SB 101

(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
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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,
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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
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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
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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
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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
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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
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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.
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  (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
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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
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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.
Sub. S. B. No. 101  136th G.A.
  12
        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
Sub. S. B. No. 101  136th G.A.
  13
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.
Sub. S. B. No. 101  136th G.A.
  14
  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
Sub. S. B. No. 101  136th G.A.
  15
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
Sub. S. B. No. 101  136th G.A.
  16
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
Sub. S. B. No. 101  136th G.A.
  17
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.
Sub. S. B. No. 101  136th G.A.
      Speaker ___________________ of the House of Representatives.
  President ___________________ of the Senate.
Passed ________________________, 20____
Approved ________________________, 20____
  Governor.
Sub. S. B. No. 101  136th G.A.
  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 ___________________