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S. B. No. 119 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsor:
Senator Schuring
A BILL
To amend sections 323.25, 323.31, 323.67, 5721.06, 5721.10, 5721.13, 5721.14, 5721.18, 5721.25, 5721.31, 5721.34, 5722.01, 5722.02, 5722.05, 5722.06, 5722.07, 5722.08, 5722.10, 5722.14, 5722.15, 5722.21, and 5723.06, to enact new sections 5722.03 and 5722.04, and to repeal sections 323.77, 5722.03, 5722.04, and 5722.13 of the Revised Code to modify the tax-delinquent land reutilization law by authorizing political subdivisions to prosecute property tax foreclosures, acquire such land through foreclosures before the land is offered at a tax sale, and sell such property at less than appraised market value; and to impose a one-year limit on property owners' option to obtain a delinquent tax installment payment contract.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 323.25, 323.31, 323.67, 5721.06, 5721.10, 5721.13, 5721.14, 5721.18, 5721.25, 5721.31, 5721.34, 5722.01, 5722.02, 5722.05, 5722.06, 5722.07, 5722.08, 5722.10, 5722.14, 5722.15, 5722.21, and 5723.06 be amended and new sections 5722.03 and 5722.04 of the Revised Code be enacted to read as follows:
Sec. 323.25. When taxes charged against an entry on the
tax duplicate, or any part of such taxes, are not paid within
sixty days after delivery of the delinquent land duplicate to the
county treasurer as prescribed by section 5721.011 of the Revised Code,
the county treasurer shall enforce the lien for such taxes by
civil action in the treasurer's official capacity as
treasurer, for the sale of such
premises, in the court of common pleas of the county in the same
way mortgage liens are enforced.
After the civil action has been instituted, but before the filing of an entry of confirmation of sale pursuant to the action, any person entitled to redeem the land may do so by tendering to the county treasurer an amount sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest, and charges then due and unpaid, and the costs incurred in the civil action, and by demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. If the delinquent land duplicate lists minerals or rights to minerals
listed pursuant to sections 5713.04, 5713.05, and 5713.06 of the
Revised Code,
the county treasurer may enforce the lien for taxes against such minerals or
rights to minerals by civil action, in the treasurer's official capacity as
treasurer, in the manner prescribed by this section, or proceed as provided
under section 5721.46 of the
Revised Code. If service by publication is
necessary, such publication shall be made once a week for three
consecutive weeks instead of as provided by the Rules of Civil
Procedure, and the service shall be complete at the expiration of
three weeks after the date of the first publication. If the
prosecuting attorney determines that service upon a defendant may
be obtained ultimately only by publication, the prosecuting
attorney may cause service
to be made simultaneously by certified mail, return receipt
requested, ordinary
mail, and publication. The Upon application by the plaintiff, the court shall advance the cause on the docket so that it may be first heard. The county treasurer
shall not
enforce the lien for taxes against real property to which any
of the following applies: (A) The real property is the
subject of an application for exemption from taxation under
section 5715.27 of the Revised Code and does not appear on
the delinquent land duplicate; (B) The real property is 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 in accordance with
that section; (C) A tax certificate respecting that property has been sold
under section 5721.32 or 5721.33 of the Revised Code; provided, however, that
nothing in
this division shall prohibit the
county treasurer or the county prosecuting attorney from enforcing the lien of
the state and its political subdivisions for taxes against a certificate
parcel with respect to any or all of such taxes that at the time of
enforcement of such lien are not the subject of a tax certificate; (D) The property has been selected for foreclosure by an electing subdivision under sections 5722.02 and 5722.03 of the Revised Code. Upon application of the plaintiff, the court shall advance
such cause on the docket, so that it may be first heard.
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 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 within one year after the delinquent land duplicate is certified and delivered to the county treasurer under section 5721.011 of the Revised Code, or, in the case of a manufactured or mobile home, within one year after delivery of the manufactured home tax list to the county treasurer under section 4503.06 of the Revised Code. 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
division (A) of this section
shall
provide for the payment of any delinquent 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 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. 323.67. (A) The county treasurer or a certificate holder, from the list compiled under division (C) of this section or the delinquent tax list or delinquent vacant land tax list compiled under section 5721.03 of the Revised Code, may identify and compile a list of the parcels in the county that the treasurer or certificate holder determines to be abandoned lands suitable for disposition under sections 323.65 to 323.78 of the Revised Code. Those parcels may be identified in an affidavit directed to the county treasurer and executed by a duly authorized officer of the municipal corporation or township in which the parcel is located.
(B)(1) If a county treasurer compiles a list of parcels under division (A) of this section that the treasurer determines to be abandoned lands suitable for disposition under sections 323.65 to 323.78 of the Revised Code, the treasurer may declare by resolution that the delinquent taxes, interest, penalties, and charges levied on the abandoned lands on the list are uncollected, that the restoration of the abandoned lands to the tax list is of sufficient public interest to justify the expeditious foreclosure of the state's lien for the delinquent taxes, and that the abandoned lands, for those reasons, shall be offered for sale by public auction or otherwise conveyed pursuant to sections 323.65 to 323.78 of the Revised Code. The treasurer shall certify a copy of the resolution to the prosecuting attorney of the county served by the treasurer. (2) If a certificate holder compiles a list of parcels under division (A) of this section that the certificate holder determines to be abandoned lands suitable for disposition under sections 323.65 to 323.78 of the Revised Code, the certificate holder may proceed under sections 323.68 and 323.69 of the Revised Code. (C) For purposes of sections 323.65 to 323.78 of the Revised Code, the county auditor or county treasurer may compile or certify an abandoned land list in any manner and at such times as will give effect to the expedited foreclosure of abandoned land. The county auditor or county treasurer shall not include on the list any parcel selected for foreclosure by an electing subdivision under sections 5722.02 and 5722.03 of the Revised Code.
Sec. 5721.06. (A)(1) The form of the notice required to be
attached to the published delinquent tax list by division (B)(3)
of section 5721.03 of the Revised Code shall be in substance as
follows: "DELINQUENT LAND TAX NOTICEThe lands, lots, and parts of lots returned delinquent by
the county treasurer of ................... county, with the
taxes assessments, interest, and penalties, charged against them
agreeably to law, are contained and described in the following
list: (Here insert the list with the names of the owners of such
respective tracts of land or town lots as designated on the
delinquent tax list. If, prior to seven days
before the publication of the list, a delinquent tax
contract has been entered into
under section 323.31 of the Revised Code, the owner's name may be
stricken from the list or designated by an asterisk shown in the
margin next to the owner's name.) Notice is hereby given that the whole of such several
lands, lots, or parts of lots will be certified for subject to foreclosure
by the county auditor proceedings pursuant to law unless the whole of the
delinquent taxes, assessments, interest, and penalties are paid
within one year or unless a tax certificate with respect to the parcel is
sold under section 5721.32 or 5721.33 of the Revised Code. The names of
persons who have
entered
into a
written delinquent tax contract with the county
treasurer to discharge the
delinquency are designated by an asterisk or have been stricken
from the list." (2) If the county treasurer has certified to the county auditor
that the treasurer intends to offer for sale a tax
certificate with respect to one or more parcels of delinquent land under
section 5721.32 or 5721.33 of the Revised Code, the form of the notice shall
include the
following
statement, appended after the second paragraph of the notice prescribed by
division
(A)(1) of this section: "Notice also is hereby given that a tax certificate may be offered for sale
under section 5721.32 or 5721.33 of the Revised Code with respect to those
parcels shown on
this list. If a tax certificate on
a parcel is purchased, the purchaser of the tax certificate acquires the
state's or its taxing district's first lien against the property,
and an additional interest charge of up to eighteen per cent per annum shall
be assessed against the parcel. In addition, failure by the owner of the
parcel to redeem the tax certificate may result in foreclosure
proceedings against the parcel. No tax certificate shall be offered for sale
if the owner of the parcel
has either discharged the lien by paying to the county treasurer in cash the
amount of delinquent taxes, assessments, penalties, interest, and charges
charged against the property, or has entered into a valid
delinquent tax contract pursuant to section 323.31 of the Revised
Code to pay those amounts in installments." (B) The form of the notice required to be attached to the
published delinquent vacant land tax list by division (B)(3) of
section 5721.03 of the Revised Code shall be in substance as
follows: "DELINQUENT VACANT LAND TAX NOTICEThe delinquent vacant lands, returned delinquent by the
county treasurer of................. county, with the taxes
assessments, interest, and penalties charged against them
according to law, and remaining delinquent for two years, are
contained and described in the following list: (here insert the
list with the names of the owners of the respective tracts of
land as designated on the delinquent vacant land tax list. If,
prior to seven days before the publication of
the list, a delinquent tax contract has been
entered into under section 323.31 of the
Revised Code, the owner's name may be stricken from the list or
designated by an asterisk shown in the margin next to the owner's
name.) Notice is hereby given that these delinquent vacant lands
will be certified for subject to foreclosure or foreclosure and forfeiture
by the county auditor proceedings pursuant to law unless the whole of the
delinquent taxes, assessments, interest, and penalties are paid
within twenty-eight days after the final publication of this
notice. The names of persons who have entered into a written
delinquent tax contract with the county treasurer to
discharge the
delinquency are designated by an asterisk or have been stricken
from the list."
Sec. 5721.10. Except as otherwise provided under sections
5721.30 to
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, unless an electing subdivision has selected the property for foreclosure under sections 5722.02 and 5722.03 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 the certification of delinquency, the
cost of an abstract or
certificate of title to the property
described in the
certification, if 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 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. 5721.13. (A) One year after certification of a
delinquent land list, the county auditor shall make in duplicate
a certificate, to be known as a delinquent land tax certificate,
of each delinquent tract of land, city or town lot, or part of
city or town lot contained in the delinquent land list, upon
which the taxes, assessments, charges, interest, and penalties
have not been paid, describing each tract of land or city or town
lot in the same manner as it is described on the delinquent tax
list and the amount of the taxes, assessments, charges, interest,
and penalties due and unpaid, and stating that the amount has
been certified to the county prosecuting attorney as delinquent.
The certificate shall be signed by the auditor or his the
auditor's deputy, and
the original certificate shall be filed with the prosecuting
attorney. If the delinquent land has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code, the certificate shall state that it has been so selected. (B)(1) Twenty-eight days after the final publication of
the delinquent vacant land tax list pursuant to section 5721.03
of the Revised Code if such list was published, the county
auditor shall make in duplicate a certificate, to be known as the
delinquent vacant land tax certificate, for each tract of land
contained in the delinquent vacant land tax list upon which the
taxes, assessments, charges, interest, and penalties have not
been paid. The certificate shall describe each tract of land in
the same manner as it is described in the list and the amount of
taxes, assessments, charges, interest, and penalties due and
unpaid. If the delinquent vacant land has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code, the certificate shall state that it has been so selected. The certificate also shall state that the tract of land
identified in it has been certified to the county prosecuting
attorney for foreclosure as provided in section 323.25 or 5721.18
of the Revised Code, or for foreclosure and forfeiture as
provided in section 5721.14 of the Revised Code. The certificate
shall be signed by the auditor or his the auditor's deputy, and
the original
certificate shall be filed with the prosecuting attorney. (2) The auditor shall determine the fair market value of
each tract of land for which he the auditor prepares a
certificate under
division (B)(1) of this section and shall compare that value to
the total amount of the delinquent taxes, assessments, charges,
interest, and penalties levied against that tract of land. If
the auditor determines that the delinquent taxes, assessments,
charges, interest, and penalties levied against the tract of land
exceed its fair market value, he the auditor shall include a
statement of
that fact and the fair market value of the tract of land in the
delinquent vacant land tax certificate. (C) In lieu of making a separate delinquent land tax
certificate or delinquent vacant land tax certificate for each
delinquent tract, lot, or part of lot contained in the delinquent
land list and for each tract of delinquent vacant land contained
in the delinquent vacant land tax list, the county auditor may
compile in duplicate a master list of delinquent tracts and a
master list of delinquent vacant tracts, each of which contains
the same information with respect to each such tract, lot, or
part of lot that is required on a delinquent land tax certificate
or a delinquent vacant land tax certificate. The auditor shall
sign each master list and file each original list with the county
prosecuting attorney.
Sec. 5721.14. Subject to division (A)(2) of this section,
on receipt of a delinquent vacant land tax certificate or a
master list of delinquent vacant tracts, a county prosecuting
attorney shall institute a foreclosure proceeding under section
323.25 or 5721.18 of the Revised Code, or a foreclosure and
forfeiture proceeding under this section. If the delinquent vacant land
tax certificate or a master list of
delinquent vacant tracts lists minerals or rights to minerals listed pursuant
to sections 5713.04, 5713.05, and 5713.06 of the
Revised Code,
the county prosecuting attorney may institute a foreclosure proceeding under
section 323.25 or 5721.18 of the Revised Code or a
foreclosure and forfeiture
proceeding under this section against such minerals or rights to
minerals. (A)(1) The prosecuting attorney shall institute a
proceeding under this section by filing, in the name of the
county treasurer and with the clerk of a court with jurisdiction,
a complaint that requests that the lien of the state on the
property identified in the certificate or master list be
foreclosed and that the property be forfeited to the state. The
prosecuting attorney shall prosecute the proceeding to final judgment and
satisfaction. (2) If the delinquent taxes, assessments, charges,
penalties, and interest are paid prior to the time a complaint is
filed, the prosecuting attorney shall not institute a proceeding
under this section. If there is a copy of a written
delinquent tax contract
attached to the certificate or an asterisk next to an entry on
the master list, or if a copy of a delinquent tax
contract is received from
the county auditor prior to the commencement of the proceeding
under this section, the prosecuting attorney shall not institute
the proceeding under this section unless the prosecuting
attorney receives a
certification of the county treasurer that the
delinquent tax contract has
become void. If the delinquent vacant land tax certificate states that the delinquent vacant land has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code, the prosecuting attorney shall not institute a proceeding under this section. (B) Foreclosure and forfeiture proceedings constitute an
action in rem. Prior to filing such an action in rem, the county
prosecuting attorney shall cause a title search to be conducted
for the purpose of identifying any lienholders or other persons
with interests in the property that is subject to foreclosure and
forfeiture. Following the title search, the action in rem shall
be instituted by filing in the office of the clerk of a court
with jurisdiction a complaint bearing a caption substantially in
the form set forth in division (A) of section 5721.15 of the
Revised Code. Any number of parcels may be joined in one action. Each
separate parcel included in a complaint shall be given a serial
number and shall be separately indexed and docketed by the clerk
of the court in a book kept by the clerk for such purpose. A
complaint shall contain the permanent parcel number of each
parcel included in it, the full street address of the parcel when
available, a description of the parcel as set forth in the
certificate or master list, the name and address of the last
known owner of the parcel if they appear on the general tax list,
the name and address of each lienholder and other person with an
interest in the parcel identified in the title search relating to
the parcel that is required by this division, and the amount of
taxes, assessments, charges, penalties, and interest due and
unpaid with respect to the parcel. It is sufficient for the
county treasurer to allege in the complaint that
the certificate
or master list has been duly filed by the county auditor with
respect to each parcel listed, that the amount of money with
respect to each parcel appearing to be due and unpaid is due and
unpaid, and that there is a lien against each parcel, without
setting forth any other or special matters. The prayer of the
complaint shall be that the court issue an order that the lien of
the state on each of the parcels included in the complaint be
foreclosed, that the property be forfeited to the state, and that
the land be offered for sale in the manner provided in section
5723.06 of the Revised Code. (C) Within thirty days after the filing of a complaint,
the clerk of the court in which the complaint was filed shall
cause a notice of foreclosure and forfeiture substantially in the
form of the notice set forth in division (B) of section 5721.15
of the Revised Code to be published once a week for three
consecutive weeks in a newspaper of general circulation in the
county. In any county that has adopted a permanent parcel number
system, the parcel may be described in the notice by parcel
number only, instead of also with a complete legal description,
if the county prosecuting attorney determines that the
publication of the complete legal description is not necessary to
provide reasonable notice of the foreclosure and forfeiture
proceeding to the interested parties. If the complete legal
description is not published, the notice shall indicate where the
complete legal description may be obtained. After the third publication, the publisher shall file with
the clerk of the court an affidavit stating the fact of the
publication and including a copy of the notice of foreclosure and
forfeiture as published. Service of process for purposes of the
action in rem shall be considered as complete on the date of the
last publication. Within thirty days after the filing of a complaint and
before the date of the final publication of the notice of
foreclosure and forfeiture, the clerk of the court also shall
cause a copy of a notice substantially in the form of the notice
set forth in division (C) of section 5721.15 of the Revised Code
to be mailed by ordinary mail, with postage prepaid, to each
person named in the complaint as being the last known owner of a
parcel included in it, or as being a lienholder or other person
with an interest in a parcel included in it. The notice shall be
sent to the address of each such person, as set forth in the
complaint, and the clerk shall enter the fact of such mailing
upon the appearance docket. If the name and address of the last
known owner of a parcel included in a complaint is not set forth
in it, the county auditor shall file an affidavit with the clerk
stating that the name and address of the last known owner does
not appear on the general tax list. (D)(1) An answer may be filed in a foreclosure and
forfeiture proceeding by any person owning or claiming any right,
title, or interest in, or lien upon, any parcel described in the
complaint. The answer shall contain the caption and number of
the action and the serial number of the parcel concerned. The
answer shall set forth the nature and amount of interest claimed
in the parcel and any defense or objection to the foreclosure of
the lien of the state for delinquent taxes, assessments, charges,
penalties, and interest, as shown in the complaint. The answer
shall be filed in the office of the clerk of the court, and a
copy of the answer shall be served on the county prosecuting
attorney not later than twenty-eight days after the date of final
publication of the notice of foreclosure and forfeiture. If an
answer is not filed within such time, a default judgment may be
taken as to any parcel included in a complaint as to which no
answer has been filed. A default judgment is valid and effective
with respect to all persons owning or claiming any right, title,
or interest in, or lien upon, any such parcel, notwithstanding
that one or more of such persons are minors, incompetents,
absentees or nonresidents of the state, or convicts in
confinement. (2)(a) A receiver appointed pursuant to divisions (C)(2)
and (3) of section 3767.41 of the Revised Code may file an answer
pursuant to division (D)(1) of this section, but is not required
to do so as a condition of receiving proceeds in a distribution
under division (B)(2) of section 5721.17 of the Revised Code. (b) When a receivership under section 3767.41 of the
Revised Code is associated with a parcel, the notice of
foreclosure and forfeiture set forth in division (B) of section
5721.15 of the Revised Code and the notice set forth in division
(C) of that section shall be modified to reflect the provisions
of division (D)(2)(a) of this section. (E) At the trial of a foreclosure and forfeiture
proceeding, the delinquent vacant land tax certificate or master
list of delinquent vacant tracts filed by the county auditor with
the county prosecuting attorney shall be prima-facie evidence of
the amount and validity of the taxes, assessments, charges,
penalties, and interest appearing due and unpaid on the parcel to
which the certificate or master list relates and their
nonpayment. If an answer is properly filed, the court may, in
its discretion, and shall, at the request of the person filing
the answer, grant a severance of the proceedings as to any parcel
described in such answer for purposes of trial or appeal. (F) The conveyance by the owner of any parcel against
which a complaint has been filed pursuant to this section at any
time after the date of publication of the parcel on the
delinquent vacant land tax list but before the date of a judgment
of foreclosure and forfeiture pursuant to section 5721.16 of the
Revised Code shall not nullify the right of the county to proceed
with the foreclosure and forfeiture.
Sec. 5721.18. The county prosecuting attorney, upon the
delivery to the prosecuting attorney by the county auditor
of a delinquent land or
delinquent vacant land tax certificate, or of a master list of
delinquent or delinquent vacant tracts, shall institute a
foreclosure proceeding under this section in the name of the
county treasurer to foreclose the lien of the state, in any court
with jurisdiction, unless the taxes, assessments, charges,
penalties, and interest are paid prior to the time a complaint is
filed, or unless a foreclosure or foreclosure and forfeiture
action has been or will be instituted under section 323.25 or
5721.14 of the Revised Code.
If the delinquent land or delinquent vacant land tax certificate or the
master list of delinquent or delinquent vacant tracts lists minerals or rights
to minerals listed pursuant to sections 5713.04, 5713.05, and 5713.06 of the
Revised Code,
the county prosecuting attorney may institute a foreclosure proceeding in the
name of the county treasurer, in any court with jurisdiction, to foreclose the
lien of the state against such minerals or rights to minerals, unless the
taxes, assessments, charges, penalties, and interest are paid prior to the
time
the complaint is filed, or unless a foreclosure or foreclosure and forfeiture
action has been or will be instituted under section 323.25 or 5721.14 of the
Revised Code. If the delinquent land or delinquent vacant land tax certificate states that the land has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code, the prosecuting attorney shall not institute a proceeding under this section. The prosecuting attorney shall
prosecute the proceeding
to final judgment and satisfaction. Within ten days after obtaining a
judgment, the prosecuting attorney shall notify the treasurer in writing that
judgment has been rendered. If there is a copy of a
written delinquent tax contract attached to the
certificate or an asterisk
next to an entry on the master list, or if a copy of a delinquent tax
contract is received from the auditor
prior to the
commencement of the proceeding under this section, the
prosecuting attorney shall not institute the proceeding under
this section, unless the prosecuting attorney receives a
certification of the treasurer
that the delinquent tax contract has become void. (A) This division applies to all foreclosure proceedings
not instituted and prosecuted under section 323.25 or 5722.03 of the Revised
Code or division (B) or (C) of this section. The foreclosure
proceedings 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
instead of as provided by the Rules of Civil Procedure, and the
service shall be complete at the expiration of three weeks after
the date of the first publication. In any proceeding prosecuted
under this section, if the prosecuting attorney determines that
service upon a defendant may be obtained ultimately only by
publication, the prosecuting attorney may cause service to be
made simultaneously by certified mail,
return receipt requested, ordinary mail, and
publication. In any county that has adopted a permanent parcel number
system, the parcel may be described in the notice by parcel
number only, instead of also with a complete legal description,
if the prosecuting attorney determines that the publication of
the complete legal description is not necessary to provide
reasonable notice of the foreclosure proceeding to the interested
parties. If the complete legal description is not published, the
notice shall indicate where the complete legal description may be
obtained. It is sufficient, having been made a proper party to the
foreclosure proceeding, for the treasurer to allege in the
treasurer's
complaint that the certificate or master list has been duly filed
by the auditor, that the amount of money appearing to be due and
unpaid is due and unpaid, and that there is a lien against the
property described in the certificate or master list, without
setting forth in the complaint any other or 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. In the foreclosure proceeding, the treasurer may join in
one action any number of lots or lands, but the decree shall be
rendered separately, and any proceedings may be severed, in the
discretion of the court, for the purpose of trial or appeal, and
the court shall make such order for the payment of costs as is
considered proper. The certificate or master list filed by the
auditor with the prosecuting attorney is prima-facie evidence at
the trial of the foreclosure action of the amount and validity of
the taxes, assessments, charges, penalties, and interest
appearing due and unpaid and of their nonpayment. (B) Foreclosure proceedings constituting an action in rem
may be commenced by the filing of a complaint after the end of
the second year from the date on which the delinquency was first
certified by the auditor. Prior to filing such an action in rem,
the prosecuting attorney shall cause a title search to be
conducted for the purpose of identifying any lienholders or other
persons with interests in the property subject to foreclosure.
Following the title search, the action in rem shall be instituted
by filing in the office of the clerk of a court with jurisdiction
a complaint bearing a caption substantially in the form set forth
in division (A) of section 5721.181 of the Revised Code. Any number of parcels may be joined in one action. Each
separate parcel included in a complaint shall be given a serial
number and shall be separately indexed and docketed by the clerk
of the court in a book kept by the clerk for such purpose. A
complaint shall contain the permanent parcel number of each
parcel included in it, the full street address of the parcel when
available, a description of the parcel as set forth in the
certificate or master list, the name and address of the last
known owner of the parcel if they appear on the general tax list,
the name and address of each lienholder and other person with an
interest in the parcel identified in the title search relating to
the parcel that is required by this division, and the amount of
taxes, assessments, charges, penalties, and interest due and
unpaid with respect to the parcel. It is sufficient for the
treasurer to allege in the complaint that the
certificate or
master list has been duly filed by the auditor with respect to
each parcel listed, that the amount of money with respect to each
parcel appearing to be due and unpaid is due and unpaid, and that
there is a lien against each parcel, without setting forth any
other or special matters. The prayer of the complaint shall be
that the court issue an order that the land described in the
complaint be sold in the manner provided in section 5721.19 of
the Revised Code. (1) Within thirty days after the filing of a complaint,
the clerk of the court in which the complaint was filed shall
cause a notice of foreclosure substantially in the form of the
notice set forth in division (B) of section 5721.181 of the
Revised Code to be published once a week for three consecutive
weeks in a newspaper of general circulation in the county. In
any county that has adopted a permanent parcel number system, the
parcel may be described in the notice by parcel number only,
instead of also with a complete legal description, if the
prosecuting attorney determines that the publication of the
complete legal description is not necessary to provide reasonable
notice of the foreclosure proceeding to the interested parties.
If the complete legal description is not published, the notice
shall indicate where the complete legal description may be
obtained. After the third publication, the publisher shall file with
the clerk of the court an affidavit stating the fact of the
publication and including a copy of the notice of foreclosure as
published. Service of process for purposes of the action in rem
shall be considered as complete on the date of the last
publication. Within thirty days after the filing of a complaint and
before the final date of publication of the notice of
foreclosure, the clerk of the court also shall cause a copy of a
notice substantially in the form of the notice set forth in
division (C) of section 5721.181 of the Revised Code to be mailed
by certified mail, with postage prepaid, to each person named in
the complaint as being the last known owner of a parcel included
in it, or as being a lienholder or other person with an interest
in a parcel included in it. The notice shall be sent to the
address of each such person, as set forth in the complaint, and
the clerk shall enter the fact of such mailing upon the
appearance docket. If the name and address of the last known
owner of a parcel included in a complaint is not set forth in it,
the auditor shall file an affidavit with the clerk stating that
the name and address of the last known owner does not appear on
the general tax list. (2)(a) An answer may be filed in an action in rem under
this division by any person owning or claiming any right, title,
or interest in, or lien upon, any parcel described in the
complaint. The answer shall contain the caption and number of
the action and the serial number of the parcel concerned. The
answer shall set forth the nature and amount of interest claimed
in the parcel and any defense or objection to the foreclosure of
the lien of the state for delinquent taxes, assessments, charges,
penalties, and interest as shown in the complaint. The answer
shall be filed in the office of the clerk of the court, and a
copy of the answer shall be served on the prosecuting attorney,
not later than twenty-eight days after the date of final
publication of the notice of foreclosure. If an answer is not
filed within such time, a default judgment may be taken as to any
parcel included in a complaint as to which no answer has been
filed. A default judgment is valid and effective with respect to
all persons owning or claiming any right, title, or interest in,
or lien upon, any such parcel, notwithstanding that one or more
of such persons are minors, incompetents, absentees or
nonresidents of the state, or convicts in confinement. (b)(i) A receiver appointed pursuant to divisions (C)(2)
and (3) of section 3767.41 of the Revised Code may file an answer
pursuant to division (B)(2)(a) of this section, but is not
required to do so as a condition of receiving proceeds in a
distribution under division (B)(1) of section 5721.17 of the
Revised Code. (ii) When a receivership under section 3767.41 of the
Revised Code is associated with a parcel, the notice of
foreclosure set forth in division (B) of section 5721.181 of the
Revised Code and the notice set forth in division (C) of that
section shall be modified to reflect the provisions of division
(B)(2)(b)(i) of this section. (3) At the trial of an action in rem under this division,
the certificate or master list filed by the auditor with the
prosecuting attorney shall be prima-facie evidence of the amount
and validity of the taxes, assessments, charges, penalties, and
interest appearing due and unpaid on the parcel to which the
certificate or master list relates and their nonpayment. If an
answer is properly filed, the court may, in its discretion, and
shall, at the request of the person filing the answer, grant a
severance of the proceedings as to any parcel described in such
answer for purposes of trial or appeal. (C) In addition to the actions in rem authorized under
division (B) of this section and section 5721.14 of the Revised
Code, an action in rem may be commenced under this division. An
action commenced under this division shall conform to all of the
requirements of division (B) of this section except as follows: (1) The prosecuting attorney shall not cause a title
search to be conducted for the purpose of identifying any
lienholders or other persons with interests in the property
subject to foreclosure, except that the prosecuting attorney
shall cause a title search
to be conducted to identify any receiver's lien. (2) The names and addresses of lienholders and persons
with an interest in the parcel shall not be contained in the
complaint, and notice shall not be mailed to lienholders and
persons with an interest as provided in division (B)(1) of this
section, except that the name and address of a receiver under
section 3767.41 of the Revised Code shall be contained in the
complaint and notice shall be mailed to the receiver. (3) With respect to the forms applicable to actions
commenced under division (B) of this section and contained in
section 5721.181 of the Revised Code: (a) The notice of foreclosure prescribed by division (B)
of section 5721.181 of the Revised Code shall be revised to
exclude any reference to the inclusion of the name and address of
each lienholder and other person with an interest in the parcel
identified in a statutorily required title search relating to the
parcel, and to exclude any such names and addresses from the
published notice, except that the revised notice shall refer to
the inclusion of the name and address of a receiver under section
3767.41 of the Revised Code and the published notice shall
include the receiver's name and address. The notice of
foreclosure also shall include the following in boldface type: "If pursuant to the action the parcel is sold, the sale
shall not affect or extinguish any lien or encumbrance with
respect to the parcel other than a receiver's lien and other than
the lien for land taxes, assessments, charges, interest, and
penalties for which the lien is foreclosed and in satisfaction of
which the property is sold. All other liens and encumbrances
with respect to the parcel shall survive the sale." (b) The notice to the owner, lienholders, and other
persons with an interest in a parcel shall be a notice only to
the owner and to any receiver under section 3767.41 of the
Revised Code, and the last two sentences of the notice shall be omitted. (4) As used in this division, a "receiver's lien" means
the lien of a receiver appointed pursuant to divisions (C)(2) and
(3) of section 3767.41 of the Revised Code that is acquired
pursuant to division (H)(2)(b) of that section for any
unreimbursed expenses and other amounts paid in accordance with
division (F) of that section by the receiver and for the fees of
the receiver approved pursuant to division (H)(1) of that
section. (D) If the prosecuting attorney determines that an action
in rem under division (B) or (C) of this section is precluded by
law, then foreclosure proceedings shall be filed pursuant to
division (A) of this section, and the complaint in the action in
personam shall set forth the grounds upon which the action in rem
is precluded. (E) The conveyance by the owner of any parcel against
which a complaint has been filed pursuant to this section at any
time after the date of publication of the parcel on the
delinquent tax list but before the date of a judgment of
foreclosure pursuant to section 5721.19 of the Revised Code shall
not nullify the right of the county to proceed with the
foreclosure.
Sec. 5721.25. All delinquent land upon which the taxes,
assessments, penalties, interest, or charges have become
delinquent may be redeemed before foreclosure proceedings have
been instituted
by tendering to the county treasurer an amount
sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest,
and
charges then due and unpaid, and the costs incurred in any
proceeding instituted against such land under
Chapter 323., Chapter 5722., or this chapter of
the Revised Code. After a foreclosure proceeding has been instituted under Chapter 323. or this chapter of the Revised Code with
respect to delinquent land,
but before the filing of an entry of confirmation of sale pursuant to the proceeding, or after a foreclosure proceeding has been commenced under section 5722.03 of the Revised Code but before a decree is issued under division (F) of that section, any person entitled to redeem the land may do so by tendering to the county treasurer an amount sufficient, as determined by the court, to pay the taxes, assessments, penalties, interest, and charges then due and unpaid, and the costs incurred in any proceeding instituted against such land under Chapter 323. or this chapter of the Revised Code, and by demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. In addition, after a foreclosure proceeding has been instituted, but before the filing of an entry of confirmation of sale pursuant to the proceeding, any person entitled to redeem the land who has not
previously
defaulted on a delinquent tax contract under
section 323.31 of the
Revised Code with respect to that
delinquent land may enter into a
delinquent
tax contract
with the county treasurer
for the payment
of the taxes, assessments, penalties, interest,
and charges found
to be due and unpaid on such land, together with
the costs
incurred in the
proceeding as determined by the court, upon demonstrating that the property is in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes. The
execution of a delinquent tax
contract shall not stop the
prosecution of a proceeding to judgment. The
delinquent tax
contract shall be paid as prescribed
by
section
323.31 of the
Revised Code over a period not to exceed five years after the
date
of the first payment made under the
contract. The delinquent tax contract may be terminated if the court determines that the property is not in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes during the term of the contract. The court shall
retain jurisdiction over the delinquent land until the total
amount set forth in the delinquent tax
contract is paid,
notwithstanding any conveyance of the land to another owner
during
the period that the delinquent tax
contract is outstanding.
If any payment under a delinquent tax contract is not
paid
when due, or if the contract is terminated because the property is not in compliance with all applicable zoning regulations, land use restrictions, and building, health, and safety codes, the county treasurer shall, at the time the
payment is
due and unpaid or the contract is terminated, advise the court rendering the
judgment of
foreclosure, and the court shall order such land sold
for the
amount of taxes, assessments, penalties, interest, and
charges
then due and owing on such land in the manner provided in
section
5721.19 of the Revised Code.
Upon the receipt of each
payment pursuant to any
delinquent
tax contract, the county
treasurer shall
enter the amount
of such
payment on the tax duplicate,
and, upon request,
shall
give a receipt for the amount paid to the person
paying it. The receipt shall be in
the form prescribed by the
tax commissioner.
The portion of the amount tendered under this section
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 delinquent
property in the preceding tax year bears to
the taxes levied by all such
districts against the property in the
preceding tax year. The portion of the
payment representing
assessments and other charges shall be credited to those
items in
the order in which they became due.
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 5721.43 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. The county treasurer may not select any parcel that has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code.
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) 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) 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
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 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
5721.43 of the Revised
Code. The fund shall be
administered by the county treasurer, and used solely for the
purposes of sections 5721.30 to 5721.43 of the
Revised
Code. Any fee received by the
treasurer under sections 5721.30 to 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. 5721.34. (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; or that has been selected by an electing subdivision for foreclosure under sections 5722.02 and 5722.03 of the Revised Code. A certificate sold
in violation of this section is
void. (B) If 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
makes the discovery more than sixty days
after the
certificate's date of
sale, the holder
also is
entitled to
interest on the certificate purchase price
at
the rate of five per cent per year. The
county
treasurer
shall notify the certificate holder that the certificate
is void and shall issue the refund. The county auditor
shall
issue a warrant for the
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 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
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. 5722.01. As used in this chapter: (A) "Electing subdivision" means a municipal corporation
that has enacted an ordinance or a township or county that has
adopted a resolution pursuant to section 5722.02 of the Revised
Code for purposes of adopting and implementing the procedures set
forth in sections 5722.02 to 5722.15 of the Revised Code. (B) "Delinquent lands" has
the same meaning as means delinquent lands or delinquent vacant lands as defined in section 5721.01 of the Revised Code, and "delinquent vacant lands" are delinquent lands that are unimproved by any dwelling. (C) "Land reutilization program" means the procedures and
activities concerning the acquisition, management, and
disposition of affected delinquent lands set forth in sections 5722.02 to 5722.15 of the Revised Code. (D) "Minimum bid," in the case of a sale of property
foreclosed pursuant to section 323.25 or 5721.18 or foreclosed
and forfeited pursuant to section 5721.14 of the Revised Code,
means a bid in an amount equal to the sum of the taxes,
assessments, charges, penalties, and interest due and payable on
the parcel subsequent to the delivery to the county prosecuting
attorney of the delinquent land or delinquent vacant land tax
certificate or master list of delinquent or delinquent vacant
tracts containing the parcel, and prior to the transfer of the
deed of the parcel to the purchaser following confirmation of
sale, plus the costs of foreclosure or foreclosure and forfeiture
proceedings against the property. (E) "Nonproductive land" means any parcel of delinquent
vacant land with respect to which a foreclosure proceeding
pursuant to section 323.25, a foreclosure proceeding pursuant to
division (A) or (B) of section 5721.18, or a foreclosure and
forfeiture proceeding pursuant to section 5721.14 of the Revised
Code has been instituted; and any parcel of delinquent land with
respect to which a foreclosure proceeding pursuant to section
323.25 or division (A) or (B) of section 5721.18 of the Revised
Code has been instituted, and upon which there are no buildings
or other structures, or upon which there are either:
(1) Buildings or other structures that are not in the
occupancy of any person and as to which the township or municipal
corporation within whose boundaries the parcel is situated has
instituted proceedings under section 505.86 or 715.26 of the
Revised Code, or Section 3 of Article XVIII, Ohio Constitution,
for the removal or demolition of such buildings or other
structures by the township or municipal corporation because of
their insecure, unsafe, or structurally defective condition;
(2) Buildings or structures that are not in the occupancy
of any person at the time the foreclosure proceeding is initiated
and whose acquisition the municipal corporation, county, or
township determines to be necessary for the implementation of an
effective land reutilization program.
(F) "Occupancy" means the actual, continuous, and
exclusive use and possession of a parcel by a person having a
lawful right to such use and possession.
(G) "Nonproductive land" means any parcel of delinquent land satisfying all of the following:
(1) The parcel has been included at any time in a delinquent tax list or delinquent vacant land tax list compiled and certified under section 5721.03 of the Revised Code;
(2) The delinquent taxes have not been paid, a delinquent tax contract is not in effect under section 323.31 of the Revised Code, and the parcel has not been redeemed under section 5721.25 of the Revised Code;
(3) The parcel is not included in the list of parcels selected for a tax certificate sale under section 5721.31 of the Revised Code;
(4) A foreclosure proceeding has not been instituted with respect to the parcel.
(E) "Foreclosure proceeding" means an action or proceeding to foreclose the state's lien for taxes charged against delinquent land or delinquent vacant land instituted under section 323.25, sections 323.65 to 323.78, or section 5721.14 or 5721.18 of the Revised Code.
(F) "Legal representative" means:
(1) If the electing subdivision is a municipal corporation, the law director or other legal advisor of the municipal corporation or an attorney employed for the purpose by the municipal corporation;
(2) If the electing subdivision is a township, the township law director if one has been appointed under section 504.15 of the Revised Code, or an attorney employed pursuant to division (B) of section 309.09 of the Revised Code;
(3) If the electing subdivision is a county, an attorney employed for the purpose by the board of county commissioners pursuant to section 305.14 of the Revised Code.
(G) "Land within an electing subdivision's boundaries"
does not include land within the boundaries of a municipal
corporation, unless the electing subdivision is the municipal
corporation or the municipal corporation adopts an ordinance that gives consent to the electing subdivision to include such land.
Sec. 5722.02. Any municipal corporation, county, or
township may elect to adopt and implement the procedures set
forth in sections 5722.02 to 5722.15 of the Revised Code to facilitate the effective reutilization
of nonproductive land situated within its boundaries. Such
election shall be made by ordinance in the case of a municipal
corporation, and by resolution in the case of a county or
township. The ordinance or resolution shall state that the
existence of nonproductive land within its boundaries is such as
to necessitate the implementation of a land reutilization program
to foster either the return of such nonproductive land to tax
revenue generating status or the devotion thereof to public use. An electing subdivision shall promptly deliver certified
copies of such the ordinance or resolution to the auditor, county treasurer,
and the prosecutor of each county in which the electing
subdivision is situated. On and after the effective date of such
ordinance or resolution, the foreclosure, sale forfeiture, conveyance, management, and
disposition of all nonproductive land situated within the
electing subdivision's boundaries shall be governed by the
procedures set forth in sections 5722.02 to 5722.15 of the Revised Code. Upon receiving a copy of the ordinance or resolution adopted under this section, the county treasurer shall compile and deliver to the electing subdivision a list of all parcels of nonproductive land within the electing subdivision's boundaries. The electing subdivision may select from that list the parcels the subdivision wishes to acquire, and shall notify the county treasurer of the selected parcels. If both a county and a township within the county select the same parcel, the subdivision that first notifies the county treasurer of its selection shall be the subdivision deemed to have selected the nonproductive land for the purposes of this chapter. Nonproductive land is selected for the purposes of this chapter only if the electing subdivision notifies the county treasurer of the selection as provided in this section.
For the purposes of any section of the Revised Code referring to delinquent land selected by an electing subdivision under this section or chapter, the delinquent land shall not be considered to be so selected if the electing subdivision subsequently requests the county treasurer to remove the delinquent land from the list of delinquent land selected for foreclosure by the electing subdivision.
Sec. 5722.03. (A) An electing subdivision has a cause of action to foreclose the state's lien for taxes upon any nonproductive land the subdivision selected under section 5722.02 of the Revised Code and to forfeit the fee simple interest in the parcel to the electing subdivision. An action may not be commenced under the cause of action if, before the complaint is filed, the nonproductive land has been redeemed as provided in section 323.31 or 5721.25 of the Revised Code. The action shall be prosecuted by the legal representative of the electing subdivision.
An action instituted under this section constitutes an action in rem. The action shall be commenced against the parcel of nonproductive land in any court with jurisdiction by filing with the clerk of the court a complaint requesting that the lien of the state be foreclosed and that title to the parcel be forfeited to the electing subdivision. Before filing the complaint, the legal representative shall cause a title search to be conducted for the purpose of identifying any lienholders or other persons with interests in the parcel of nonproductive land.
The complaint shall set forth the permanent parcel number of the parcel; the street address of the parcel if available; the name of the last known owner of the parcel if it appears on the tax list; the name and address of each lienholder and other person with an interest in the parcel identified by the title search; and a description of the parcel as set forth in the delinquent tax list or delinquent vacant land tax list, in the delinquent land tax or delinquent vacant land tax certificate if such a certificate was made for the parcel, or in the master list of delinquent tracts or delinquent vacant tracts if the parcel is included in such a list. The complaint shall bear a caption substantially in the form set forth in division (A) of section 5722.04 of the Revised Code. It is sufficient for the legal representative to allege in the complaint that the property has been included in a delinquent tax list or delinquent vacant land tax list certified under section 5721.03 of the Revised Code, or that a delinquent land or delinquent vacant land tax certificate or master list, if applicable, has been duly filed by the county auditor; that the amount of money appearing to be due and unpaid is due and unpaid; and that there is a lien against the property described in the complaint, without setting forth in the complaint any other or special matter relating to the foreclosure action. The prayer of the complaint shall be that the court issue an order that the lien of the state on the parcel of nonproductive land shall be foreclosed and issue a decree transferring fee simple interest in the parcel to the electing subdivision.
Any number of parcels may be joined in one action, provided that each separate parcel joined in a complaint shall be assigned a serial number and shall be separately indexed and docketed by the clerk of court in a book kept by the clerk for that purpose.
(B) Within thirty days after the filing of the complaint,
the clerk of the court in which the complaint was filed shall
cause a notice of foreclosure and forfeiture substantially in the
form of the notice set forth in division (B) of section 5722.04
of the Revised Code to be published once a week for three
consecutive weeks in a newspaper of general circulation in the
county. In any county that has adopted a permanent parcel number
system, the parcel may be described in the notice by parcel
number only, instead of also with a complete legal description,
if the legal representative determines that the
publication of the complete legal description is not necessary to
provide reasonable notice of the foreclosure and forfeiture
proceeding to the interested parties. If the complete legal
description is not published, the notice shall indicate where the
complete legal description may be obtained. After the third publication, the publisher shall file with
the clerk of the court an affidavit stating the fact of the
publication and including a copy of the notice of foreclosure and
forfeiture as published. Service of process for purposes of the
action in rem shall be considered as complete on the date of the
last publication. Within thirty days after the filing of a complaint and
before the date of the final publication of the notice of
foreclosure and forfeiture, the clerk of the court also shall
cause a copy of a notice substantially in the form of the notice
set forth in division (C) of section 5722.04 of the Revised Code
to be mailed by ordinary mail, with postage prepaid, to each
person named in the complaint as being the last known owner of the
parcel, or as being a lienholder or other person
with an interest in the parcel. The notice shall be
sent to the address of each such person, as set forth in the
complaint, and the clerk shall enter the fact of such mailing
upon the appearance docket. If the name and address of the last
known owner of a parcel included in a complaint is not set forth
in the complaint, the legal representative shall file an affidavit with the clerk
stating that the name and address of the last known owner does
not appear on the general tax list. (C) An answer may be filed in a foreclosure and
forfeiture proceeding by any person owning or claiming any right,
title, or interest in, or lien upon, any parcel described in the
complaint, including a person appointed as a receiver for the parcel under section 3767.41 of the Revised Code. The answer shall contain the caption and number of
the action and the serial number of the parcel concerned. The
answer shall set forth the nature and amount of interest claimed
in the parcel and any defense or objection to the foreclosure of
the lien of the state for delinquent taxes, assessments, charges,
penalties, and interest, as shown in the complaint. The answer
shall be filed in the office of the clerk of the court, and a
copy of the answer shall be served on the electing subdivision's legal representative not later than twenty-eight days after the date of final
publication of the notice of foreclosure and forfeiture. If an
answer is not filed within such time, a default judgment may be
taken as to any parcel included in a complaint for which no
answer has been filed. A default judgment is valid and effective
with respect to all persons owning or claiming any right, title,
or interest in, or lien upon, any such parcel, notwithstanding
that one or more of such persons are minors, incompetents,
absentees, or nonresidents of the state, or convicts in
confinement. (D) At the trial of a foreclosure and forfeiture
proceeding, the delinquent tax list or delinquent vacant land tax list, or, if one was made, the delinquent tax or delinquent vacant land tax certificate or master
list of delinquent vacant tracts filed by the county auditor with
the county prosecuting attorney, shall be prima-facie evidence of
the amount and validity of the taxes, assessments, charges,
penalties, and interest appearing due and unpaid on the parcel and their
nonpayment. If an answer is properly filed, the court may, in
its discretion, and shall, at the request of the person filing
the answer, grant a severance of the proceedings as to any parcel
described in such answer for purposes of trial or appeal. (E) The conveyance by the owner of any parcel against
which a complaint has been filed pursuant to this section at any
time after the date of publication of the parcel on the
delinquent tax list or delinquent vacant land tax list but before the date of a judgment
of foreclosure and forfeiture pursuant to this section shall not nullify the right of the electing subdivision to proceed
with the foreclosure and forfeiture action.
(F) Upon application to the court by the electing subdivision following entry of the judgment of foreclosure and forfeiture against nonproductive land, the court shall issue a decree transferring fee simple interest in the nonproductive land to the electing subdivision, and shall issue an order directing the clerk to execute and file for recording a deed therefor and deliver it to the electing subdivision. The clerk shall collect, and the electing subdivision shall pay, the fee required by law for transferring and recording deeds. Upon the execution and recording of the deed, title to the nonproductive land is incontestable in the electing subdivision and free and clear of all liens and encumbrances except those easements and covenants of record running with the land and created before the delinquent taxes or assessments for which the lien was foreclosed became due and payable. The title is not invalid because of any irregularity, informality, or omission of any proceedings under this chapter or Chapter 5721. of the Revised Code or in any process of taxation if the irregularity, informality, or omission does not abrogate any provision of those chapters or processes regarding notice to holders of title, lien, or mortgage to, or other interests in, the foreclosed land.
Sec. 5722.04. The forms of caption, notice of foreclosure
and forfeiture, and notice to property owners, lienholders, and
other interested persons to be utilized in a foreclosure and
forfeiture proceeding instituted pursuant to section 5722.03 of
the Revised Code shall be as follows: "In the .......... court of .........., Ohio, in the matter of the foreclosure of liens and forfeiture of property for delinquent land taxes by action in rem. ............... (Electing subdivision), Ohio, vs.Parcels of land encumbered with delinquent tax liens, (B) Form of notice of foreclosure and forfeiture: "............... court ............... county, Ohio Notice of foreclosure of liens and forfeiture of property
for
delinquent land taxes, by action in rem by (electing subdivision),
.......... county, Ohio Public notice is hereby given that on the .......... day of
.........., ....., .......... (electing subdivision),
Ohio,
filed a complaint in the .......... court of ..........,
Ohio, at
.......... (stating the city), for the foreclosure of
liens and
forfeiture of property for delinquent taxes,
assessments, charges,
penalties, and interest against certain
real property situated in
such county, as described in that
complaint. The object of the action is to obtain from the court a
judgment foreclosing the tax liens against such real estate and
forfeiting the property to the electing subdivision. Such action is brought against the real property only and
no
personal judgment shall be entered in it. The permanent parcel number of each parcel included in such
action; the full street address of the parcel, if available; a
description of the parcel; a statement of the amount of the taxes,
assessments, charges, penalties, and interest due and unpaid on
the parcel; the name and address of the last known owner of the
parcel as they appear on the general tax list; and the names and
addresses of each lienholder and other person with an interest in
the parcel identified in a statutorily required title search
relating to the parcel; all as more fully set forth in the
complaint, are as follows: (Here set forth the respective permanent parcel numbers,
street addresses, descriptions, names and addresses of owners,
lienholders, and other interested persons, and statements of
amounts due as taxes, assessments, charges, penalties, and
interest, together with the respective serial numbers assigned to
each parcel if the complaint covers more than one parcel. If
parcels are identified in this notice by permanent parcel number
only, instead of also with a complete legal description,
here also set forth where the complete legal description of
the
parcel may be obtained.) Any person owning or claiming any right, title, or interest
in, or lien upon, any parcel of real property above listed may
file an answer in such action setting forth the nature and amount
of interest owned or claimed and any defense or objection to the
foreclosure and forfeiture. Such answer shall be filed in the
office of the undersigned clerk of the court, and a copy of the
answer shall be served on the electing subdivision's legal representative, on or before
the .......... day of .........., .... (twenty-eight days after
the date of final publication of this notice). If no answer is filed with respect to a parcel listed in
the
complaint, on or before the date specified as the last day
for
filing an answer, a judgment of foreclosure and forfeiture
will be
taken by default as to that parcel. Any parcel as to
which a
foreclosure and forfeiture is taken by default shall be
conveyed to the electing subdivision for
the satisfaction of the taxes, assessments, charges,
penalties,
and interest, and the costs incurred in the
foreclosure and
forfeiture proceeding, which are due and unpaid. At any time prior to the filing of an entry of confirmation
of conveyance of a parcel listed in the complaint to the electing subdivision, any owner or lienholder of, or other person with an
interest in, the parcel may redeem the
parcel by tendering to the county treasurer the amount of the taxes,
assessments, charges, penalties, and interest due and unpaid on
the parcel, together with all costs incurred in the proceeding
instituted against the parcel under section 5722.03 of the Revised Code. Upon the court's issuance of the decree transferring title to the parcel to the electing subdivision, there
shall be no further equity of redemption. After the
issuance of the decree, any person claiming any right, title,
or interest in,
or lien upon, any parcel shall be forever barred
and foreclosed of
any such right, title, or interest in, lien
upon, and any equity
of redemption in, the parcel.
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Clerk of the Court |
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........................ Court |
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........................, Ohio" |
(C) Form of notice to owner, lienholders, and other
persons
with an interest in a parcel: "To the person to whom this notice is addressed: You are the last known owner, according to the general tax
list, or a lienholder of, or a person with another interest in,
the following described parcel: (Description as shown in complaint) Such parcel has been included in an action instituted by
.......... (electing subdivision), being case No. ........ filed in the
..........
court, ..........., Ohio, on .........., ....,
seeking the
foreclosure, forfeiture, and conveyance of such parcel for
the
nonpayment of delinquent taxes, assessments, charges,
penalties,
and interest (specify which) in the amount of
$.......... Any person owning or claiming any right, title, or interest
in, or lien upon, the parcel may file an answer in the action
setting forth the nature and amount of the person's interest
and
any
defense or objection to the foreclosure and forfeiture. Any
such
answer shall be filed in the office of the undersigned clerk
of
the court, and a copy of the answer shall be served upon the
prosecuting attorney, on or before .........., ....
(twenty-eight
days after the publication of the associated notice
of foreclosure
and forfeiture in accordance with law). If no answer is filed, a judgment of foreclosure and
forfeiture will be taken by default and title to the parcel shall be
ordered conveyed to the electing subdivision for the satisfaction of the tax lien on it. At any time before the court issues the decree transferring title to the parcel to the electing subdivision, any owner or lienholder of, or other person
with an
interest in, the parcel may redeem the parcel by tendering
to the county
treasurer the full amount of the taxes, assessments,
charges,
penalties, and interest due and unpaid on the parcel,
together
with all costs incurred in the proceeding instituted
against the
parcel under section 5722.03 of the Revised Code.
Upon the court's issuance of the decree,
there shall be no
further equity of redemption. After the court's issuance of the decree,
any person claiming any right, title, or
interest in, or lien
upon, the parcel shall be forever barred and
foreclosed of any
such right, title, or interest in, lien upon,
and any equity of
redemption in, the parcel.
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Clerk of the Court |
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................... Court |
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..................., Ohio" |
Sec. 5722.05. Whenever Once title to nonproductive land is sold conveyed under section 5722.03 or
5722.04 of the Revised Code to an electing subdivision, no action shall be
commenced, nor shall any defense be asserted, after one year from the date the
deed conveying such land to the electing subdivision is filed for record, to
question the validity of the title vested in the electing subdivision by such
sale for any irregularity, informality, or omission in the proceedings
relative
to the foreclosure, forfeiture, or sale conveyance of such nonproductive land to the
electing subdivision.
Sec. 5722.06. An electing subdivision shall assume
possession and control of any nonproductive land acquired by it
under section 5722.03, 5722.04, or 5722.10 of the Revised Code
and any other land it acquires as a part of its land
reutilization program. The electing subdivision shall hold and
administer such the property in a governmental capacity for the
benefit of itself and of other taxing districts having an
interest in the taxes, assessments, charges, interest, and
penalties due and owing thereon at the time of the property's
acquisition by the electing subdivision. In its administration
of such nonproductive land as a part of a land reutilization
program, the electing subdivision shall: (A) Manage and shall manage, maintain, and protect, or temporarily and use the property for
a public purpose such land in such the manner as it the electing subdivision deems
appropriate;
(B) Compile and maintain a written inventory of all such
land. The inventory shall be available for public inspection and
distribution at all times.
(C) Study, analyze, and evaluate potential, present, and
future uses for such land which would provide for the effective
reutilization of the nonproductive land;
(D) Plan for, and use its best efforts to consummate, the
sale or other disposition of such land at such times and upon
such terms and conditions as it deems appropriate to the
fulfillment of the purposes and objectives of its land
reutilization program;
(E) Establish and maintain records and accounts reflecting
all transactions, expenditures, and revenues relating to its land
reutilization program, including separate itemizations of all
transactions, expenditures, and revenues concerning each
individual parcel of real property acquired as a part of such
program.
Sec. 5722.07. As used in this section, "fair market value"
means the appraised value of the nonproductive land made with
reference to such redevelopment and reutilization restrictions as
may be imposed by the electing subdivision as a condition of sale
or as may be otherwise applicable to such land. An electing subdivision may, without competitive bidding,
sell any land acquired by it as a part of its land reutilization
program at such times, to such persons, and upon such terms and
conditions, and subject to such restrictions and covenants as it
deems necessary or appropriate to assure the land's effective
reutilization. Such land shall be sold at not less than its fair
market value. However, upon the approval of the legislative
authorities of those taxing districts entitled to share in the
proceeds from the sale thereof, the electing subdivision may
either retain such land for devotion by it to public use, or
sell, lease, or otherwise transfer any such land to another
political subdivision for the devotion to public use by such
political subdivision for a consideration less than fair market
value. Whenever an electing subdivision sells any land acquired as
part of its land reutilization program for an amount equal to or
greater than fair market value, it shall execute and deliver all
agreements and instruments incident thereto. The electing
subdivision may execute and deliver all agreements and
instruments without procuring any approval, consent, conveyance,
or other instrument from any other person or entity, including
the other taxing districts entitled to share in the proceeds from
the sale thereof. An electing subdivision may, for purposes of land
disposition, consolidate, assemble, or subdivide individual
parcels of land acquired as part of its land reutilization
program.
Sec. 5722.08. When If an electing subdivision sells any land
acquired as a part of its land reutilization program, the
proceeds from such the sale shall be applied and distributed in the
following order: (A) To the electing subdivision in reimbursement of its
expenses incurred on account of the acquisition, administration,
management, maintenance, and disposition of such land, and such
other expenses of the land reutilization program as the electing
subdivision may apportion to such land; (B) To the county treasurer to reimburse those taxing
districts to which the county auditor charged the costs of
foreclosure pursuant to section 5722.03 of the Revised Code, or
costs of forfeiture pursuant to section 5722.04 of the Revised
Code. If the proceeds of the sale of the nonproductive lands,
after making the payment required under this division, are not
sufficient to reimburse the full amounts charged to taxing
districts as costs under section 5722.03 or 5722.04 of the
Revised Code, the balance of the proceeds shall be used to
reimburse the taxing districts in the same proportion as the
costs were charged. (C) To the county treasurer for distribution to the taxing
districts charged costs under section 5722.03 or 5722.04 of the
Revised Code, in the same proportion as they were charged costs
by the county auditor having an interest in the taxes, assessments, charges, penalties, and interest, including the electing subdivision, an amount representing both of the
following:
(1) The taxes, assessments, charges, penalties, and
interest due and owing on such the land as of the date of acquisition
by the electing subdivision in proportion of the taxing district's interest in them; (2) The taxes, assessments, charges, penalties, and
interest that would have been due and payable with respect to
such land from such date of acquisition were such land not exempt
from taxation pursuant to section 5722.11 of the Revised Code in proportion of the taxing district's interest in them. (D)(C) The balance, if any, to be retained by the electing
subdivision for application to the payment of costs and expenses
of its land reutilization program.
Sec. 5722.10. An electing subdivision may accept a
conveyance in lieu of foreclosure of any delinquent land from the
proper owners thereof. Such conveyance may only be accepted with
the consent of the county auditor acting as the agent of the
state pursuant to section 5721.09 of the Revised Code. The
owners or the electing municipal corporation or township shall
pay all expenses incurred by the county in connection with any
foreclosure or foreclosure and forfeiture proceeding filed
pursuant to section 5721.18 or 5721.14 of the Revised Code
relative to such land. When the electing subdivision is the
county, it may require the owner to pay the expenses. The owner
shall present the electing subdivision with evidence satisfactory
to the subdivision that it the subdivision will obtain by such conveyance fee
simple title to such delinquent land. The title shall be free
and clear of all liens and encumbrances, except such easements
and covenants of record running with the land as were created
prior to the time of the conveyance and delinquent taxes,
assessments, penalties, interest, and charges, and taxes and
special assessments that are a lien on the real property at the
time of the conveyance. Real property acquired under this section shall not be
subject to foreclosure or forfeiture under section 323.25 or Chapter 5721. or 5723.
of the Revised Code. The sale or other transfer, as authorized
by section 5722.07 of the Revised Code, of real property acquired
under this section shall extinguish the lien on the title for all
taxes, assessments, penalties, interest, and charges delinquent
at the time of the conveyance of the delinquent land to the
electing subdivision.
Sec. 5722.14. If nonproductive land is subsequently included within an
impacted cities project, as defined in section 1728.01 of the Revised Code,
taxes on the land in the base period of the year immediately preceding the
initial acquisition, as provided in section 1728.111 of the Revised Code,
shall
be determined by applying the land valuation as it existed in either the year
preceding such the initial acquisition, or in the next succeeding year after such the
nonproductive land is sold pursuant to section 5722.07 or 5722.13 of the
Revised Code, whichever valuation is greater.
Sec. 5722.15. (A) When an electing subdivision purchases title to nonproductive land is conveyed to an electing subdivision
under section 5722.03 or 5722.04 of the Revised Code, the county auditor shall
remove from his the tax lists and duplicates all
taxes, assessments, charges,
penalties, and interest that are due and payable on the land at the time of
the
sale in the same manner as if the property had been sold to any other buyer at
the foreclosure or forfeiture sale conveyance. (B) The county auditor shall certify to an electing subdivision that
purchases acquires title to
nonproductive land under section 5722.03 or 5722.04 of the Revised Code a
record of all of the taxes, assessments, charges, interest, and penalties that
were due on the parcel at the time of the sale; the taxing districts to which
they were owed; and the proportion of that amount that was owed to each taxing
district. The certification shall be used in distributing the proceeds of any
sale of the land in accordance with division (C)(B)(1) of section 5722.08 of the
Revised Code.
Sec. 5722.21. (A) As used in this section: (1) "Eligible delinquent land" means delinquent land or delinquent vacant land, as defined in section 5721.01 of the Revised Code, included in a delinquent tax list or delinquent vacant land tax list that has been certified delinquent within the meaning of section 5721.03 of the Revised Code, excluding any certificate parcel as defined in section 5721.30 of the Revised Code and any parcel of nonproductive land selected under section 5722.02 of the Revised Code. (2) "Delinquent taxes" means the cumulative amount of unpaid taxes, assessments, recoupment charges, penalties, and interest charged against eligible delinquent land that became delinquent before transfer of title to a county, municipal corporation, or township under this section. (3) "Foreclosure costs" means the sum of all costs or other charges of publication, service of notice, prosecution, or other proceedings against the land under sections 323.25 to 323.28 or Chapter 5721. of the Revised Code as may pertain to delinquent land or be fairly apportioned to it by the county treasurer. (4) "Tax foreclosure sale" means a sale of delinquent land pursuant to foreclosure proceedings under sections 323.25 to 323.28 or section 5721.14 or 5721.18 of the Revised Code. (5) "Taxing authority" means the legislative authority of any taxing unit, as defined in section 5705.01 of the Revised Code, in which is located a parcel of eligible delinquent land acquired or to be acquired by a county, municipal corporation, or township in which a declaration under division (B) of this section is in effect. (B) The legislative authority of a municipal corporation may declare by ordinance, or a board of county commissioners or board of township trustees may declare by resolution, that it is in the public interest for the county, municipal corporation, or township to acquire tax-delinquent real property within the county, municipal corporation, or township for the public purpose of redeveloping the property or otherwise rendering it suitable for productive, tax-paying use. In any county, municipal corporation, or township in which such a declaration is in effect, the county, municipal corporation, or township may purchase or otherwise acquire title to eligible delinquent land, other than by appropriation, and the title shall pass free and clear of the lien for delinquent taxes as provided in division (D) of this section. The authority granted by this section is supplemental to the authority granted under sections 5722.01 to 5722.15 of the Revised Code. (C) With respect to any parcel of eligible delinquent land purchased or acquired by a county, municipal corporation, or township in which a declaration is in effect under this section, the county, municipal corporation, or township may obtain the consent of each taxing authority for release of any claim on the delinquent taxes and associated costs attaching to that property at the time of conveyance to the county, municipal corporation, or township. Consent shall be obtained in writing, and shall be certified by the taxing authority granting consent or by the fiscal officer or other person authorized by the taxing authority to provide such consent. Consent may be obtained before or after title to the eligible delinquent land is transferred to the county, municipal corporation, or township. The taxing authority of a taxing unit and a county, municipal corporation, or township in which a declaration is in effect under this section may enter into an agreement whereby the taxing authority consents in advance to release of the taxing authority's claim on delinquent taxes and associated costs with respect to all or a specified number of parcels of eligible delinquent land that may be purchased or acquired by the county, municipal corporation, or township for the purposes of this section. The agreement shall provide for any terms and conditions on the release of such claim as are mutually agreeable to the taxing authority and county, municipal corporation, or township, including any notice to be provided by the county, municipal corporation, or township to the taxing authority of the purchase or acquisition of eligible delinquent land situated in the taxing unit; any option vesting in the taxing authority to revoke its release with respect to any parcel of eligible delinquent land before the release becomes effective; and the manner in which notice of such revocation shall be effected. Nothing in this section or in such an agreement shall be construed to bar a taxing authority from revoking its advance consent with respect to any parcels of eligible delinquent land purchased or acquired by the county, municipal corporation, or township before the county, municipal corporation, or township enters into a purchase or other agreement for acquisition of the parcels. (D) The lien for the delinquent taxes and associated costs for which all of the taxing authorities have consented to release their claims under this section is hereby extinguished, and the transfer of title to such delinquent land to the county, municipal corporation, or township shall be transferred free and clear of the lien for such taxes and costs. If a taxing authority does not consent to the release of its claim on delinquent taxes and associated costs, the entire amount of the lien for such taxes and costs shall continue as otherwise provided by law until paid or otherwise discharged according to law. (E) All eligible delinquent land acquired by a county, municipal corporation, or township under this section is real property held for a public purpose and is exempted from taxation until the county, municipal corporation, or township sells or otherwise disposes of property. (F) If a county, municipal corporation, or township sells or otherwise disposes of delinquent land it purchased or acquired and for which all or a portion of a taxing authority's claim for delinquent taxes was released under this section, the net proceeds from such sale or disposition shall be used for such redevelopment purposes the board of county commissioners, the legislative authority of the municipal corporation, or the board of township trustees considers necessary or appropriate.
Sec. 5723.06. (A)(1) The county auditor, on the day set
for the sale of forfeited lands provided in section 5723.04 of
the Revised Code, shall attend at the courthouse and offer for
sale the whole of each tract of land as contained in the list
provided for in such section, at public auction, to the highest
bidder, for an amount sufficient to pay the lesser of the amounts
described in divisions (A)(1) and (2) of section 5721.16 of the
Revised Code. The county auditor shall offer each tract separately, beginning with
the
first tract contained in the list. (2) If no bid is received for any of the tracts in an
amount sufficient to pay the required amount, and no notice is
given under section 5722.04 of the Revised Code or division (B)
of this section, the auditor may offer such tract for sale
forthwith, and sell it for the best price obtainable. The county
auditor shall continue through such list and may adjourn the sale from day to
day until the county auditor has disposed of or offered for sale
each tract of
land specified in the notice. The county auditor may offer a tract
of land two
or more times at the same sale. (3) Notwithstanding the minimum sales price provisions of
divisions (A)(1) and (2) of this section to the contrary,
forfeited lands sold pursuant to this section shall not be sold
in either of the following circumstances: (a) To any person that is delinquent on real property taxes in
this state; (b) For less than the total amount of the taxes, assessments,
penalties, interest, and costs that stand charged against the
land if the highest bidder is the owner of record of the parcel
immediately prior to the judgment of foreclosure or foreclosure
and forfeiture, or a member of the following class of parties
connected to that owner: a member of that owner's immediate
family, a person with a power of attorney appointed by that owner
who subsequently transfers the parcel to the owner, a sole
proprietorship owned by that owner or a member of that owner's
immediate
family, or a partnership, trust, business trust, corporation, or
association in which the owner or a member of the owner's immediate
family owns or controls directly or indirectly more than fifty
per cent. If a parcel sells for less than the total amount of
the taxes, assessments, penalties, interest, and costs that stand
charged against it, the officer conducting the sale shall require
the buyer to complete an affidavit prepared by the officer stating that the
buyer is not
the owner of record immediately prior to the judgment of
foreclosure or foreclosure and forfeiture, or a member of the
specified class of parties connected to that owner, and the
affidavit shall become part of the court records of the
proceeding. If the county auditor discovers
within three years
after the date of the sale that a parcel was sold to that owner
or a member of the specified class of parties connected to that
owner for a price less than the amount so described, and if the
parcel is still owned by that owner or a member of the specified
class of parties connected to that owner, the auditor within
thirty days after such discovery shall add the difference between
that amount and the sale price to the amount of taxes that then
stand charged against the parcel and is payable at the next
succeeding date for payment of real property taxes. As used in
this paragraph, "immediate family" means a spouse who resides in
the same household and children. (B) The director of natural resources may give written
notice to the auditor prior to the time of the sale of the
director's
intention to purchase forfeited land for the state. Such notice
is a legal minimum bid at the time of the sale, and, if no bid is
received in an amount sufficient to pay the lesser of the amounts
described in divisions (A)(1) and (2) of section 5721.16 of the
Revised Code, the land is deemed sold to the state for no
consideration. The director of natural resources shall record
the deed. (C) The sale of forfeited land under this section conveys
the title to the tract or parcel of land, divested of all
liability for any taxes, assessments, charges, penalties,
interest, and costs due at the time of sale that remain after
applying the amount for which it was sold, except as otherwise
provided in division (D) of this section. (D) If the parcel is sold for the amount described in
division (A)(2) of section 5721.16 of the Revised Code, and the
county treasurer's estimate of that amount exceeds the amount of
taxes, assessments, interest, penalties, and costs actually
payable when the deed is transferred to the purchaser, the county
auditor shall refund to the purchaser the difference between the
estimate and the amount actually payable. If the amount of taxes,
assessments, interest, penalties, and costs actually payable when
the deed is transferred to the purchaser exceeds the county
treasurer's estimate, the county auditor shall certify the amount
of the excess to the treasurer, who shall enter that amount on
the real and public utility property tax duplicate opposite the
property; the amount of the excess shall be payable at the next
succeeding date prescribed for payment of taxes in section 323.12
of the Revised Code.
Section 2. That existing sections 323.25, 323.31, 323.67, 5721.06, 5721.10, 5721.13, 5721.14, 5721.18, 5721.25, 5721.31, 5721.34, 5722.01, 5722.02, 5722.05, 5722.06, 5722.07, 5722.08, 5722.10, 5722.14, 5722.15, 5722.21, and 5723.06 and sections 323.77, 5722.03, 5722.04, and 5722.13 of the Revised Code are hereby repealed.
Section 3. (A) The amendments by this act apply only to proceedings under Chapter 5722. of the Revised Code regarding nonproductive land selected by an electing subdivision on or after the effective date of this act.
(B) A resolution or ordinance duly adopted under section 5722.02 of the Revised Code before the effective date of this act is valid as to all proceedings or actions undertaken under sections 5722.02 to 5722.15 of the Revised Code on and after that effective date except to the extent the resolution or ordinance is not substantively consistent with the amendments made by this act. If the resolution or ordinance is not substantively consistent with those amendments, the legislative authority of the electing subdivision shall amend the resolution or ordinance accordingly before undertaking any proceeding or action required or authorized by those amendments.
(C) Sections 5722.02 to 5722.15 of the Revised Code as they existed immediately before the effective date of this act apply to any lawful proceedings commenced before, and in progress on, that effective date, and shall continue to apply until those proceedings conclude or are terminated by the electing subdivision.
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