Read the full stored bill text
(136th General Assembly)
(Substitute
Senate Bill Number 101)
AN
ACT
To amend sections 317.08,
3123.67, 4123.78, 4141.23, 5301.071, 5301.255, 5301.99, 5719.04,
5739.13, 5747.13, and 5749.07 and to enact sections 5301.75, 5301.76,
5301.77, and 5301.78 of the Revised Code to require certain liens
filed with the county recorder to set forth the last known address of
the lien debtor, to require a memorandum of trust or other qualifying
instrument concerning real property to be recorded, and to prohibit
certain contracts regarding residential real estate.
Be
it enacted by the General Assembly of the State of Ohio:
Section
1.
That
sections
317.08,
3123.67,
4123.78, 4141.23, 5301.071, 5301.255
,
5301.99
,
5719.04, 5739.13, 5747.13, and 5749.07
be amended and sections 5301.75, 5301.76, 5301.77, and 5301.78
of the Revised Code be
enacted
to
read as follows:
Sec.
317.08.
(A)
The county recorder shall record all instruments in one general
record series to be known as the "official records." The
county recorder shall record in the official records all of the
following instruments that are presented for recording, upon payment
of the fees prescribed by law:
(1)
Deeds and other instruments of writing for the absolute and
unconditional sale or conveyance of lands, tenements, and
hereditaments;
(2)
Notices as provided in sections 5301.47 to 5301.56 of the Revised
Code;
(3)
Judgments or decrees in actions brought under section 5303.01 of the
Revised Code;
(4)
Declarations and bylaws, and all amendments to declarations and
bylaws, as provided in Chapter 5311. of the Revised Code;
(5)
Affidavits as provided in sections 5301.252 and 5301.56 of the
Revised Code;
(6)
Certificates as provided in section 5311.17 of the Revised Code;
(7)
Articles dedicating archaeological preserves accepted by the director
of the Ohio history connection under section 149.52 of the Revised
Code;
(8)
Articles dedicating nature preserves accepted by the director of
natural resources under section 1517.05 of the Revised Code;
(9)
Conveyances of conservation easements and agricultural easements
under section 5301.68 of the Revised Code;
(10)
Instruments extinguishing agricultural easements under section 901.21
or 5301.691 of the Revised Code or pursuant to the terms of such an
easement granted to a charitable organization under section 5301.68
of the Revised Code;
(11)
Instruments or orders described in division (B)(2)(b) of section
5301.56 of the Revised Code;
(12)
No further action letters issued under section 3746.11 of the Revised
Code;
(13)
Covenants not to sue issued under section 3746.12 of the Revised
Code;
(14)
Restrictions on the use of property contained in a deed or other
instrument as provided in division (E) or (F) of section 3737.882 of
the Revised Code;
(15)
Any easement executed or granted under section 3734.22, 3734.24,
3734.25, or 3734.26 of the Revised Code;
(16)
Any environmental covenant entered into in accordance with sections
5301.80 to 5301.92 of the Revised Code;
(17)
Memoranda of trust, as described in division (A) of section 5301.255
of the Revised Code, that describe specific real property;
(18)
Agreements entered into under section 1506.44 of the Revised Code;
(19)
Mortgages, including amendments, supplements, modifications, and
extensions of mortgages, or other instruments of writing by which
lands, tenements, or hereditaments are or may be mortgaged or
otherwise conditionally sold, conveyed, affected, or encumbered;
(20)
Executory installment contracts for the sale of land executed after
September 29, 1961, that by their terms are not required to be fully
performed by one or more of the parties to them within one year of
the date of the contracts;
(21)
Options to purchase real estate, including supplements,
modifications, and amendments of the options, but no option of that
nature shall be recorded if it does not state a specific day and year
of expiration of its validity;
(22)
Any tax certificate sold under section 5721.33 of the Revised Code,
or memorandum of it, that is presented for filing of record;
(23)
Powers of attorney, including all memoranda of trust, as described in
division (A) of section 5301.255 of the Revised Code, that do not
describe specific real property;
(24)
Plats and maps of town lots, of the subdivision of town lots, and of
other divisions or surveys of lands, any center line survey of a
highway located within the county, the plat of which shall be
furnished by the director of transportation or county engineer, and
all drawings and amendments to drawings, as provided in Chapter 5311.
of the Revised Code;
(25)
Leases, memoranda of leases, and supplements, modifications, and
amendments of leases and memoranda of leases, including a lease
described in section 5301.09 of the Revised Code;
(26)
Declarations executed pursuant to section 2133.02 of the Revised Code
and durable powers of attorney for health care executed pursuant to
section 1337.12 of the Revised Code;
(27)
Unemployment compensation liens, internal revenue tax liens, and
other liens in favor of the United States as described in division
(A) of section 317.09 of the Revised Code, personal tax liens,
mechanic's liens, agricultural product liens, notices of liens,
certificates of satisfaction or partial release of estate tax liens,
discharges of recognizances, excise and franchise tax liens on
corporations, broker's liens, and liens provided for in section
1513.33, 1513.37, 3752.13, 4141.23, 5164.56, or 5311.18 of the
Revised Code;
(28)
Corrupt activity lien notices filed pursuant to section 2923.36 of
the Revised Code and medicaid fraud lien notices filed pursuant to
section 2933.75 of the Revised Code;
(29)
Deeds for the purchase of burial lots or other interment rights under
section 517.07 of the Revised Code
;
(30)
Judgments or decrees in actions brought under section 5301.78 of the
Revised Code
.
(B)
All instruments or memoranda of instruments entitled to record shall
be recorded in the order in which they are presented for recording.
The
recording of an option to purchase real estate, including any
supplement, modification, and amendment of the option, under this
section shall serve as notice to any purchaser of an interest in the
real estate covered by the option only during the period of the
validity of the option as stated in the option.
(C)
In addition to the official records, a county recorder may elect to
keep a separate set of records that contain the instruments listed in
division (A)(24) of this section.
(D)
As part of the official records, the county recorder shall keep a
separate set of records containing all transfers, conveyances, or
assignments of any type of tangible or intangible personal property
or any rights or interests in that property if and to the extent that
any person wishes to record that personal property transaction and if
the applicable instrument is acknowledged before a notary public. If
the transferor is a natural person, the notice of personal property
transfer shall be recorded in the county in this state in which the
transferor maintains the transferor's principal residence. If the
transferor is not a natural person, the notice of personal property
transfer shall be recorded in the county in this state in which the
transferor maintains its principal place of business. If the
transferor does not maintain a principal residence or a principal
place of business in this state and the transfer is to a trustee of a
legacy trust formed pursuant to Chapter 5816. of the Revised Code,
the notice of personal property transfer shall be recorded in the
county in this state where that trustee maintains a principal
residence or principal place of business. In all other instances, the
notice of personal property transfer shall be recorded in the county
in this state where the property described in the notice is located.
Sec.
3123.67.
The
amount of the arrearage due under the support order determined to be
in default pursuant to sections 3123.01 to 3123.07 of the Revised
Code, and any amounts due for current support that become an
arrearage after the date the default determination was made, shall be
a lien against all personal property, including after-acquired
property, of the obligor that is situated in this state. The lien may
be filed with the county recorder in each county of the state in
which the personal property is located. The amount of the arrearage
due under the support order determined to be in default and any
amounts due for current support that become an arrearage after the
date the default determination was made, shall be a lien against real
property, including after-acquired property, of the obligor after the
lien is filed with a county recorder of this state in which the real
property is located. A lien may be filed with the county recorder in
each county of the state in which real property of the obligor is
located.
Any
lien filed under this section shall include the last known address of
the obligor, without further inquiry or investigation, that is not a
post office box.
In
recording the lien, if registered land is involved, the county
recorder shall take all necessary action required by Chapter 5309. of
the Revised Code. The county recorder may be compensated for liens
filed under this section pursuant to the development of unit costs
that are reimbursed under the provider contract entered into pursuant
to Title IV-D of the "Social Security Act," 88 Stat. 2351
(1975), 42 U.S.C. 651, as amended.
Sec.
4123.78.
If
any employer fails to comply with section 4123.35 of the Revised Code
in accordance with the rules of the administrator of workers'
compensation, the administrator shall file with the county recorder
of any counties in which the employer's property is located,
its
a
certificate
of
containing
the employer's name, last known address, and
the
amount of premium due from the employer, and that amount shall be a
lien from the date of filing against the real property and personal
property of the employer within the county in which the certificate
is filed. The county recorder shall record and index the certificate
in the official record. The county recorder shall make no charge for
the services provided by this section to be performed by the county
recorder.
Sec.
4141.23.
(A)
Contributions shall accrue and become payable by each employer for
each calendar year or other period as prescribed by this chapter.
Such contributions become due and shall be paid by each employer to
the director of job and family services for the unemployment
compensation fund in accordance with such regulations as the director
prescribes, and shall not be deducted, in whole or in part, from the
remuneration of individuals in the employer's employ.
In
the payment of any contributions, a fractional part of a dollar may
be disregarded unless it amounts to fifty cents or more, in which
case it may be increased to the next higher dollar.
(B)(1)
Any contribution, payment in lieu of contribution, interest,
forfeiture, or fine due from an employer on or before December 31,
2025, shall, if not paid when due, bear interest at the annual rate
of fourteen per cent compounded monthly on the aggregate receivable
balance due. In such computation any fraction of a month shall be
considered as a full month.
(2)
Any contribution, payment in lieu of contribution, interest,
forfeiture, or fine due from an employer on or after January 1, 2026,
shall, if not paid when due, bear interest at the interest rate
established by the state tax commissioner pursuant to section 5703.47
of the Revised Code, not exceeding fifteen per cent. In such
computation any fraction of a month shall be considered as a full
month.
(C)
The director may waive the interest assessed under division (B) of
this section if the employer meets all of the following conditions
within thirty days after the date the director mails or delivers the
notice of assessment of interest:
(1)
Provides to the director a written request for a waiver of interest
clearly demonstrating that the employer's failure to timely pay
contributions, payments in lieu of contributions, interest,
forfeiture, and fines was a result of circumstances beyond the
control of the employer or the employer's agent, except that
negligence on the part of the employer or the employer's agent shall
not be considered beyond the control of the employer or the
employer's agent;
(2)
Furnishes to the director all quarterly reports required under
section 4141.20 of the Revised Code;
(3)
Pays in full all contributions, payments in lieu of contributions,
interest, forfeiture, and fines for each quarter for which such
payments are due.
The
director shall deny an employer's request for a waiver of interest
after finding that the employer's failure to timely furnish reports
or make payments as required under this chapter was due to an attempt
to evade payment.
(D)
Any contribution, interest, forfeiture, or fine required to be paid
under this chapter by any employer shall, if not paid when due,
become a lien upon the real and personal property of such employer.
Upon failure of such employer to pay the contributions, interest,
forfeiture, or fine required to be paid under this chapter, the
director shall file notice of such lien,
containing the employer's name and last known address,
for which there shall be no charge, in the office of the county
recorder of the county in which it is ascertained that such employer
owns real estate or personal property. The director shall notify the
employer by mail of the lien. The absence of proof that the notice
was sent does not affect the validity of the lien. Such lien shall
not be valid as against the claim of any mortgagee, pledgee,
purchaser, judgment creditor, or other lienholder of record at the
time such notice is filed.
If
the employer acquires real or personal property after notice of lien
is filed, such lien shall not be valid as against the claim of any
mortgagee, pledgee, subsequent bona fide purchaser for value,
judgment creditor, or other lienholder of record to such
after-acquired property, unless the notice of lien is refiled after
such property was acquired by the employer and before the competing
lien attached to such after-acquired property or before the
conveyance to such subsequent bona fide purchaser for value.
Such
a notice shall be recorded in the county recorder's official records
and indexed in the direct and reverse indexes under the name of the
employer. When such unpaid contributions, interest, forfeiture, or
fines have been paid, the employer may record with the county
recorder of the county in which such notice of lien has been filed
and recorded, notice of such payment, and the notice of payment shall
be recorded in the county recorder's official records and indexed in
the direct and reverse indexes. For recording the notice of payment,
the county recorder shall charge and receive from the employer a base
fee of two dollars for services and a housing trust fund fee of two
dollars pursuant to section 317.36 of the Revised Code.
(E)
Notwithstanding other provisions in this section, the director may
reduce, in whole or in part, the amount of interest, forfeiture, or
fines required to be paid under this chapter if the director
determines that the reduction is in the best interest of the
unemployment compensation fund.
(F)
Assessment of contributions shall not be made after four years from
the date on which such contributions became payable, and no action in
court for the collection of contributions without assessment of such
contributions shall be begun after the expiration of five years from
the date such contributions became payable. In case of a false or
fraudulent report or of a willful attempt in any manner to evade
contributions, such contributions may be assessed or a proceeding in
court for the collection of such contributions may be begun without
assessment at any time. When the assessment of contributions has been
made within such four-year period provided, action in court to
collect such contributions may be begun within, but not later than,
six years after such assessment.
(G)
In the event of a distribution of an employer's assets, pursuant to
an order of any court under the law of this state, including any
receivership, assignment for benefit of creditors, adjudicated
insolvency, or similar proceedings, contributions, interest,
forfeiture, or fine then or thereafter due have the same priority as
provided by law for the payment of taxes due the state and shall be
paid out of the trust fund in the same manner as provided for other
claims for unpaid taxes due the state.
(H)
If the attorney general finds after investigation that any claim for
delinquent contributions, interest, forfeitures, or fines owing to
the director is uncollectible, in whole or in part, the attorney
general shall recommend to the director the cancellation of such
claim or any part thereof. The director may thereupon effect such
cancellation.
Sec.
5301.071.
No
instrument conveying real property, or any interest in real property,
and of record in the office of the county recorder of the county
within this state in which that real property is situated shall be
considered defective nor shall the validity of that conveyance be
affected because of any of the following:
(A)
The dower interest of the spouse of any grantor was not specifically
released, but that spouse executed the instrument in the manner
provided in section 5301.01 of the Revised Code.
(B)
The officer taking the acknowledgment of the instrument having an
official seal did not affix that seal to the certificate of
acknowledgment.
(C)
The certificate of acknowledgment is not on the same sheet of paper
as the instrument.
(D)
The executor, administrator, guardian, assignee, attorney in fact, or
trustee making the instrument signed or acknowledged the same
individually instead of in a representative or official capacity.
(E)(1)
The grantor or grantee of the instrument is a trust rather than the
trustee or trustees of the trust if the trust named as grantor or
grantee has been duly created under the laws of the state of its
existence at the time of the conveyance and a memorandum of trust
that complies with section 5301.255 of the Revised Code and contains
a description of the real property conveyed by that instrument is
recorded in the office of the county recorder in which the instrument
of conveyance is recorded. Upon compliance with division (E)(1) of
this section, a conveyance to
or
from
a
trust shall be considered to be a conveyance to
or from
the trustee or trustees of the trust in furtherance of the manifest
intention of the parties.
(2)
Except as otherwise provided in division (E)(2) of this section,
division (E)(1) of this section shall be given retroactive effect to
the fullest extent permitted under section 28 of Article II, Ohio
Constitution. Division (E) of this section shall not be given
retroactive or curative effect if to do so would invalidate or
supersede any instrument that conveys real property, or any interest
in the real property, recorded in the office of the county recorder
in which that real property is situated prior to the date of
recording of a curative memorandum of trust or March 22, 2012,
whichever event occurs later.
(F)
A memorandum of understanding or other instrument complying with
division (A) of section 5301.255 of the Revised Code is not recorded
as required by that section, so long as the instrument from a trustee
or trust as grantor, conveying or encumbering any interest in the
real property has been of record for more than four years.
Sec.
5301.255.
(A)
A memorandum of trust
or
other instrument
that
satisfies both of the following
may
shall
be
presented
for recordation
of
record when any interest in real property is conveyed by the trustee
of a disclosed trust, and in circumstances other than the conveyance
of real property may be presented,
in
the office of the county recorder of any county in which real
property that is subject to the trust is located:
(1)
The
memorandum
instrument
shall
be executed by the trustee of the trust and acknowledged by the
trustee of the trust in accordance with section 5301.01 of the
Revised Code.
(2)
The
memorandum
instrument
shall
state all of the following:
(a)
The name and address of the trustee of the trust;
(b)
The date of execution of the trust;
(c)
The powers specified in the trust relative to the acquisition, sale,
or encumbering of real property by the trustee or the conveyance of
real property by the trustee, and any restrictions upon those powers.
(B)
A
memorandum of trust
An
instrument
that
satisfies divisions (A)(1) and (2) of this section also may set forth
the substance or actual text of provisions of the trust that are not
described in those divisions.
(C)
A
memorandum of trust
An
instrument
that
satisfies divisions (A)(1) and (2) of this section shall constitute
notice only of the information contained in it.
(D)
Upon the presentation for recordation of
a
memorandum of trust
an
instrument
that
satisfies divisions (A)(1) and (2) of this section and the payment of
the requisite fee prescribed in section 317.32 of the Revised Code, a
county recorder shall
record
either:
(1)
Record
the
memorandum
of trust
instrument
in
the official records described in division (A)(17) of section 317.08
of the Revised Code, if the
memorandum
of trust
instrument
describes
specific real property
,
or
;
(2)
Record the instrument
in
the official records described in division (A)(23) of
that
section
317.08 of the Revised Code
,
if the
memorandum
of trust
instrument
does
not describe specific real property.
Sec.
5301.75.
As
used in sections 5301.75 to 5301.78 of the Revised Code:
(A)
"Consumer" means an individual that receives services from
a service provider.
(B)
"Major home system" includes plumbing, heating,
ventilation, air conditioning, and electrical wiring.
(C)
"Residential real estate" means real property located in
this state that is used primarily for personal, family, or household
purposes and is improved by one to four dwelling units.
(D)
"Service agreement" means a contract under which a person
agrees to provide services in connection with the maintenance,
purchase, or sale of residential real estate.
(E)
"Service provider" means a person that provides services to
another person.
(F)
"Unfair service agreement" means an agreement that is void
and unenforceable under division (B) of section 5301.76 of the
Revised Code.
Sec.
5301.76.
(A)
Subject to division (C) of this section, on and after the effective
date of this section, no service provider shall enter into, amend, or
renew a service agreement with a consumer if both of the following
apply:
(1)
The service subject to the agreement is not to be performed within
one year after the date the parties enter into the agreement.
(2)
The service agreement has any of the following characteristics:
(a)
The service agreement purports to run with the land or to be binding
on future owners of interests in the residential real estate.
(b)
The service agreement allows for assignment of the right to provide
the service subject to the agreement without notice to and consent of
the owner of the residential real estate.
(c)
The service agreement purports to create a lien, encumbrance, or
other security interest in the residential real estate.
(B)
Subject to division (C) of this section, an unfair service agreement
described under division (A) of this section that is entered into,
amended, or renewed on or after the effective date of this section is
void and unenforceable.
(C)
Sections 5301.75 to 5301.78 of the Revised Code do not apply to any
of the following:
(1)
A home warranty or similar product that covers the cost of
maintenance of a major home system for a fixed period;
(2)
An insurance contract;
(3)
An option to purchase or right of refusal;
(4)
A declaration created in the formation of a planned community, as
defined in section 5312.01 of the Revised Code, or a condominium
development, as defined in section 5311.01 of the Revised Code, or
any amendment to such a declaration;
(5)
A maintenance or repair agreement entered by an owners association,
as defined by section 5312.01 of the Revised Code, or a unit owners
association, as defined by section 5311.01 of the Revised Code;
(6)
A mortgage loan or a commitment to make or receive a mortgage loan;
(7)
A security agreement made pursuant to Chapter 1309. or 1310. of the
Revised Code relating to the sale or rental of personal property or
fixtures;
(8)
Water, sewer, electrical, telephone, cable, or other regulated
utility service providers.
(D)
A violation of division (A) of this section is an unfair and
deceptive act or practice in violation of section 1345.02 of the
Revised Code. All powers and remedies available to the attorney
general to enforce sections 1345.01 to 1345.13 of the Revised Code
are available to the attorney general to enforce this section.
(E)
Nothing in this section shall be construed to interfere with any
provision of Chapter 1311. of the Revised Code concerning mechanics'
liens.
Sec.
5301.77.
(A)
No person shall record or cause to be recorded in this state an
unfair service agreement or a notice or memorandum of an unfair
service agreement.
(B)
A county recorder shall not accept for recording an unfair service
agreement or a notice or memorandum of an unfair service agreement.
(C)
If an unfair service agreement or a notice or memorandum of an unfair
service agreement is recorded in violation of this section, it does
not provide actual or constructive notice against an otherwise bona
fide purchaser of the residential real estate or any other individual
or entity that may obtain an interest in the residential real estate.
Sec.
5301.78.
(A)(1)
If an unfair service agreement or a notice or memorandum of an unfair
service agreement is recorded in this state in violation of section
5301.77 of the Revised Code, any party with an interest in the
residential real estate that is the subject of that agreement may
commence a civil action in a court of competent jurisdiction in the
county in which the agreement, notice, or memorandum is recorded.
(2)
If the court determines that the recorded instrument is an unfair
service agreement or a notice or memorandum of an unfair service
agreement, the court shall do both of the following:
(a)
Issue a judgment declaring the service agreement, notice, or
memorandum to be unenforceable;
(b)
Award to any party with an interest in the residential real estate
that is the subject of that agreement all of the following:
(i)
Actual economic damages;
(ii)
Court costs and fees;
(iii)
Reasonable attorney's fees.
(B)
When an unfair service agreement or notice or memorandum of an unfair
service agreement is declared unenforceable by a judgment under
division (A)(2)(a) of this section, any party with an interest in the
residential real estate may obtain a certified copy of the judgment
declaring the service agreement, notice, or memorandum to be
unenforceable and present the certified copy of the judgment to the
county recorder's office for recording within the chain of title to
the property.
Sec.
5301.99.
(A)
Any individual, corporation, or other business entity that violates
section 5301.254 of the Revised Code shall be fined not less than
five thousand dollars nor more than an amount equal to twenty-five
percent of the market value of the real property or mineral or mining
rights about which information must be filed with the secretary of
state pursuant to section 5301.254 of the Revised Code.
(B)
Whoever violates section 5301.61 of the Revised Code is guilty of a
misdemeanor of the first degree.
(C)
Whoever violates division (A) of section 5301.77 of the Revised Code
is guilty of a misdemeanor of the second degree.
Sec.
5719.04.
(A)
Immediately after each settlement required by division (D) of section
321.24 of the Revised Code, the county auditor shall make a tax list
and duplicates thereof of all general personal and classified
property taxes remaining unpaid, as shown by the county treasurer's
books and the list of taxes returned as delinquent by the treasurer
to the auditor at such settlement. The county auditor shall also
include in such list all taxes assessed by the tax commissioner
pursuant to law which were not charged upon the tax lists and
duplicates on which such settlements were made nor previously charged
upon a delinquent tax list and duplicates pursuant to this section,
but the auditor shall not include taxes specifically excepted from
collection pursuant to section 5711.32 of the Revised Code. Such tax
list and duplicates shall contain the name of the person charged
,
the last known address of the person charged,
and the amount of such taxes, and the penalty, due and unpaid, and
shall set forth separately the amount charged or chargeable on the
general and on the classified list and duplicate. The auditor shall
deliver one such duplicate to the treasurer on the first day of
December, annually. Upon receipt of the duplicate the treasurer may
prepare and mail tax bills to all persons charged with such
delinquent taxes. Each bill shall include a notice that the interest
charge prescribed by section 5719.041 of the Revised Code has begun
to accrue.
The
auditor shall cause a copy of the delinquent personal and classified
property tax list and duplicate provided for in this division to be
published twice within sixty days after delivery of such duplicate to
the treasurer in a newspaper of general circulation in the county.
The newspaper shall meet the requirements of section 7.12 of the
Revised Code. The auditor may publish the tax list on a preprinted
insert in the newspaper. The cost of the second publication of the
list shall not exceed three-fourths of the cost of the first
publication of the list.
Before
such publication, the auditor shall cause a display notice of the
forthcoming publication of such delinquent personal and classified
property tax list to be inserted once a week for two consecutive
weeks in a newspaper of general circulation in the county. Copy for
such display notice shall be furnished by the auditor to the
newspaper selected to publish such delinquent tax lists
simultaneously with the delivery of the duplicate to the treasurer.
Publication of the delinquent lists may be made by a newspaper in
installments, provided that complete publication thereof is made
twice during said sixty-day period.
The
office of the county treasurer shall be kept open to receive the
payment of delinquent general and classified property taxes from the
day of delivery of the duplicate thereof until the final publication
of the delinquent tax list. The name of any taxpayer who, prior to
seven days before either the first or second publication of said
list, pays such taxes in full or enters into a delinquent tax
contract to pay such taxes in installments pursuant to section
5719.05 of the Revised Code shall be stricken from such list, and the
taxpayer's name shall not be included in the list for that
publication.
The
other such duplicate, from which shall first be eliminated the names
of persons whose total liability for taxes and penalty is less than
one hundred dollars, shall be filed by the auditor on the first day
of December, annually, in the office of the county recorder, and the
same shall constitute a notice of lien and operate as of the date of
delivery as a lien on the lands and tenements, vested legal interests
therein, and permanent leasehold estates of each person named therein
having such real estate in such county. Such notice of lien and such
lien shall not be valid as against any mortgagee, pledgee, purchaser,
or judgment creditor whose rights have attached prior to the date of
such delivery. Such duplicate shall be kept by the county recorder in
the official records, and indexed under the name of the person
charged with such tax. No fee shall be charged by the county recorder
for the services required under this section.
The
auditor shall add to the tax list made pursuant to this section all
such taxes omitted in a previous year when assessed by the auditor or
finally assessed by the tax commissioner pursuant to law, and by
proper certificates cause the same to be added to the treasurer's
delinquent tax duplicate provided for in this section, and, in proper
cases, file notice of the lien with the recorder, as provided in this
section.
If
the authority making any assessment believes that the collection of
such taxes will be jeopardized by delay, such assessing authority
shall so certify on the assessment certificate thereof, and the
auditor shall include a certificate of such jeopardy in the
certificate given by the auditor to the treasurer. In such event, the
treasurer shall proceed immediately to collect such taxes, and to
enforce the collection thereof by any means provided by law, and the
treasurer may not accept a tender of any part of such taxes; but the
person or the representatives of the person against whom such
assessment is made may, in the event of an appeal to the tax
commissioner therefrom, obtain a stay of collection of the whole or
any part of the amount of such assessment by filing with the
treasurer a bond in an amount not exceeding double the amount as to
which the stay is desired, with such surety as the treasurer deems
necessary, conditioned upon the payment of the amount determined to
be due by the decision of the commissioner which has become final,
and further conditioned that if an appeal is not filed within the
period provided by law, the amount of collection which is stayed by
the bond will be paid on notice and demand of the treasurer at any
time after the expiration of such period. The taxpayer may waive such
stay as to the whole or any part of the amount covered by the bond,
and if as the result of such waiver any part of the amount covered by
the bond is paid, then the bond shall be proportionately reduced on
the request of the taxpayer.
(B)
Immediately after each settlement required by division (D) of section
321.24 of the Revised Code, the auditor shall make a separate list
and duplicate, prepared as prescribed in division (A) of this
section, of all general personal and classified property taxes that
remain unpaid but are excepted from collection pursuant to section
5711.32 of the Revised Code. The duplicate of such list shall be
delivered to the treasurer at the time of delivery of the delinquent
personal and classified property tax duplicate.
Sec.
5739.13.
(A)
If any vendor collects the tax imposed by or pursuant to section
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code, and
fails to remit the tax to the state as prescribed, or on the sale of
a motor vehicle, watercraft, or outboard motor required to be titled,
fails to remit payment to a clerk of a court of common pleas as
provided in section 1548.06 or 4505.06 of the Revised Code, the
vendor shall be personally liable for any tax collected and not
remitted. The tax commissioner may make an assessment against such
vendor based upon any information in the commissioner's possession.
If
any vendor fails to collect the tax or any consumer fails to pay the
tax imposed by or pursuant to section 5739.02, 5739.021, 5739.023, or
5739.026 of the Revised Code, on any transaction subject to the tax,
the vendor or consumer shall be personally liable for the amount of
the tax applicable to the transaction. The commissioner may make an
assessment against either the vendor or consumer, as the facts may
require, based upon any information in the commissioner's possession.
An
assessment against a vendor when the tax imposed by or pursuant to
section 5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code
has not been collected or paid, shall not discharge the purchaser's
or consumer's liability to reimburse the vendor for the tax
applicable to such transaction.
An
assessment issued against either, pursuant to this section, shall not
be considered an election of remedies, nor a bar to an assessment
against the other for the tax applicable to the same transaction,
provided that no assessment shall be issued against any person for
the tax due on a particular transaction if the tax on that
transaction actually has been paid by another.
The
commissioner may make an assessment against any vendor who fails to
file a return or remit the proper amount of tax required by this
chapter, or against any consumer who fails to pay the proper amount
of tax required by this chapter. When information in the possession
of the commissioner indicates that the amount required to be
collected or paid under this chapter is greater than the amount
remitted by the vendor or paid by the consumer, the commissioner may
audit a sample of the vendor's sales or the consumer's purchases for
a representative period, to ascertain the per cent of exempt or
taxable transactions or the effective tax rate and may issue an
assessment based on the audit. The commissioner shall make a good
faith effort to reach agreement with the vendor or consumer in
selecting a representative sample.
The
commissioner may make an assessment, based on any information in the
commissioner's possession, against any person who fails to file a
return or remit the proper amount of tax required by section 5739.102
of the Revised Code.
The
commissioner may issue an assessment on any transaction for which any
tax imposed under this chapter or Chapter 5741. of the Revised Code
was due and unpaid on the date the vendor or consumer was informed by
an agent of the tax commissioner of an investigation or audit. If the
vendor or consumer remits any payment of the tax for the period
covered by the assessment after the vendor or consumer was informed
of the investigation or audit, the payment shall be credited against
the amount of the assessment.
The
commissioner shall give the party assessed written notice of the
assessment in the manner provided in section 5703.37 of the Revised
Code. With the notice, the commissioner shall provide instructions on
how to petition for reassessment and request a hearing on the
petition.
(B)
Unless the party assessed files with the commissioner within sixty
days after service of the notice of assessment a written petition for
reassessment, signed by the party assessed or that party's authorized
agent having knowledge of the facts, the assessment becomes final and
the amount of the assessment is due from the party assessed and
payable to the treasurer of state and remitted to the tax
commissioner. The petition shall indicate the objections of the party
assessed, but additional objections may be raised in writing if
received by the commissioner prior to the date shown on the final
determination. If the petition has been properly filed, the
commissioner shall proceed under section 5703.60 of the Revised Code.
(C)
After an assessment becomes final, if any portion of the assessment
remains unpaid, including accrued interest, a certified copy of the
commissioner's entry making the assessment final may be filed in the
office of the clerk of the court of common pleas in the county in
which the place of business of the party assessed is located or the
county in which the party assessed resides.
Such
filing shall include the party's name and last known address.
If
the party assessed maintains no place of business in this state and
is not a resident of this state, the certified copy of the entry may
be filed in the office of the clerk of the court of common pleas of
Franklin county.
Immediately
upon the filing of the entry, the clerk shall enter a judgment for
the state against the party assessed in the amount shown on the
entry. The judgment may be filed by the clerk in a loose-leaf book
entitled "special judgments for state, county, and transit
authority retail sales tax" or, if appropriate, "special
judgments for resort area excise tax," and shall have the same
effect as other judgments. Execution shall issue upon the judgment
upon the request of the tax commissioner, and all laws applicable to
sales on execution shall apply to sales made under the judgment
except as otherwise provided in this chapter.
If
the assessment is not paid in its entirety within sixty days after
the date the assessment was issued, the portion of the assessment
consisting of tax due shall bear interest at the rate per annum
prescribed by section 5703.47 of the Revised Code from the day the
tax commissioner issues the assessment until the assessment is paid
or until it is certified to the attorney general for collection under
section 131.02 of the Revised Code, whichever comes first. If the
unpaid portion of the assessment is certified to the attorney general
for collection, the entire unpaid portion of the assessment shall
bear interest at the rate per annum prescribed by section 5703.47 of
the Revised Code from the date of certification until the date it is
paid in its entirety. Interest shall be paid in the same manner as
the tax and may be collected by issuing an assessment under this
section.
(D)
All money collected by the tax commissioner under this section shall
be paid to the treasurer of state, and when paid shall be considered
as revenue arising from the taxes imposed by or pursuant to sections
5739.01 to 5739.31 of the Revised Code.
Sec.
5747.13.
(A)
If any employer collects the tax imposed by section 5747.02 or under
Chapter 5748. of the Revised Code and fails to remit the tax as
required by law, or fails to collect the tax, the employer is
personally liable for any amount collected that the employer fails to
remit, or any amount that the employer fails to collect. If any
taxpayer fails to file a return or fails to pay the tax imposed by
section 5747.02 or under Chapter 5748. of the Revised Code, the
taxpayer is personally liable for the amount of the tax.
If
any employer, taxpayer, qualifying entity, or electing pass-through
entity required to file a return under this chapter fails to file the
return within the time prescribed, files an incorrect return, fails
to remit the full amount of the taxes due for the period covered by
the return, or fails to remit any additional tax due as a result of a
reduction in the amount of the credit allowed under division (B) of
section 5747.05 of the Revised Code together with interest on the
additional tax within the time prescribed by that division, the tax
commissioner may make an assessment against any person liable for any
deficiency for the period for which the return is or taxes are due,
based upon any information in the commissioner's possession.
An
assessment issued against either the employer or the taxpayer
pursuant to this section shall not be considered an election of
remedies or a bar to an assessment against the other for failure to
report or pay the same tax. No assessment shall be issued against any
person if the tax actually has been paid by another.
No
assessment shall be made or issued against an employer, a taxpayer, a
qualifying entity, or an electing pass-through entity more than four
years after the final date the return subject to assessment was
required to be filed or the date the return was filed, whichever is
later. However, the commissioner may assess any balance due as the
result of a reduction in the credit allowed under division (B) of
section 5747.05 of the Revised Code, including applicable penalty and
interest, within four years of the date on which the taxpayer reports
a change in either the portion of the taxpayer's adjusted gross
income subjected to an income tax or tax measured by income in
another state or the District of Columbia, or the amount of liability
for an income tax or tax measured by income to another state or the
District of Columbia, as required by division (B)(4) of section
5747.05 of the Revised Code. Such time limits may be extended if both
the employer, taxpayer, qualifying entity, or electing pass-through
entity and the commissioner consent in writing to the extension or if
an agreement waiving or extending the time limits has been entered
into pursuant to section 122.171 of the Revised Code. Any such
extension shall extend the four-year time limit in division (B) of
section 5747.11 of the Revised Code for the same period of time.
There shall be no bar or limit to an assessment against an employer
for taxes withheld from employees and not remitted to the state,
against an employer, a taxpayer, a qualifying entity, or an electing
pass-through entity that fails to file a return subject to assessment
as required by this chapter, or against an employer, a taxpayer, a
qualifying entity, or an electing pass-through entity that files a
fraudulent return.
The
commissioner shall give the party assessed written notice of the
assessment in the manner provided in section 5703.37 of the Revised
Code. With the notice, the commissioner shall provide instructions on
how to petition for reassessment and request a hearing on the
petition.
(B)
Unless the party assessed files with the tax commissioner within
sixty days after service of the notice of assessment a written
petition for reassessment, signed by the party assessed or that
party's authorized agent having knowledge of the facts, the
assessment becomes final, and the amount of the assessment is due and
payable from the party assessed to the commissioner with remittance
made payable to the treasurer of state. The petition shall indicate
the objections of the party assessed, but additional objections may
be raised in writing if received by the commissioner prior to the
date shown on the final determination. If the petition has been
properly filed, the commissioner shall proceed under section 5703.60
of the Revised Code.
(C)
After an assessment becomes final, if any portion of the assessment
remains unpaid, including accrued interest, a certified copy of the
tax commissioner's entry making the assessment final may be filed in
the office of the clerk of the court of common pleas in the county in
which the employer's, taxpayer's, qualifying entity's, or electing
pass-through entity's place of business is located or the county in
which the party assessed resides.
Such
filing shall include the party's name and last known address.
If
the party assessed is not a resident of this state, the certified
copy of the entry may be filed in the office of the clerk of the
court of common pleas of Franklin county.
Immediately
upon the filing of the entry, the clerk shall enter a judgment
against the party assessed in the amount shown on the entry. The
judgment shall be filed by the clerk in one of two loose-leaf books,
one entitled "special judgments for state and school district
income taxes," and the other entitled "special judgments
for qualifying entity and electing pass-through entity taxes."
The judgment shall have the same effect as other judgments. Execution
shall issue upon the judgment upon the request of the tax
commissioner, and all laws applicable to sales on execution shall
apply to sales made under the judgment.
If
the assessment is not paid in its entirety within sixty days after
the assessment was issued, the portion of the assessment consisting
of tax due shall bear interest at the rate per annum prescribed by
section 5703.47 of the Revised Code from the day the tax commissioner
issues the assessment until it is paid or until it is certified to
the attorney general for collection under section 131.02 of the
Revised Code, whichever comes first. If the unpaid portion of the
assessment is certified to the attorney general for collection, the
entire unpaid portion of the assessment shall bear interest at the
rate per annum prescribed by section 5703.47 of the Revised Code from
the date of certification until the date it is paid in its entirety.
Interest shall be paid in the same manner as the tax and may be
collected by the issuance of an assessment under this section.
(D)
All money collected under this section shall be considered as revenue
arising from the taxes imposed by this chapter or Chapter 5733. or
5748. of the Revised Code, as appropriate.
(E)
If the party assessed files a petition for reassessment under
division (B) of this section, the person, on or before the last day
the petition may be filed, shall pay the assessed amount, including
assessed interest and assessed penalties, if any of the following
conditions exists:
(1)
The person files a tax return reporting Ohio adjusted gross income,
less the exemptions allowed by section 5747.025 of the Revised Code,
in an amount less than one cent, and the reported amount is not based
on the computations required under division (A) of section 5747.01 or
section 5747.025 of the Revised Code.
(2)
The person files a tax return that the tax commissioner determines to
be incomplete, false, fraudulent, or frivolous.
(3)
The person fails to file a tax return, and the basis for this failure
is not either of the following:
(a)
An assertion that the person has no nexus with this state;
(b)
The computations required under division (A) of section 5747.01 of
the Revised Code or the application of credits allowed under this
chapter has the result that the person's tax liability is less than
one dollar and one cent.
(F)
Notwithstanding the fact that a petition for reassessment is pending,
the petitioner may pay all or a portion of the assessment that is the
subject of the petition. The acceptance of a payment by the treasurer
of state does not prejudice any claim for refund upon final
determination of the petition.
If
upon final determination of the petition an error in the assessment
is corrected by the tax commissioner, upon petition so filed or
pursuant to a decision of the board of tax appeals or any court to
which the determination or decision has been appealed, so that the
amount due from the party assessed under the corrected assessment is
less than the portion paid, there shall be issued to the petitioner
or to the petitioner's assigns or legal representative a refund in
the amount of the overpayment as provided by section 5747.11 of the
Revised Code, with interest on that amount as provided by such
section, subject to section 5747.12 of the Revised Code.
Sec.
5749.07.
(A)
If any severer required by this chapter to make and file returns and
pay the tax levied by section 5749.02 of the Revised Code, or any
severer or owner liable for the amounts due under section 1509.50 of
the Revised Code, fails to make such return or pay such tax or
amounts, the tax commissioner may make an assessment against the
severer or owner based upon any information in the commissioner's
possession.
No
assessment shall be made or issued against any severer for any tax
imposed by section 5749.02 of the Revised Code or against any severer
or owner for any amount due under section 1509.50 of the Revised Code
more than four years after the return was due or was filed, whichever
is later. This section does not bar an assessment against a severer
or owner who fails to file a return as required by this chapter, or
who files a fraudulent return.
The
commissioner shall give the party assessed written notice of such
assessment in the manner provided in section 5703.37 of the Revised
Code. With the notice, the commissioner shall provide instructions on
how to petition for reassessment and request a hearing on the
petition.
(B)
Unless the party assessed files with the commissioner within sixty
days after service of the notice of assessment a written petition for
reassessment signed by the party assessed or that party's authorized
agent having knowledge of the facts, the assessment becomes final and
the amount of the assessment is due and payable from the party
assessed to the treasurer of state. The petition shall indicate the
objections of the party assessed, but additional objections may be
raised in writing if received by the commissioner prior to the date
shown on the final determination. If the petition has been properly
filed, the commissioner shall proceed under section 5703.60 of the
Revised Code.
(C)
After an assessment becomes final, if any portion of the assessment
remains unpaid, including accrued interest, a certified copy of the
commissioner's entry making the assessment final may be filed in the
office of the clerk of the court of common pleas in the county in
which the party assessed resides or in which the party's business is
conducted.
Such
filing shall include the debtor's name and last known address.
If
the party assessed maintains no place of business in this state and
is not a resident of this state, the certified copy of the entry may
be filed in the office of the clerk of the court of common pleas of
Franklin county.
Immediately
upon the filing of such entry, the clerk shall enter a judgment for
the state against the party assessed in the amount shown on the
entry. The judgment may be filed by the clerk in a loose-leaf book
entitled "special judgments for state severance tax," and
shall have the same effect as other judgments. Execution shall issue
upon the judgment upon the request of the commissioner, and all laws
applicable to sales on execution shall apply to sales made under the
judgment.
If
the assessment is not paid in its entirety within sixty days after
the day the assessment is issued, the portion of the assessment
consisting of tax due or amounts due under section 1509.50 of the
Revised Code shall bear interest at the rate per annum prescribed by
section 5703.47 of the Revised Code from the day the commissioner
issues the assessment until it is paid or until it is certified to
the attorney general for collection under section 131.02 of the
Revised Code, whichever comes first. If the unpaid portion of the
assessment is certified to the attorney general for collection, the
entire unpaid portion of the assessment shall bear interest at the
rate per annum prescribed by section 5703.47 of the Revised Code from
the date of certification until the date it is paid in its entirety.
Interest shall be paid in the same manner as the tax and may be
collected by the issuance of an assessment under this section.
(D)
All money collected by the commissioner under this section shall be
paid to the treasurer of state, and when paid shall be considered as
revenue arising from the tax imposed by section 5749.02 of the
Revised Code and the amount due under section 1509.50 of the Revised
Code, as applicable.
Section
2.
That
existing sections
317.08,
3123.67,
4123.78, 4141.23, 5301.071, 5301.255
,
5301.99
,
5719.04, 5739.13, 5747.13, and 5749.07 of the Revised Code are hereby
repealed.
Speaker
___________________ of the House of Representatives.
President
___________________ of the Senate.
Passed
________________________, 20____
Approved
________________________, 20____
Governor.
The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.
Director, Legislative
Service Commission.
Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.
Secretary of State.
File
No. _________ Effective Date ___________________