OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 186 Bill Analysis
135th General Assembly
Click here for S.B. 186’s Fiscal Note
Version: As Passed by the Senate
Primary Sponsors: Sens. Blessing and Ingram
Effective date:
Mackenzie Damon, Attorney
SUMMARY
 Requires all delinquent and current property taxes on real property to be paid before
the property is sold or subdivided.
 Prohibits the transfer of property sold at a tax foreclosure sale unless the purchaser
supplies an affidavit stating that the purchaser or certain related parties do not own tax
delinquent property in the state or that such delinquency is justified or erroneous.
DETAILED ANALYSIS
The bill requires delinquent and current property taxes to be paid before a parcel of real
property is sold or subdivided i.e., split into multiple lots with ownership of the property
maintained. It also requires purchasers at tax foreclosure sales to either personally, or through
an authorized representative, provide an affidavit to the county sheriff or other selling officer
averring that the purchaser, with certain exceptions, does not directly or indirectly own certain
tax delinquent property, and is not substantially owned by a person who does.
Property tax payment upon sale or subdivision
Under the bill, upon the transfer or subdivision of property, the grantor, i.e., the seller,
or the owner in the case of a subdivision, must pay to the county auditor the estimated current
taxes on the property for the year, along with all delinquent taxes on the property. To calculate
the current taxes that must be remitted, the seller or owner must apply to the county auditor
for an estimate of all property taxes that are a lien on the property but that have not, at that
time, been determined, assessed, and levied. An estimate is needed because, in Ohio, property
taxes become a lien on property on January 1, but are not determined until later in the year,
nor due before the following December or January. Once the estimated current taxes are paid
for the year, they are considered to be the property’s tax liability for the year.
June 13, 2024
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This new requirement does not apply to property if the state, or any political subdivision
of the state, is the property’s buyer, seller, or owner. This requirement applies to any transfers
or subdivisions occurring on or after the bill’s 90-day effective date.1
Tax foreclosure sales
Under continuing law, after real property accrues delinquent taxes, it may be foreclosed
upon pursuant to one of several tax foreclosure proceedings. After the property is foreclosed, it
may be sold by the county sheriff or another authorized selling officer, usually at an auction, to
cover the amount of delinquent taxes. The bill prohibits the selling officer from transferring the
property to the purchaser unless the purchaser or an authorized representative provides an
affidavit relating to the purchaser’s ownership of tax delinquent property or such interests held
by others who also hold interests in the purchaser. The following specific statements of fact
must be included in this affidavit:
 Both of the following, if the purchaser is not a pass-through entity (PTE), such as a
limited liability company or partnership:
 That the affiant, i.e., the person making the affidavit, has inquired with the county
treasurer in each county where the purchaser, or a PTE in which the purchaser
directly or indirectly owns or holds at least a 10% interest, owns property and was
informed that neither the purchaser nor any such PTE owns property with
delinquent taxes in those counties.
 That, to the best of the affiant’s knowledge, neither the purchaser nor such a PTE
own property in Ohio with delinquent taxes.
 Both of the following, if the purchaser is a PTE:
 That the affiant has made the same inquiry as required for non-PTE purchasers and
been informed that neither the purchaser, nor a person that directly or indirectly
owns a 10% or greater interest in the purchaser, owns property with delinquent
taxes in the applicable counties.
 That, to the best of the affiant’s knowledge, neither the purchaser nor a person who
directly or indirectly owns or holds a 10% or greater interest in the purchaser own
property in Ohio with delinquent taxes.
If a purchaser, or an authorized representative, is informed by a county treasurer that
delinquent taxes are owed, the affiant may alternatively state one of the following:
 That the delinquency was misassigned to the purchaser due to a name change, pending
property transfer, or error in the county recorder’s office. If an error by the county
1R.C. 319.204, with conforming changes in R.C. 317.22, 319.20, and 5713.18; Section 3; R.C. 323.11 and
323.12, not in the bill.
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As Passed by the Senate
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recorder is stated, an affidavit or other documentation from the recorder supporting the
statement must be included with the affidavit.
 That the property against which delinquent taxes are assessed is the subject of litigation
or other proceedings that challenge the property’s ownership and which may absolve
the taxpayer of the delinquency.
 There are other circumstances the affiant believes demonstrate that the delinquency
does not result from the intentional action or inaction on the part of the purchaser. If
the affiant claims such circumstances, supporting documentation must be included with
the affidavit.
If an affiant claims one of the alternative circumstances allowed when a delinquency is present,
the officer in charge of the sale must review the affidavit and any supporting documentation.
The officer may then approve or deny the transfer based on the validity of the circumstances
and documentation. Delinquencies that are being paid in installments pursuant to a delinquent
tax contract with the county treasurer are not considered delinquent taxes for purposes of the
affidavit.
A knowingly made false statement on the affidavit is falsification, which in this case is a
first degree misdemeanor.2
An affidavit is only required for property purchased at a foreclosure sale – it is not
required if a person purchases a tax certificate authorizing the person to enforce the state’s lien
for delinquent taxes. So a person that owns tax-delinquent property may still be able to
purchase tax certificates.
HISTORY
Action Date
Introduced 11-14-23
Reported, S. Ways & Means 05-28-24
Passed Senate (32-1) 06-12-24
ANSB0186PS-135/ar
2 R.C. 323.28(G), 323.74(H), 5721.19(J), and 5723.06(E).
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As Passed by the Senate


Statutes affected:
As Introduced: 317.22, 319.20, 323.28, 323.74, 5713.18, 5721.19, 5723.06
As Reported By Senate Committee: 317.22, 319.20, 323.28, 323.74, 5713.18, 5721.19, 5723.06
As Passed By Senate: 317.22, 319.20, 323.28, 323.74, 5713.18, 5721.19, 5723.06