HB 493

As Introduced
136th General Assembly
   Regular Session  H. B. No. 493
       2025-2026
  Representatives Thomas, D., Troy
Cosponsors: Representatives Brennan, Brewer, Daniels, Glassburn, Gross, Hall,
  T., King, Lett
  To amend sections 5721.32, 5721.33, and 5721.42 of  1
  the Revised Code to sunset the sale of  2
  delinquent property tax certificates on January  3
  1, 2027.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 5721.32, 5721.33, and 5721.42 of  5
the Revised Code be amended to read as follows:  6
     Sec. 5721.32. (A) The sale of tax certificates by public  7
auction may be conducted at any time after completion of the  8
advertising of the sale under section 5721.31 of the Revised  9
Code, on the date and at the time and place designated in the  10
advertisements, and may be continued from time to time as the  11
county treasurer directs. The But, in no case shall the sale of  12
tax certificates by public auction be conducted on or after  13
January 1, 2027.  14
     The county treasurer may offer the tax certificates for  15
sale in blocks of tax certificates, consisting of any number of  16
tax certificates as determined by the county treasurer, and may  17
specify a certificate period of not less than three years and  18
not more than six years.  19
H. B. No. 493  Page 2
As Introduced
       (B)(1) All sales or transfers of tax certificates under  20
this section shall be complete, in all respects, on or before  21
December 31, 2026. No payment shall be required or accepted  22
under division (D)(1) of this section and no transfer of  23
certificates shall occur under division (E) of this section  24
after December 31, 2026. Any certificates sold or transferred  25
under this section after that date are void.  26
       (2) The sale of tax certificates under this section shall  27
be conducted at a public auction by the county treasurer or a  28
designee of the county treasurer.  29
       (2)(3) No person shall be permitted to bid without  30
completing a bidder registration form, in the form prescribed by  31
the tax commissioner, and without filing the form with the  32
county treasurer prior to the start of the auction, together  33
with remittance of a registration fee, in cash, of five hundred  34
dollars. The bidder registration form shall include a tax  35
identification number of the registrant. The registration fee is  36
refundable at the end of bidding on the day of the auction,  37
unless the registrant is the winning bidder for one or more tax  38
certificates or one or more blocks of tax certificates, in which  39
case the fee may be applied toward the deposit required by this  40
section.  41
       (3)(4) The county treasurer may require a person who  42
wishes to bid on one or more parcels to submit a letter from a  43
financial institution stating that the bidder has sufficient  44
funds available to pay the purchase price of the parcels and a  45
written authorization for the treasurer to verify such  46
information with the financial institution. The county treasurer  47
may require submission of the letter and authorization  48
sufficiently in advance of the auction to allow for  49
H. B. No. 493  Page 3
As Introduced
verification. No person who fails to submit the required letter  50
and authorization, or whose financial institution fails to  51
provide the requested verification, shall be permitted to bid.  52
       (C) At the public auction, the county treasurer or the  53
treasurer's designee or agent shall begin the bidding at  54
eighteen per cent per year simple interest, and accept lower  55
bids in even increments of one-fourth of one per cent to the  56
rate of zero per cent. The county treasurer, designee, or agent  57
shall award the tax certificate to the person bidding the lowest  58
certificate rate of interest. The county treasurer shall decide  59
which person is the winning bidder in the event of a tie for the  60
lowest bid offered, or if a person contests the lowest bid  61
offered. The county treasurer's decision is not appealable.  62
       (D)(1) The winning bidder shall pay the county treasurer a  63
cash deposit of at least ten per cent of the certificate  64
purchase price not later than the close of business on the day  65
of the sale. The winning bidder shall pay the balance and the  66
fee required under division (H) of this section not later than  67
five business days after the day on which the certificate is  68
sold. Except as provided under division (D)(2) of this section,  69
if the winning bidder fails to pay the balance and fee within  70
the prescribed time, the bidder forfeits the deposit, and the  71
county treasurer shall retain the tax certificate and may  72
attempt to sell it at any auction conducted at a later date.  73
       (2) At the request of a winning bidder, the county  74
treasurer may release the bidder from the bidder's tax  75
certificate purchase obligation. The county treasurer may retain  76
all or any portion of the deposit of a bidder granted a release.  77
After granting a release under this division, the county  78
treasurer may award the tax certificate to the person that  79
H. B. No. 493  Page 4
As Introduced
submitted the second lowest bid at the auction.  80
       (3) The county treasurer shall deposit the deposit  81
forfeited or retained under division (D)(1) or (2) of this  82
section in the county treasury to the credit of the tax  83
certificate administration fund.  84
       (E) Upon receipt of the full payment of the certificate  85
purchase price from the purchaser, the county treasurer shall  86
issue the tax certificate and record the tax certificate sale by  87
entering into a tax certificate register the certificate  88
purchase price, the certificate rate of interest, the date the  89
certificate was sold, the certificate period, the name and  90
address of the certificate holder, and any other information the  91
county treasurer considers necessary. The county treasurer may  92
keep the tax certificate register in a hard-copy format or in an  93
electronic format. The name and address of the certificate  94
holder may be, upon receipt of instructions from the purchaser,  95
that of the secured party of the actual purchaser, or an agent  96
or custodian for the purchaser or secured party. The county  97
treasurer also shall transfer the tax certificate to the  98
certificate holder. The county treasurer shall apportion the  99
part of the proceeds from the sale representing taxes,  100
penalties, and interest among the several taxing districts in  101
the same proportion that the amount of taxes levied by each  102
district against the certificate parcel in the preceding tax  103
year bears to the taxes levied by all such districts against the  104
certificate parcel in the preceding tax year, and credit the  105
part of the proceeds representing assessments and other charges  106
to the items of assessments and charges in the order in which  107
those items became due. Upon issuing a tax certificate, the  108
delinquent taxes that make up the certificate purchase price are  109
transferred, and the superior lien of the state and its taxing  110
H. B. No. 493  Page 5
As Introduced
districts for those delinquent taxes is conveyed intact to the  111
certificate holder.  112
        (F) If a tax certificate is offered for sale under this  113
section but is not sold, the county treasurer may sell the  114
certificate in a negotiated sale authorized under section  115
5721.33 of the Revised Code, or may strike the corresponding  116
certificate parcel from the list of parcels selected for tax  117
certificate sales. The lien for taxes, assessments, charges,  118
penalties, and interest against a parcel stricken from the list  119
thereafter may be foreclosed in the manner prescribed by section  120
323.25, sections 323.65 to 323.79, or section 5721.14 or 5721.18  121
of the Revised Code unless, prior to the institution of such  122
proceedings against the parcel, the county treasurer restores  123
the parcel to the list of parcels selected for tax certificate  124
sales.  125
        (G) A certificate holder shall not be liable for damages  126
arising from a violation of sections 3737.87 to 3737.891 3737.89  127
or Chapter 3704., 3734., 3745., 3746., 3750., 3751., 3752.,  128
6109., or 6111. of the Revised Code, or a rule adopted or order,  129
permit, license, variance, or plan approval issued under any of  130
those chapters, that is or was committed by another person in  131
connection with the parcel for which the tax certificate is  132
held.  133
        (H) When selling a tax certificate under this section, the  134
county treasurer shall charge a fee to the purchaser of the  135
certificate. The county treasurer shall set the fee at a  136
reasonable amount that covers the treasurer's costs of  137
administering the sale of the tax certificate. The county  138
treasurer shall deposit the fee in the county treasury to the  139
credit of the tax certificate administration fund.  140
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As Introduced
       (I) After selling a tax certificate under this section,  141
the county treasurer shall send written notice to the owner of  142
the certificate parcel by certified mail or, if the treasurer  143
has record of an internet identifier of record associated with  144
the owner, by ordinary mail and by that internet identifier of  145
record. A mailed notice shall be sent to the owner's last known  146
tax-mailing address. The notice shall inform the owner that the  147
tax certificate was sold, shall describe the owner's options to  148
redeem the parcel, including entering into a redemption payment  149
plan under division (C)(1) of section 5721.38 of the Revised  150
Code, and shall name the certificate holder and its secured  151
party, if any. However, the county treasurer is not required to  152
send a notice under this division if the treasurer previously  153
has attempted to send a notice to the owner of the parcel at the  154
owner's last known tax-mailing address, and the postal service  155
has returned the notice as undeliverable.  156
       (J) A tax certificate shall not be sold to the owner of  157
the certificate parcel.  158
       Sec. 5721.33. (A) A county treasurer may, on or before  159
December 31, 2026, in the treasurer's discretion, negotiate the  160
sale or transfer of any number of tax certificates with one or  161
more persons, including a county land reutilization corporation.  162
Terms that may be negotiated include, without limitation, any of  163
the following:  164
       (1) A premium to be added to or discount to be subtracted  165
from the certificate purchase price for the tax certificates;  166
       (2) Different time frames under which the certificate  167
holder may initiate a foreclosure action than are otherwise  168
allowed under sections 5721.30 to 5721.43 of the Revised Code,  169
not to exceed six years after the date the tax certificate was  170
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As Introduced
sold or transferred;  171
       (3) The amount to be paid in private attorney's fees  172
related to tax certificate foreclosures, subject to section  173
5721.371 of the Revised Code;  174
       (4) Any other terms of the sale or transfer that the  175
county treasurer, in the treasurer's discretion, determines  176
appropriate or necessary for the sale or transfer.  177
       (B)(B)(1) The sale or transfer of tax certificates under  178
this section shall be governed by the criteria established by  179
the county treasurer pursuant to division (E) of this section.  180
       (2) All sales or transfers of tax certificates under this  181
section shall be complete, in all respects, on or before  182
December 31, 2026. No payment shall be required or accepted  183
under division (F) of this section and no transfer of  184
certificates shall occur under division (G) of this section  185
after December 31, 2026. Any certificates sold or transferred  186
under this section after that date are void.  187
       (C) The county treasurer may execute a tax certificate  188
sale/purchase agreement and other necessary agreements with a  189
designated purchaser or purchasers to complete a negotiated sale  190
or transfer of tax certificates.  191
       (D) The tax certificate may be sold at a premium to or  192
discount from the certificate purchase price. The county  193
treasurer may establish as one of the terms of the negotiated  194
sale the portion of the certificate purchase price, plus any  195
applicable premium or less any applicable discount, that the  196
purchaser or purchasers shall pay in cash on the date the tax  197
certificates are sold and the portion, if any, of the  198
certificate purchase price, plus any applicable premium or less  199
H. B. No. 493  Page 8
As Introduced
any applicable discount, that the purchaser or purchasers shall  200
pay in noncash consideration and the nature of that  201
consideration.  202
       The county treasurer shall sell such tax certificates at a  203
certificate purchase price, plus any applicable premium and less  204
any applicable discount, and at a certificate rate of interest  205
that, in the treasurer's determination, are in the best  206
interests of the county.  207
       (E)(1) The county treasurer shall adopt rules governing  208
the eligibility of persons to purchase tax certificates or to  209
otherwise participate in a negotiated sale under this section.  210
The rules may provide for precertification of such persons,  211
including a requirement for disclosure of income, assets, and  212
any other financial information the county treasurer determines  213
appropriate. The rules also may prohibit any person that is  214
delinquent in the payment of any tax to the county or to the  215
state, or that is in default in or on any other obligation to  216
the county or to the state, from purchasing a tax certificate or  217
otherwise participating in a negotiated sale of tax certificates  218
under this section. The rules may also authorize the purchase of  219
certificates by a county land reutilization corporation, and  220
authorize the county treasurer to receive notes in lieu of cash,  221
with such notes being payable to the treasurer upon the receipt  222
or enforcement of such taxes, assessments, charges, costs,  223
penalties, and interest, and as otherwise further agreed between  224
the corporation and the treasurer. The eligibility information  225
required shall include the tax identification number of the  226
purchaser and may include the tax identification number of the  227
participant. The county treasurer, upon request, shall provide a  228
copy of the rules adopted under this section.  229
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As Introduced
       (2) Any person that intends to purchase a tax certificate  230
in a negotiated sale shall submit an affidavit to the county  231
treasurer that establishes compliance with the applicable  232
eligibility criteria and includes any other information required  233
by the treasurer. Any person that fails to submit such an  234
affidavit is ineligible to purchase a tax certificate. Any  235
person that knowingly submits a false or misleading affidavit  236
shall forfeit any tax certificate or certificates purchased by  237
the person at a sale for which the affidavit was submitted,  238
shall be liable for payment of the full certificate purchase  239
price, plus any applicable premium and less any applicable  240
discount, of the tax certificate or certificates, and shall be  241
disqualified from participating in any tax certificate sale  242
conducted in the county during the next five years.  243
       (3) A tax certificate shall not be sold to the owner of  244
the certificate parcel or to any corporation, partnership, or  245
association in which such owner has an interest. No person that  246
purchases a tax certificate in a negotiated sale shall assign or  247
transfer the tax certificate to the owner of the certificate  248
parcel or to any corporation, partnership, or association in  249
which the owner has an interest. Any person that knowingly or  250
negligently transfers or assigns a tax certificate to the owner  251
of the certificate parcel or to any corporation, partnership, or  252
association in which such owner has an interest shall be liable  253
for payment of the full certificate purchase price, plus any  254
applicable premium and less any applicable discount, and shall  255
not be entitled to a refund of any amount paid. Such tax  256
certificate shall be deemed void and the tax lien sold under the  257
tax certificate shall revert to the county as if no sale of the  258
tax certificate had occurred.  259
       (F) The purchaser in a negotiated sale under this section  260
H. B. No. 493  Page 10
As Introduced
shall deliver the certificate purchase price or other  261
consideration, plus any applicable premium and less any  262
applicable discount and including any noncash consideration, to  263
the county treasurer not later than the close of business on the  264
date the tax certificates are delivered to the purchaser. The  265
certificate purchase price, less any applicable discount, or  266
portion of the price, that is paid in cash shall be deposited in  267
the county's general fund to the credit of the account to which  268
ad valorem real property taxes are credited and further credited  269
as provided in division (G) of this section. Any applicable  270
premium that is paid shall be, at the discretion of the county  271
treasurer, apportioned to and deposited in any authorized county  272
fund. The purchaser also shall pay on the date the tax  273
certificates are delivered to the purchaser the fee, if any,  274
negotiated under division (J) of this section. If the purchaser  275
fails to pay the certificate purchase price, plus any applicable  276
premium and less any applicable discount, and any such fee,  277
within the time periods required by this section, the county  278
treasurer shall retain the tax certificate and may attempt to  279
sell it at any auction or negotiated sale conducted at a later  280
date.  281
        (G) Upon receipt of the full payment from the purchaser of  282
the certificate purchase price or other agreed-upon  283
consideration, plus any applicable premium and less any  284
applicable discount, and the negotiated fee, if any, the county  285
treasurer, or a qualified trustee whom the treasurer has engaged  286
for such purpose, shall issue the tax certificate and record the  287
tax certificate sale by entering into a tax certificate register  288
the certificate purchase price, any premium paid or discount  289
taken, the certificate rate of interest, the date the  290
certificates were sold, the name and address of the certificate  291
H. B. No. 493  Page 11
As Introduced
holder or, in the case of issuance of the tax certificates in a  292
book-entry system, the name and address of the nominee, and any  293
other information the county treasurer considers necessary. The  294
county treasurer may keep the tax certificate register in a  295
hard-copy format or an electronic format. The name and address  296
of the certificate holder or nominee may be, upon receipt of  297
instructions from the purchaser, that of the secured party of  298
the actual purchaser, or an agent or custodian for the purchaser  299
or secured party. The county treasurer also shall transfer the  300
tax certificates to the certificate holder. The county treasurer  301
shall apportion the part of the cash proceeds from the sale  302
representing taxes, penalties, and interest among the several  303
taxing districts in the same proportion that the amount of taxes  304
levied by each district against the certificate parcels in the  305
preceding tax year bears to the taxes levied by all such  306
districts against the certificate parcels in the preceding tax  307
year, and credit the part of the proceeds representing  308
assessments and other charges to the items of assessments and  309
charges in the order in which those items became due. If the  310
cash proceeds from the sale are not sufficient to fully satisfy  311
the items of taxes, assessments, penalties, interest, and  312
charges on the certificate parcels against which tax  313
certificates were sold, the county treasurer shall credit the  314
cash proceeds to such items pro rata based upon the proportion  315
that each item of taxes, assessments, penalties, interest, and  316
charges bears to the aggregate of all such items, or by any  317
other method that the county treasurer, in the treasurer's sole  318
discretion, determines is equitable. Upon issuing the tax  319
certificates, the delinquent taxes that make up the certificate  320
purchase price are transferred, and the superior lien of the  321
state and its taxing districts for those delinquent taxes is  322
conveyed intact to the certificate holder or holders.  323
H. B. No. 493  Page 12
As Introduced
       (H) If a tax certificate is offered for sale under this  324
section but is not sold, the county treasurer may strike the  325
corresponding certificate parcel from the list of parcels  326
selected for tax certificate sales. The lien for taxes,  327
assessments, charges, penalties, and interest against a parcel  328
stricken from the list thereafter may be foreclosed in the  329
manner prescribed by section 323.25, 5721.14, or 5721.18 of the  330
Revised Code unless, prior to the institution of such  331
proceedings against the parcel, the county treasurer restores  332
the parcel to the list of parcels selected for tax certificate  333
sales.  334
       (I) Neither a certificate holder nor its secured party, if  335
any, shall be liable for damages arising from a violation of  336
sections 3737.87 to 3737.891 3737.89 or Chapter 3704., 3734.,  337
3745., 3746., 3750., 3751., 3752., 6109., or 6111. of the  338
Revised Code, or a rule adopted or order, permit, license,  339
variance, or plan approval issued under any of those chapters,  340
that is or was committed by another person in connection with  341
the parcel for which the tax certificate is held.  342
       (J) When selling or transferring a tax certificate under  343
this section, the county treasurer may negotiate with the  344
purchaser of the certificate for fees paid by the purchaser to  345
the county treasurer to reimburse the treasurer for any part or  346
all of the treasurer's costs of preparing for and administering  347
the sale of the tax certificate and any fees set forth by the  348
county treasurer in the tax certificate sale/purchase agreement.  349
Such fees, if any, shall be added to the certificate purchase  350
price and shall be paid by the purchaser on the date of delivery  351
of the tax certificate. The county treasurer shall deposit the  352
fees in the county treasury to the credit of the tax certificate  353
administration fund.  354
H. B. No. 493  Page 13
As Introduced
       (K) After selling tax certificates under this section, the  355
county treasurer shall send written notice to the owner of the  356
certificate parcel by either certified mail or, if the treasurer  357
has record of an internet identifier of record associated with  358
the owner, by ordinary mail and by that internet identifier of  359
record. A mailed notice shall be sent to the owner's last known  360
tax-mailing address. The notice shall inform the owner that a  361
tax certificate with respect to such owner's parcel was sold or  362
transferred and shall describe the owner's options to redeem the  363
parcel, including entering into a redemption payment plan under  364
division (C)(2) of section 5721.38 of the Revised Code. However,  365
the county treasurer is not required to send a notice under this  366
division if the treasurer previously has attempted to send a  367
notice to the owner of the parcel at the owner's last known tax-  368
mailing address and the postal service has returned the notice  369
as undeliverable.  370
       Sec. 5721.42. After the settlement required under division  371
(C) of section 321.24 of the Revised Code, the county treasurer  372
shall notify the certificate holder of the most recently issued  373
tax certificate, by ordinary first class or certified mail or by  374
binary means, that the certificate holder may purchase a  375
subsequent tax certificate by paying all delinquent taxes on the  376
related certificate parcel the lien against which has not been  377
transferred by the sale of a tax certificate. During the thirty  378
days after receiving the notice, the certificate holder  379
possesses the exclusive right to purchase the subsequent tax  380
certificate by paying those amounts to the county treasurer. The  381
amount of the payment shall constitute a separate lien against  382
the certificate parcel that shall be evidenced by the issuance  383
by the treasurer to the certificate holder of an additional tax  384
certificate with respect to the delinquent taxes so paid on the  385
H. B. No. 493  Page 14
As Introduced
related certificate parcel. The amount of the payment as set  386
forth in the tax certificate shall earn interest at the rate of  387
eighteen per cent per year. The certificate period of each  388
subsequent tax certificate shall terminate on the expiration  389
date of the certificate period of the most recent tax  390
certificate for the same certificate parcel.  391
       No tax certificate shall be sold under this section on or  392
after January 1, 2027.  393
       Section 2. That existing sections 5721.32, 5721.33, and  394
5721.42 of the Revised Code are hereby repealed.  395