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Sub. H. B. No. 168As Passed by the HouseAs Passed by the House
125th General Assembly | Regular Session | 2003-2004 |
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REPRESENTATIVES Trakas, Calvert, Koziura, Carano, Aslanides, S. Patton, Miller, D. Stewart, Reidelbach, J. Stewart, G. Smith, Otterman, Seitz, Beatty, Blasdel, Buehrer, Callender, Cates, Collier, Domenick, C. Evans, D. Evans, Flowers, Grendell, Hagan, Hartnett, Hoops, Jolivette, Niehaus, T. Patton, Peterson, Redfern, Schaffer, Schmidt, Schneider, Setzer, Taylor, Woodard, Young
A BILL
To amend sections 135.22, 135.341, 135.35, 319.302, 321.24, 321.46, 323.121, 323.31,
4503.06,
5713.20, 5719.051, 5721.10, 5721.30, 5721.31,
5721.32,
5721.33, 5721.34, 5721.37, 5721.38, 5721.39, 5721.40, and
5721.41 and
to enact sections 321.47 and 5721.43 of the Revised
Code to establish procedures for suspending the investment and portfolio management authority of a county treasurer who fails to meet the initial or continuing education requirements and transfer this authority to a county's investment advisory committee, to modify the investment authority of county
treasurers,
specify when penalties
may be imposed
on property subject to delinquent
tax contracts,
modify the authority of a county treasurer to compensate tax collectors of personal property taxes, modify procedures for the sale and
redemption of
tax certificates, prohibit certain
contacts between
tax certificate holders and
property owners, and
make other changes related to
the administration of
laws relating to real
property, public utility
property, and manufactured
home taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 135.22, 135.341, 135.35, 319.302, 321.24, 321.46, 323.121, 323.31,
4503.06,
5713.20, 5719.051, 5721.10, 5721.30, 5721.31, 5721.32, 5721.33,
5721.34,
5721.37, 5721.38, 5721.39, 5721.40, and 5721.41 be amended and sections 321.47 and
5721.43 of
the Revised Code be enacted to read as follows:
Sec. 135.22. (A) For purposes of this section: (1) "Treasurer" has the same meaning as in section 135.01 of the Revised
Code, but does not include a county treasurer or the treasurer of state. "Treasurer" includes any
person whose duties include making investment
decisions with respect to the investment or deposit of interim moneys. (2) "Subdivision" has the same meaning as in section 135.01 of the Revised
Code. (B) To enhance the background and working knowledge of treasurers
in investments, cash management, and ethics, the
treasurer of state shall provide annual continuing education
programs for treasurers. A treasurer annually shall complete
the continuing education programs described in this section,
unless the treasurer annually
provides a notice of exemption
described in division (E) of this section. (C) The treasurer of state shall determine the manner, content, and length of
the continuing education programs after consultation with
appropriate statewide organizations of local government officials. (D) Upon successful completion of a continuing education program required by
this section, the treasurer of state shall issue a certificate indicating that
the treasurer has successfully completed the continuing education program
prescribed by the treasurer of state. The treasurer of state shall forward to
the auditor of state any certificates issued pursuant to this division by the
treasurer of state. The auditor of state shall maintain in the auditor's
records any certificates forwarded by the treasurer of state pursuant to this
division. As part of the auditor of state's audit of the subdivision
conducted in accordance with section 117.11 of the Revised Code, the auditor
of state shall report whether the treasurer is in compliance with this section
of the Revised Code. (E) Division (B) of this section does not
apply to any treasurer who annually
provides a notice of
exemption to the auditor of state. The notice shall be certified by the
treasurer of state and shall provide that the treasurer is not subject to the
continuing education requirements set forth in division (B) of this section,
because the treasurer invests or deposits public moneys
in the following investments only: (1) Interim deposits pursuant to division (B)(3) of section
135.14 of the Revised Code; (2) No-load money market mutual funds pursuant to division (B)(5)
of section 135.14 of the Revised Code; (3) The Ohio subdivision's fund pursuant to division (B)(6) of
section 135.14
of the Revised Code. (F) In carrying out the duties required by this section, the treasurer of
state may charge the subdivision served by the treasurer a registration fee
that will meet actual and necessary expenses in connection with the training
of the treasurer, including instruction fees, site acquisition costs, and the
cost of course materials. Any necessary personal expenses of a treasurer
incurred as a result of attending the continuing education courses shall be
borne by the subdivision represented by the treasurer. (G) The treasurer of state may allow any other interested person to attend
any of the continuing education programs that are held pursuant to this
section, provided that before attending any such continuing education program,
the interested person has paid to the treasurer of state the full registration
fee set for the continuing education program. (H) All funds collected pursuant to this section shall be paid into the
county treasurer education fund created pursuant to section 321.46 of the
Revised
Code, and the actual and necessary expenses of the treasurer of state in
conducting the continuing education programs required by this section shall be
paid from this fund. (I) The treasurer of state may adopt reasonable rules not inconsistent with
this section for the implementation of this section.
Sec. 135.341. (A) There shall be a county investment advisory
committee consisting of three members: two county
commissioners to be
designated by the board of county commissioners, and
the county treasurer. Notwithstanding the preceding sentence, the board of county
commissioners may declare that all three county commissioners shall serve on
the county investment advisory committee. If the board so declares, the
county investment advisory committee shall consist of five members: the three
county commissioners, the county treasurer, and the clerk of the court of
common pleas of the county. (B) The committee shall elect its own chairperson, and committee members
shall receive no additional compensation for the performance of
their duties as committee members. (C) The committee shall establish
written county investment policies and shall meet at least once
every three months, to review or revise
its policies and to advise the investing authority on the
county investments in order to ensure the best and safest return
of funds available to the county for deposit or investment. Any member of
the county investment advisory committee, upon giving five days' notice, may
call a meeting of the committee. The
committee's policies may establish a limit on the period of time
that moneys may be invested in any particular type of investment. (D) The committee is authorized to retain the services of an
investment advisor, provided that the advisor is licensed by the division
of securities under section 1707.141 of the Revised Code or is registered with the
securities and exchange commission, and possesses public funds
investment
management experience, specifically in the area of state and local government
investment portfolios, or the advisor is an eligible institution mentioned in
section 135.03 of the Revised Code. (E) The committee shall act as the investing authority in place of the treasurer for purposes of investing county funds and managing the county portfolio when this authority is transferred to it pursuant to divisions (E)(1) and (F)(2) of section 321.46 of the Revised Code or when ordered to do so by a court pursuant to section 321.47 of the Revised Code. For these purposes, the committee shall retain the services of an investment advisor described in division (D) of this section.
(F) Nothing in this section affects the authority of any of the
officers mentioned in section 325.27 of the Revised Code to contract for the
services of fiscal and management consultants pursuant to section 325.17 of
the Revised Code.
Sec. 135.35. (A) The investing authority shall deposit or
invest any part or all of the county's inactive moneys and shall
invest all of the money in the county library and local
government
support fund when required by section 135.352 of the
Revised Code.
The following classifications of securities and
obligations are
eligible for such deposit or investment: (1) United States treasury bills, notes, bonds, or any other
obligation or
security issued by the United States treasury or, any
other obligation
guaranteed as to principal or interest by the
United States, or any book entry, zero-coupon United States treasury security that is a direct obligation of the United States. Nothing in the classification of eligible securities and
obligations set forth
in division (A)(1) of this section or in the
classifications of eligible
securities and obligations set forth
in divisions (A)(2) to
(8)(11) of this
section shall be construed
to authorize any investment in stripped principal
or interest
obligations of such eligible securities and obligations. (2) Bonds, notes, debentures, or any other obligations or
securities issued by any federal government agency or
instrumentality, including but not limited to, the federal
national mortgage association, federal home loan bank, federal
farm credit
bank, federal home loan mortgage corporation,
government national mortgage
association, and student loan
marketing association. All federal agency
securities shall be
direct issuances of federal government agencies or
instrumentalities. (3) Time certificates of deposit or savings or deposit
accounts, including, but not limited to, passbook accounts, in
any
eligible institution mentioned in section 135.32 of the
Revised
Code; (4) Bonds and other obligations of this state or the
political subdivisions
of this state, provided that such political
subdivisions are located wholly or
partly within the same county
as the investing authority; (5) No-load money market mutual funds consisting
exclusively
of obligations described in division (A)(1) or (2) of
this section
and repurchase agreements secured by such
obligations, provided
that investments in securities
described in this division are made
only through eligible institutions
mentioned in section 135.32 of
the Revised Code; (6) The Ohio subdivision's fund as provided in section
135.45 of the Revised
Code; (7) Securities lending agreements with any eligible
institution
mentioned in section 135.32 of the Revised Code that
is a member of the
federal reserve system or federal home loan
bank, under the terms of which
agreements the
investing authority
lends securities and the eligible institution
agrees to
simultaneously exchange either securities described in division
(A)(1) or (2) of this section or cash or both securities and cash,
equal value for equal value; (8) Up to twenty-five per cent of the county's total average
portfolio in
either of the following investments: (a) Commercial paper notes issued by an entity that is
defined in
division (D) of section 1705.01 of the Revised Code
and
that has
assets exceeding five hundred million dollars, to which
notes all of the
following apply: (i) The notes are rated at the time of purchase in the
highest
classification established by at least two nationally
recognized standard
rating services. (ii) The aggregate value of the notes does not exceed ten
per
cent
of the aggregate value of the outstanding commercial
paper of the issuing
corporation. (iii) The notes mature not later than one two hundred eighty
seventy days
after
purchase. (b) Bankers acceptances of banks that are insured by the
federal
deposit insurance corporation and to which both of the
following
apply: (i) The obligations are eligible for purchase by the federal
reserve system. (ii) The obligations mature not later than one hundred
eighty
days after purchase. No investment shall be made pursuant to division (A)(8) of
this
section unless the investing authority has completed
additional training
for making the investments authorized by
division (A)(8) of
this section. The type and amount of
additional training shall be approved by
the auditor
of state and
may be conducted by or provided under the supervision of the
auditor of state.
(9) Up to fifteen per cent of the county's total average
portfolio in notes issued by corporations that are incorporated
under the laws of the United States and that are operating within
the United States, or by depository institutions that are doing
business under authority granted by the United States or any state
and that are operating within the United States, provided both of
the following apply: (a) The notes are rated in the second highest or higher category by at least two
nationally recognized standard rating services at the time of
purchase. (b) The notes mature not later than two years after
purchase.
(10) No-load money market mutual funds rated in the highest category at the time of purchase by at least one nationally recognized standard rating service and consisting
exclusively of obligations described in division (A)(1), (2), or (6) of section
135.143 of the Revised Code; (11) Debt interests rated at the time of purchase in the three highest categories by two nationally
recognized standard rating services and issued by
foreign nations
diplomatically recognized by the United States
government. All
interest and principal shall be denominated and
payable in United
States funds. The investments made under
division (A)(11) of this
section shall not exceed in the aggregate
one per cent of a
county's total average portfolio.
The investing authority shall invest under division (A)(11)
of this section in a debt interest issued by a foreign nation only
if the debt interest is backed by the full faith and credit of
that foreign nation, there is no prior history of default, and the
debt interest matures not later than five years after purchase. For purposes of division (A)(11) of this section, a debt interest is rated in the three highest categories by two nationally recognized standard rating services if either the debt interest itself or the issuer of the debt interest is rated, or is implicitly rated, at the time of purchase in the three highest categories by two nationally recognized standard rating services. (B) Nothing in the classifications of eligible obligations
and securities
set forth in divisions (A)(1) to
(8)(11) of this
section shall
be
construed to authorize investment in a
derivative, and no investing
authority shall invest any county
inactive moneys or any moneys in
a county library and local
government support fund in a derivative. For
purposes of this
division, "derivative" means a financial instrument or
contract or
obligation whose value or return is based upon or linked to
another asset or index, or both, separate from the financial
instrument,
contract, or obligation itself. Any security,
obligation, trust account, or
other instrument that is created
from an issue of the United
States treasury or is created from an
obligation of a federal agency
or instrumentality or is created
from both is considered a derivative
instrument. An eligible
investment described in this section with a variable
interest rate
payment, based upon a single interest payment or single index
comprised of other eligible investments provided for in division
(A)(1) or (2) of this section, is not a derivative, provided that
such variable rate investment has a maximum maturity of two years.
A treasury inflation-protected security shall not be considered a
derivative, provided the security matures not later than five
years after purchase. (C) Except as provided in division (D) of this
section, any
investment made pursuant to this section must mature within
five
years from the date of settlement, unless the investment is
matched to a
specific obligation or debt of the
county or to a
specific obligation or debt of a political subdivision of
this
state located wholly or partly within the county, and the
investment
is specifically approved by the investment advisory
committee. (D) The investing authority may also enter into a written
repurchase agreement with any eligible institution
mentioned in
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms
of which
agreement the investing authority purchases and the
eligible
institution or dealer agrees
unconditionally to
repurchase any of the securities listed in
divisions (B)(1) to
(5), except
letters of credit described in division (B)(2), of
section 135.18 of the Revised Code. The
market value of
securities subject to an overnight written repurchase agreement
must
exceed the
principal value of the overnight written
repurchase agreement by at
least two per
cent. A written
repurchase agreement must exceed the
principal value of the
overnight written repurchase agreement, by at least two per cent.
A
written repurchase
agreement shall not exceed thirty days, and
the market
value of securities subject to a written repurchase
agreement must exceed the
principal value of the written
repurchase agreement by at
least two per cent and
be marked to
market daily. All securities purchased pursuant to this division
shall be delivered into the
custody of the investing authority or
the qualified custodian of the investing
authority or an agent
designated by the investing authority. A written
repurchase
agreement with an eligible securities dealer shall be transacted
on a delivery
versus payment basis. The agreement
shall contain
the requirement that for each transaction pursuant
to the
agreement the participating institution shall provide all
of the
following information: (1) The par value of the securities; (2) The type, rate, and maturity date of the securities; (3) A numerical identifier generally accepted in the
securities industry that designates the securities. No investing authority shall enter into a written repurchase
agreement under the terms of which the investing authority agrees
to sell
securities owned by
the county to a purchaser and agrees
with that purchaser to unconditionally
repurchase those
securities. (E) No investing authority shall make an investment
under
this section, unless the investing authority, at the time of
making the
investment, reasonably expects that the investment can
be held until its maturity. The investing authority's written
investment
policy shall specify the conditions under which an
investment may be redeemed
or sold prior to maturity. (F) No investing authority shall pay a county's inactive
moneys
or moneys of a county library and local government support
fund into a fund
established by another subdivision, treasurer,
governing board, or investing
authority, if that fund was
established by the subdivision, treasurer,
governing board, or
investing authority for the purpose of investing or
depositing the
public moneys of other subdivisions. This division does not
apply
to the payment of public moneys into either of the following: (1) The Ohio subdivision's fund pursuant to division (A)(6)
of this section; (2) A fund created solely for the purpose of acquiring,
constructing, owning,
leasing, or operating municipal utilities
pursuant to the authority provided
under section 715.02 of the
Revised Code or Section 4 of Article XVIII, Ohio
Constitution. For purposes of division (F) of this section, "subdivision"
includes
a county. (G) The use of leverage, in which the county uses its
current
investment assets as collateral for the purpose of
purchasing other assets, is
prohibited. The issuance of taxable
notes for the purpose of arbitrage is
prohibited. Contracting to
sell securities not owned by the county, for the
purpose of
purchasing such securities on the speculation that bond prices
will
decline, is prohibited. (H) Any securities, certificates of deposit, deposit
accounts, or any other documents evidencing deposits or
investments made under authority of this section shall be issued
in the name of the county with the county treasurer or investing
authority as the designated payee. If any such deposits or
investments are registrable either as to principal or interest,
or
both, they shall be registered in the name of the treasurer. (I) The investing authority shall be responsible for the
safekeeping of all documents evidencing a deposit or investment
acquired under this section, including, but not limited to,
safekeeping receipts evidencing securities deposited with a
qualified trustee, as provided in section 135.37 of the Revised
Code, and documents confirming the purchase of securities under
any repurchase agreement under this section shall be deposited
with a qualified trustee, provided, however, that the qualified
trustee shall be required to report to the investing authority,
auditor of state, or an authorized outside auditor at any time
upon request as to the identity, market value, and location of
the
document evidencing each security, and that if the
participating
institution is a designated depository of the
county for the
current period of designation, the securities that
are the subject
of the repurchase agreement may be delivered to
the treasurer or
held in trust by the participating institution
on behalf of the
investing authority. Upon the expiration of the term of office of an investing
authority or in the event of a vacancy in the office for any
reason, the officer or the officer's legal representative
shall
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been
responsible for safekeeping. For
all such documents transferred
and delivered, such the officer shall
be credited with, and the
officer's successor shall be
charged with, the amount of moneys so
evidenced by such documents. (J)(1) All investments, except for investments in securities
described in divisions (A)(5) and (6) of this
section, shall be
made only
through a member of the national association of
securities
dealers, through a bank, savings bank, or savings and
loan
association regulated by the
superintendent of financial
institutions, or through an institution regulated
by the
comptroller of the currency, federal deposit
insurance
corporation, or board of governors of the federal reserve
system.
(2) Payment for investments shall be made only upon the
delivery of
securities representing
such investments to the
treasurer, investing authority, or
qualified trustee. If the
securities transferred are not
represented by a certificate,
payment shall be made only upon
receipt of confirmation of
transfer from the custodian by the
treasurer, governing board, or
qualified trustee. (K)(1) Except as otherwise provided in division (K)(2) of
this section, no investing authority shall make an investment or
deposit under
this section, unless there is on file with the
auditor of state a written
investment policy approved by the
investing authority. The policy shall
require that all entities
conducting investment business with the investment investing
authority shall
sign the investment policy of that investment investing authority. All
brokers, dealers, and financial institutions, described in
division (J)(1) of
this section,
initiating transactions with the
investment investing authority by giving advice or
making investment
recommendations shall sign the investment investing authority's
investment
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial
institutions,
described in division (J)(1) of this section,
executing transactions initiated
by the investment investing authority,
having read the policy's contents, shall sign the
investment
policy thereby acknowledging their comprehension and receipt. (2) If a written investment policy described in division
(K)(1)
of this section is not filed on behalf of the county with
the auditor of
state, the investing authority of that county shall
invest the county's
inactive moneys and moneys of the county
library and local government support
fund only in time
certificates of deposits or savings or deposit accounts
pursuant
to division (A)(3) of this section, no-load money market
mutual
funds pursuant to division (A)(5) of this section,
or the Ohio
subdivision's fund pursuant to division (A)(6) of this section. (L)(1) The investing authority shall establish and maintain
an
inventory of all obligations and securities acquired by the
investing
authority pursuant to this section. The inventory shall
include a description of each obligation or security, including
type, cost,
par value, maturity date, settlement date, and any
coupon rate. (2) The investing authority shall also keep a complete
record of all
purchases and sales of the obligations and
securities made pursuant to this
section. (3) The investing authority shall maintain a monthly
portfolio report and
issue a copy of the monthly portfolio
report
describing such investments to the county
investment advisory
committee, detailing the current inventory of all
obligations and
securities, all transactions during the month that affected
the
inventory, any income received from the obligations and
securities, and
any investment expenses paid, and stating the
names of any persons effecting
transactions on behalf of the
investing authority. (4) The monthly portfolio report
shall
be a public record
and available for inspection
under section 149.43 of the Revised
Code. (5) The inventory and the monthly portfolio report shall be
filed with
the board of county commissioners. (M) An investing authority may enter into a
written
investment or deposit agreement that includes a
provision under
which the parties agree to submit to
nonbinding arbitration to
settle any controversy that may arise
out of the agreement,
including any controversy pertaining to
losses of public moneys
resulting from investment or deposit.
The arbitration provision
shall
be set forth entirely in the agreement, and the agreement
shall
include a conspicuous notice to the
parties that any party
to the arbitration may apply to the court of common
pleas of the
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to
the court for
an order to change venue to a court of common pleas
located more than one
hundred miles from the county in which the
investing authority is located. For purposes of this division, "investment or deposit
agreement" means any
agreement between an investing authority and
a person, under which agreement
the person agrees to invest,
deposit, or otherwise manage, on behalf of the
investing
authority, a county's inactive moneys or moneys in a county
library
and local government support fund, or agrees to provide
investment advice to
the investing authority. (N) An investment held in the county portfolio on September
27, 1996, that
was a legal investment under the law as it existed
before September
27, 1996, may be held until maturity, or if
the
investment does not have a maturity date the investment may be
held until
five years from
September 27, 1996, regardless of
whether
the investment would qualify as a legal investment under
the terms of this
section as amended.
Sec. 319.302. After complying with section 319.301 of the
Revised Code, the
county auditor shall reduce the remaining sums
to be levied against each parcel of real property listed on the
general tax list and duplicate of real and public utility
property for the current tax year, and against each manufactured
and mobile home that is
taxed pursuant to division (D)(2) of section
4503.06 of the Revised Code and that is on the
manufactured home tax list for the current tax year, by ten per
cent. Except as otherwise provided in sections 323.152, 323.158, 505.06,
and 715.263 of the Revised Code, the
amount of the taxes remaining after such reduction shall be the
real and public utility property taxes charged and payable, and the
manufactured home tax charged and payable, on
each property and shall be the amounts certified to the county
treasurer for collection. Upon receipt of the tax duplicate, the
treasurer shall certify to the tax commissioner the total amount
by which such taxes were reduced under this section, as shown on
the duplicate. Such reduction shall not directly or indirectly
affect the determination of the principal amount of notes that
may be issued in anticipation of any tax levies or the amount of
bonds or notes for any planned improvements. If after
application of sections 5705.31 and 5705.32 of the Revised Code
and other applicable provisions of law, including division divisions (F) and (I) of
section 321.24 of the Revised Code, there would be insufficient
funds for payment of debt charges on bonds or notes payable from
taxes reduced by this section, the reduction of taxes provided
for in this section shall be adjusted to the extent necessary to
provide funds from such taxes.
Sec. 321.24. (A) On or before the fifteenth day of
February, in each year, the county treasurer shall settle with
the
county auditor for all taxes and assessments that the
treasurer
has
collected on the general duplicate of real and public utility
property at the time of making the settlement. (B) On or before the thirtieth day of June, in each year,
the treasurer shall settle with the auditor for all advance
payments of general personal and classified property taxes that
the treasurer has received at the time of making the
settlement. (C) On or before the tenth day of August, in each year,
the
treasurer shall settle with the auditor for all taxes and
assessments that the treasurer has collected on the general
duplicates of
real and public utility property at the time of
making such
settlement, not included in the preceding February
settlement. (D) On or before the thirty-first day of October, in each
year, the treasurer shall settle with the auditor for all taxes
that the treasurer has collected on the general personal and
classified
property duplicates, and for all advance payments of
general
personal and classified property taxes, not included in
the
preceding June settlement, that the treasurer has received at
the time of
making such settlement. (E) In the event the time for the payment of taxes is
extended, pursuant to section 323.17 of the Revised Code, the
date
on or before which settlement for the taxes so extended must
be
made, as herein prescribed, shall be deemed to be extended for
a
like period of time. At each such settlement, the auditor
shall
allow to the treasurer, on the moneys received or collected
and
accounted for by the treasurer, the
treasurer's fees, at the
rate or percentage
allowed by law, at a full settlement of the
treasurer. (F) Within thirty days after the day of each settlement of
taxes required under divisions (A) and (C) of this section, the
treasurer shall certify to the tax commissioner any adjustments
which have been made to the amount certified previously pursuant
to section 319.302 of the Revised Code and that the settlement
has
been completed. Upon receipt of such certification, the
commissioner shall provide for payment to the county treasurer
from the general revenue fund of an amount equal to one-half of
the amount certified by the treasurer in the preceding tax year
under section 319.302 of the Revised Code. Such payment shall be
credited upon receipt to the county's undivided income tax fund,
and the county auditor shall transfer to the county general fund
from the amount thereof the total amount of all fees and charges
which the auditor and treasurer would have been authorized to
receive had such section not been in effect and that
amount had
been levied and collected as taxes. The county auditor shall
distribute the amount remaining among the various taxing
districts
in the county as if it had been levied, collected, and
settled as
real property taxes. (G) Within thirty days after the day of the settlement
required in division (D) of this section, the treasurer shall
certify to the commissioner that the settlement has been
completed. Upon receipt of that certification, the commissioner
shall provide for payment to the county treasurer from the
general
revenue fund of the amount certified under section
319.311 of the
Revised Code in the current year. The payment
shall be credited
upon receipt to the county's undivided income
tax fund, and the
county auditor shall distribute the amount
thereof among the
various taxing districts of the county as if it
had been levied,
collected, and settled as personal property
taxes. The amount
received by a taxing district under this
division shall be
apportioned among its funds in the same
proportion as the current
year's personal property taxes are
apportioned. (H)(1) On or before the fifteenth day of April each
year,
the county treasurer shall settle with the county auditor for all
manufactured home taxes that the county treasurer has
collected on
the
manufactured home tax duplicate at the time of making the
settlement. (2) On or before the fifteenth day of September each year,
the
county treasurer shall settle with the county auditor for all
remaining manufactured home taxes that the county
treasurer has
collected on the manufactured home tax duplicate at
the time of
making the settlement. (3) If the time for payment of such taxes is extended under
section 4503.06 of the Revised Code, the time for making the
settlement as prescribed by divisions (H)(1) and (2) of this
section is extended for a like period of time.
(I) Within thirty days after the day of each settlement of
taxes required under division (H) of this section, the county treasurer
shall certify to the tax commissioner any adjustments that have
been made to the amount certified previously pursuant to section
319.302 of the Revised Code and that the settlement has been
completed. Upon receipt of such certification, the commissioner
shall provide for payment to the county treasurer from the general
revenue fund of an amount equal to one-half of the amount
certified by the treasurer in the current tax year under section
319.302 of the Revised Code. Such payment shall be credited upon
receipt to the county's undivided income tax fund, and the county
auditor shall transfer to the county general fund from the amount
thereof the total amount of all fees and charges that the auditor
and treasurer would have been authorized to receive had such
section not been in effect and that amount had been levied and
collected as taxes. The county auditor shall distribute the
amount remaining among the various taxing districts in the county
as if it had been levied, collected, and settled as manufactured
home taxes.
Sec. 321.46. (A) To enhance the
background and working knowledge of county treasurers in
governmental accounting, portfolio reporting and compliance,
investments, and cash management, the auditor of state and the
treasurer of state shall conduct education programs for persons
elected for the first time to the office of county treasurer and
shall hold annual biennial continuing education programs for persons who
continue to hold the office of county treasurer. Education
programs for newly elected county treasurers shall be held
between the first day of December and the first Monday of
September next following that person's election to the office of
county treasurer. Similar initial training may also be provided
to any county treasurer who is appointed to fill a vacancy or
who is elected at a special election. (B)(1) The auditor of state shall determine the manner and content of the
education
programs in the subject areas of governmental accounting and
portfolio reporting and compliance. In those areas, newly elected county
treasurers shall be required to take at least
thirteen hours of education before taking office. (2) The treasurer of state shall determine the manner and
content of the education programs in the subject areas of
investments and cash management. In those areas, newly elected
county treasurers shall be required to take at least thirteen
hours of education before taking office. (3)(a) After completing one year in office, a county treasurer shall be
required to take not less than twelve twenty-four hours annually of continuing education during each biennial cycle. For purposes of division (B)(3)(a) of this section, a biennial cycle for continuing education shall be every two calendar years after the treasurer's first year in office.
The treasurer of state shall determine the manner and content of the education
programs in the subject areas of investments, cash management, the
collection of taxes, ethics, and any other subject area that the treasurer of
state determines is reasonably related to the duties of the office of the
county
treasurer. The auditor of state shall determine the manner and content of the
education programs in the subject areas of governmental accounting, portfolio
reporting and compliance, office management, and any other subject area that
the auditor of state determines is reasonably related to the duties of the
office of the county treasurer.
(b) A county treasurer who accumulates more than twenty-four hours of continuing education in a biennial cycle described in division (B)(3)(a) of this section may credit the hours in excess of twenty-four hours to the next biennial cycle. However, regardless of the total number of hours earned, no more than six hours in the education programs determined by the treasurer of state pursuant to division (B)(3)(a) of this section and six hours in the education programs determined by the auditor of state pursuant to that division shall be carried over to the next biennial cycle. (C) The auditor of state
and the treasurer of state may each charge counties a registration
fee that will meet actual and necessary expenses of the training
of county treasurers, including instructor fees, site
acquisition costs, and the cost of course materials. The
necessary personal expenses of county treasurers as a result of
attending the training programs shall be borne by the counties
the treasurers represent. (D) The auditor of state
and the treasurer of state may allow any other interested person
to attend any of the education programs that are held pursuant
to this section, provided that before attending any such
education program, the interested person shall pay to either the
auditor of state or the treasurer of state, as appropriate, the full
registration fee set for the education program. (E) A (1) If a county treasurer who fails to
complete the initial or continuing education programs required by this section
without a valid health-related excuse or other special hardship shall be
restricted to investing in the Ohio subdivision's fund pursuant to division
(A)(6) of section 135.35 of the Revised
Code, in no-load money market mutual funds pursuant to division
(A)(5) of section 135.35 of the Revised Code, or in time certificate of
deposits or deposit accounts pursuant to
division (A)(3) of section 135.35 of the Revised Code. A county treasurer who
has failed to complete the initial or continuing education programs and
invests in other than the investments permitted by this division shall be
subject to removal from office upon
complaint and investigation by the county prosecuting attorney, a hearing,
and a resolution adopted by the board of county commissioners
approving the removal from office before taking office, the treasurer's authority to invest county funds and to manage the county portfolio immediately is suspended, and this authority is transferred to the county's investment advisory committee until full compliance with the initial education programs is determined by the treasurer of state. (2) If a county treasurer fails to complete continuing education programs as required by this section, the county treasurer is subject to divisions (B) to (E) of section 321.47 of the Revised Code, including possible suspension of the treasurer's authority to invest county funds and to manage the county portfolio and transfer of this authority to the county's investment advisory committee. (F)(1) Notwithstanding divisions (B) and (E) of this section, a county treasurer who fails to complete the initial or continuing education programs required by this section shall invest only in the Ohio subdivisions fund pursuant to division (A)(6) of section 135.35 of the Revised Code, in no load money market mutual funds pursuant to division (A)(5) of section 135.35 of the Revised Code, or in time certificates of deposit or savings or deposit accounts pursuant to division (A)(3) of section 135.35 of the Revised Code.
(2) A county treasurer who has failed to complete the initial education programs required by this section and invests in other than the investments permitted by division (F)(1) of this section immediately shall have the county treasurer's authority to invest county funds and to manage the county portfolio suspended, and this authority shall be transferred to the county's investment advisory committee until full compliance with the initial education programs is determined by the treasurer of state.
(3) If a county treasurer fails to complete continuing education programs required by this section and invests in other than the investments permitted by division (F)(1) of this section, the county treasurer is subject to divisions (B) to (E) of section 321.47 of the Revised Code, including possible suspension of the treasurer's authority to invest county funds and to manage the county portfolio and transfer of this authority to the county's investment advisory committee. (G)(1) There is hereby
created in the state treasury the county treasurer education
fund, to be used by the treasurer of
state for actual and necessary expenses of education
programs held pursuant to this section and section 135.22 of the Revised Code. All registration fees
collected by the treasurer of state under this section and section 135.22 of the Revised Code shall be paid
into that fund. (2) All registration fees collected by the auditor of state under
this section shall be paid into the auditor of state training program fund
established under section 117.44 of the Revised Code. (G)(H) The treasurer of state, with the
advice and consent of the auditor of state, may adopt reasonable
rules not inconsistent with this section for the implementation
of this section.
Sec. 321.47. (A) By the fifteenth day of January following completion of each biennial cycle described in division (B)(3)(a) of section 321.46 of the Revised Code, the auditor of state shall notify the treasurer of state of the
continuing education hours completed under the auditor of state's supervision by each
county treasurer for that biennial cycle pursuant to section 321.46
of the Revised Code. (B) By the thirty-first day of January following completion of each biennial cycle described in division (B)(3)(a) of section 321.46 of the Revised Code, the
treasurer of state shall determine whether any county treasurer has failed to
comply with the county treasurer's continuing education requirements pursuant to section 321.46 of the Revised Code and, by certified mail, shall notify
any county treasurer who has not complied with the requirements. The notice shall
contain all of the following: (1) Notification that the county treasurer is deficient in continuing education
hours; (2) Notification that if the county treasurer believes the treasurer of
state's records are in error, the county treasurer has one month to submit
proof
to the treasurer of state that the county treasurer is in compliance with the continuing education requirements; (3) Notification that completion of the continuing education requirements also may be obtained
by attending courses approved by the auditor of state or the treasurer of
state, but that the county treasurer must comply fully with the continuing education requirements and that the treasurer of state must have proof of full compliance
by the last day of April following completion of each biennial cycle; (4) Notification that if the county treasurer has failed to comply fully with the continuing education requirements by the last day
of April following completion of each biennial cycle, the treasurer of state will notify the prosecuting attorney of that
treasurer's county of that fact immediately. (C)(1) Upon receipt of the notice described in division (B)(4) of this section, the prosecuting attorney shall
petition the court of common pleas of that county for an order
suspending the county treasurer's authority to invest county funds and
to manage the county investment portfolio. The petition shall
contain a brief statement of the facts and shall show that the
county treasurer has failed to comply with the continuing education
requirements of section 321.46 of the Revised Code.
Before or
simultaneously with the filing of the petition, the prosecuting attorney shall
serve a copy of the petition upon the county treasurer personally or by
certified mail, together with a copy of this section.
Upon the filing of the petition, the court, on the motion of the
prosecuting attorney, shall enter an order fixing a date for
hearing not later than two weeks after the date of filing and
shall require that a copy of the order be given to the county
treasurer in the manner in which a summons is required to be
served or substituted service is required to be made in other
cases. (2) On the date fixed for the hearing described in division (C)(1) of this section, or any adjournment of it, the
court shall determine from the petition and evidence submitted by either party whether the county treasurer has met the
continuing education requirements of section 321.46 of the Revised
Code for the preceding biennial cycle described in division (B)(3)(a) of section 321.46 of the Revised Code. If the court finds that the
county treasurer has failed to meet these continuing education
requirements, it shall enter an order transferring the county
treasurer's authority to invest county funds and to manage the
county portfolio to the county's investment advisory committee
until such time as the county treasurer complies fully with the
continuing education requirements. (3) The costs of the proceeding shall be assessed or apportioned as
the court considers equitable. (D) Upon receiving proof of completion of continuing education
requirements for the preceding biennial cycle described in division (B)(3)(a) of section 321.46 of the Revised Code, the treasurer of state shall notify
the prosecuting attorney that the county treasurer has complied fully with the continuing education requirements. The prosecuting attorney
shall submit this information to the court, and the court shall
enter an order terminating the authority of the county's
investment advisory committee to invest county funds and to manage the
county portfolio and restoring such authority to the county
treasurer. (E) The proceedings described in divisions (C) and (D) of this section are
special proceedings, and final orders in the proceedings may be
reviewed and affirmed, modified, or reversed on appeal pursuant to
the Rules of Appellate Procedure and, to the extent
not in
conflict with those rules, pursuant to
Chapter
2505. of the
Revised
Code.
Sec. 323.121. (A)
If
(1) Except as otherwise provided in
division (A)(2) of this section, if one-half of the current taxes
charged against an entry of real estate together with the full
amount of any delinquent taxes
or any installment thereof
required
to be paid under a written delinquent
tax contract are not paid on
or before the thirty-first day of December in that year or on or
before the last day for such payment as extended pursuant to
section 323.17 of the Revised Code, a penalty of ten per cent
shall be charged against the unpaid balance of such half of the
current taxes on the duplicate. If the total amount of all such the
taxes is not paid on or before the twentieth day of June, next
thereafter, or on or before the last day for such payment as
extended pursuant to section 323.17 of the Revised Code, a like
penalty shall be charged on the balance of the total amount of
such unpaid current taxes.
(2) After a valid delinquent tax contract that
includes unpaid current taxes from a first-half collection period
described in section 323.12 of the Revised Code has been entered
into under section 323.31 or 5713.20 of the Revised Code, no ten
per cent penalty shall be charged against such taxes after the
second-half collection period while the delinquent tax
contract remains in effect. On the day a delinquent
tax contract becomes void, the ten per cent penalty shall be
charged against such taxes and shall equal the amount of penalty
that would have been charged against unpaid current taxes
outstanding on the date on which the second-half penalty would
have been charged thereon under division (A)(1) of this section if
the contract had not been in effect. (B)(1) On the first day of the month following the last
day
the second installment of taxes may be paid without penalty,
interest shall be charged against and computed on all delinquent
taxes other than the current taxes that became delinquent taxes
at
the close of the last day such second installment could be
paid
without penalty. The charge shall be for interest that
accrued
during the period that began on the preceding first day
of
December and ended on the last day of the month that included
the
last date such second installment could be paid without
penalty.
The interest shall be computed at the rate per annum
prescribed by
section 5703.47 of the Revised Code and shall be
entered as a
separate item on the tax list and duplicate compiled
under section
319.28 or 5721.011 of the Revised Code, whichever
list and
duplicate are first compiled after the date on which
such the interest
is computed and charged. However, for tracts and lots on the
real
property tax suspension list under section 319.48 of the Revised
Code,
the interest shall not be entered on the tax list and
duplicate compiled under
section 319.28 of the Revised Code, but
shall be entered on the first tax list
and duplicate compiled
under section 5721.011 of the Revised Code after the
date on which
the interest is computed and charged. (2) On the first day of December, the interest shall be
charged against and computed on all delinquent taxes. The charge
shall be for interest that accrued during the period that began
on
the first day of the month following the last date prescribed
for
the payment of the second installment of taxes in the current
year
and ended on the immediately preceding last day of November.
The
interest shall be computed at the rate per annum prescribed
by
section 5703.47 of the Revised Code and shall be entered as a
separate item on the tax list and duplicate compiled under
section
319.28 or 5721.011 of the Revised Code, whichever list
and
duplicate are first compiled after the date on which such the
interest
is computed and charged. However, for tracts and lots on the real
property tax suspension list under section 319.48 of the Revised
Code, the
interest shall not be entered on the tax list and
duplicate compiled under
section 319.28 of the Revised Code, but
shall be entered on the first tax list
and duplicate compiled
under section 5721.011 of the Revised Code after the
date on which
the interest is computed and charged. (3) After a valid delinquent tax contract has been
entered
into for
the payment of any delinquent taxes, no interest shall be
charged
against such delinquent taxes while the delinquent
tax
contract remains in
effect in compliance with section 323.31 of
the Revised Code. If
a valid delinquent tax contract becomes
void,
interest
shall be charged
against the delinquent taxes for
the periods that interest was
not permitted to be charged while
the delinquent
tax contract was in effect.
The interest shall be
charged on the day the delinquent
tax contract becomes
void and
shall equal the amount of interest that would have been
charged
against the unpaid delinquent taxes outstanding on the
dates on
which interest would have been charged thereon under
divisions
(B)(1) and (2) of this section had the
delinquent tax contract not
been in effect. (C) If the full amount of the taxes due at either of the
times prescribed by division (A) of this section is paid within
ten days after such time, the county treasurer shall waive the
collection of and the county auditor shall remit one-half of the
penalty provided for in such that division for failure to make that
payment by the prescribed time. (D) The county treasurer shall compile and deliver to the county
auditor a list of all tax payments the treasurer has received
as
provided in
division (C) of this section. The list shall include
any
information required by the auditor for the remission of the
penalties waived by the treasurer. The taxes so collected shall
be included in the settlement next succeeding the settlement then
in process.
Sec. 323.31. (A)(1) A person who owns agricultural real
property or
owns and occupies residential
real property or a
manufactured or mobile home that does
not have an outstanding tax
lien certificate or judgment of foreclosure
against it, and a
person who is a vendee of such property under a purchase
agreement
or land contract and who occupies the property, shall have at
least
one opportunity to pay the any delinquent or unpaid current
taxes, or both, charged against
the property by entering into
a written
delinquent tax contract with the county
treasurer in
a form
prescribed or approved by the tax commissioner.
Subsequent
opportunities to enter into a delinquent tax contract shall be
at
the county treasurer's sole discretion. (2) The treasurer may
enter into a delinquent tax contract in accordance with division (A) of this section with
an owner or vendee
of real property, other than residential real
property or a manufactured or
mobile home that is occupied by the
owner, and other than
agricultural real property. (3) The delinquent tax contract described in division (A) of this section
may be entered into at any time
prior to the commencement of
foreclosure proceedings by the
county
treasurer and the county prosecuting attorney
pursuant to section
323.25 of the Revised Code or by the county prosecuting
attorney
pursuant to section 5721.18 of the Revised Code, the
commencement
of foreclosure proceedings by a private attorney pursuant to
section 5721.37 of the Revised Code, the
commencement of
foreclosure and forfeiture proceedings pursuant
to section 5721.14
of the Revised Code, or the commencement of
collection proceedings
pursuant to division (H) of section 4503.06
of the Revised Code by
the filing of a civil action as provided in that division. A
duplicate copy of each
delinquent tax contract shall be filed with
the
county auditor, who
shall attach the copy to the delinquent
land tax certificate,
delinquent vacant land tax certificate, or
the delinquent manufactured home
tax list, 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, master list of
delinquent
vacant tracts, or next to the entry for the home on the delinquent
manufactured home tax list, prior to filing it with the
prosecuting
attorney
under section 5721.13 of the Revised Code,
or, in the case of the
delinquent manufactured home tax list,
prior to
delivering it to the county
treasurer under division
(H)(2)
of section 4503.06 of the Revised Code. If the
delinquent
tax contract 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.
(4) A delinquent tax contract entered into under this
division (A) of this section
shall
provide for the payment of any delinquent and or unpaid current
taxes, or both, in
installments over
a period not to exceed five years after
the date of the first payment made
under the contract;
however, a
person entering into a
delinquent tax contract who owns and
occupies residential real property
may request, and the treasurer
shall allow, a
delinquent tax contract providing for
payment in
installments over a period of no fewer than two years
after the
date of the first payment made
under the contract. (5) For each delinquent tax contract entered into under division (A) of this section, the county
treasurer shall
determine and shall specify in the
delinquent tax contract the
number of installments, the amount of each
installment, and
the
schedule for payment of the installments.
The part of each
installment payment
representing taxes and penalties and interest
thereon shall be apportioned among the
several taxing districts in
the
same proportion that the amount of taxes levied by each
district against the
entry in the preceding tax year bears to the
taxes levied by all such
districts against the entry in the
preceding tax year. The part of each
payment representing
assessments and other charges shall be credited to those
items in
the order in which they became due. Each payment made to a taxing
district shall be apportioned among the taxing district's several
funds for which taxes
or assessments have been
levied. (6) When an installment payment is not received by the
treasurer
when due under a delinquent tax contract entered into under division (A) of this section or any current taxes
or
special assessments charged against the
property become unpaid,
the
delinquent tax contract becomes void unless
the treasurer
permits a new delinquent tax contract
to
be entered into; if
the
treasurer does not permit a new delinquent tax
contract
to be
entered
into, the treasurer shall certify to the auditor that
the
delinquent tax contract has become void. (7) Upon receipt of such a certification described in division (A)(6) of this section, the auditor shall
destroy the duplicate copy of the voided delinquent
tax contract.
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 delinquent tax
contract 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
delinquent tax contract. 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, 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.
In the case of a manufactured or
mobile home, the county treasurer
shall cause a civil action to be brought as
provided under
division (H) of section 4503.06 of the Revised Code. (B) If there is an outstanding tax certificate
respecting a
delinquent parcel under
section 5721.32 or 5721.33 of the Revised
Code, a written
delinquent tax contract may not
be entered into
under this section. To redeem a tax certificate in
installments,
the owner or other person seeking to redeem the
tax certificate
shall enter into a redemption payment plan under
division (C) of
section
5721.38 of the Revised Code. (C) As used in this section, "unpaid current taxes" means
any current taxes charged on the general tax list and duplicate of
real and public utility property or the manufactured home tax list
and duplicate that remain unpaid after the last day prescribed for
payment of the first installment of such taxes without penalty, and
any penalties associated with such taxes.
Sec. 4503.06. (A) The owner of each manufactured
or mobile
home that has acquired situs in this state
shall pay either a real
property tax pursuant to
Title LVII of the Revised Code or a
manufactured home tax
pursuant to division (C) of
this section. (B) The owner of a manufactured or
mobile home shall pay
real property taxes if either of the
following applies: (1) The manufactured or mobile home acquired situs in the
state or ownership in the home was transferred on or after
January
1, 2000, and all of the
following apply: (a) The home is affixed to a permanent foundation
as defined
in division (C)(5)
of section 3781.06 of the Revised Code; (b) The home is located on land that is owned by
the owner
of the home; (c) The certificate of title has been inactivated by
the
clerk of the court of common pleas that issued it,
pursuant to
division (H) of section 4505.11 of the Revised
Code. (2) The manufactured or mobile home acquired situs in the
state or ownership in the home was transferred before
January 1,
2000, and all of the
following apply: (a) The home is affixed to a permanent foundation
as defined
in division (C)(5)
of section 3781.06 of the Revised Code; (b) The home is located on land that is owned by
the owner
of the home; (c) The owner of the home has elected to have the
home taxed
as real property and, pursuant to section 4505.11 of
the Revised
Code, has surrendered the
certificate of title to the
auditor of
the county containing the taxing district in
which the home has
its situs, together with proof that all taxes
have been paid; (d) The county auditor has placed the
home on the real
property tax list and delivered the certificate
of title to the
clerk of the court of common pleas
that issued it and the clerk
has inactivated the certificate. (C)(1) Any mobile or manufactured home that
is not taxed as
real property as provided in division
(B) of this section is
subject to an annual manufactured home tax, payable by the owner,
for
locating the
home in this state. The tax as levied in this
section is for the purpose of
supplementing the
general revenue
funds of the local subdivisions in which
the home has its situs
pursuant to this section. (2) The year for which the manufactured home tax is
levied
commences on the first day of January and ends on the following
thirty-first day of December.
The state shall have the
first lien
on any manufactured or mobile home on the list for the amount
of
taxes, penalties, and interest charged against the owner of the
home under this section.
The lien of the state for the tax for a
year shall attach on the first day of January to a home that has
acquired
situs on that date. The lien
for a home that has not
acquired situs on the first day of
January, but that acquires
situs during the year, shall attach on the
next first day of
January. The lien shall continue until the tax,
including any
penalty or interest, is paid.
(3)(a) The situs of a manufactured or mobile home located in
this state on the first day of
January is the local taxing
district in which the
home is located on that date. (b) The situs of a manufactured or mobile home not located
in
this state on the first day of January, but located in this
state
subsequent to that date, is the local taxing district in
which the home
is located thirty days after it is acquired or
first enters this state. (4) The tax is collected by and paid to the county
treasurer
of the county containing the taxing district in which
the home has
its situs. (D) The manufactured home tax shall be computed and
assessed
by the county
auditor of the county containing the taxing district
in which the
home has its situs as follows: (1) On a home that acquired situs in this state prior to
January
1, 2000; (a) By multiplying the assessable
value of the home by the
tax
rate of the taxing district in which the home has its
situs,
and deducting from the product thus
obtained any reduction
authorized under section 4503.065 of the
Revised Code. The tax
levied under this
formula shall not be
less than thirty-six
dollars, unless the home qualifies
for a
reduction in assessable
value under section 4503.065 of the
Revised Code, in which case
there shall be no minimum tax and the
tax shall be the amount
calculated under this division. (b) The assessable value of the home shall be
forty per cent
of the amount arrived at by the following
computation: (i) If the cost to the owner, or market value at time of
purchase, whichever is greater, of the home includes
the
furnishings and equipment, such cost or market value shall be
multiplied according to the following schedule:
|
For the first calendar year |
|
|
|
|
|
in which the
|
|
|
|
|
|
home is owned by the |
|
|
|
|
|
current owner |
|
|
|
80% |
|
2nd calendar year |
|
x |
|
75% |
|
3rd " |
|
x |
|
70% |
|
4th " |
|
x |
|
65% |
|
5th " |
|
x |
|
60% |
|
6th " |
|
x |
|
55% |
|
7th " |
|
x |
|
50% |
|
8th " |
|
x |
|
45% |
|
9th " |
|
x |
|
40% |
|
10th and each year thereafter |
|
|
|
35% |
The first calendar year means any period between the first
day of January and the thirty-first day of December of the first
year. (ii) If the cost to the owner, or market value at the
time
of purchase, whichever is greater, of the home does
not include
the furnishings and equipment, such cost or market
value shall be
multiplied according to the following schedule:
|
For the first calendar year |
|
|
|
|
|
in which the
|
|
|
|
|
|
home is owned by the |
|
|
|
|
|
current owner |
|
|
|
95% |
|
2nd calendar year |
|
x |
|
90% |
|
3rd " |
|
x |
|
85% |
|
4th " |
|
x |
|
80% |
|
5th " |
|
x |
|
75% |
|
6th " |
|
x |
|
70% |
|
7th " |
|
x |
|
65% |
|
8th " |
|
x |
|
60% |
|
9th " |
|
x |
|
55% |
|
10th and each year thereafter |
|
|
|
50% |
The first calendar year means any period between the first
day of January and the thirty-first day of December of the first
year. (2) On a home in which ownership was transferred or
that
first acquired situs in this state on or after
January 1, 2000: (a) By multiplying the assessable
value of the home
by the
effective tax
rate, as defined in section 323.08 of the
Revised
Code, for residential real
property of the taxing district in
which the home has its
situs, and deducting from the product thus
obtained the
reductions required or authorized under section
319.302,
division (B) of section
323.152, or section 4503.065 of
the
Revised Code. (b) The assessable value of the home shall
be thirty-five
per cent of its true value as
determined under division (L)
of
this section. (3)
On or before the fifteenth day of January each year,
the county
auditor shall record the assessable value and the
amount of
tax on the manufactured or mobile home on the tax list
and deliver
a duplicate of the list to the county
treasurer. In the case of
an emergency as defined in section 323.17 of the Revised Code,
the
tax
commissioner, by journal entry, may extend the times
for
delivery of the duplicate for an additional fifteen days upon
receiving a
written application from
the county auditor regarding
an extension for the delivery of the
duplicate, or from the county
treasurer regarding an extension of
the time for the billing and
collection of taxes. The application
shall contain a statement
describing the emergency that will cause
the unavoidable delay and
must be received by the tax
commissioner on or before the last day
of the month preceding the
day delivery of the duplicate is
otherwise required. When an extension
is granted for delivery of
the duplicate, the time period for payment
of taxes shall be
extended for a like period of time. When a
delay in the closing
of a tax collection period becomes
unavoidable, the tax
commissioner, upon application by the county
auditor and county
treasurer, may order the time for payment of
taxes to be extended
if the tax commissioner determines that
penalties have accrued or
would otherwise accrue for reasons
beyond the control of the
taxpayers of the county. The order
shall prescribe the final
extended date for payment of taxes for
that collection period. (4) After January 1, 1999, the owner of a manufactured or
mobile
home taxed
pursuant to division (D)(1) of
this section may
elect to have the home taxed pursuant to
division (D)(2) of this
section
by filing a written request with the county auditor of the
taxing district in which the home is located on or before the
first day of
December of any year. Upon the filing of the
request, the county
auditor shall determine whether all taxes
levied
under division (D)(1) of this section have been paid, and
if those
taxes have been paid, the county auditor shall tax the
manufactured or
mobile home pursuant to division
(D)(2) of this
section
commencing in the next tax year. (5) A manufactured or
mobile home that acquired situs in
this state prior to
January 1, 2000, shall be taxed
pursuant to
division (D)(2) of
this section if no manufactured home tax had
been paid for the
home and the home was not exempted from taxation
pursuant to
division (E) of this section
for the year for which
the taxes were not paid. (6)(a) Immediately upon receipt of any manufactured home tax
duplicate from the county auditor, but not less than twenty days
prior to the
last date on which the first one-half taxes may be
paid without
penalty as prescribed in division (F) of this
section,
the county treasurer shall cause to be prepared and
mailed
or delivered to each person charged on that duplicate with
taxes,
or to an agent designated by such person, the tax bill
prescribed
by the tax commissioner under division (D)(7) of this
section.
When taxes are paid by installments, the
county
treasurer shall mail or deliver to each person charged on
such
duplicate or the agent designated by such that person a second
tax bill
showing the amount due at the time of the second tax
collection.
The second half tax bill shall be mailed or
delivered at least
twenty days prior to the close of the second
half tax collection
period.
A change in the mailing address of any tax bill shall be
made in writing to the county treasurer.
Failure to receive a
bill required by this section does
not excuse failure or delay to
pay any taxes shown on the bill
or, except as provided in division
(A) of section 5715.39 of the
Revised Code, avoid any penalty,
interest, or charge for
such
delay. (b) After delivery of the copy of the delinquent
manufactured
home tax list under division (H) of this section,
the
county
treasurer may prepare and mail to each person in whose name
a home is listed an additional tax bill showing the
total amount
of delinquent taxes charged against the home as
shown on the list.
The tax bill shall include a notice that
the interest charge
prescribed by division (G) of this section
has begun to accrue. (7) Each tax bill prepared and mailed or
delivered under
division (D)(6) of this section
shall be in
the form and contain
the information required by the tax
commissioner. The
commissioner may prescribe different forms for
each county and may
authorize the county auditor to make up tax
bills and tax receipts
to be used by the county treasurer.
The tax bill shall not
contain or be mailed or delivered
with any information or material
that is not required by this
section or that is not authorized by
section 321.45 of the
Revised Code or by the tax commissioner.
In
addition to the information
required by the
commissioner, each
tax
bill shall contain the following information: (a) The taxes levied and the taxes charged and payable
against the manufactured or mobile home; (b) The following notice:
"Notice: If the taxes are not
paid within
sixty days after the county auditor delivers the
delinquent manufactured home
tax list to the county treasurer, you
and your home may be subject to
collection proceedings
for tax
delinquency." Failure to provide such notice
has no effect upon
the validity of any tax judgment to which a
home may be subjected. (c) In the case of manufactured or mobile homes taxed under
division (D)(2) of this section, the following additional
information: (i) The effective tax rate. The words "effective tax
rate"
shall appear in boldface type. (ii) The following notice: "Notice: If the
taxes charged
against this home
have been reduced by the 2-1/2 per cent tax
reduction for
residences occupied by the owner
but the home is not
a residence occupied by the
owner, the owner must notify the
county auditor's office not
later than March 31 of the year
for
which the taxes are due. Failure to do so may result in the
owner
being convicted of a fourth degree misdemeanor, which is
punishable by
imprisonment up to 30 days, a fine up to $250, or
both, and in the
owner having to repay the amount by which the
taxes were
erroneously or illegally reduced, plus any interest
that may apply. If the taxes charged against this home have not been
reduced
by the 2-1/2 per cent tax reduction and the home is
a residence
occupied by the owner, the home may qualify for
the tax reduction.
To obtain an application for the tax reduction or further
information, the
owner may contact the county auditor's office at
.......... (insert the
address and telephone number of the county
auditor's office)." (E)(1) A manufactured or mobile home is not subject to
this
section when any of the following applies: (a) It is taxable as personal property pursuant to
section
5709.01 of the Revised Code. Any manufactured or mobile home
that
is used as a residence shall be
subject to this
section and shall
not be taxable as personal property pursuant to
section 5709.01 of
the Revised Code. (b) It bears a license plate issued by any state other than
this
state unless the home is in this state in excess of an
accumulative period of
thirty days in any calendar year. (c) The annual tax has been paid on the home in this state
for
the current year. (d) The tax commissioner has determined, pursuant to section
5715.27 of the Revised Code, that the property is exempt from
taxation, or
would be exempt from taxation under Chapter 5709. of
the Revised Code if it
were classified as real property. (2) A travel trailer
or park trailer, as these terms are
defined in section 4501.01
of the Revised Code, is not subject to
this section if it is
unused or unoccupied and stored at the
owner's normal place of residence or at a recognized storage
facility.
(3) A travel trailer or park trailer, as these terms are
defined
in section 4501.01 of the Revised Code, is subject to this
section and shall
be taxed as a
manufactured or mobile home if it
has a situs longer
than thirty days in one location and is
connected to
existing utilities, unless either
of the following
applies: (a) The situs is in a state facility or a camping or park
area as defined in division (B), (G), (H),
or (R) of section
3733.01 of the Revised Code; (b) The situs is in a camping or park area that is a
tract
of land that has been limited to recreational use by deed or
zoning restrictions and subdivided for sale of five or more
individual lots for the express or implied purpose of occupancy
by
either self-contained recreational vehicles as defined in
division
(E) of section 3733.01 of the Revised Code or by
dependent
recreational vehicles as defined in division (F) of
section
3733.01 of the Revised Code. (F) Except as provided in division (D)(3) of this
section,
the manufactured home tax is due and payable as
follows: (1) When a manufactured or mobile home has a situs in this
state, as
provided in this section, on the first day of January,
one-half
of the amount of the tax is due and payable on or before
the
first day of March
and the balance is due and payable on
or
before the thirty-first day of July. At the option of the owner
of the
home, the tax for the entire year may be paid in full on
the
first day of March. (2) When a manufactured or mobile home first acquires a
situs
in this state after the first day of
January, no tax is due
and payable for that year.
(G)(1)
If
(a) Except as otherwise provided in division
(G)(1)(b) of this section, if one-half of the current taxes
charged under this
section against a manufactured or mobile home,
together
with the
full
amount of any delinquent taxes
or any
installment thereof
required to be paid under a written
undertaking, are not paid on
or before the
thirty-first day of
January
first day of March in that year, or on or
before the last
day for such payment as extended pursuant to
section 4503.063 of
the Revised Code, a penalty of ten per
cent
shall be charged
against the unpaid balance of such half of the
current taxes. If
the total amount of all such
taxes is not paid
on or before the
thirty-first day of July, next
thereafter, or on
or before the
last day for such payment as
extended pursuant to
section 4503.063
of the Revised Code, a
like penalty shall be
charged on the
balance of the total amount of
such the unpaid current
taxes. (b) After a valid delinquent tax contract that includes
unpaid current taxes from a first-half collection period described
in division (F) of this section has been entered into under
section 323.31 of the Revised Code, no ten per cent penalty shall
be charged against such taxes after the second-half collection
period while the delinquent tax contract remains in
effect. On the day a delinquent tax contract becomes
void, the ten per cent penalty shall be charged against such taxes
and shall equal the amount of penalty that would have been charged
against unpaid current taxes outstanding on the date on which the
second-half penalty would have been charged thereon under division
(G)(1)(a) of this section if the contract had not been in effect. (2)(a) On the first day of the month following the last
day
the second installment of taxes may be paid without penalty
beginning
in 2000,
interest shall be charged against and computed
on all delinquent
taxes other than the current taxes that became
delinquent taxes
at the close of the last day such second
installment could be
paid without penalty. The charge shall be
for interest that
accrued during the period that began on the
preceding first day
of December and ended on the last day of the
month that included
the last date such second installment could be
paid without
penalty. The interest shall be computed at the rate
per annum
prescribed by section 5703.47 of the Revised Code and
shall be
entered as a separate item on the delinquent manufactured
home tax list
compiled under division (H) of this section. (b) On the first day of December beginning in 2000, the
interest shall be
charged against and computed on all delinquent
taxes. The charge
shall be for interest that accrued during the
period that began
on the first day of the month following the last
date prescribed
for the payment of the second installment of taxes
in the current
year and ended on the immediately preceding last
day of November. The interest shall be computed at the rate
per
annum prescribed
by section 5703.47 of the Revised Code and shall
be entered
as a separate item on the delinquent manufactured home
tax list. (c) After a valid undertaking has been entered into for
the
payment of any delinquent taxes, no interest shall be charged
against such delinquent taxes while the undertaking remains in
effect in compliance with section 323.31 of the Revised Code. If
a valid undertaking becomes void, interest shall be charged
against the delinquent taxes for the periods that interest was
not
permitted to be charged while the undertaking was in effect.
The
interest shall be charged on the day the undertaking becomes
void
and shall equal the amount of interest that would have been
charged against the unpaid delinquent taxes outstanding on the
dates on which interest would have been charged thereon under
divisions (G)(1) and (2) of this section had the undertaking not
been in effect. (3) If the full amount of the taxes due at either of the
times prescribed by division (F) of this section is paid within
ten days after such time, the county treasurer shall waive the
collection of and the county auditor shall remit one-half of the
penalty provided for in this division for failure to make that
payment by the prescribed time. (4) The treasurer shall compile and deliver to the county
auditor a list of all tax payments the treasurer has received
as
provided in
division (G)(3) of this section. The list shall
include any
information required by the auditor for the remission
of the
penalties waived by the treasurer. The taxes so collected
shall
be included in the settlement next succeeding the settlement
then
in process. (H)(1) Beginning in 2000, the county auditor shall compile
annually a
"delinquent manufactured home tax list" consisting of
homes
the county treasurer's records indicate have taxes that were
not
paid within the time prescribed by divisions
(D)(3) and (F)
of
this section, have taxes that remain unpaid
from prior years,
or
have unpaid tax penalties or interest that have been assessed.
(2) Within thirty days after the settlement under
division
(H)(2) of section 321.24 of the Revised Code beginning in
2000,
the county
auditor shall deliver a copy of the delinquent
manufactured home
tax list to the county treasurer. The auditor
shall update and publish
the
delinquent manufactured home tax list
annually in the same manner as
delinquent real property tax lists
are published.
The county auditor shall
apportion the cost of
publishing the list among taxing districts in
proportion to the
amount of delinquent manufactured home taxes so
published that
each taxing district is entitled to receive upon
collection of
those taxes. (3) When taxes, penalties, or interest
are
charged
against a
person on the delinquent manufactured home tax list
and
are not paid within sixty days after the list is delivered to
the
county treasurer, the county treasurer shall, in addition
to any
other remedy provided by law for the collection of taxes,
penalties, and interest, enforce collection of
such taxes,
penalties, and interest by civil action in the name of the
treasurer against the owner for
the recovery of the unpaid taxes
following the procedures for the recovery
of delinquent real
property taxes in sections 323.25 to 323.28
of the Revised Code.
The action may be brought in municipal or county court,
provided
the amount
charged does not exceed the monetary
limitations for
original jurisdiction for civil actions in those
courts. It is sufficient, having made proper parties to the suit,
for
the county treasurer to allege in the treasurer's bill of
particulars or
petition that the taxes stand chargeable on the books of the
county treasurer against such person, that they are due and
unpaid, and that such person is indebted in the amount of taxes
appearing to be due the county. The treasurer need not set forth
any other matter relating thereto. If
it is found on the trial of
the action that the person
is indebted to the state, judgment
shall be rendered in favor of
the county treasurer prosecuting the
action. The judgment debtor is
not entitled to the benefit of any
law for stay of execution or
exemption of property from levy or
sale on execution in the
enforcement of the judgment. Upon the filing of an entry of confirmation of sale or an
order of forfeiture in a proceeding brought under this division,
title to the manufactured or mobile home shall be in the
purchaser. The clerk of courts shall issue a certificate of title
to the purchaser upon presentation of proof of filing of the entry
of confirmation or order and, in the case of a forfeiture,
presentation of the county auditor's certificate of sale. (I) The total amount of taxes collected shall be
distributed
in the following manner:
four per cent shall be allowed as
compensation to the county
auditor for the county auditor's
service in assessing the
taxes; two per cent
shall be allowed as
compensation to the county treasurer for the
services the county
treasurer renders as a result of the tax
levied by this
section.
Such amounts shall be paid into the county treasury, to
the credit
of the county general revenue fund,
on the warrant of the county
auditor. Fees to be paid to the credit of the real estate
assessment fund
shall be collected pursuant to division (B) of
section 319.54 of the Revised
Code and paid into the county
treasury, on the warrant of the county
auditor. The balance of
the taxes collected shall be distributed
among the taxing
subdivisions of the county in which the taxes
are collected and
paid in the same ratio as those taxes were
collected for the
benefit of the taxing subdivision. The taxes levied
and revenues
collected
under this section shall be in lieu of any general
property tax
and any tax levied with respect to the privilege of
using or
occupying a manufactured or mobile home in Ohio except as
provided in
sections 4503.04 and 5741.02 of the Revised Code. (J) An agreement to purchase or a bill of sale for a
manufactured home shall show whether or not the furnishings and
equipment are included in the purchase price. (K) If the county treasurer and the county prosecuting
attorney agree that an item charged on the delinquent
manufactured
home tax list is uncollectible, they shall certify
that
determination and the reasons to the county board of
revision. If
the board determines the amount is uncollectible,
it shall certify
its determination to the county auditor, who
shall strike the item
from the list. (L)(1) The county
auditor shall appraise at its true value
any manufactured or mobile home in
which ownership is transferred
or which first acquires situs in this state on
or after January 1,
2000, and any manufactured or mobile home the
owner of which has
elected, under division (D)(4) of this section, to have the home
taxed under division (D)(2) of this section. The true value
shall
include the
value of the home, any additions, and any fixtures,
but not any
furnishings in the home. In determining the true
value of a
manufactured or mobile home, the auditor shall consider
all
facts and circumstances relating to the value of the home,
including its age, its capacity to function as a residence, any
obsolete characteristics, and other factors that may tend to prove
its true value. (2)(a) If a manufactured or mobile home has been
the subject
of an arm's length sale between a willing seller and
a willing
buyer within a reasonable length of time prior to the
determination of true value, the county auditor shall consider the sale
price of the home to be the true value for taxation purposes.
(b) The sale price in an arm's length transaction
between a
willing seller and a willing buyer shall not be
considered the
true value of the home if either of the following
occurred after
the sale: (i) The home has lost value due to a casualty; (ii) An addition or fixture has been added to the home. (3) The county auditor shall have each home viewed and appraised
at
least once in each six-year period in the same year in which real
property in the county is appraised pursuant to Chapter 5713. of
the Revised Code,
and shall update the appraised values in the
third calendar year following the
appraisal. The person viewing
or
appraising a home may enter the home to determine by actual
view
any additions or fixtures that have been added since the last
appraisal. In conducting the appraisals and establishing the
true
value, the auditor shall follow the procedures set forth
for
appraising real property in sections 5713.01 and 5713.03 of the
Revised
Code. (4) The county auditor shall place the true value of each home
on
the manufactured home tax list upon completion of an
appraisal. (5)(a) If the county auditor changes the true value of a
home, the
auditor shall notify the owner of the home in writing,
delivered
by mail or in person. The notice shall be given at
least thirty
days prior to the issuance of any tax bill that
reflects the
change. Failure to receive the notice
does not invalidate any
proceeding under this section.
(b) Any owner of a home or any other person or party listed
in
division (A)(1) of section 5715.19 of the Revised Code may file
a complaint
against the true
value of the home
as appraised under
this section. The complaint shall be
filed with the
county
auditor on or before the thirty-first day of
March
of
the
current
tax year
or the
date of closing of the collection for
the
first
half of manufactured home taxes for the current tax
year,
whichever is later. The auditor shall present to the county
board
of revision all complaints filed with the auditor under this
section. The board shall
hear and
investigate the
complaint and
may take action on it as
provided
under sections
5715.11 to
5715.19 of the
Revised Code. (c) If the county board of revision determines, pursuant to
a
complaint against the valuation of a manufactured or mobile home
filed under this section, that the amount of taxes, assessments,
or other charges paid was in excess of the amount due
based on the
valuation as finally determined, then the
overpayment shall be
refunded in the manner prescribed in
section 5715.22 of the
Revised Code. (d) Payment of all or part of a tax under this
section for
any year for which a complaint is pending before the
county board
of revision does not abate the complaint or in any
way affect the
hearing and determination thereof. (M) If the county auditor determines that any tax,
assessment,
or other charge, or any part thereof has been
erroneously
charged as a result of a clerical error as defined in
section
319.35 of the Revised Code, the county
treasurer and
auditor shall call the attention of the county
board of revision
to the erroneous charges. If the board finds that the taxes or
other charges have been erroneously charged or collected, it shall
certify the finding to the auditor. Upon receipt of the
certification, the auditor shall remove the erroneous charges
on
the
manufactured home tax list or delinquent manufactured home tax
list
in the same manner as is prescribed in section 319.35 of the
Revised Code for erroneous charges against real property,
and
refund any erroneous charges that have been collected,
with
interest, in the same manner as is prescribed in section
319.36 of
the
Revised Code for erroneous charges against real
property. (N) As used in this section and section 4503.061 of the
Revised Code: (1) "Manufactured home taxes" includes taxes, penalties, and
interest charged under division (C) or (G) of this section
and any
penalties charged under division (G) or (H)(5) of
section 4503.061
of the Revised Code. (2) "Current taxes" means all manufactured home taxes
charged
against a manufactured or mobile home that have not
appeared on the
manufactured home tax list for any prior year.
Current taxes become
delinquent taxes if they remain unpaid after
the last day
prescribed for payment of the second installment of
current taxes
without penalty, whether or not they have been
certified
delinquent. (3) "Delinquent taxes" means: (a) Any manufactured home taxes that were charged against a
manufactured or mobile home for a prior year, including any
penalties or
interest charged for a prior year, and that remain
unpaid; (b) Any current manufactured home taxes charged against a
manufactured or mobile home that remain unpaid after the last day
prescribed for payment of the second installment of current taxes
without penalty, whether or not they have been certified
delinquent, including any penalties or interest.
Sec. 5713.20. (A) If the county auditor discovers that any
building, structure, or tract of land or any lot or part of
either, has been omitted from the list of real property, the
auditor shall
add it to the list, with the name of the owner, and
ascertain the
taxable value thereof and place it opposite such
property. The
county auditor shall compute the sum of the simple
taxes for the
preceding years in which such the property was omitted
from the
list of real property, not exceeding five years, unless
in the
meantime the property has changed ownership, in which case
only
the taxes chargeable since the last change of ownership shall
be
computed. No penalty or interest shall be added to the amount
of
taxes so computed. The county auditor shall order the county treasurer to
correct the duplicate of real property accordingly, and shall
certify to the county treasurer the sum of taxes determined by
the
county auditor under this section to be due on the omitted
property. The county treasurer thereupon shall notify the owner
by certified mail, return receipt requested, of the sum of taxes
due, and inform the owner that the owner may enter into
a
delinquent
an omitted tax contract with the county treasurer to
pay the taxes in
installments, or that the owner, if the owner
desires, may
pay the
amount of such taxes into the county
treasury. A delinquent
(B) An omitted tax contract entered into under
this
section for
the payment of taxes in installments shall require
that the
installments be payable at the times and in the amounts
specified
by the county treasurer in the contract. The owner
may
request, and the
treasurer shall allow,
a delinquent
an omitted
tax contract
providing for payment in installments
over no fewer
than two years; however, the treasurer shall not permit a
contract
to provide for payment in installments over
more
than five years.
Each installment
payment shall be apportioned among the several
funds for which the taxes on
the omitted property would have been
assessed had the property not been
omitted, and shall be applied
to the items of taxes charged in the order in
which they became
due. If an installment payment is not received by the
county
treasurer when due, or any payment of current taxes is not made
when
due, the contract becomes void, and the
county treasurer shall
order payment of the entire outstanding
balance of taxes
determined to be due under this section in one
lump-sum payment.
Sec. 5719.051. If the board of county commissioners deems it necessary, it
may authorize the county treasurer to employ collectors to collect the taxes
mentioned in section 5719.05 of the Revised Code or part thereof, and fix the
salary compensation of such collectors, and provide for the reasonable and necessary
expenses of such collectors in the pursuit of their duties, which shall be
paid out of the county treasury. All such salaries compensation and expenses shall be
apportioned ratably by the county auditor among all the funds entitled to
share in the distribution of such the taxes.
Sec. 5721.10. Except as otherwise provided under sections
5721.30 to
5721.42
5721.43 of the Revised Code, the state
shall
have the first lien on
the
lands and lots described in the
delinquent land list, for the
amount of taxes, assessments,
interest, and penalty charged prior
to the delivery of such list.
If the taxes have not been paid
for one year after having been
certified as delinquent, the state
shall institute foreclosure
proceedings in the manner provided by
sections 5721.01 to 5721.28
of the Revised Code, unless a tax certificate
respecting that
property has been sold under section 5721.32 or 5721.33 of the
Revised Code,
or
unless such taxes
are the subject of a valid
delinquent tax contract
under section 323.31 of
the Revised Code
for which the county treasurer has not made
certification to the
county auditor that the delinquent
tax contract has
become void.
The court
shall levy, as costs in
the foreclosure proceedings
instituted on said the certification of delinquency, the
cost of an abstract or
certificate of title to the property
described in said the
certification, if the same it is required by the
court, to be paid
into the general fund of the county. Sections 5721.01 to
5721.28
of the Revised Code do not prevent the
partial payment of such
delinquent
taxes, assessments, interest, and penalty during the
period the
delinquency is being discharged in accordance with a
delinquent tax contract
under section 323.31 of the Revised Code,
but such the partial
payments may be made and received as provided by
law without
prejudice to the right of the state to institute
foreclosure
proceedings for any amount then remaining unpaid, if
the county
treasurer certifies to the county auditor that the
delinquent tax contract
has become void.
Sec. 5721.30. As used in sections 5721.30 to
5721.42
5721.43
of the
Revised Code: (A)
"Tax certificate,"
"certificate," or
"duplicate
certificate"
means a document which that may be issued as a physical
certificate, in
book-entry form, or through an electronic medium,
at the discretion of the
county treasurer. Such document shall
contain
the information required by section
5721.31 of the Revised
Code and shall be prepared, transferred, or redeemed in the manner
prescribed
by
sections 5721.30 to
5721.41
5721.43 of the Revised
Code. As
used in those sections,
"tax
certificate,"
"certificate," and
"duplicate certificate" do not
refer to the
delinquent land tax
certificate or the delinquent vacant land tax
certificate issued
under section 5721.13 of the Revised Code. (B)
"Certificate parcel" means the parcel of delinquent land
that
is the
subject of and is described in a tax certificate. (C)
"Certificate holder" means a person who purchases a tax
certificate
under section 5721.32
or, 5721.33, or 5721.42 of the
Revised Code,
or a person to whom a tax certificate
has been
transferred
pursuant to section 5721.36 of the Revised Code. (D)
"Certificate purchase price" means, with respect to the
sale
of tax certificates under sections 5721.32
and, 5721.33, and
5721.42 of the
Revised Code,
the amount equal
to delinquent
taxes,
assessments,
penalties, and interest computed under
section
323.121 of the
Revised Code charged against a certificate
parcel
at the time the
tax certificate respecting that
parcel is sold,
not including any
delinquent taxes, assessments, penalties,
interest, and charges,
the lien for which has been conveyed to a
certificate
holder
through a prior sale of a tax certificate
respecting that parcel;
provided, however, that payment of the
certificate purchase price
in a
sale under section 5721.33 of the
Revised Code may be made
wholly in cash or
partially in
cash and
partially by noncash
consideration acceptable to the county
treasurer
from the
purchaser. In the event that any such noncash
consideration is
delivered to pay a portion of the certificate
purchase price, such
noncash
consideration may be subordinate to
the rights of the
holders of other
obligations whose proceeds paid
the cash portion
of the certificate purchase
price. "Certificate purchase price" also includes the amount of the
fee
charged by
the county treasurer to the purchaser of the
certificate under division
(H) of section 5721.32 of the Revised
Code. (E) With respect to a sale of tax certificates under section
5721.32 of the Revised Code
and except as provided in division
(E)(3)(2) of
this section,
"certificate both of the following apply: (1) "Certificate redemption price" means the
amount determined under
division (E)(1) or (2) of this section. (1) During the first year after the date on which a tax
certificate is sold, the sum of the following:
(a) The certificate purchase price;
(b) The
plus the greater of the following:
(i)(a) Interest, at the certificate rate
of interest,
accruing
during the certificate interest period on
the certificate
purchase
price, calculated in accordance with section 5721.41 of
the
Revised Code;
(ii)(b) Six per cent of the certificate
purchase price.
(c) The fee charged by the county
treasurer to the purchaser
of the certificate under division
(H) of section 5721.32 of the
Revised Code.
(2) After the first year after the date on which a tax
certificate is sold, the sum of the following:
(a)(i) If division
(E)(1)(b)(i)
applied during the first
year, the certificate purchase
price;
(ii) If division (E)(1)(b)(ii)
applied during the first
year, the sum of the certificate
purchase price plus six per cent
of the certificate purchase
price.
(b)(i) If division
(E)(1)(b)(i)
applied during the first
year, interest at the certificate rate
of interest accruing during
the certificate interest period on
the certificate purchase price;
(ii) If division (E)(1)(b)(ii)
applied during the first
year, interest at the certificate rate
of interest, accruing
during the part of the certificate
interest period that begins one
year after the date of the sale
of the certificate, on the sum of
the certificate purchase price
plus six per cent of the
certificate purchase price.
(c) The fee charged by the county
treasurer to the purchaser
of the certificate under division
(H) of section 5721.32 of the
Revised Code.
(3)(2) If the certificate rate of interest equals zero, the
certificate redemption price equals the certificate
purchase price
plus the fee charged by the county treasurer to the purchaser
of
the certificate under division (H) of section 5721.32 of the
Revised Code.
(F) With respect to a sale of tax certificates under section
5721.33 of the Revised Code,
"certificate redemption price" means
the amount equal to the sum of the
following: (1) The certificate purchase price; (2) Interest accrued on the certificate purchase price at
the certificate
rate of interest from the date on which a tax
certificate is delivered through
and including the day immediately
preceding the day on which the certificate
redemption price is
paid; (3) The fee, if any, charged by the county treasurer to the
purchaser of
the certificate under division (J) of section 5721.33
of the Revised Code; (4) Any other fees charged by any county office in
connection with the
recording of tax certificates. (G)
"Certificate rate of interest" means the rate of simple
interest per year bid by the winning bidder in an auction of a tax
certificate
held under section 5721.32 of the Revised Code, or the
rate of simple interest per year not
to exceed eighteen per cent
per year fixed
pursuant to section 5721.42 of the Revised Code or
by the county treasurer with
respect to
any tax
certificate sold
pursuant to a negotiated sale under section
5721.33
of the Revised
Code. (H)
"Cash" means United States currency,
certified checks,
money orders, bank drafts, or electronic transfer of funds,
and
excludes any other form of payment. (I)
"The date on which a tax certificate is sold,"
"the date
the
certificate was sold,"
"the date the certificate is
purchased," and any other
phrase of similar content mean, with
respect to a sale pursuant to an auction
under section 5721.32 of
the Revised Code, the date designated by the county treasurer for
the submission of bids and, with respect to a negotiated sale
under section
5721.33 of the Revised Code, the date of delivery of
the tax certificates to the purchasers
thereof pursuant to a tax
certificate sale/purchase agreement. (J)
"Purchaser of a tax certificate pursuant to section
5721.32
of the Revised Code" means the winning bidder in an
auction of a tax certificate held under
section 5721.32 of the
Revised Code. (K)
"Certificate interest period" means, with respect to a
tax
certificate sold under section 5721.32
or 5721.42 of the
Revised Code and for the purpose of accruing interest under section 5721.41 of the Revised Code,
the period beginning on
the
date
on which the certificate is purchased and,
with respect to a tax certificate sold
under section 5721.33 of
the Revised Code, the
period beginning on the date of delivery of
the tax certificate, and in either
case ending on one of the
following dates: (1) In the case of foreclosure proceedings instituted under
section 5721.37 of the Revised
Code, the date the certificate
holder submits a payment to the
treasurer under division (B) of
that section; (2) In the case of a certificate parcel redeemed
under
division (A) or (C) of section 5721.38 of the
Revised Code, the
date the owner of record of the
certificate parcel, or any other
person entitled to redeem that parcel, pays to the county
treasurer or to the
certificate holder, as applicable, the full
amount determined under that section. (L)
"County treasurer" means, with respect to the sale of
tax
certificates under section 5721.32, or 5721.33 of the Revised
Code, the
county
treasurer of
a county having a population of at
least two
hundred
thousand according to the
then most recent
federal
decennial
census. (M)
"Qualified trustee" means a trust company within the
state or
a bank having the power of a trust company within the
state with a combined
capital stock, surplus, and undivided
profits of at least one hundred million
dollars. (N)
"Tax certificate sale/purchase agreement" means the
purchase
and sale agreement described in division (C) of section
5721.33 of the Revised Code
setting forth the certificate purchase
price, plus any applicable premium or
less any applicable
discount, including, without limitation, the amount
thereof to be
paid in cash and the amount and nature of any noncash
consideration, the date of delivery of the tax certificates, and
the other
terms and conditions of the sale, including, without
limitation, the rate of
interest that the tax certificates shall
bear. (O)
"Noncash consideration" means any form of consideration
other
than cash, including, but not limited to, promissory notes
whether
subordinate or otherwise. (P)
"Private attorney" means for purposes of section 5721.37
of the Revised Code, any attorney licensed to practice law in this
state, whether practicing
with a firm of attorneys or otherwise,
whose license has not been revoked or
otherwise suspended and who
brings foreclosure proceedings pursuant to
section 5721.37 of the
Revised Code on behalf of a certificate holder. (Q)
"Related certificate parcel" means, with respect to a
certificate holder, the certificate parcel with respect to which
the
certificate holder has purchased and holds a tax certificate
pursuant to
sections 5721.30 to
5721.41
5721.43 of the Revised
Code and,
with respect to a tax certificate, the
certificate
parcel against
which the tax certificate has been sold pursuant to
those
sections.
Sec. 5721.31. (A) After receipt of a duplicate of the
delinquent
land list compiled under section 5721.011 of the
Revised
Code, or a delinquent land list compiled previously under
that
section, for a county having a population of at least two
hundred
thousand according to the most recent federal decennial
census, the county
treasurer may select from the list parcels of
delinquent land the lien
against which the county treasurer may
attempt to transfer by the
sale of tax certificates under sections
5721.30 to
5721.41
5721.43 of the
Revised Code. The county
treasurer may select
only those eligible parcels for which taxes,
assessments, penalties,
interest, and charges have not yet been
paid or for which
a valid delinquent tax contract
under section
323.31 of the Revised Code is not in force.
Each certificate
shall contain the
same information as is required to be contained
in the delinquent land list.
The county treasurer shall compile a
separate list, the list of
parcels selected for tax certificate
sales,
including the same information as is required to be
included in the delinquent land list. Upon compiling the list of parcels selected for tax
certificate sales, the county treasurer may conduct a title search
for any
parcel on the list. (B)(1)
When
Except as otherwise provided in division (B)(3)
of this section, when tax certificates are to be sold under
section 5721.32
of the Revised Code with respect to parcels, the
county treasurer shall send
written
notice by certified or
registered mail to either the owner of record or
all interested
parties discoverable through a title search, or both, of each
parcel on
the
list. A notice to an owner shall be sent to the
owner's last known tax
mailing address. The notice shall inform
the owner or interested
parties that a tax
certificate
will be
offered for sale on the parcel, and that the owner or interested
parties may
incur additional expenses as a result of the sale.
(2)
When
Except as otherwise provided in division (B)(3) of
this section, when tax certificates are to be sold under section
5721.33 of the Revised
Code with respect to parcels, the county
treasurer, at least
sixty
thirty days prior to the
date of sale of
such tax certificates, shall send written notice of the sale
by
certified or registered mail, or both, to the last known
tax-mailing
address of the
record owner of the property or parcel
and
may send such notice to all parties with an interest in
the
property that has been recorded in the property records of the
county
pursuant to section 317.08 of the Revised Code, the. The
notice shall state that a
tax
certificate will be offered for sale
on the parcel, and that the owner or
interested parties may incur
additional expenses as a result of the sale.
(3) The county treasurer is not required to send a notice
under division (B)(1) or (B)(2) of this section if the treasurer
previously has attempted to send such notice to the owner of the
parcel and the notice has been returned by the post office as
undeliverable. The absence of a valid tax mailing address for the
owner of a parcel does not preclude the county treasurer from
selling a tax certificate for the parcel. (C) The county treasurer shall advertise the sale of
tax
certificates under section 5721.32 of the Revised Code in a
newspaper of general circulation in the county, once a week for
two
consecutive weeks. The advertisement shall include the date,
the time, and
the place of the public auction, descriptions of the
parcels, and the names of
the owners of record of the parcels. (D) After the county treasurer has compiled the list of
parcels
selected for tax certificate sales but before a tax
certificate respecting a
parcel is sold, if the owner of record of
the parcel pays to the county
treasurer in cash the full amount of
delinquent taxes, assessments, penalties,
interest, and charges
then due and payable or enters into a valid
delinquent tax
contract under section 323.31 of the
Revised Code to pay that
amount, the owner of record of the
parcel also shall
pay a fee in
an amount prescribed by the treasurer to cover the administrative
costs of the treasurer under this section respecting the parcel
and credited
to the tax certificate administration fund. (E) A tax certificate
administration fund shall be created
in the county treasury of
each county selling tax certificates
under sections 5721.30 to
5721.41
5721.43 of the Revised
Code.
The
fund shall be
administered by the county treasurer, and used
solely for the
purposes of sections 5721.30 to
5721.41
5721.43 of
the
Revised
Code. Any fee received by the
treasurer under
sections 5721.30 to
5721.41
5721.43 of the
Revised
Code shall be
credited to the
fund, except the bidder registration fee under
division
(B) of section 5721.32 of the
Revised
Code and the county
prosecuting
attorney's fee under division
(B)(3) of section
5721.37 of
the Revised
Code. (F) The county
treasurers of more than one county may
jointly conduct a
regional sale of tax certificates under section
5721.32 of the Revised Code. A regional sale
shall be
held at a
single location in one county, where the tax
certificates from
each of the participating counties shall be offered
for sale at
public auction. Before the regional sale, each
county treasurer
shall advertise the sale for the parcels in the
treasurer's county
as required by division
(C) of this section. At the
regional
sale, tax certificates shall be sold on parcels from
one county at
a time, with all of the certificates for one
county offered for
sale before any certificates for the next
county are offered for
sale. (G) The tax commissioner
shall prescribe the form of the tax
certificate under this
section, and county treasurers shall use
the form prescribed by
the commissioner.
Sec. 5721.32. (A) The sale of tax certificates by public
auction
may be conducted at any time after completion of the
advertising of the sale
under
section 5721.31 of the Revised Code,
on the date and at the
time and place designated in
the
advertisements, and may be continued from time to time as the
county treasurer directs. The county treasurer may offer the tax
certificates
for sale in blocks of tax certificates, consisting of
any number of tax
certificates as determined by the county
treasurer. (B)(1) The sale of tax certificates under this section shall
be
conducted
at a public auction by the county treasurer or a
designee of the county
treasurer. (2) No person shall be permitted to bid
without completing a
bidder registration form, in the form
prescribed by the tax
commissioner, and filing the form with the
county treasurer prior
to the start of the auction, together with
remittance of a
registration fee, in cash, of five hundred
dollars. The bidder
registration form shall include a tax identification
number of the
registrant. The registration fee is refundable at the end of
bidding on the day of the auction, unless the registrant is the
winning bidder for one or more tax certificates or one or more
blocks of tax
certificates, in which case
the fee may be applied
toward the deposit required by this
section. (3) The county treasurer may require a person who wishes to bid on one
or more parcels to submit a letter from a financial institution
stating that the bidder has sufficient funds available to pay the
purchase price of the parcels and a written authorization for the
treasurer to verify such information with the financial
institution. The county treasurer may require submission of the letter
and authorization sufficiently in advance of the auction to allow
for verification. No person who fails to submit the required
letter and authorization, or whose financial institution fails to
provide the requested verification, shall be permitted to bid. (C) At the auction, the county treasurer or the treasurer's
designee or agent shall begin the
bidding at eighteen per cent per
year simple interest, and accept lower bids
in even increments of
one-fourth of one per
cent to the rate of zero per cent. The
county treasurer, designee, or agent
shall award the tax
certificate to the person bidding the lowest certificate
rate of
interest. (D) The winning bidder shall pay the county treasurer a cash
deposit of at least ten per cent of the certificate purchase
price
not later than the close of business on the day of the
sale. The
winning bidder
shall pay the balance and the fee required under
division (H) of this section not later than
five business days
after the day on which the certificate is
sold. If the winning
bidder fails to pay the balance and fee within the
prescribed
time, the bidder forfeits the deposit, and the county treasurer
shall retain the tax certificate and may attempt to sell it at any
auction
conducted at a later date. The county treasurer shall
deposit the forfeited
deposit in the county treasury to the credit
of the tax certificate
administration fund. (E) Upon receipt of the full payment of the
certificate
purchase price from the purchaser, the county
treasurer shall
issue the tax certificate and record the tax certificate sale
by
marking on the
tax certificate and into a tax certificate
register, the
certificate purchase price, the certificate rate of
interest, the date the
certificate was sold, and the name and
address of the certificate holder, which may be, upon receipt of
instructions
from the purchaser, the secured party of the actual
purchaser, or an agent or
custodian for the purchaser or secured
party. The county treasurer also shall
transfer the tax
certificate to
the certificate holder and, upon presentation to
the treasurer of instructions
signed by the certificate purchaser,
shall record in the tax certificate
register the name and address
of any secured party of the certificate
purchaser having a
security interest in the tax certificate. Upon the
transfer of a
tax certificate, the
county treasurer shall
apportion the
part of the proceeds
from the sale
representing taxes, penalties,
and interest among the several
taxing districts in the same
proportion that the amount of taxes levied
by each district
against the certificate parcel in the preceding tax year
bears to
the taxes levied by all such districts against the certificate
parcel in the preceding tax year, and credit the part of the
proceeds representing assessments and other charges
to the items
of
assessments and
charges in the
order in which those items became due. Upon completion of the
sale of a tax certificate, the delinquent taxes, assessments,
penalties, and
interest that make up the certificate purchase
price are
transferred, and the superior lien of the state and its
taxing districts for
those taxes, assessments, penalties, and
interest is conveyed intact to the
certificate holder. (F) If a tax certificate is offered for sale under this
section but is not sold, the county treasurer may strike the
corresponding certificate parcel from the list of parcels
selected
for tax certificate sales. The lien for taxes,
assessments,
charges, penalties, and interest against a parcel stricken from
the list thereafter may be foreclosed in the manner prescribed by
section 323.25, 5721.14, or 5721.18 of the Revised
Code unless,
prior to the institution of such proceedings
against the parcel,
the county treasurer restores the parcel to
the list of parcels
selected for tax certificate sales. (G) A certificate holder
shall not be liable for damages
arising from a violation of sections
3737.87 to 3737.891 or
Chapter 3704., 3734., 3745., 3746., 3750.,
3751., 3752., 6109., or
6111. of the Revised Code, or a rule adopted or order, permit,
license, variance, or plan approval issued under any of those
chapters, that
is or was committed by another person in connection
with the parcel for which
the tax certificate is held. (H) When selling a tax
certificate under this section, the
county treasurer shall
charge a fee to the purchaser of the
certificate. The county treasurer
shall set the fee at a reasonable
amount that covers the
treasurer's costs of administering the sale
of the tax
certificate. The county treasurer shall deposit the fee in
the county treasury to
the credit of the tax certificate
administration fund. (I) After selling a tax
certificate under this section, the
county treasurer shall send
written notice by certified or
registered mail to the owner
of the certificate
parcel at the
owner's last known tax-mailing address. The notice shall
inform
the owner that the tax
certificate was sold, shall describe the
owner's options to
redeem the parcel, including entering into a
redemption payment
plan under division (C)(1) of section 5721.38
of the Revised
Code, and shall name the certificate holder
and its
secured party, if
any. (J) A tax certificate shall not be sold to the owner of the
certificate parcel.
Sec. 5721.33. (A) A county treasurer may, in the
treasurer's
discretion, negotiate the sale of any number of tax
certificates with one or
more persons, including, without
limitation, any premium to be added to or
discount to be
subtracted from the certificate purchase price for the tax
certificates and any other terms of the sale that the county
treasurer, in the
treasurer's discretion, determines appropriate
or necessary for the sale. (B) The sale of tax certificates under this section shall be
governed by the criteria established by the county treasurer
pursuant to
division (E) of this section. (C) The county treasurer may execute a tax certificate
sale/purchase agreement and other necessary agreements with a
designated
purchaser or purchasers to complete a negotiated sale
of tax certificates. (D) The tax certificate may be sold at a premium to or
discount
from the certificate purchase price. The county
treasurer may establish as
one of the terms of the negotiated sale
the portion of the certificate
purchase price, plus any applicable
premium or less any applicable discount,
that the purchaser or
purchasers shall pay in cash on the date the tax
certificates are
sold and the portion, if any, of the certificate purchase
price,
plus any applicable premium or less any applicable discount, that
the
purchaser or purchasers shall pay in noncash consideration and
the nature of
that consideration. The county treasurer shall sell such tax certificates at a
certificate
purchase price, plus any applicable premium and less
any applicable discount, and at a certificate rate of interest
that, in the treasurer's determination,
is are in the best interests of the
county. (E)(1) The county treasurer may promulgate shall adopt rules governing
the
eligibility of persons to purchase tax certificates or to
otherwise
participate in a negotiated sale under this section.
The
rules may provide
for precertification of such persons,
including
a requirement for disclosure
of income, assets, and any
other
financial information the county treasurer
determines
appropriate.
The rules may also may prohibit any person that is
delinquent in the
payment of any tax to the county or to the
state, or that is
in
default in or on any other obligation to the
county or to the
state, from
purchasing a tax certificate or
otherwise
participating in a negotiated sale
of tax certificates
under this
section. The eligibility information required
shall
include the
tax identification number of the purchaser and may
include
the tax
identification number of the participant. The county treasurer, upon request, shall provide a copy of the rules adopted under this section. (2) Any person that intends to purchase a tax certificate in
a negotiated
sale shall submit an affidavit to the county
treasurer that establishes
compliance with the applicable
eligibility criteria and includes any other
information required
by the treasurer. Any person that fails to submit such
an
affidavit is ineligible to purchase a tax certificate. Any person
that
knowingly submits a false or misleading affidavit shall
forfeit any tax
certificate or certificates purchased by the
person at a sale for which the
affidavit was submitted, shall be
liable for payment of the full certificate
purchase price, plus
any applicable premium and less any applicable discount,
of the
tax certificate or certificates, and shall be disqualified from
participating in any tax certificate sale conducted in the county
during the
next five years. (3) A tax certificate shall not be sold to the owner of the
certificate
parcel or to any corporation, partnership, or
association in which such owner
has an interest. No person that
purchases a tax certificate in a negotiated
sale shall assign or
transfer the tax certificate to the owner of the
certificate
parcel or to any corporation, partnership, or association in which
the owner has an interest. Any person that knowingly or
negligently transfers
or assigns such a tax certificate to the
owner of the certificate parcel or to
any corporation,
partnership, or association in which such owner has an
interest
shall be liable for payment of the full certificate purchase
price,
plus any applicable premium and less any applicable
discount, and shall not be
entitled to a refund of any amount
paid. Such tax certificate shall be deemed
void and the tax lien
sold under such the tax certificate shall revert to the
county as if
no sale of such the
tax certificate had occurred. (F) The purchaser in a negotiated sale under this section
shall
deliver the certificate purchase price, plus any applicable
premium and less
any applicable discount and including any noncash
consideration, to the
county treasurer not later than the close of
business on the date the tax
certificates are delivered to the
purchaser. The certificate purchase price,
plus any applicable
premium and less any applicable discount, or portion of
the price,
that is paid in cash shall be deposited in the county's general
fund to the credit of the account to which ad valorem real
property taxes are
credited and further credited as provided in
division (G) of this
section. The purchaser shall also shall pay on the
date the tax certificates are
delivered to the purchaser the fee,
if any, negotiated under division
(J) of this section. If the
purchaser fails to pay the certificate
purchase price, plus any
applicable premium and less any applicable discount,
and any such
fee within the time periods required by this section, the county
treasurer shall retain the tax certificate and may attempt to sell
it at any
auction or negotiated sale conducted at a later date. (G) Upon receipt of the full payment of the certificate
purchase
price, plus any applicable premium and less any
applicable discount, and the
negotiated fee, if any, from the
purchaser, the county treasurer, or a
qualified trustee whom the
treasurer has engaged for such purpose, shall issue
the tax
certificate and record the tax certificate sale by marking on each
of
the tax certificates
sold or, if issued in book-entry form, on
the global tax certificate, and
marking into a tax certificate
register, the certificate purchase price, any
premium paid or
discount taken, the certificate rate of interest, the date the
certificates were sold, and the name and address of the
certificate
holder or, in the case of issuance of the tax
certificates in a book-entry
system, the name and address of
the nominee, which may be,
upon receipt of instructions from the purchaser,
the secured party
of the actual purchaser, or an agent or custodian for the
purchaser or secured party. The county treasurer also shall
transfer the tax
certificates to
the certificate holder and, upon
presentation to the treasurer of instructions
signed by the
certificate purchaser or purchasers, shall record in the tax
certificate register the name and address of any secured party of
the
certificate purchaser or purchasers having a security interest
in the tax
certificate. Upon the transfer of the tax
certificates, the county
treasurer shall
apportion the part
of the cash proceeds
from the sale
representing taxes, penalties,
and interest among the several
taxing districts in the same
proportion that the amount of taxes levied
by each district
against the certificate parcels in the preceding
tax year bears to
the taxes levied by all such districts against
the certificate
parcels in the preceding tax year, and credit the
part of the
proceeds representing assessments and other charges
to the items
of
assessments and charges in the
order in which
those
items became due. If the cash proceeds from
the sale are not sufficient to
fully satisfy
the
items of outstanding
delinquent
taxes, assessments, penalties, interest, and charges on the
certificate parcels against which tax certificates were sold, the
county
treasurer shall credit the cash proceeds to such items pro
rata based upon the
proportion that each such item of delinquent
taxes, assessments, penalties,
interest, and charges bears to the
aggregate of all such items, or by
any other
method that the
county treasurer, in the treasurer's sole discretion,
determines
is equitable. Upon completion of the sale of the tax
certificates,
the delinquent taxes, assessments, penalties, and
interest that make up the
certificate purchase price are
transferred, and the superior lien of the state
and its taxing
districts for those taxes, assessments, penalties, and interest
is
conveyed intact to the certificate holder or holders. (H) If a tax certificate is offered for sale under this
section
but is not sold, the county treasurer may strike the
corresponding certificate
parcel from the list of parcels selected
for tax certificate sales. The lien
for taxes, assessments,
charges, penalties, and interest against a parcel
stricken from
the list thereafter may be foreclosed in the manner prescribed
by
section 323.25, 5721.14, or 5721.18 of the Revised Code unless,
prior to the institution
of such proceedings against the parcel,
the county treasurer restores the
parcel to the list of parcels
selected for tax certificate sales. (I) Neither a certificate holder nor its secured party, if
any,
shall be liable for damages arising
from a violation of
sections 3737.87 to 3737.891 or Chapter 3704.,
3734., 3745., 3746.,
3750., 3751., 3752., 6109., or 6111. of the Revised Code, or a
rule
adopted or order, permit, license, variance, or plan approval
issued under any
of those chapters, that is or was committed by
another person in connection
with the parcel for which the tax
certificate is held. (J) When selling a tax certificate under this section, the
county
treasurer may negotiate with the purchaser of the
certificate for a fee paid
by the purchaser to the treasurer to
reimburse the treasurer for any part or
all of the treasurer's
costs of preparing for and
administering the sale of the tax
certificate. Such fee, if any, shall
be added to the certificate
purchase price of the certificate and shall be
paid by the
purchaser on the date of delivery of the tax certificate.
The county
treasurer shall deposit the fee in the county treasury to the
credit of
the tax certificate administration fund. (K) After selling tax certificates under this section, the
county
treasurer shall send written notice by certified or
registered mail to the
last known address of the owner of the
certificate parcel. The notice shall
inform the owner that a tax
certificate with respect to such owner's parcel
was sold and shall
describe the owner's options to redeem the parcel,
including
entering into a redemption payment plan under division
(C)(2) of
section 5721.38 of the Revised Code.
Sec. 5721.34. (A) A county treasurer shall not sell
any tax
certificate respecting a parcel of delinquent land upon
which the
full amount of delinquent taxes, assessments,
penalties, interest,
charges, and costs then due and payable have been
paid, or with
respect to which a valid delinquent tax
contract under section
323.31 of the
Revised Code to pay that amount has been entered
into,
prior to the sale of the
certificate by the county
treasurer. A certificate sold
in violation of this section is
void. (B) If, within sixty days after the date of the sale of a
tax
certificate, the county treasurer discovers that the
certificate
is void under division (A) of
this section, the holder
of the void certificate is entitled to
a refund of the certificate
purchase price, plus any applicable premium and
less any
applicable discount, and the fee charged
by the treasurer under
division (H) of section 5721.32 or division
(J) of section 5721.33
of the
Revised Code, as applicable. If the
county treasurer
discovers after
makes the discovery more than sixty days
from
after the
certificate's date of
sale
that a tax certificate is
void, the holder
of the void certificate also is
entitled to
a
refund
equal to the certificate purchase price, plus any
applicable premium and less
any applicable discount, and the
treasurer's fee, plus interest on the certificate purchase price,
plus any
applicable premium and less any applicable discount,
at
the rate of five per cent per year. The
holder of a void
certificate shall present the certificate to the county
treasurer
to obtain
shall notify the certificate holder that the certificate
is void and shall issue the refund, and the. The county auditor
shall
issue a warrant for the
amount
portion of the refund
from the undivided tax
fund, which portion consists of the certificate purchase price, plus any applicable
premium and less any applicable discount; the portion of the refund consisting of interest and
the
treasurer's fee shall be paid from the tax certificate
administration fund. (C) With respect to a tax certificate sold under section
5721.32
of the Revised Code and found to be void under division
(A) of this section, in
addition to the remedies available under
division (B) of this
section, the county treasurer may, with the
approval of the certificate
holder, substitute for such tax
certificate or portion thereof another tax
certificate that has a
value equivalent to the value of the tax certificate
found to be
void. Whenever a tax certificate of such equivalent value is to
be substituted for a tax certificate that has been found to be
void, the
county treasurer shall provide written notice of the
intention to substitute
such a tax certificate of equivalent value
to any person required to be notified
under division (I) of
section 5721.32 of the Revised Code. (D) If an application for the exemption from and remission
of
taxes made under section 3735.67 or 5715.27 of the Revised
Code, or under any other section of the Revised Code under the
jurisdiction of the director of environmental protection,
is
granted for a parcel for which a tax certificate has
been sold,
the
county treasurer shall refund to the certificate holder, in
the manner provided in this section, the amount of any taxes
exempted or
remitted that were included in the certificate
purchase price. If the
whole amount of the taxes included in the
certificate purchase
price are exempted or remitted, the tax
certificate is void. If
all of the taxes that were included in
the certificate purchase
price are not exempted or remitted, the
county treasurer shall
adjust the tax certificate register to
reflect the remaining
amount of taxes that were not exempted or
remitted, and notify the
certificate holder of the adjustment in
writing.
Sec. 5721.37. (A)(1) With respect to a tax certificate
purchased
under section 5721.32 of the Revised Code, or section
5721.42 of the
Revised Code in counties to which section 5721.32
of the
Revised Code applies, at any time after one year
from the
date shown on the tax certificate as the date the tax certificate
was sold,
and not later than three years after that date,
the
certificate holder may file with
the county treasurer a request
for foreclosure, or a private attorney on behalf of the
certificate holder may file with the county treasurer a notice of
intent to foreclose, on a form prescribed by
the tax commissioner
and provided by the county treasurer,
provided the parcel has not
yet been redeemed under division
(A) or (C) of section 5721.38 of
the Revised
Code. (2) With respect to a tax certificate purchased under
section 5721.33
of the Revised Code, or section 5721.42 of the
Revised Code in counties
to which section
5721.33 of the Revised
Code applies, at any time
after one year from the date shown on
the tax
certificate as
the date the tax certificate was sold, and
not later than six years after
that date or any extension of that
date pursuant to division (C)(2)
of
section 5721.38 of the Revised
Code, a private attorney on behalf of the
certificate holder
may
file with the county treasurer a notice of intent to foreclose on
a form
prescribed by the tax commissioner and provided by the
county treasurer,
provided the parcel has not yet been redeemed
under division (A) or
(C) of section 5721.38 of the Revised Code. (3) If (a) With respect to a tax certificate purchased under section 5721.32 of the Revised Code or section 5721.42 of the Revised Code in counties to which section 5721.32 of the Revised Code applies, if, before the expiration of three years from after the date a
tax
certificate was sold, the owner of property for which the
certificate was sold
files a petition in bankruptcy,
the county
treasurer shall notify the certificate
holder by ordinary
first-class or certified mail of the filing of the
petition, and. If the owner of the property files a petition in bankruptcy,
the last day on which the certificate holder may
file a request
for foreclosure shall be is the later of three years from after the date
the certificate was sold or one hundred eighty days after the
bankruptcy case
is closed; however, the three-year period being measured from the date that the certificate was sold is tolled while the owner of the property's petition in bankruptcy is being heard and remains open. (b) With respect to a tax certificate purchased under section 5721.33 of the Revised Code or section 5721.42 of the Revised Code in counties to which section 5721.33 of the Revised Code applies, if, before the expiration of six years after the date a tax certificate was sold, the owner of the property files a petition in bankruptcy, the county treasurer shall notify the certificate holder by ordinary first-class or certified mail of the filing of the petition. If the owner of the property files a petition in bankruptcy, the last day on which the certificate holder may file a notice of intent to foreclose is the later of six years after the date that the tax certificate was sold or one hundred eighty days after the bankruptcy case is closed; however, the six-year period being measured after the date that the certificate was sold is tolled while the owner of the property's petition in bankruptcy is being heard and remains open. (4) If, before the expiration of three years from the date a
tax
certificate was sold, the owner of property for which the
certificate was sold
applies for an exemption under
section
3735.67
or 5715.27 of the Revised Code or under any other section
of the Revised Code under the
jurisdiction of the director of
environmental protection, the county treasurer
shall notify the
certificate holder by
ordinary first-class or certified mail of
the filing of the
application. Once a determination has been made
on the exemption application, the county treasurer shall notify
the certificate holder of the determination by ordinary
first-class or certified mail. The last day on which the
certificate holder
may file a
request for foreclosure shall be the
later of three years from the date the
certificate was sold or
forty-five days after notice of the determination was
mailed. (B) Along with a request for foreclosure or a notice of intent to foreclose filed under division (A)(1) of
this
section, or a notice of intent to foreclose filed under division
(A)(2) of this section and prior to the transfer of title in
connection with foreclosure proceedings filed under division (F)
of
this section, the certificate holder shall
submit a payment to
the county treasurer equal to the sum of the
following: (1) The certificate redemption prices of all
outstanding tax
certificates that have been sold on the parcel,
other than tax
certificates held by the person requesting foreclosure; (2) Any delinquent taxes, assessments, penalties,
interest,
and charges that are charged against the certificate parcel that
is
the subject of the foreclosure proceedings and that are not
covered by a tax certificate; (3) If the foreclosure proceedings are filed by the county
prosecuting
attorney pursuant to section 323.25, 5721.14, or
5721.18 of the Revised Code,
a fee in the
amount prescribed by the
county
prosecuting attorney to cover the prosecuting attorney's
legal costs incurred in the foreclosure proceeding; (4) If the foreclosure proceedings are filed by a private
attorney on
behalf of the certificate holder pursuant to division
(F) of this
section, any other prior liens. (C)(1) With respect to a certificate purchased under section
5721.32
or 5721.42 of the Revised Code, if the certificate parcel
has not been redeemed,
the county treasurer, within five days
after receiving a foreclosure
request, shall inform the county
prosecuting attorney that
the
parcel has not
been redeemed and
shall
provide a copy of the foreclosure request.
The county
treasurer also
shall send notice by ordinary mail to all
certificate holders other than
the certificate holder requesting
foreclosure that foreclosure has been
requested by a certificate
holder and that tax certificates for the
certificate parcel may be
redeemed. Within ninety days of
receiving the copy of the
foreclosure request, the prosecuting
attorney shall commence a
foreclosure
proceeding in the name of the county treasurer in the
manner provided under
section 323.25, 5721.14, or 5721.18 of the
Revised Code, to foreclose the lien
vested in the certificate
holder by the certificate. The prosecuting attorney
shall attach
to the complaint the county treasurer's
certification that the
parcel has not been redeemed. (2) With respect to a certificate purchased under section
5721.32, 5721.33, or 5721.42 of the
Revised Code, if
the
certificate parcel has not been redeemed
and a notice of intent to
foreclose has been filed, the county treasurer shall
provide
certification to the private attorney that the parcel has not been
redeemed. The county treasurer also
shall send notice by ordinary
mail to all certificate holders other than
the certificate holder
represented by the attorney that a notice of
intent to foreclose
has been filed and that tax certificates for the
certificate
parcel may be redeemed. After receipt of that
certification, the
private attorney may
commence a foreclosure proceeding in the name
of the certificate holder in the
manner provided under division
(F) of this section, to foreclose the
lien vested in the
certificate holder by the certificate. The private
attorney shall
attach to the complaint the county treasurer's certification
that
the parcel has not been redeemed. (D) The county treasurer
shall credit the amount received
under division
(B)(1) of this section to the
tax certificate
redemption fund. The tax certificates
respecting the payment
shall be redeemed as provided in division
(E) of section 5721.38
of the
Revised Code. The amount received
under division (B)(2) of
this
section shall be distributed to the taxing districts to which
the delinquencies are owed. The county treasurer shall deposit the
fee
received under division
(B)(3) of this section in the county
treasury to the
credit of the delinquent tax and assessment
collection fund. The amount
received under division
(B)(4) of
this section shall be distributed to the holder of the
prior lien. (E)(1) If, in the case of a certificate purchased under
section
5721.32
or 5721.42 of the Revised Code, the certificate
holder does not file with the
county
treasurer a request
for
foreclosure
or a notice of intent to foreclose along with the
required payment
within three years after the date
shown on the
tax certificate as the date the certificate was sold, and during
that period the parcel is not redeemed or foreclosed upon, the
certificate
holder's lien against the parcel for the
amount of
delinquent taxes,
assessments, penalties, interest, and charges
that make up the certificate
purchase
redemption price is
canceled. (2)(a) If, in the case of a certificate purchased under
section 5721.33 of
the
Revised Code,
the certificate holder does
not file with the county treasurer a notice of
intent to foreclose
with respect to a certificate parcel within six years
after the
date shown on the tax certificate as the date the certificate was
sold or any extension of that date pursuant to division (C)(2) of
section 5721.38 of the Revised Code, and during that period the
parcel is not
redeemed, the
certificate holder's lien against the
parcel for the amount of delinquent
taxes, assessments, penalties,
interest, and charges that make up the
certificate purchase price
is canceled, subject to division (E)(2)(b) of this
section. (b) In the case of any tax certificate purchased under
section
5721.33 of the Revised Code prior to
the effective date of
this
amendment
October
10, 2000, the county
treasurer, upon
application by the certificate holder, may sell to the
certificate
holder a new certificate
extending the three-year
period
prescribed by division (E)(2) of this section, as that division
existed prior to
that effective date
October
10,
2000, to six
years after the date shown on the
original certificate as the
date
it was sold or any extension of that date. The county treasurer
and the
certificate holder shall negotiate the premium, in cash,
to be paid for the
new certificate sold under this
section. If
the county treasurer and certificate holder do not negotiate a
mutually acceptable premium, the
county treasurer and certificate
holder may agree to engage a
person experienced in the valuation
of financial assets to
appraise a fair premium for the new
certificate. The certificate
holder has the option to purchase
the new certificate for the fair
premium so appraised. Not less
than one-half of the fee of the
person so engaged shall be paid by
the certificate holder
requesting the new certificate; the
remainder of the fee shall be
paid from the proceeds of the sale
of the new certificate. If the
certificate holder does not
purchase the new certificate for the
premium so appraised, the
certificate holder shall pay the entire
fee. The county treasurer
shall credit the remaining proceeds
from the sale to the items of
taxes, assessments, penalties,
interest, and charges in the order
in which they became due. A certificate issued under
this division vests in the
certificate holder
and its secured party, if any, the same rights,
interests,
privileges, and immunities as are vested by the
original
certificate under sections 5721.30 to
5721.41
5721.43 of
the Revised Code,
except that interest payable under division (B)
of section 5721.38 or
division (B) of section 5721.39 of the
Revised Code shall be subject to the
amendments to those divisions
by Sub.
H.B. 533 of the 123rd general assembly.
The
certificate
shall be issued in the same form as the form prescribed for the
original certificate issued except for any modifications
necessary, in the
county
treasurer's discretion, to reflect the
extension under this division of the certificate holder's lien to
six years after the date shown on the original certificate as the
date it was sold or any extension of that date. The certificate
holder may record a certificate issued under division
(E)(2)(b) of
this section or memorandum thereof as provided in division (B) of
section 5721.35 of the Revised Code, and the county recorder shall
index the certificate and record any subsequent cancellation of
the lien as
provided in that section. The sale of a certificate
extending the lien under division (E)(2)(b) of this
section does
not impair the right of redemption of the owner of record of the
certificate
parcel or of any other person entitled to
redeem the
property. (F) With respect to tax certificates purchased under section
5721.32, 5721.33, or 5721.42 of the Revised Code, upon the
delivery to the certificate holder by
the county
treasurer of the
certification provided for under division (C)(2) of
this section,
a private attorney may institute a foreclosure proceeding under
this division in the name of the certificate holder to foreclose
such holder's
lien, in any court with jurisdiction, unless the
certificate redemption price
is paid prior to the time a complaint
is filed. The attorney shall prosecute
the proceeding to final
judgment and satisfaction, whether through sale of the
property or
the vesting of title and possession in the certificate holder.
The foreclosure proceedings under this division, except as
otherwise
provided in this division, shall be instituted and
prosecuted in the same
manner as is provided by law for the
foreclosure of mortgages on land, except
that, if service by
publication is necessary, such publication shall be made
once a
week for three consecutive weeks and the service shall be complete
at
the expiration of three weeks after the date of the first
publication. Any notice given under this division shall include the name
of the owner of
the parcel as last set forth in the records of the
county recorder, the
owner's last known mailing address, the
address of the subject parcel if
different from that of the owner,
and a complete legal description of the
subject parcel. In any
county that has adopted a permanent parcel number
system, such
notice may include the permanent parcel number in addition to a
complete legal description. It is sufficient, having been made a proper party to the
foreclosure
proceeding, for the certificate holder to allege in
such holder's complaint
that the tax certificate has been duly
purchased by the certificate holder,
that the certificate
redemption price appearing to be due and unpaid is due
and unpaid,
and that there is a lien against the property described in the tax
certificate, without setting forth in such holder's complaint any
other
special
matter relating to the foreclosure proceeding. The
prayer of the complaint
shall be that the court issue an order
that the property be sold by the
sheriff or, if the action is in
the municipal court, by the bailiff, in the
manner provided in
section 5721.19 of the Revised Code, unless the complaint includes
an
appraisal by an independent appraiser acceptable to the court
that the value
of the certificate parcel is less than the
certificate purchase price. In
that case, the prayer of the
complaint shall be that fee simple title to the
property be
transferred to and vested in the certificate holder free and clear
of all subordinate liens. In the foreclosure proceeding, the certificate holder may
join in one
action any number of tax certificates relating to the
same owner, provided
that all parties on each of the tax
certificates are identical as to name and
priority of interest.
However, the decree for each tax certificate shall be
rendered
separately and any proceeding may be severed, in the discretion of
the court, for the purpose of trial or appeal. The court shall
make such
order for the payment of all costs related directly or
indirectly to the
redemption of the tax certificate, including,
without limitation, attorney's
fees of the holder's attorney, as
is considered proper. The tax certificate
purchased by the
certificate holder is presumptive evidence in all courts and
in
all proceedings, including, without limitation, at the trial of
the
foreclosure action, of the amount and validity of the taxes,
assessments,
charges, penalties by the court and added to such
principal amount, and
interest appearing due and unpaid and of
their nonpayment. (G) For the purposes of this section, "prior liens" means
liens that are
prior in
right to the lien with
respect to the tax
certificate that is the subject of the foreclosure
proceedings. (H) If a parcel is sold under this section, the officer who
conducted the sale shall collect the recording fee from the
purchaser at the
time of the sale and, following confirmation of
the sale, shall prepare and
record the deed conveying the title to
the parcel to the purchaser.
Sec. 5721.38. (A) At any time prior to payment to the
county treasurer by the certificate holder to initiate foreclosure
proceedings under division (B) of
section 5721.37 of the Revised
Code, the
owner of record of the
certificate parcel, or any other
person entitled to redeem that
parcel, may redeem the parcel by
paying to the county treasurer
an amount equal to the total of the
certificate redemption prices
of all tax certificates respecting
that parcel
plus the sum of
taxes, assessments, penalties,
charges, and interest charged against the
parcel that have become
due and payable since the date the
last certificate was sold. (B) At any time after payment to the county
treasurer by the
certificate holder to initiate foreclosure
proceedings under
section 5721.37 of the Revised
Code and
prior to the filing of the
entry of confirmation
of sale of a certificate parcel under
foreclosure proceedings filed by the
county prosecuting attorney
or
prior to the decree conveying title to the certificate holder
as provided for
in division (F) of section 5721.37 of the Revised
Code, the owner of record of
the
certificate parcel or any other
person entitled to redeem that
parcel may redeem the parcel by
paying to the county treasurer
the sum of the following amounts: (1) The amount described in division (A) of this section; (2) Interest on
the certificate purchase price for each tax
certificate sold respecting the
parcel at the rate of eighteen per
cent per year for the period beginning on
the day on which the
payment was submitted by the certificate holder
and ending on the
day the parcel is redeemed under this division, except that
such
interest shall not accrue for more than three years after the day
the
certificate was purchased if the certificate holder did not
submit payment
under division (B) of section 5721.37 of the
Revised Code before the end of
that three-year period; (3) An
amount equal to the
sum of the prosecuting attorney's
fee under division
(C)(1)(B)(3) of
section 5721.37 of the Revised
Code if the tax certificate was purchased under
section
5721.32
or
5721.42 of the Revised Code;. If the parcel is redeemed before
the complaint has been filed, the prosecuting attorney shall
adjust the fee to reflect services performed to the date of
redemption and the county treasurer shall refund any excess to the
certificate holder. (4) Any other costs and fees of the proceeding
allocable to
the
certificate parcel as determined by the court. Upon receipt
of such
payments, the county treasurer shall refund the payment
made by the
certificate holder to initiate foreclosure
proceedings. (C)(1) During the period beginning on the date a tax
certificate
is sold under section 5721.32 of the Revised Code and
ending one year from
that date, the county treasurer may enter
into a redemption payment plan
with the owner of record of the
certificate parcel or any other
person
entitled to
redeem that
parcel. The plan shall require the owner or
other person to pay
the certificate redemption price for the tax
certificate in
installments, with the final installment due no
later than one
year after the date the tax certificate is
sold. The
certificate
holder may at any time, by written notice to the county treasurer,
agree to
accept installments collected to the date of notice as
payment in full.
Receipt of such notice by the treasurer shall
constitute satisfaction of the
payment plan and redemption of the
tax certificate. (2) During the period beginning on the date a tax
certificate is sold
under section 5721.33 of the Revised Code and
ending on the date the decree is
rendered on
the foreclosure
proceeding under division (F) of section 5721.37
of the Revised
Code, the owner of record of the certificate parcel, or any
other
person
entitled to redeem that parcel, may enter into a redemption
payment plan with
the certificate holder and all secured parties
of the certificate holder. The
plan shall require the owner or
other person to
pay the certificate redemption price for the tax
certificate, an
administrative fee not to exceed one hundred
dollars per year, and the actual
fees and costs incurred, in
installments, with the final installment due no
later than three
years after the date the tax certificate is sold. The
certificate
holder shall give written notice of the plan to the applicable
county treasurer within sixty days after entering into the plan
and written
notice of default under the plan within ninety days
after the default. If
such a plan is entered into, the time
period for filing a notice of intent to
foreclose under section
5721.37 of the Revised Code is extended by the length of time the
plan is in effect and not in default. (D)(1) Immediately upon receipt of full payment
under
division (A) or (B) of this section, the
county treasurer shall
make an entry to that effect in the tax certificate
register and
notify each
certificate holder by certified mail, return receipt
requested,
that the parcel has been redeemed and the lien canceled
and that the tax
certificates may be redeemed. The
county
treasurer shall deposit into the tax certificate redemption fund
created in the county treasury an amount equal to the total of
the
certificate redemption prices, together with interest on the
certificate
purchase price for each tax certificate sold
respecting the parcel at the rate
of eighteen per cent per year
paid under division (B) of this section
for the period beginning
when the payment was submitted by the certificate
holder under
division (B) of section 5721.37 of the Revised Code and ending
when the
parcel was redeemed. The county treasurer shall
administer the
fund for the purpose of redeeming tax certificates.
Interest earned on the
fund shall be credited to the county
general fund. (2) If a redemption payment plan is entered into pursuant to
division (C)(1) of this section, the county treasurer
immediately
shall notify each certificate holder by certified
mail, return
receipt requested, of the terms of the plan. Installment
payments
made pursuant to the plan shall be deposited in the tax
certificate
redemption fund. Any overpayment of
the installments
shall be refunded to the person responsible for causing the
overpayment if the person applies for a refund under this section.
If the person responsible for causing the overpayment fails to
apply for
a refund under this section within five years from the
date the plan is
satisfied, an amount equal to the overpayment
shall be
deposited into the general fund of the county. Upon satisfaction of the plan, the county
treasurer shall
indicate in the tax
certificate register that the plan has been
satisfied, and shall
notify each certificate holder by certified
mail, return receipt
requested, that the plan has been satisfied
and that tax
certificates may be redeemed. If a plan becomes void, the county treasurer
immediately
shall notify each certificate holder by certified
mail, return
receipt requested. If a certificate holder files a request for
foreclosure under section 5721.37 of the Revised Code, upon the
filing of the request for foreclosure, any money paid under
the
plan shall be refunded to the person that paid the money under the
plan. (E) To redeem a tax certificate with respect to which
payment has
been made in full under division (A), (B), or
(C)(1)
of this section or division (B)(1) of section 5721.37 of the
Revised Code,
the
certificate holder shall present the tax
certificate to the
county treasurer, who shall prepare the
redemption information. Upon
presentation, the county auditor
shall draw
a warrant on the tax certificate redemption fund in the
amount of the
certificate redemption price and any applicable
interest payable at the
rate of eighteen per cent annually on the
certificate under division
(B) of this section. For a parcel that
was redeemed under
division
(B) of this section, the
certificate
holder who paid the amounts under division
(B) of section 5721.37
of the Revised
Code shall be reimbursed for
those amounts,
together with interest at the rate of eighteen
per cent per year
on the amount paid under division
(B)(1) of that section for the
period beginning when the payment was submitted by the certificate
holder
under division (B) of that section and
ending when the
parcel was redeemed. The treasurer
shall mark all copies of the
tax
certificate "redeemed" and return the certificate to the
certificate holder.
The canceled certificate shall serve as a
receipt evidencing
redemption of the tax certificate. If a
certificate holder fails to
redeem a tax certificate within five
years after notice is served
under division (D) of this section
that tax certificates may be
redeemed, an amount equal to
the
certificate redemption price and any applicable interest payable
at the
rate of eighteen per cent annually on the certificate under
division
(B) of this section shall be deposited into the general
fund of
the county.
Sec. 5721.39. In its judgment of foreclosure rendered
with respect to actions filed pursuant to section 5721.37 of the
Revised Code, the court shall enter a finding
with respect to the certificate parcel of the amount of the sum of the
certificate redemption prices respecting all the tax certificates sold against
the parcel; interest on the certificate purchase
prices of those certificates at the rate of eighteen per cent per year for the
period beginning on the day on which the payment was submitted by the
certificate holder under division (B) of section 5721.37 of the Revised Code;
any
delinquent
taxes, assessments, penalties, interest, and charges on the parcel that are
not covered by a tax certificate; and fees and costs incurred in the
foreclosure proceeding instituted against the parcel, including, without
limitation, the fees and costs of the
prosecuting
attorney represented by the fee paid under division (B)(3) of
section 5721.37 of the Revised Code
or the fees and costs of the private attorney representing the certificate
holder, and charges paid or incurred in procuring title searches and
abstracting services relative to the subject premises. The court may order
the certificate parcel to be sold,
without appraisal, in the manner provided for in division (F) of
section 5721.37 of the Revised Code and as set forth in the prayer of the
complaint, for not
less than the amount of its finding, or, in the event that the court finds
that the value of the certificate
parcel is less than the certificate purchase price, the court may, as prayed
for in the complaint, issue a decree transferring fee simple title free and
clear of all subordinate liens to the certificate holder. A decree of the
court transferring such fee simple title to the certificate holder is forever
a bar to all rights of redemption with respect to the certificate parcel. Each certificate parcel shall be advertised and sold by
the officer to whom the order of sale is directed in the manner
provided by law for the sale of real property on execution. The
advertisement for sale of certificate parcels shall be published
once a week for three consecutive weeks and shall include the
date on which a second sale will be conducted if no bid is
accepted at the first sale. Any number of parcels may be
included in one advertisement. Whenever the officer charged to
conduct the sale offers a certificate parcel for sale and no bids
are made equal to at least the amount of the court's finding,
the officer shall adjourn the sale of the parcel to the second date that was
specified in the advertisement of sale. The second sale
shall be held at the same place and commence at the same time as
set forth in the advertisement of sale. The officer shall offer
any parcel not sold at the first sale. Upon the conclusion of
any sale, or if any parcel remains unsold after being offered at
two sales, the officer conducting the sale shall report the
results to the court. Upon the confirmation of a sale, the proceeds of the
sale shall be applied as follows: (A) The fees and costs incurred in the proceeding filed
against the parcel pursuant to section 5721.37 of the
Revised Code, not including the county prosecutor's costs
covered by the fee paid by the certificate holder under division
(B)(3) of that section, shall be paid first. (B) Following the payment required by division
(A) of this section, the certificate holder that requested the
foreclosure shall be paid the sum of the following amounts: (1) The sum of the amount found due for the
certificate redemption prices of all the tax certificates, other than those certificates described in division (B)(1) of section 5721.37 of the Revised Code, that are sold against the
parcel to the certificate holder requesting a notice of foreclosure; (2) Any premium paid by the certificate holder at the time of
purchase; (3) Interest on the certificate purchase prices
of those certificates amounts paid by the certificate holder under division (B)(1) of section 5721.37 of the Revised Code at the rate of eighteen per cent per year beginning on the day on which the payment was submitted by the certificate holder to the county treasurer and ending on the day immediately preceding the day on which the proceeds of the foreclosure sale are paid to the certificate holder; (4) Interest on the amounts paid by the certificate holder under divisions (B)(2) and (3) of section 5721.37 of the Revised Code at the rate of eighteen per cent per year beginning on
the day on which the payment was submitted by the certificate holder under
division (B) divisions (B)(2) and (3) of section 5721.37 of the Revised Code and ending on the day immediately preceding the day on which the proceeds of
the foreclosure sale are paid to the certificate holder pursuant to this section, except that such interest shall not accrue for more than
three six years after the day the certificate was purchased amounts were paid by the certificate holder under divisions (B)(2) and (3) of section 5721.37 of the Revised Code if the certificate
holder did not submit that payment before the end of that three-year six-year
period; (4)(5) The amounts paid by the certificate holder under
divisions (B)(1), (2), and (3) of section 5721.37 of the Revised Code.
(C) Following the payment required by division
(B) of this section, any amount due for taxes,
assessments, charges, penalties, and interest not covered by the tax
certificate holder's payment under division (B)(2) of section 5721.37
of the Revised Code shall be paid, including all taxes, assessments, charges, penalties, and
interest payable subsequent to the entry of the finding and prior
to the transfer of the deed of the parcel to the purchaser
following confirmation of sale. If the proceeds available for
distribution pursuant to this division are insufficient to pay
the entire amount of those taxes, assessments, charges,
penalties, and interest, the proceeds shall be paid to each
claimant in proportion to the amount of those taxes, assessments,
charges, penalties, and interest that each is due, and those
taxes, assessments, charges, penalties, and interest are deemed
satisfied and shall be removed from the tax list and duplicate. Any residue of money from proceeds of the sale shall be
disposed of as prescribed by section 5721.20 of the
Revised Code. Unless the parcel previously was redeemed pursuant to
section 5721.25 or 5721.38 of the Revised Code,
upon the filing of the entry of confirmation of sale, the title
to the parcel is incontestable in the purchaser and is free and
clear of all liens and encumbrances, except a federal tax lien,
notice of which lien is properly filed in accordance with section
317.09 of the Revised Code prior to the date that
a foreclosure proceeding is instituted pursuant to section
5721.37 of the Revised Code, and which lien was foreclosed in
accordance with 28 U.S.C.A. 2410(c), and except for the easements and
covenants of record running with the land or lots that were
created prior to the time the taxes or assessments, for the
nonpayment of which a tax certificate was issued and the parcel
sold at foreclosure, became due and payable. The title shall not be invalid because of any
irregularity, informality, or omission of any proceedings under
this chapter, or in any processes of taxation, if such
irregularity, informality, or omission does not abrogate the
provision for notice to holders of title, lien, or mortgage to,
or other interests in, such foreclosed parcels, as prescribed in
this chapter.
Sec. 5721.40. If any certificate parcel is twice
offered for sale pursuant to section 5721.39 of the
Revised Code and remains unsold for want of
bidders, the officer who conducted the sales shall certify to the
court that the parcel remains unsold after two sales. The
court, by entry, shall order the parcel forfeited to the
certificate holder who filed the request for foreclosure or notice of intent to foreclose under section 5721.37
of the Revised Code. The clerk of the court
shall certify copies of the court's order to the county
treasurer. The county treasurer shall notify the certificate
holder by ordinary and certified mail, return receipt requested,
that the parcel remains unsold, and shall instruct the certificate
holder of the manner in which the holder shall obtain the deed to
the parcel. The officer who conducted the sales shall prepare and record the
deed conveying title to the parcel to the certificate holder. Upon transfer of the deed to the certificate holder
under this section, all right, title, claim, and interest
in the certificate parcel are transferred to and
vested in the certificate holder.
Sec. 5721.41. Interest required under sections 5721.30 to
5721.41
5721.43 of the Revised Code is simple interest. Interest
charges under those sections shall accrue on a
monthly basis, on
the first day of the month following the
beginning of the period
during which interest accrues and on the
first day of each
subsequent month. Notwithstanding the preceding sentence, the six per cent charge described in division (E)(1)(b) of section 5721.30 of the Revised Code shall apply even if the tax certificate is redeemed before the first day of the month following the date that the certificate is purchased.
Sec. 5721.43. (A) No person shall directly, through an
agent, or otherwise initiate contact with the owner of a parcel
with respect to which the person holds a tax certificate to
encourage or demand payment before one year has elapsed following
the purchase of the certificate. (B) A county treasurer may bar any person who violates
division (A) of this section from bidding at a tax certificate
sale conducted by the treasurer. (C)(1) The attorney general or county prosecuting attorney,
upon written request of a county treasurer, shall bring an action
for an injunction against any person who has violated, is
violating, or is threatening to violate division (A) of this
section. (2) Any person who violates division (A) of this section
shall be assessed a civil penalty of not more than five thousand
dollars for each offense to be paid into the state treasury to the
credit of the general revenue fund. Upon written request of a
county treasurer, the attorney general or county prosecuting
attorney shall commence an action against any such violator. Any
action under this division is a civil action, governed by the
Rules of Civil Procedure and other rules of practice and procedure
applicable to civil actions.
Section 2. That existing sections 135.22, 135.341, 135.35, 319.302, 321.24, 321.46, 323.121,
323.31,
4503.06, 5713.20, 5719.051, 5721.10, 5721.30, 5721.31, 5721.32,
5721.33,
5721.34, 5721.37, 5721.38, 5721.39, 5721.40, and 5721.41 of the Revised
Code are
hereby repealed.
Section 3. Sections 5721.37, 5721.38, and 5721.39 of the Revised Code
are presented
in this act
as composites of the sections as
amended by both
Sub.
H.B. 493 and Sub. H.B. 533 of the 123rd
General Assembly. The
General Assembly, applying the
principle
stated in division (B) of
section 1.52 of the Revised
Code that
amendments are to be
harmonized if reasonably capable of
simultaneous operation, finds
that the composites are the
resulting
versions of the sections in
effect prior to the
effective date of
the sections as presented in
this act.
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