As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 194 5
1999-2000 6
REPRESENTATIVES JONES-THOMAS-WOMER BENJAMIN-HOOD-JERSE- 8
BEATTY-METELSKY-BENDER-OGG-STAPLETON-HARTLEY-TAYLOR-SUTTON- 9
O'BRIEN-SCHULER-SYKES-OPFER-FORD-HEALY-CALLENDER- 10
PADGETT-HARTNETT-D.MILLER-JOLIVETTE-OLMAN-SCHULER-ALLEN-VESPER- 11
JAMES-WILLAMOWSKI-SMITH-PRINGLE-DePIERO-HOLLISTER 12
_________________________________________________________________ 13
A B I L L
To amend section 5709.12 of the Revised Code to 15
exempt from taxation residential real property 16
constructed or rehabilitated and held by a
nonprofit charitable organization for the purpose 17
of transferring the property to qualified 18
low-income families.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That section 5709.12 of the Revised Code be 22
amended to read as follows: 23
Sec. 5709.12. (A) As used in this section, "independent 32
living facilities" means any residential housing facilities and 33
related property that are not a nursing home, residential care 35
facility, or adult care facility as defined in division (A) of 36
section 5701.13 of the Revised Code. 37
(B) Lands, houses, and other buildings belonging to a 39
county, township, or municipal corporation and used exclusively 40
for the accommodation or support of the poor, or leased to the 41
state or any political subdivision for public purposes shall be 42
exempt from taxation. Real and tangible personal property 43
belonging to institutions that is used exclusively for charitable 44
purposes shall be exempt from taxation. All property owned and 45
used by a nonprofit organization exclusively for a home for the 46
2
aged, as defined in section 5701.13 of the Revised Code, also 47
shall be exempt from taxation. 48
(C) If a home for the aged is operated in conjunction with 50
or at the same site as independent living facilities, the 51
exemption granted in division (B) of this section shall include 52
kitchen, dining room, clinic, entry ways, maintenance and storage 53
areas, and land necessary for access commonly used by both 54
residents of the home for the aged and residents of the 55
independent living facilities. Other facilities commonly used by 56
both residents of the home for the aged and residents of 57
independent living units shall be exempt from taxation only if 58
the other facilities are used primarily by the residents of the 59
home for the aged. Vacant land currently unused by the home, and 60
independent living facilities and the lands connected with them 61
are not exempt from taxation. Except as provided in division (A) 62
of section 5709.121 of the Revised Code, property of a home 63
leased for nonresidential purposes is not exempt from taxation. 64
(D) A private corporation established under federal law, 66
as defined in 36 U.S.C. 1101, Pub. L. 102-199, 105 Stat. 1629, as 67
amended, the objects of which include encouraging the advancement 68
of science generally, or of a particular branch of science, the 69
promotion of scientific research, the improvement of the 70
qualifications and usefulness of scientists, or the increase and 71
diffusion of scientific knowledge is conclusively presumed to be 72
a charitable or educational institution. A private corporation 73
established as a nonprofit corporation under the laws of a state, 74
that is exempt from federal income taxation under section 75
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 76
26 U.S.C.A. 1, as amended, and has as its principal purpose one 77
or more of the foregoing objects, also is conclusively presumed 78
to be a charitable or educational institution. 79
The fact that an organization described in this division 81
operates in a manner that results in an excess of revenues over 82
expenses shall not be used to deny the exemption granted by this 83
3
section, provided such excess is used, or is held for use, for 84
exempt purposes or to establish a reserve against future 85
contingencies; and, provided further, that such excess may not be 86
distributed to individual persons or to entities that would not 87
be entitled to the tax exemptions provided by this chapter. Nor 88
shall the fact that any scientific information diffused by the 89
organization is of particular interest or benefit to any of its 90
individual members be used to deny the exemption granted by this 91
section, provided that such scientific information is available 92
to the public for purchase or otherwise. 93
When a private corporation as described in this division 95
sells all or any portion of a tract, lot, or parcel of real 96
estate that has been exempt from taxation under this section and 97
section 5709.121 of the Revised Code, the portion sold shall be 98
restored to the tax list for the year following the year of the 99
sale and a charge shall be levied against the sold property in an 100
amount equal to the tax savings on such property during the four 101
tax years preceding the year the property is placed on the tax 102
list. The tax savings equals the amount of the additional taxes 103
that would have been levied if such property had not been exempt 104
from taxation. 105
The charge constitutes a lien of the state upon such 107
property as of the first day of January of the tax year in which 108
the charge is levied and continues until discharged as provided 109
by law. The charge may also be remitted for all or any portion 110
of such property that the tax commissioner determines is entitled 111
to exemption from real property taxation for the year such 112
property is restored to the tax list under any provision of the 113
Revised Code, other than sections 725.02, 1728.10, 3735.67, 114
5709.40, 5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, 115
and 5709.84, upon an application for exemption covering the year 116
such property is restored to the tax list filed under section 117
5715.27 of the Revised Code. 118
(E) REAL PROPERTY HELD BY AN ORGANIZATION ORGANIZED AND 121
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OPERATED EXCLUSIVELY FOR CHARITABLE PURPOSES AS DESCRIBED UNDER 122
SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND EXEMPT FROM 123
FEDERAL TAXATION UNDER SECTION 501(a) OF THE INTERNAL REVENUE 125
CODE, 26 U.S.C.A. 501(a) AND (c)(3), AS AMENDED, FOR THE PURPOSE 127
OF CONSTRUCTING OR REHABILITATING RESIDENCES FOR EVENTUAL 128
TRANSFER TO QUALIFIED LOW-INCOME FAMILIES THROUGH SALE, LEASE, OR 129
LAND INSTALLMENT CONTRACT, SHALL BE EXEMPT FROM TAXATION. 130
THE EXEMPTION SHALL COMMENCE ON THE DAY TITLE TO THE 133
PROPERTY IS TRANSFERRED TO THE ORGANIZATION AND SHALL CONTINUE 134
UNTIL THE EARLIER OF THE SECOND ANNIVERSARY OF THAT DAY OR THE 135
ORGANIZATION TRANSFERS TITLE TO THE PROPERTY TO A QUALIFIED 136
LOW-INCOME FAMILY. THE PROPORTIONATE AMOUNT OF TAXES THAT ARE A
LIEN BUT NOT YET DETERMINED, ASSESSED, AND LEVIED FOR THE TAX 137
YEAR IN WHICH TITLE IS TRANSFERRED TO OR FROM THE ORGANIZATION 138
SHALL BE REMITTED BY THE COUNTY AUDITOR FOR EACH DAY OF THE YEAR 139
THAT TITLE IS HELD BY THE ORGANIZATION. 140
IF THE ORGANIZATION TRANSFERS TITLE TO THE PROPERTY TO 142
ANYONE OTHER THAN A QUALIFIED LOW-INCOME FAMILY, THE EXEMPTION, 143
IF IT HAS NOT PREVIOUSLY EXPIRED, SHALL TERMINATE, AND THE 144
PROPERTY SHALL BE RESTORED TO THE TAX LIST FOR THE YEAR FOLLOWING 145
THE YEAR OF THE TRANSFER AND A CHARGE SHALL BE LEVIED AGAINST THE 146
PROPERTY IN AN AMOUNT EQUAL TO THE AMOUNT OF ADDITIONAL TAXES
THAT WOULD HAVE BEEN LEVIED IF SUCH PROPERTY HAD NOT BEEN EXEMPT 147
FROM TAXATION. THE CHARGE CONSTITUTES A LIEN OF THE STATE UPON 148
SUCH PROPERTY AS OF THE FIRST DAY OF JANUARY OF THE TAX YEAR IN 149
WHICH THE CHARGE IS LEVIED AND CONTINUES UNTIL DISCHARGED AS 150
PROVIDED BY LAW.
THE APPLICATION FOR EXEMPTION SHALL BE FILED AS OTHERWISE 152
REQUIRED UNDER SECTION 5715.27 OF THE REVISED CODE, EXCEPT THAT 153
THE ORGANIZATION HOLDING THE PROPERTY SHALL FILE WITH ITS 154
APPLICATION DOCUMENTATION SUBSTANTIATING ITS STATUS AS AN 155
ORGANIZATION ORGANIZED AND OPERATED EXCLUSIVELY FOR CHARITABLE 156
PURPOSES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND 158
ITS QUALIFICATION FOR EXEMPTION FROM FEDERAL TAXATION UNDER 159
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SECTION 501(a) OF THE INTERNAL REVENUE CODE, AND AFFIRMING ITS 160
INTENTION TO CONSTRUCT OR REHABILITATE THE PROPERTY FOR THE 161
EVENTUAL TRANSFER TO QUALIFIED LOW-INCOME FAMILIES. 162
AS USED IN THIS DIVISION, "QUALIFIED LOW-INCOME FAMILY" 164
MEANS A FAMILY WHOSE INCOME DOES NOT EXCEED TWO HUNDRED PER CENT 165
OF THE OFFICIAL FEDERAL POVERTY GUIDELINES AS REVISED ANNUALLY IN 167
ACCORDANCE WITH SECTION 673(2) OF THE "OMNIBUS BUDGET 168
RECONCILIATION ACT OF 1981," 95 STAT. 511, 42 U.S.C.A. 9902, AS 169
AMENDED, FOR A FAMILY SIZE EQUAL TO THE SIZE OF THE FAMILY WHOSE 170
INCOME IS BEING DETERMINED.
Section 2. That existing section 5709.12 of the Revised 172
Code is hereby repealed. 173