month in which such sixtieth day occurs.

(B) When the taxes charged, as mentioned in division (A) of this section, are not paid within the time prescribed by such division, a penalty of ten per cent of the amount due and unpaid and interest for the period described in division (A)(2) of this section shall accrue at the time the treasurer closes his THE TREASURER'S office for business on the last day so prescribed, but if the taxes are paid within ten days subsequent to the last day prescribed, the treasurer shall waive the collection of and the auditor shall remit one-half of the penalty. The treasurer shall not thereafter accept less than the full amount of taxes and penalty except as otherwise authorized by law. Such penalty shall be distributed in the same manner and at the same time as the tax upon which it has accrued. The whole amount collected shall be included in the next succeeding settlement of appropriate taxes.

(C) When the taxes charged, as mentioned in division (A) of this section, remain unpaid after the final date for payment prescribed by such division, such charges shall be deemed to be delinquent taxes. The county auditor shall cause such charges, including the penalty which THAT has accrued pursuant to this section, to be added to the delinquent tax duplicate in accordance with section 5719.04 of the Revised Code.

(D) The county auditor, upon consultation with the county treasurer, shall remit a penalty imposed under division (B) of this section or division (C) of section 5719.03 of the Revised Code for the late payment of taxes when:

(1) The taxpayer could not make timely payment of the tax because of the negligence or error of the auditor or treasurer in the performance of a statutory duty relating to the levy or collection of such tax.

(2) In cases other than those described in division (D)(1) of this section, the taxpayer failed to receive a tax bill or a correct tax bill, and the taxpayer made a good faith effort to obtain such bill within thirty days after the last day for payment of the tax.

(3) The tax was not timely paid because of the death or serious injury of the taxpayer, or his THE TAXPAYER'S confinement in a hospital within sixty days preceding the last day for payment of the tax, if, in any case, the tax was subsequently paid within sixty days after the last day for payment of such tax.

(4) The taxpayer demonstrates to the satisfaction of the auditor that the full payment was properly deposited in the mail in sufficient time for the envelope to be postmarked by the UNITED STATES postal service on or before the last day for payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.

(E) The taxpayer may, upon application, MAY request the tax commissioner to review the denial of the remission of a penalty by the auditor. The commissioner shall consider the application, determine whether the penalty should be remitted, and certify his THE determination to the taxpayer and to the treasurer and auditor who shall correct the tax list and duplicate accordingly. The commissioner shall issue orders and instructions for the uniform implementation of this section by all auditors and treasurers, and such orders and instructions shall be followed by such officers.

Sec. 5715.39. The tax commissioner may remit real property taxes, penalties, and interest found by him THE COMMISSIONER to have been illegally assessed. The commissioner also may remit any penalty charged against any real property that was the subject of an application for exemption from taxation under section 5715.27 of the Revised Code if the commissioner determines that the applicant requested such exemption in good faith. The commissioner shall include notice of the remission in his THE COMMISSIONER'S certification to the county auditor required under that section.

The commissioner, on application by a taxpayer, shall remit a penalty for late payment of any real property taxes when:

(A) The taxpayer could not make timely payment of the tax because of the negligence or error of the auditor or treasurer in the performance of a statutory duty relating to the levy or collection of such tax.

(B) In cases other than those described in division (A) of this section, the taxpayer failed to receive a tax bill or a correct tax bill, and the taxpayer made a good faith effort to obtain such bill within thirty days after the last day for payment of the tax.

(C) The tax was not timely paid because of the death or serious injury of the taxpayer, or his THE TAXPAYER'S confinement in a hospital within sixty days preceding the last day for payment of the tax, if, in any case, the tax was subsequently paid within sixty days after the last day for payment of such tax.

(D) The taxpayer demonstrates to the satisfaction of the commissioner that the full payment was properly deposited in the mail in sufficient time for the envelope to be postmarked by the UNITED STATES postal service on or before the last day for payment of such tax. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.

The commissioner shall consider the application, determine whether the penalty should be remitted, and certify his THE determination to the taxpayer, to the county treasurer, and to the county auditor, who shall correct the tax list and duplicate accordingly.

This section shall not provide to the taxpayer any remedy with respect to any matter which he THAT THE TAXPAYER may be authorized to complain of under the provisions of sections 5715.19, 5717.02, and 5727.47 of the Revised Code.

Applications for remission, and documents of any kind related to those applications, filed with the tax commissioner under this section, are public records within the meaning of section 149.43 of the Revised Code, unless otherwise excepted under that section.

Sec. 5719.03. (A) The county auditor shall preserve all receipts showing the advance payment of taxes. At the time of making up the general personal and the classified tax list and duplicate, he THE AUDITOR shall enter thereon opposite the name of each person charged with taxes the amount of the advance payment made, as a credit against the amount of taxes charged thereon against such person.

(B) Each person charged with taxes on a general personal property or a classified property tax duplicate shall pay the full amount of such taxes, less the amount of advance payment credited on the duplicate, on or before the twentieth day of September, or a day as extended pursuant to section 5719.031 of the Revised Code.

(C) A tax is paid on or before the dates set forth in this section if the tax payment is received by the county treasurer on or before the last day for payment of such tax, or is received after such date in an envelope that was postmarked by the UNITED STATES postal service on or before the last day for payment of such tax. In the event there is more than one date of postmark on the envelope, the earliest date imprinted by the UNITED STATES postal service shall be the date of payment. A PRIVATE METER POSTMARK ON AN ENVELOPE IS NOT A VALID POSTMARK FOR PURPOSES OF ESTABLISHING THE DATE OF PAYMENT OF SUCH TAX.

(D) When an installment of taxes is not paid within the time prescribed by this section, or within the time so prescribed as extended pursuant to section 5719.031 of the Revised Code, a penalty of ten per cent of the amount due and unpaid shall accrue when the county treasurer closes his THE TREASURER'S office for business on the last day so prescribed, but if the taxes are paid within ten days subsequent to the last day prescribed, the treasurer shall waive the collection of, and the auditor shall remit one-half of, the penalty. The treasurer shall not thereafter accept less than the full amount of taxes and penalty, except as provided in division (E) of this section or section 5719.05, 5711.32, or 5711.33 of the Revised Code.

(E) Any partial payment of taxes tendered to a county treasurer may be accepted if the treasurer determines that the amount tendered was intended by the taxpayer to be equal to the amount due but is more or less than such amount as a result of what appears to the treasurer to be an obvious taxpayer error. The treasurer may accept a partial payment in which the only unpaid amount is the amount of a penalty for late payment provided the taxpayer files with the payment a copy of his THE TAXPAYER'S application to the auditor for a remission of the penalty or the payment is received within ten days of the last date the taxes could have been paid without penalty. Any overpayment shall be refunded by the treasurer in the manner most convenient to the treasurer. When the amount tendered and accepted is less than the amount due, the unpaid balance shall be treated as other unpaid taxes, and, except when the unpaid amount is the penalty, the treasurer shall notify the taxpayer of such deficiency.


Section 2. That existing sections 321.45, 323.12, 323.31, 5711.33, 5715.39, and 5719.03 of the Revised Code are hereby repealed.
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