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R-132-0940

OHIO LEGISLATIVE SERVICE COMMISSION


Bill Analysis Mackenzie Damon

L-132-0940
132nd General Assembly

BILL SUMMARY
 Applies the real property transfer tax to the transfer of any ownership interest in a
pass-through entity that, directly or indirectly, owns real property.

CONTENT AND OPERATION


Real estate transfer tax: application to pass-through entity interests

Continuing law imposes a real property transfer tax on the transfer of any real
property located within the state. The tax is paid by the person who transfers the real
estate and consists of two parts: (1) a statewide, mandatory tax of 1 mill ($1 per $1,000
of the value of the transferred property), which applies in every county, and (2) a
permissive county tax of up to 3 mills.1 Currently, all but one county in Ohio levies a
permissive tax, with rates ranging between 1 mill and 3 mills.2 For almost all transfers,
all the revenue from the statewide and permissive taxes is credited to the general fund
of the county where the property is located.

The bill extends the tax to apply to certain kinds of transfers that currently avoid
taxation. Current law contemplates only a direct conveyance of real property between
two parties, e.g., Seller A and Buyer B. But real property may also be conveyed through
the transfer of ownership of an intermediate entity that itself holds title to the property,
as illustrated by this example:

1
The tax also applies to the transfer of used manufactured and mobile homes. R.C. 319.202, R.C. 319.54,
and R.C. Chapter 322.
2 The only county that does not levy a permissive transfer tax is Ross County. "Survey of Locally
Administered Taxes," FY 2016, Ohio Department of Taxation, available at
http://www.tax.ohio.gov/Portals/0/communications/publications/annual_reports/2016AnnualReport/2016
AnnualReport.pdf#page=148.
Seller A creates Realty LLC, and transfers property to Realty LLC. There is no tax
because Seller A owns Realty LLC, so there is no change of ownership in the
property. Then, Seller A sells its ownership stake in Realty LLC to Buyer B. There
is still no tax, because it is the ownership shares in Realty LLC – not the property
itself – that is being transferred. Now, Buyer B constructively owns the property,
and no tax was applied to the transfer.

The bill applies the transfer taxes to such a transaction and to any transfer of an
ownership interest in a pass-through entity--i.e., a limited liability company (LLC),
partnership, or S corporation--that owns real estate, either directly or indirectly. For
such transfers, the tax is based on (1) the percentage of ownership interest transferred
and (2) the value of the property transferred. Following the example above:

Assume that Seller A sells 60% of its ownership stake in Realty LLC to Buyer B,
and that the property owned by Realty LLC is valued at $100,000. The
mandatory 1-mill state tax will equal $60 (60% of $100,000 = $60,000 * 1 mill =
$60). In a county levying a 2-mill permissive tax, an additional $120 would be
charged.

The tax also applies to transfers of pass-through entities that own property
indirectly, i.e., through another pass-entity:

Assume that Seller A owns 100% of Realty LLC, which itself owns 50% of
Building LLC. Building LLC owns property that is valued at $100,000. Seller A
transfers 75% of its ownership stake in Realty LLC (and, therefore, 75% of its 50%
ownership stake in Building LLC) to Buyer B. The mandatory state tax will equal
$37.50 (75% * (50% of $100,000) = $37,500 * 1 mill = $37.50). A 2-mill county
permissive tax would add $75.3

Application of existing exemptions

Under continuing law, there are several exemptions to the real estate transfer tax.
For example, a transfer is exempt if it involves the U.S. government, two spouses, a
nonprofit agency, certain types of leases, or no consideration. The bill applies all of
these existing exemptions to the expanded tax, so that the transfer of an ownership
interest in a pass-through entity that owns real estate will not trigger the tax if it would
otherwise be exempt as a direct conveyance.4
R0940-132.docx/emr

3 R.C. 319.202, 319.54(G)(4), 322.02, and 322.07.


4
R.C. 319.54(G)(3) and (4).

Legislative Service Commission -2- R-132-0940


l_132_1113

132nd General Assembly


Regular Session . B. No.
2017-2018

A BILL
To amend sections 319.202, 319.54, 322.01, 322.02, 1
and 322.07 of the Revised Code to apply the real 2
estate transfer tax to transfers of ownership 3
interests in pass-through entities that, 4
directly or indirectly, own real estate. 5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 319.202, 319.54, 322.01, 322.02, 6


and 322.07 of the Revised Code be amended to read as follows: 7

Sec. 319.202. (A) Before the county auditor indorses any 8


real property conveyance or manufactured or mobile home 9
conveyance presented to the auditor pursuant to section 319.20 10
of the Revised Code or registers any manufactured or mobile home 11
conveyance pursuant to section 4503.061 of the Revised Code, the 12
grantee or the grantee's representative shall submit in 13
triplicate a statement, prescribed by the tax commissioner, and 14
other information as the county auditor may require, declaring 15
the value of real property or manufactured or mobile home 16
conveyed, except that when the transfer is exempt under division 17
(G)(3) of section 319.54 of the Revised Code only a statement of 18

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the reason for the exemption shall be required. Each statement 19


submitted under this section shall contain the information 20
required under divisions (A)(1) and (B) (2) of this section. 21

(A) (1) Each statement submitted under this section shall 22


either: 23

(1) (a) Contain an affirmation by the grantee that the 24


grantor has been asked by the grantee or the grantee's 25
representative whether to the best of the grantor's knowledge 26
either the preceding or the current year's taxes on the real 27
property or the current or following year's taxes on the 28
manufactured or mobile home conveyed will be reduced under 29
division (A) of section 323.152 or under section 4503.065 of the 30
Revised Code and that the grantor indicated that to the best of 31
the grantor's knowledge the taxes will not be so reduced; or 32

(2) (b) Be accompanied by a sworn or affirmed instrument 33


stating: 34

(a) (i) To the best of the grantor's knowledge the real 35


property or the manufactured or mobile home that is the subject 36
of the conveyance is eligible for and will receive a reduction 37
in taxes for or payable in the current year under division (A) 38
of section 323.152 or under section 4503.065 of the Revised Code 39
and that the reduction or reductions will be reflected in the 40
grantee's taxes; 41

(b) (ii) The estimated amount of such reductions that will 42


be reflected in the grantee's taxes; 43

(c) (iii) That the grantor and the grantee have considered 44
and accounted for the total estimated amount of such reductions 45
to the satisfaction of both the grantee and the grantor. The 46
auditor shall indorse the instrument, return it to the grantee 47
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or the grantee's representative, and provide a copy of the 48


indorsed instrument to the grantor or the grantor's 49
representative. 50

(B) (2) Each statement submitted under this section shall 51


either: 52

(1) (a) Contain an affirmation by the grantee that the 53


grantor has been asked by the grantee or the grantee's 54
representative whether to the best of the grantor's knowledge 55
the real property conveyed qualified for the current 56
agricultural use valuation under section 5713.30 of the Revised 57
Code either for the preceding or the current year and that the 58
grantor indicated that to the best of the grantor's knowledge 59
the property conveyed was not so qualified; or 60

(2) (b) Be accompanied by a sworn or affirmed instrument 61


stating: 62

(a) (i) To the best of the grantor's knowledge the real 63


property conveyed was qualified for the current agricultural use 64
valuation under section 5713.30 of the Revised Code either for 65
the preceding or the current year; 66

(b) (ii) To the extent that the property will not continue 67
to qualify for the current agricultural use valuation either for 68
the current or the succeeding year, that the property will be 69
subject to a recoupment charge equal to the tax savings in 70
accordance with section 5713.34 of the Revised Code; 71

(c) (iii) That the grantor and the grantee have considered 72
and accounted for the total estimated amount of such recoupment, 73
if any, to the satisfaction of both the grantee and the grantor. 74
The auditor shall indorse the instrument, forward it to the 75
grantee or the grantee's representative, and provide a copy of 76
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the indorsed instrument to the grantor or the grantor's 77


representative. 78

(B) Upon the transfer of any ownership interest in a pass- 79


through entity that, directly or indirectly, owns real property, 80
the transferor of the ownership interest shall submit to the 81
county auditor of each county in which the real property owned 82
by the entity is located a statement, prescribed by the tax 83
commissioner, and any other information as the auditor may 84
require, except that, when the transfer is exempt under division 85
(G)(3) of section 319.54 of the Revised Code, only a statement 86
of the reason for exemption shall be required. Each statement 87
shall include the following information: 88

(1) The value of all real property located in the county 89


that is owned, directly or indirectly, by the pass-through 90
entity in which the ownership interest is being transferred; 91

(2) The percentage of the ownership interest in the entity 92


being transferred; 93

(3) With respect to real property owned indirectly by the 94


entity in which the ownership interest is being transferred, 95
that entity's percentage ownership interest in the person that 96
directly owns the property. 97

(C) The grantor or transferor shall pay the fee required 98


by division (G)(3) or (4) of section 319.54 of the Revised Code; 99
and, in the event the board of county commissioners of the 100
county has levied a real property or a manufactured home 101
transfer tax pursuant to Chapter 322. of the Revised Code, the 102
amount required by the real property or manufactured home 103
transfer tax so levied. If the conveyance is exempt from the fee 104
provided for in division (G)(3) or (4) of section 319.54 of the 105
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Revised Code and the tax, if any, levied pursuant to Chapter 106
322. of the Revised Code, the reason for such exemption shall be 107
shown on the statement. "Value" means, in the case of any deed 108
or certificate of title not a gift in whole or part, the amount 109
of the full consideration therefor, paid or to be paid for the 110
real estate or manufactured or mobile home described in the deed 111
or title, including the amount of any mortgage or vendor's lien 112
thereon. If property sold under a land installment contract is 113
conveyed by the seller under such contract to a third party and 114
the contract has been of record at least twelve months prior to 115
the date of conveyance, "value" means the unpaid balance owed to 116
the seller under the contract at the time of the conveyance, but 117
the statement shall set forth the amount paid under such 118
contract prior to the date of conveyance. In the case of a gift 119
in whole or part, and in the case of the transfer of an 120
ownership interest in a pass-through entity that, directly or 121
indirectly, owns real property, "value" means the estimated 122
price the real estate or manufactured or mobile home described 123
in the deed or certificate of title would bring in the open 124
market and under the then existing and prevailing market 125
conditions in a sale between a willing seller and a willing 126
buyer, both conversant with the property and with prevailing 127
general price levels. No person shall willfully falsify the 128
value of property conveyed. 129

(D) The auditor shall indorse each conveyance on its face 130
to indicate the amount of the conveyance fee and compliance with 131
this section and if the property is residential rental property 132
include a statement that the grantee shall file with the county 133
auditor the information required under division (A) or (C) of 134
section 5323.02 of the Revised Code. The auditor shall retain 135
the original copy of the statement of value, forward to the tax 136
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commissioner one copy on which shall be noted the most recent 137
assessed value of the property, and furnish one copy to the 138
grantee or the grantee's representative. 139

(E) In order to achieve uniform administration and 140


collection of the transfer fee required by division divisions 141
(G)(3) and (4) of section 319.54 of the Revised Code, the tax 142
commissioner shall adopt and promulgate rules for the 143
administration and enforcement of the levy and collection of 144
such fee. 145

(F) As used in this section, "residential rental property" 146


has the same meaning as in section 5323.01 of the Revised Code. 147

Sec. 319.54. (A) On all moneys collected by the county 148


treasurer on any tax duplicate of the county, other than estate 149
tax duplicates, and on all moneys received as advance payments 150
of personal property and classified property taxes, the county 151
auditor, on settlement with the treasurer and tax commissioner, 152
on or before the date prescribed by law for such settlement or 153
any lawful extension of such date, shall be allowed as 154
compensation for the county auditor's services the following 155
percentages: 156

(1) On the first one hundred thousand dollars, two and 157
one-half per cent; 158

(2) On the next two million dollars, eight thousand three 159
hundred eighteen ten-thousandths of one per cent; 160

(3) On the next two million dollars, six thousand six 161
hundred fifty-five ten-thousandths of one per cent; 162

(4) On all further sums, one thousand six hundred sixty- 163
three ten-thousandths of one per cent. 164
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If any settlement is not made on or before the date 165


prescribed by law for such settlement or any lawful extension of 166
such date, the aggregate compensation allowed to the auditor 167
shall be reduced one per cent for each day such settlement is 168
delayed after the prescribed date. No penalty shall apply if the 169
auditor and treasurer grant all requests for advances up to 170
ninety per cent of the settlement pursuant to section 321.34 of 171
the Revised Code. The compensation allowed in accordance with 172
this section on settlements made before the dates prescribed by 173
law, or the reduced compensation allowed in accordance with this 174
section on settlements made after the date prescribed by law or 175
any lawful extension of such date, shall be apportioned ratably 176
by the auditor and deducted from the shares or portions of the 177
revenue payable to the state as well as to the county, 178
townships, municipal corporations, and school districts. 179

(B) For the purpose of reimbursing county auditors for the 180
expenses associated with the increased number of applications 181
for reductions in real property taxes under sections 323.152 and 182
4503.065 of the Revised Code that result from the amendment of 183
those sections by Am. Sub. H.B. 119 of the 127th general 184
assembly, there shall be paid from the state's general revenue 185
fund to the county treasury, to the credit of the real estate 186
assessment fund created by section 325.31 of the Revised Code, 187
an amount equal to one per cent of the total annual amount of 188
property tax relief reimbursement paid to that county under 189
sections 323.156 and 4503.068 of the Revised Code for the 190
preceding tax year. Payments made under this division shall be 191
made at the same times and in the same manner as payments made 192
under section 323.156 of the Revised Code. 193

(C) From all moneys collected by the county treasurer on 194


any tax duplicate of the county, other than estate tax 195
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duplicates, and on all moneys received as advance payments of 196


personal property and classified property taxes, there shall be 197
paid into the county treasury to the credit of the real estate 198
assessment fund created by section 325.31 of the Revised Code, 199
an amount to be determined by the county auditor, which shall 200
not exceed the percentages prescribed in divisions (C)(1) and 201
(2) of this section. 202

(1) For payments made after June 30, 2007, and before 203
2011, the following percentages: 204

(a) On the first five hundred thousand dollars, four per 205
cent; 206

(b) On the next five million dollars, two per cent; 207

(c) On the next five million dollars, one per cent; 208

(d) On all further sums not exceeding one hundred fifty 209
million dollars, three-quarters of one per cent; 210

(e) On amounts exceeding one hundred fifty million 211


dollars, five hundred eighty-five thousandths of one per cent. 212

(2) For payments made in or after 2011, the following 213


percentages: 214

(a) On the first five hundred thousand dollars, four per 215
cent; 216

(b) On the next ten million dollars, two per cent; 217

(c) On amounts exceeding ten million five hundred thousand 218


dollars, three-fourths of one per cent. 219

Such compensation shall be apportioned ratably by the 220


auditor and deducted from the shares or portions of the revenue 221
payable to the state as well as to the county, townships, 222
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municipal corporations, and school districts. 223

(D) Each county auditor shall receive four per cent of the 224
amount of tax collected and paid into the county treasury, on 225
property omitted and placed by the county auditor on the tax 226
duplicate. 227

(E) On all estate tax moneys collected by the county 228


treasurer, the county auditor, on settlement semiannually with 229
the tax commissioner, shall be allowed, as compensation for the 230
auditor's services under Chapter 5731. of the Revised Code, the 231
following percentages: 232

(1) Four per cent on the first one hundred thousand 233
dollars; 234

(2) One-half of one per cent on all additional sums. 235

Such percentages shall be computed upon the amount 236


collected and reported at each semiannual settlement, and shall 237
be for the use of the general fund of the county. 238

(F) On all cigarette license moneys collected by the 239


county treasurer, the county auditor, on settlement semiannually 240
with the treasurer, shall be allowed as compensation for the 241
auditor's services in the issuing of such licenses one-half of 242
one per cent of such moneys, to be apportioned ratably and 243
deducted from the shares of the revenue payable to the county 244
and subdivisions, for the use of the general fund of the county. 245

(G) The county auditor shall charge and receive fees as 246
follows: 247

(1) For deeds of land sold for taxes to be paid by the 248
purchaser, five dollars; 249

(2) For the transfer or entry of land, lot, or part of 250


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lot, or the transfer or entry on or after January 1, 2000, of a 251


used manufactured home or mobile home as defined in section 252
5739.0210 of the Revised Code, fifty cents for each transfer or 253
entry, to be paid by the person requiring it; 254

(3) For receiving statements of value under division (A) 255


of section 319.202 of the Revised Code and for administering 256
that section 319.202 of the Revised Code, one dollar, or ten 257
cents for each one hundred dollars or fraction of one hundred 258
dollars, whichever is greater, of the value of the real property 259
transferred or, for sales occurring on or after January 1, 2000, 260
the value of the used manufactured home or used mobile home, as 261
defined in section 5739.0210 of the Revised Code, transferred, 262
except no fee shall be charged when the transfer is made: 263

(a) To or from the United States, this state, or any 264


instrumentality, agency, or political subdivision of the United 265
States or this state; 266

(b) Solely in order to provide or release security for a 267


debt or obligation; 268

(c) To confirm or correct a deed previously executed and 269


recorded or when a current owner on any record made available to 270
the general public on the internet or a publicly accessible 271
database and the general tax list of real and public utility 272
property and the general duplicate of real and public utility 273
property is a peace officer, parole officer, prosecuting 274
attorney, assistant prosecuting attorney, correctional employee, 275
youth services employee, firefighter, EMT, or investigator of 276
the bureau of criminal identification and investigation and is 277
changing the current owner name listed on any record made 278
available to the general public on the internet or a publicly 279
accessible database and the general tax list of real and public 280
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utility property and the general duplicate of real and public 281
utility property to the initials of the current owner as 282
prescribed in division (B)(1) of section 319.28 of the Revised 283
Code; 284

(d) To evidence a gift, in trust or otherwise and whether 285


revocable or irrevocable, between husband and wife, or parent 286
and child or the spouse of either; 287

(e) On sale for delinquent taxes or assessments; 288

(f) Pursuant to court order, to the extent that such 289


transfer is not the result of a sale effected or completed 290
pursuant to such order; 291

(g) Pursuant to a reorganization of corporations or 292


unincorporated associations or pursuant to the dissolution of a 293
corporation, to the extent that the corporation conveys the 294
property to a stockholder as a distribution in kind of the 295
corporation's assets in exchange for the stockholder's shares in 296
the dissolved corporation; 297

(h) By a subsidiary corporation to its parent corporation 298


for no consideration, nominal consideration, or in sole 299
consideration of the cancellation or surrender of the 300
subsidiary's stock; 301

(i) By lease, whether or not it extends to mineral or 302


mineral rights, unless the lease is for a term of years 303
renewable forever; 304

(j) When the value of the real property or the 305


manufactured or mobile home or the value of the interest that is 306
conveyed does not exceed one hundred dollars; 307

(k) Of an occupied residential property, including a 308


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manufactured or mobile home, being transferred to the builder of 309


a new residence or to the dealer of a new manufactured or mobile 310
home when the former residence is traded as part of the 311
consideration for the new residence or new manufactured or 312
mobile home; 313

(l) To a grantee other than a dealer in real property or 314


in manufactured or mobile homes, solely for the purpose of, and 315
as a step in, the prompt sale of the real property or 316
manufactured or mobile home to others; 317

(m) To or from a person when no money or other valuable 318


and tangible consideration readily convertible into money is 319
paid or to be paid for the real estate or manufactured or mobile 320
home and the transaction is not a gift; 321

(n) Pursuant to division (B) of section 317.22 of the 322


Revised Code, or section 2113.61 of the Revised Code, between 323
spouses or to a surviving spouse pursuant to section 5302.17 of 324
the Revised Code as it existed prior to April 4, 1985, between 325
persons pursuant to section 5302.17 or 5302.18 of the Revised 326
Code on or after April 4, 1985, to a person who is a surviving, 327
survivorship tenant pursuant to section 5302.17 of the Revised 328
Code on or after April 4, 1985, or pursuant to section 5309.45 329
of the Revised Code; 330

(o) To a trustee acting on behalf of minor children of the 331


deceased; 332

(p) Of an easement or right-of-way when the value of the 333


interest conveyed does not exceed one thousand dollars; 334

(q) Of property sold to a surviving spouse pursuant to 335


section 2106.16 of the Revised Code; 336

(r) To or from an organization exempt from federal income 337


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taxation under section 501(c)(3) of the "Internal Revenue Code 338


of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended, provided 339
such transfer is without consideration and is in furtherance of 340
the charitable or public purposes of such organization; 341

(s) Among the heirs at law or devisees, including a 342


surviving spouse, of a common decedent, when no consideration in 343
money is paid or to be paid for the real property or 344
manufactured or mobile home; 345

(t) To a trustee of a trust, when the grantor of the trust 346


has reserved an unlimited power to revoke the trust; 347

(u) To the grantor of a trust by a trustee of the trust, 348


when the transfer is made to the grantor pursuant to the 349
exercise of the grantor's power to revoke the trust or to 350
withdraw trust assets; 351

(v) To the beneficiaries of a trust if the fee was paid on 352


the transfer from the grantor of the trust to the trustee or if 353
the transfer is made pursuant to trust provisions which became 354
irrevocable at the death of the grantor; 355

(w) To a corporation for incorporation into a sports 356


facility constructed pursuant to section 307.696 of the Revised 357
Code; 358

(x) Between persons pursuant to section 5302.18 of the 359


Revised Code; 360

(y) From a county land reutilization corporation organized 361


under Chapter 1724. of the Revised Code, or its wholly owned 362
subsidiary, to a third party. 363

(4) For receiving statements of value under division (B) 364


of section 319.202 of the Revised Code and for administering 365
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that section, the greater of one dollar or ten cents for each 366
one hundred dollars or fraction of one hundred dollars of the 367
value determined by calculating the sum of the following 368
amounts: 369

(a) With respect to real property owned directly by the 370


pass-through entity in which the ownership interest is being 371
transferred, the product of the value of the real property owned 372
directly by the pass-through entity and the percentage of the 373
ownership interest in that entity being transferred; 374

(b) With respect to real property owned indirectly by the 375


pass-through entity in which the ownership interest is being 376
transferred, the product of the value of the real property owned 377
indirectly by the pass-through entity, the percentage of the 378
ownership interest in that entity being transferred, and the 379
percentage of the ownership interest held by that entity in the 380
person that directly owns the real property. 381

No fee shall be charged under this division if the 382


transfer is made as described in divisions (G)(3)(a) to (y) of 383
this section. 384

(5) For the cost of publishing the delinquent manufactured 385


home tax list, the delinquent tax list, and the delinquent 386
vacant land tax list, a flat fee, as determined by the county 387
auditor, to be charged to the owner of a home on the delinquent 388
manufactured home tax list or the property owner of land on the 389
delinquent tax list or the delinquent vacant land tax list. 390

The auditor shall compute and collect the fee. The auditor 391
shall maintain a numbered receipt system, as prescribed by the 392
tax commissioner, and use such receipt system to provide a 393
receipt to each person paying a fee. The auditor shall deposit 394
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the receipts of the fees on conveyances and transfers of 395


ownership interest in the county treasury daily to the credit of 396
the general fund of the county, except that fees charged and 397
received under division (G)(3) of this section for a transfer of 398
real property to a county land reutilization corporation shall 399
be credited to the county land reutilization corporation fund 400
established under section 321.263 of the Revised Code. 401

The real property transfer fee provided for in division 402


(G)(3) of this section shall be applicable to any conveyance of 403
real property presented to the auditor on or after January 1, 404
1968, regardless of its time of execution or delivery. The fee 405
provided for in division (G)(4) of this section shall be 406
applicable to any transfer of ownership interest occurring on or 407
after the effective date of ...B... of the 132nd general 408
assembly. 409

The transfer fee for a used manufactured home or used 410


mobile home shall be computed by and paid to the county auditor 411
of the county in which the home is located immediately prior to 412
the transfer. 413

Sec. 322.01. As used in sections 322.01 to 322.07 of the 414


Revised Code: 415

(A) "Value" means, in the case of any deed not a gift in 416
whole or part, the amount of the full consideration therefor, 417
paid or to be paid for the real estate described in the deed, 418
including the amount of any liens thereon, with the following 419
exceptions: 420

(1) The amount owed on a debt secured by a mortgage which 421


has been of record at least twelve months prior to the date of 422
the conveyance and which is assumed by the purchaser; 423
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(2) The difference between the full amount of 424


consideration and the unpaid balance owed to the seller at the 425
time of the conveyance of property to a third party under a land 426
installment contract that has been of record at least twelve 427
months prior to the date of conveyance. 428

(B) "Value" means, in the case of a manufactured or mobile 429


home that is not a gift in whole or in part, the amount of the 430
full consideration paid or to be paid for the home, including 431
the amounts of any liens thereon. 432

(C) "Value" means, in the case of a gift in whole or part, 433


and in the case of the transfer of an ownership interest in a 434
pass-through entity that, directly or indirectly, owns real 435
property, the estimated price the real estate described in the 436
deed, property or the manufactured or mobile home, would bring 437
in the open market and under the then existing and prevailing 438
market conditions in a sale between a willing seller and a 439
willing buyer, both conversant with the property and with 440
prevailing general price levels. 441

(D) "Deed" means any deed, instrument, or writing by which 442


any real property or any interest in real property is granted, 443
assigned, transferred, or otherwise conveyed except that it does 444
not include any deed, instrument, or writing which grants, 445
assigns, transfers, or otherwise conveys any real property or 446
interests in real property exempted from the fee required by 447
division (G)(3) of section 319.54 of the Revised Code. 448

(E) "Manufactured home" has the same meaning as in 449


division (C)(4) of section 3781.06 of the Revised Code. 450

(F) "Mobile home" has the same meaning as in division (O) 451
of section 4501.01 of the Revised Code. 452
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Sec. 322.02. (A) For the purpose of paying the costs of 453
enforcing and administering the tax and providing additional 454
general revenue for the county, any county may levy and collect 455
a tax to be known as the real property transfer tax on each upon 456
both of the following: 457

(1) Each deed conveying real property or any interest in 458


real property located wholly or partially within the boundaries 459
of the county at a ; 460

(2) Each transfer of an ownership in a pass-through entity 461


that, directly or indirectly, owns real property located wholly 462
or partially within the boundaries of the county. 463

The rate of the tax shall not to exceed thirty cents per 464
hundred dollars for each one hundred dollars or fraction thereof 465
of the value of the real property or interest in real property 466
located within the boundaries of the county granted, assigned, 467
transferred, or otherwise conveyed by the deed, or owned 468
directly or indirectly by a pass-through entity in which an 469
ownership interest is transferred. The tax shall be levied 470
pursuant to a resolution adopted by the board of county 471
commissioners of the county and, except as provided in division 472
(A) of section 322.07 of the Revised Code, shall be levied at a 473
uniform rate upon all deeds as defined in division (D) of 474
section 322.01 of the Revised Code and transfers of ownership 475
interest. Prior to the adoption of any such resolution, the 476
board of county commissioners shall conduct two public hearings 477
thereon, the second hearing to be not less than three nor more 478
than ten days after the first. Notice of the date, time, and 479
place of the hearings shall be given by publication in a 480
newspaper of general circulation in the county once a week on 481
the same day of the week for two consecutive weeks or as 482
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provided in section 7.16 of the Revised Code. The second 483


publication shall be not less than ten nor more than thirty days 484
prior to the first hearing. The tax shall be levied upon the 485
grantor named in the deed or the transferor of the ownership 486
interest and shall be paid by the grantor or transferor for the 487
use of the county to the county auditor. The tax levied upon a 488
deed shall be paid at the time of the delivery of the deed as 489
provided in section 319.202 of the Revised Code and prior to the 490
presentation of the deed to the recorder of the county for 491
recording. 492

(B) No resolution levying a real property transfer tax 493


pursuant to this section or a manufactured home transfer tax 494
pursuant to section 322.06 of the Revised Code shall be 495
effective sooner than thirty days following its adoption. Such a 496
resolution is subject to a referendum as provided in sections 497
305.31 to 305.41 of the Revised Code, unless the resolution is 498
adopted as an emergency measure necessary for the immediate 499
preservation of the public peace, health, or safety, in which 500
case it shall go into immediate effect. An emergency measure 501
must receive an affirmative vote of all of the members of the 502
board of commissioners, and shall state the reasons for the 503
necessity. A resolution may direct the board of elections to 504
submit the question of levying the tax to the electors of the 505
county at the next primary or general election in the county 506
occurring not less than ninety days after the resolution is 507
certified to the board. No such resolution shall go into effect 508
unless approved by a majority of those voting upon it. 509

Sec. 322.07. (A) By resolution the board of county 510


commissioners may prescribe a lower rate for the real property 511
transfer tax levied under section 322.02 of the Revised Code 512
than the uniform rate that is otherwise levied. The lower rate 513
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shall apply to any deed conveying, or any transfer of an 514


ownership in a pass-through entity that directly or indirectly 515
owns, a homestead receiving a reduction in taxes under division 516
(A) of section 323.152 of the Revised Code. 517

(B) A board of county commissioners that prescribes a 518


lower real property transfer tax rate under division (A) of this 519
section shall prescribe the same lower rate for the manufactured 520
home transfer tax if it levies a manufactured home transfer tax 521
under section 322.06 of the Revised Code. The lower manufactured 522
home transfer tax rate shall apply to any certificate of title 523
conveying a used manufactured or used mobile home receiving a 524
reduction in assessable value under section 4503.065 of the 525
Revised Code. 526

Section 2. That existing sections 319.202, 319.54, 322.01, 527


322.02, and 322.07 of the Revised Code are hereby repealed. 528