As Introduced
136th General Assembly
Regular Session H. B. No. 1
2025-2026
Representatives King, Klopfenstein
Cosponsors: Representatives Barhorst, Bird, Brennan, Claggett, Click, Creech, Thomas, D., Deeter, Demetriou, Jones, Dovilla, Ferguson, Fischer, Fowler Arthur, Ghanbari, Gross, Hall, T., Hiner, Holmes, Hoops, Daniels, Thomas, J., John, Miller, K., Ritter, Kishman, Lampton, Lear, Dean, Lorenz, Johnson, Mathews, A., Mathews, T., McClain, Miller, M., Mullins, Newman, Oelslager, Pizzulli, Plummer, Ray, Richardson, Robb Blasdel, Santucci, Rogers, Schmidt, Stewart, Swearingen, Young, Williams, Willis, Workman, Humphrey, Sigrist
A BILL
To amend sections 319.202, 5301.256, and 5323.02 of the Revised Code to modify the law that prohibits certain governments, businesses, and individuals from acquiring certain real property and to name this act the Ohio Property Protection Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 319.202, 5301.256, and 5323.02 of the Revised Code be amended to read as follows:
Sec. 319.202. Before the county auditor indorses any real property conveyance or manufactured or mobile home conveyance presented to the auditor pursuant to section 319.20 of the Revised Code or registers any manufactured or mobile home conveyance pursuant to section 4503.061 of the Revised Code, the grantee or the grantee's representative shall submit, either electronically or three written copies of, a statement, in the form prescribed by the tax commissioner, and other information as the county auditor may require, declaring the value of real property or manufactured or mobile home conveyed, except that, subject to division (C) of this section, when the transfer is exempt under division (G)(3) of section 319.54 of the Revised Code only a statement of the reason for the exemption shall be required. Each statement submitted under this section shall contain the information required under divisions (A) and (B) of this section and, if the statement involves the transfer of protected property, the affirmations required by division (C) of this section.
(A) Each statement submitted under this section shall either:
(1) Contain an affirmation by the grantee that the grantor has been asked by the grantee or the grantee's representative whether to the best of the grantor's knowledge either the preceding or the current year's taxes on the real property or the current or following year's taxes on the manufactured or mobile home conveyed will be reduced under division (A) of section 323.152 or under section 4503.065 of the Revised Code and that the grantor indicated that to the best of the grantor's knowledge the taxes will not be so reduced; or
(2) Be accompanied by a sworn or affirmed instrument stating:
(a) To the best of the grantor's knowledge the real property or the manufactured or mobile home that is the subject of the conveyance is eligible for and will receive a reduction in taxes for or payable in the current year under division (A) of section 323.152 or under section 4503.065 of the Revised Code and that the reduction or reductions will be reflected in the grantee's taxes;
(b) The estimated amount of such reductions that will be reflected in the grantee's taxes;
(c) That the grantor and the grantee have considered and accounted for the total estimated amount of such reductions to the satisfaction of both the grantee and the grantor. The auditor shall indorse the instrument, return it to the grantee or the grantee's representative, and provide a copy of the indorsed instrument to the grantor or the grantor's representative.
(B) Each statement submitted under this section shall either:
(1) Contain an affirmation by the grantee that the grantor has been asked by the grantee or the grantee's representative whether to the best of the grantor's knowledge the real property conveyed qualified for the current agricultural use valuation under section 5713.30 of the Revised Code either for the preceding or the current year and that the grantor indicated that to the best of the grantor's knowledge the property conveyed was not so qualified; or
(2) Be accompanied by a sworn or affirmed instrument stating:
(a) To the best of the grantor's knowledge the real property conveyed was qualified for the current agricultural use valuation under section 5713.30 of the Revised Code either for the preceding or the current year;
(b) To the extent that the property will not continue to qualify for the current agricultural use valuation either for the current or the succeeding year, that the property will be subject to a recoupment charge equal to the tax savings in accordance with section 5713.34 of the Revised Code;
(c) That the grantor and the grantee have considered and accounted for the total estimated amount of such recoupment, if any, to the satisfaction of both the grantee and the grantor. The auditor shall indorse the instrument, forward it to the grantee or the grantee's representative, and provide a copy of the indorsed instrument to the grantor or the grantor's representative.
(C) Each statement submitted under this section involving the transfer of protected property shall contain both of the following:
(1) An affirmation by the grantee as to whether the grantee is prohibited from purchasing or otherwise acquiring protected property under section 5301.256 of the Revised Code;
(2) An affirmation by the grantor as to whether the grantor is prohibited from purchasing or otherwise acquiring protected property under section 5301.256 of the Revised Code and, if so, whether the protected property that is the subject of the transfer was acquired before the effective date of this amendment, before the date the grantor became subject to division (B) of section 5301.256 of the Revised Code, or pursuant to an exemption under division (D) of that section.
(D)(1)
The
grantor shall pay the fee
following:
(a)
The fee required
by division (G)(3) of section 319.54 of the Revised Code;
and, in
(b)
In the
event the board of county commissioners of the county has levied a
real property or a manufactured home transfer tax pursuant to Chapter
322. of the Revised Code, the amount required by the real property or
manufactured home transfer tax so levied.
If
(2)
If the
conveyance is exempt from the fee provided for in division (G)(3) of
section 319.54 of the Revised Code and the tax, if any, levied
pursuant to Chapter 322. of the Revised Code, the reason for such
exemption shall be shown on the statement. "Value"
means, in the case of any deed or certificate of title not a gift in
whole or part, the amount of the full consideration therefor, paid or
to be paid for the real estate or manufactured or mobile home
described in the deed or title, including the amount of any mortgage
or vendor's lien thereon. If property sold under a land installment
contract is conveyed by the seller under such contract to a third
party and the contract has been of record at least twelve months
prior to the date of conveyance, "value" means the unpaid
balance owed to the seller under the contract at the time of the
conveyance, but the statement shall set forth the amount paid under
such contract prior to the date of conveyance. In the case of a gift
in whole or part, "value" means the estimated price the
real estate or manufactured or mobile home described in the deed or
certificate of title would bring in the open market and under the
then existing and prevailing market conditions in a sale between a
willing seller and a willing buyer, both conversant with the property
and with prevailing general price levels.
(3) No person shall willfully falsify the value of property conveyed.
(D)
(E)
The
auditor shall indorse each conveyance on its face to indicate the
amount of the conveyance fee and compliance with this section and if
the property is residential rental property include a statement that
the grantee shall file with the county auditor the information
required under division (A) or (C) of section 5323.02 of the Revised
Code. The auditor shall retain the original copy of the statement of
value, forward to the tax commissioner one copy on which shall be
noted the most recent assessed value of the property, and furnish one
copy to the grantee or the grantee's representative.
(E)
(F)(1)
The auditor shall not indorse a conveyance of protected property if
the statement submitted under this section does not include both of
the affirmations required by division (C) of this section.
(2) The auditor shall refer information about a conveyance of protected property to the county sheriff for investigation and enforcement under division (G) of section 5301.256 of the Revised Code if either of the following apply:
(a) The grantee affirms, or the auditor has reason to believe, that the grantee is prohibited from purchasing or otherwise acquiring protected property under section 5301.256 of the Revised Code.
(b) The grantor affirms, or the auditor has reason to believe, that the grantor has acquired protected property in violation of section 5301.256 of the Revised Code.
(G) The auditor shall not refuse to indorse a conveyance for either of the reasons specified in division (F)(2) of this section.
(H)
In
order to achieve uniform administration and collection of the
transfer fee required by division (G)(3) of section 319.54 of the
Revised Code, the tax commissioner shall adopt and
promulgate rules
for the administration and enforcement of the levy and collection of
such fee.
(F)
(I)
As
used in this section,
"residential :
(1) "Agricultural land" and "protected property" have the same meanings as in section 5301.256 of the Revised Code.
(2) "Residential rental property" has the same meaning as in section 5323.01 of the Revised Code.
(3)(a) "Value" means, in the case of any deed or certificate of title not a gift in whole or part, the amount of the full consideration therefor, paid or to be paid for the real estate or manufactured or mobile home described in the deed or title, including the amount of any mortgage or vendor's lien thereon.
(b) If property sold under a land installment contract is conveyed by the seller under such contract to a third party and the contract has been of record at least twelve months prior to the date of conveyance, "value" means the unpaid balance owed to the seller under the contract at the time of the conveyance, but the statement shall set forth the amount paid under such contract prior to the date of conveyance.
(c) In the case of a gift in whole or part, "value" means the estimated price the real estate or manufactured or mobile home described in the deed or certificate of title would bring in the open market and under the then existing and prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and with prevailing general price levels.
Sec. 5301.256. (A) As used in this section:
(1) "Agriculture" has the same meaning as in section 1.61 of the Revised Code.
(2) "Agricultural land" means land suitable for use in agriculture and includes water on and upon and air space over and above the land and natural products and deposits that are unsevered from the land.
(3)
"Person" includes all
of the following:
(a)
Individuals;
(b)
Firmsindividuals,
businesses, countries, criminal enterprises, gangs, cartels,
organizations, and governments.
(4)
"Business" includes firms,
companies, business trusts, estates, trusts, sole proprietorships,
partnerships, general partnerships, limited liability companies,
associations, corporations, and any other legal,
business,
or commercial
entities;
(c)
Governments .
(5)
"Government" means a government other
than the government of the United States, its states, subdivisions,
territories, or possessions;
(d)
Legal or commercial entities, organizations, joint ventures, and
nonprofits.
(6) "Real property" means land and improvements to land and includes water on and upon and air space over and above the land and natural products and deposits that are unsevered from the land.
(7) "Protected property" means real property in this state that is any of the following:
(a) Agricultural land;
(b) Located within a twenty-five mile radius of any installation under the jurisdiction of the armed forces, as defined in section 5903.01 of the Revised Code, such as a military base, a camp, or an airport;
(c) Located within a twenty-five mile radius of a critical infrastructure facility, as defined in section 2911.21 of the Revised Code.
(8) "Control" means the authority, by contract or by law, to direct the affairs and day-to-day operations of a business without the consent of any other person.
(9) "Own" means possession of more than fifty per cent of the stock, equity, or other ownership interest of a business.
(10) "Foreign adversary" means a country listed on the registry published by the secretary of state under division (H) of this section.
(B)(1)
(B)
On
or after the effective date of this section,
no person listed in the registry published by the secretary of state
under division (G) of this section, and no agent, trustee, or
fiduciary of such a personamendment,
none
of the following persons shall,
directly or indirectly,
purchase or otherwise acquire
agricultural land in this state
protected property:
(1) A person listed on the registry published by the secretary of state under division (H) of this section;
(2) A government of a foreign adversary;
(3) An individual who is a citizen of a foreign adversary, regardless of whether that same individual is also a citizen or national of one or more other countries, other than the United States, that are not foreign adversaries;
(4) A business that is headquartered in a foreign adversary;
(5) A business that is directly or indirectly owned or controlled by one or more persons described in divisions (B)(1) to (4) of this section, or an agent, fiduciary, or trustee of such persons;
(6) Except as otherwise provided in division (D)(3) of this section, an agent, fiduciary, or trustee of a person described in divisions (B)(1) to (5) of this section.
(2)
(C)
A
person,
agent, trustee or fiduciary
subject to division (B)(1)
(B)
of
this section that directly
or indirectly owns
or holds agricultural
land in this state as described in division (B)(1) of this section
protected
property before
the effective date of this section
amendment,
may
continue to own or hold the agricultural
landprotected
property,
but shall not purchase or otherwise acquire,
directly or indirectly,
additional agricultural
land in this state that is subject to the restriction in division
(B)(1) of this section protected
property, unless
an exception described in division (C)
(D)
of
this section applies.
(C)
(D)
The
restriction
on acquiring agricultural land restrictions
set
forth in division (B)(1)
(B)
of
this section does
do
not
apply to any of the following:
(1)
Agricultural
land Protected
property acquired
by devise or descent. HoweverExcept
as otherwise provided in division (C) of this section,
a person listed
in the registry published by the secretary of state under division
(G) subject
to division (B) of
this section,
or an agent, trustee, or fiduciary thereof,
that
directly or indirectly
acquires the
agricultural landprotected
property,
or an
a
direct or indirect interest
in agricultural
land,protected
property
by devise or descent on
or after the effective date of this section shall
divest itself
of
all right, title, and interest in the agricultural
land protected
property, whether direct or indirect, within
two years from
after
the
date of acquisition.
(2)
Agricultural
land Protected
property that
is acquired,
directly or indirectly,
by a process of law in the collection of debts, by a deed in lieu of
foreclosure, pursuant to a forfeiture of a contract for deed, or by
any procedure for the enforcement of a lien or claim on the
agricultural
landprotected
property,
whether created by mortgage or otherwise. Agricultural
land Except
as otherwise provided in division (C) of this section, protected
property so
acquired shall be sold or otherwise disposed of within two years
after title is transferred. Agricultural
If
the protected property is agricultural land,
pending the
sale
or disposition, the
land shall
not be used for any purpose other than agriculture, and the land
shall not be used for agriculture under lease to an individual,
trust, corporation, partnership, or other business entity subject to
the restrictions under division (B)(1)
(B)
of
this section.
(D)
(3)
Protected property directly or indirectly acquired by agent,
fiduciary, or trustee of a person described in divisions (B)(1) to
(5) of this section acting in the agent's, fiduciary's, or trustee's
personal capacity, if both of the following apply:
(a) The agent, fiduciary, or trustee is not a person described in divisions (B)(1) to (5) of this section;
(b) The agent, fiduciary, or trustee is not purchasing or otherwise acquiring the property to circumvent the restrictions prescribed by this section.
(4) Protected property directly or indirectly acquired by an individual who is a United States citizen or national, unless that individual is purchasing or otherwise acquiring the property as an agent, fiduciary, or trustee of a person described in divisions (B)(1) to (5) of this section.
(E)
A
person listed
in the registry published by the secretary of state under subject
to division
(G)
(B)
of
this section,
or an agent, trustee, or fiduciary of such a person,
shall not
directly or indirectly
transfer title to or an
interest
in agricultural
land protected
property to
another person listed
in that registry, or an agent, trustee, or fiduciary thereofsubject
to that division,
except
by devise or descentunless
an exception described in division (D) of this section applies.
(E)
(F)
A
person or
an agent, trustee, or fiduciary that
directly
or indirectly purchases
or otherwise acquires
agricultural land in this state described in division (B)(1) of this
section, other than by devise or descent, after the effective date of
this section
protected property,
and that is
subsequently
added
to the registry published by the secretary of state under becomes
subject to division
(G)
(B)
of
this section, shall
divest itself of all right, title, and interest in the agricultural
land within two years from the date the person is added to the
registrymay
continue to own or hold the protected property but shall not purchase
or otherwise acquire, directly or indirectly, additional protected
property unless an exception described in division (D) of this
section applies.
(F)(1)
(G)(1)
If
the
secretary of state a
county auditor finds
or has reason to believe
that a person
listed on the registry published under division (G) of this section,
or
an agent,
trustee, or fiduciary thereof,
subject
to division (B) of this section has
acquired, or holds title to, or interest in, agricultural
land protected
property in
this state in violation of this section, the secretary
of state auditor
shall
report
the violation to the attorney generalnotify
the county sheriff of each county in which the protected property is
located. The county sheriff shall investigate the allegation. If the
protected property is located in more than one county, the county
sheriffs of those counties may investigate the allegation
collaboratively.
(2)
Upon receipt
of the report from the secretary of state, the attorney general
concluding
the investigation, if the county sheriff determines that a violation
has occurred, the county sheriff shall refer the violation to the
county prosecutor. Upon receiving such a referral, the county
prosecutor shall
initiate
commence
an
action in the court of common pleas of any
the
county
in which the agricultural land is located seeking relief in
accordance with this section.
If the agricultural
land protected
property is
located in more than one county,
or adjoining tracts of agricultural land are located in more than one
county,
rather
than commencing a separate action in each such county, the county
prosecutors may commence one consolidated action in the
county in which the majority of the agricultural
land territory
of the protected property is
located
shall have .
In a consolidated action, the court of common pleas of the county in
which the majority of the territory of the protected property is
located has territorial
jurisdiction over agricultural
land all
protected property that
is the subject of the action. The
attorney general may initiate an action in the court of common pleas
of more than one county, if necessary, in which case, the court of
common pleas in that county shall have jurisdiction over the action
in matters as it relates to the portion of the agricultural land that
is located in that county.
(3)
The
attorney general Once
the action is commenced, the county prosecutor shall
file a notice of the pendency of the action with the county recorder
of each county in which any
of the
agricultural
land protected
property subject to the action is
located.
(4)
If the court finds that the agricultural
land protected
property in
question has been acquired or held in violation of this section, it
shall do all of the following:
(a) Enter an order so declaring;
(b)
File a copy of the order with the county recorder of each county in
which any
portion of the
agricultural
land protected
property is
located;
(c)
Declare
the agricultural land escheated to the state;
(d)
Order
that the escheated
agricultural land protected
property be
sold pursuant to Chapter 2329. of the Revised Code in the same manner
as a foreclosure on a mortgage, except that there shall be no
opportunity for redemption under section 2329.33 of the Revised Code.
(5)
Upon receiving an order under division (F)(4)
(G)(4)
of
this section, the clerk of the court shall notify the governor that
the title
to the agricultural land protected
property is
vested
in the state to
be sold by
decree of the court. After the sale, the proceeds of
the sale shall
be paid as follows:
(a)
The
proceeds shall first be used First,
to
pay court costs related to the action or actions
initiated pursuant to division (F)(2) of this section;
(b)
The
remaining proceeds, if any, shall be paid Second,
to bona fide lien holders, in their order of priority, except for
liens that under the terms of the sale are to remain on the property;
(c)
Third, to
the person whose agricultural land escheated, but only in an amount
not exceeding the actual cost paid by the person for that
agricultural land;
(c)
The proceeds remaining after payments have been made pursuant to
divisions (F)(5)(a) and (b) of this section shall be paid to
the general fund of each county in which the agricultural
land protected
property is
located, proportionally, based on the percentage of the territory
located in each county.
(G)
(H)(1)
The
secretary of state shall compile and periodically
update
at
least one time every six months a
registry of foreign
adversaries and other persons
that, based on the best information available to the secretary of
state, constitute a threat to the agricultural production,
critical infrastructure, security, or military defense
of this state, or the United States,
if permitted to acquire agricultural land described in division
(B)(1) of this section.
(2) The registry shall be published on the secretary of state's web site.
(3) The secretary of state shall consult all of the following in compiling the registry:
(1)(a)
The list of persons determined to
be foreign adversaries by
the secretary of commerce of the United States under
15 C.F.R. 7.4to
have engaged in a long-term pattern or serious instances of conduct
significantly adverse to the national security of the United States
or the security and safety of United States persons and, therefore,
to constitute foreign adversaries for the purposes of Executive Order
13873, issued by the president of the United States on May 15, 2019;
(2)(b)
The terrorist exclusion list compiled by the secretary of state of
the United States in consultation with the attorney general of the
United States under 8 U.S.C. 1182;
(3)(c)
The list of countries determined by the secretary of state of the
United States that have repeatedly provided support for acts of
international terrorism under 50 U.S.C. 4813(c) and 22 U.S.C.
2780(d);
(4)(d)
The list of individual and entities designated by, or in accordance
with Executive Order 13224, issued by the president of the United
States on September 23, 20212001,
or Executive Order 13268, issued by the president of the United
States on July 2, 2002.
(H)
(4)
The secretary of state shall not include on the registry any person
that does not appear on at least one of the federal lists described
in division (H)(3) of this section.
(I)(1) No person is required to determine or inquire whether another person is or may be subject to division (B) of this section unless the person is either:
(a) Subject to division (B) of this section;
(b) A county auditor, county sheriff, county prosecutor, or trier of fact of a court of common pleas acting in the person's official capacity as provided in this section or section 319.302 of the Revised Code;
(2) A person that is not subject to division (B) of this section bears no liability under this section.
(3) No title to an interest in real property is invalid or subject to divestment by reason of a violation of this section by any former owner or other person holding or owning a former interest in such real property.
(J) The purpose of establishing the restrictions as set forth in this section is to recognize that the state has a substantial and compelling interest in protecting its agricultural production, critical infrastructure, security, and military defense.
Sec. 5323.02. (A) An owner of residential rental property shall file with the county auditor of the county in which the property is located the following information:
(1) The name, address, and telephone number of the owner;
(2) If the residential rental property is owned by a trust, business trust, estate, partnership, limited partnership, limited liability company, association, corporation, or any other business entity, the name, address, and telephone number of the following:
(a) A trustee, in the case of a trust or business trust;
(b) The executor or administrator, in the case of an estate;
(c) A general partner, in the case of a partnership or a limited partnership;
(d) A member, manager, or officer, in the case of a limited liability company;
(e) An associate, in the case of an association;
(f) An officer, in the case of a corporation;
(g) A member, manager, or officer, in the case of any other business entity.
(3) The street address and permanent parcel number of the residential rental property.
(B) The information required under division (A) of this section shall be filed and maintained on the tax list or the real property record.
(C) An owner of residential rental property shall update the information required under division (A) of this section within sixty days after any change in the information occurs.
(D) The county auditor shall provide an owner of residential rental property located in a county that has a population of more than two hundred thousand according to the most recent decennial census with notice pursuant to division (B) of section 323.131 of the Revised Code of the requirement to file the information required under division (A) of this section and the requirement to update that information under division (C) of this section.
(E)
The owner of residential real property shall comply with the
requirements under divisions (A) and (C) of this section within sixty
days after receiving the notice provided under division (D) of this
section, division (D)(E)
of section 319.202, or division (B) of section 323.131 of the Revised
Code.
(F) Any agent designated by the owner to manage the property on the owner's behalf may file or update any information, or do anything otherwise required by this section, on the owner's behalf.
Section 2. That existing sections 319.202, 5301.256, and 5323.02 of the Revised Code are hereby repealed.
Section 3. This act shall be known as the Ohio Property Protection Act.