County Bulletin
TO: ALL COUNTY AUDITORS - Bulletin No. 276
FROM: ROGER W. TRACY, TAX COMMISSIONER
DATE: MAY 12, 1993
RE: ACCRUAL OF INTEREST ON DELINQUENT PERSONAL PROPERTY TAXES
This is to advise that there has been no change in the
procedure for accruing or charging interest on delinquent
personal property taxes.
Confusion on this matter may arise because the title of
legislation enacted in 1992 incorrectly states that the Act
changes that procedure from a monthly accrual to a semiannual
accrual.
Am. Sub. H.B. No. 782 as introduced would have amended R.C.
5719.041 to change the period for the accrual of interest on
delinquent personal property taxes - The amendment to that
statute was subsequently removed from the bill BUT the title
of the bill was not also changed to reflect the removal of
the section from the bill.
The statutory provisions for the monthly accrual of interest
on delinquent personal property taxes were not changed in the
subject legislation, and such provisions remain as they have
existed since 1986, which are as follows in R. C. 5719.041:
"Sec. 5719.041 Interest charge for late paynent;
interest on overpayment; annual settlement.
If the payment of a general personal property or classified
property tax is not made on or before the last day
prescribed by section 5719.03 or 5719.031 of the Revised
Code, an interest charge shall begin to accrue and shall
continue until all charges are paid, except that no
interest charge shall accrue for or in the month in which
such payment was due under such section or under the
circumstances and for the period described in division (A)
(2) of section 5711.33 of the Revised Code.
The interest charge shall accrue against the balance of
such taxes and any penalty thereon outstanding that remains
unpaid on the last day
of each month and shall be at the rate per calendar month,
rounded to the nearest one-hundredth of one per cent, equal
to one-twelfth of the rate per annum prescribed by section
5703.47 of the Revised Code for the calendar year that
includes the month for which the charge accrues. The charge
is payable in addition to the unpaid balance of taxes and
penalties on the day the charge accrues, unless the entire
balance is sooner paid.
Interest shall be allowed at the same rate per calendar
month as is applicable that month for underpayments, on any
overpayment of the tax charged on a general personal
property or a classified property tax duplicate, from the
first day of the month following the date of the
overpayment until the last day of the month preceding the
date of the refund of the overpayment. The interest shall
be paid from the fund or funds to which the overpayment was
credited.
When the county treasurer makes his annual settlement with
the county auditor under division (D) of section 321.24 of
the Revised Code, he shall certify to the auditor a list of
all entries on the cumulative delinquent tax duplicate that
are at that time in the process of being paid in
installments under a valid undertaking. For each entry that
appears on the duplicate that is not on the certified list,
the auditor shall compute the full amount of interest
charges which have accrued against such entry since the
preceding such settlement was made and shall include such
charges through the last day of the month preceding the
current settlement. The auditor shall include such amounts
on the tax list and duplicates prepared by him as
prescribed in section 5719.04 of the Revised Code unless
the interest is less than one dollar, in which case it
shall not be added to such tax lists and duplicates.
Before the county treasurer accepts any payment of taxes
against which there are accrued interest charges that do
not appear on the delinquent tax duplicate, he shall notify
the auditor who shall issue a certificate to the treasurer
showing the amount of such interest charges, and the
treasurer shall collect the amount shown on such
certificate at the time he accepts the payment of such
taxes. If the amount of such interest charges is less than
one dollar, no such certificate shall be issued. In the
case of delinquent personal property taxes, the interest
shown on such certificate shall be credited to the
undivided general tax fund, and distributed in the same
manner as the delinquent taxes upon which the interest
charges accrued. In the case of delinquent classified
property taxes, the interest shown on such certificate
shall be credited to the county library and local
government support fund and distributed in accordance with
section 5747.48 of the Revised Code. When the payment of
delinquent taxes is credited on the tax duplicate the
treasurer shall make a separate notation thereon indicating
the amount collected and the index number of the auditor's
certificate herein prescribed."