New law aims to stop the fraudulent transfer of properties

Media Contact: Jennifer Ciaccia, 216-250-5863, jciaccia@cuyahogacounty.gov

 

CUYAHOGA COUNTY, OH – The Cuyahoga County Treasurer Brad Cromes is celebrating the passage and signing into law of House Bill 496, which brings landmark change to Ohio’s delinquent property tax laws. The bill, signed into law by Governor DeWine today, ushers in a key fix long advocated for by the state’s county treasurers by preventing persons or entities owing delinquent property taxes from acquiring additional properties at tax foreclosure sales. The provision was originally proposed in Senate Bill 186 and was folded into House Bill 496 for passage during the General Assembly’s recently completed Lame Duck session.

 

“This is a big deal for Cuyahoga County,” said Cuyahoga County Treasurer Brad Cromes, who is serving this year as President of the County Treasurers Association of Ohio and testified before the General Assembly twice as a proponent for this legislation. “Locally and across the state, there are bad actors who purposefully and knowingly buy and sell tax delinquent properties over and over again for a profit without ever paying the back taxes already owed. This bill puts a stop to that. If you want to acquire property as a money-making opportunity at a Sheriff’s sale, you'll have to pay your taxes first now just like everyone else.” Treasurer Cromes added that the Association plans to continue working in the year ahead on legislation that would prevent the transfer of any proprieties prior to the payment of back taxes, regardless of transfer type.

 

Before the passage and signing of House Bill 496, there was no prohibition under Ohio law against purchasing properties at Sheriff’s sales while owing back taxes. In many cases, for profit entities exploited that fact by setting up multiple LLCs to acquire and then fraudulently transfer properties without ever making the County whole for taxes due.

 

“This fix to Ohio law has been one of our members’ top legislative priorities for the last two years,” said Kevin Futryk, Executive Director of the County Treasurers Association of Ohio. “This association and our 88 county treasurers are grateful to the members of the Ohio Legislature for their support. This change will ensure that accountability is at the center of Sheriff’s sale transactions in Ohio and sets the table for future improvements.”

 

Senate Bill 186 and House Bill 496 were sponsored and championed by both Republican and Democratic members of the legislature.