To amend sections 5721.32, 5721.33, and 5721.42 of the Revised Code to sunset the sale of delinquent property tax certificates on January 1, 2027.
Summary
HB493 would amend Ohio’s tax certificate statutes to end the sale and transfer of delinquent property tax certificates after December 31, 2026, with a hard sunset on January 1, 2027. The bill affects both public auction sales and negotiated sales of tax certificates, and it also bars the sale of subsequent tax certificates under the related statute after that date. In practical terms, county treasurers would no longer be able to initiate new tax certificate sales or transfers once the sunset takes effect, and any attempted sale or transfer after the deadline would be void.
The bill preserves the existing framework for tax certificate sales up to the sunset date, including auction procedures, bidder registration, deposit requirements, negotiated-sale authority, notice to property owners, and the ability of certificate holders to acquire subsequent certificates before the cutoff. It also retains provisions governing how proceeds are distributed, how liens are transferred, and the protections limiting certificate-holder liability for certain environmental and safety violations tied to the parcel. The main legal change is the elimination of this tax-delinquency financing and collection tool going forward, while leaving current law in place until the end of 2026.
Impact
HB493 would directly amend Revised Code sections 5721.32, 5721.33, and 5721.42 to impose a sunset on Ohio’s delinquent property tax certificate program. County treasurers, tax certificate purchasers, and county land reutilization corporations would be affected, because the bill would end the ability to sell, transfer, or issue new tax certificates after the specified date. Property owners with delinquent taxes would no longer face this collection mechanism for new certificates after the sunset, though existing certificates and sales completed before the deadline would remain governed by current law.
Sentiment
The bill appears to be introduced in a neutral-to-reform posture, with no recorded committee testimony or votes available in the provided materials. Because there is no transcript or voting history, there is no documented public debate to indicate broad support or opposition. The bill’s title and structure suggest a policy choice to phase out the tax certificate system rather than modify it incrementally.
Contention
The likely point of contention is whether Ohio should continue using tax certificate sales as a delinquent tax collection tool at all. Supporters of the bill would likely view the sunset as a way to reduce aggressive tax lien enforcement and limit third-party involvement in tax delinquency collection, while opponents would likely argue that counties need the program to recover unpaid property taxes and move delinquent parcels toward resolution. Another possible issue is the effect on county revenues and on entities that currently purchase certificates or rely on negotiated sales, including land reutilization corporations.
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