As Passed by the House 1
123rd General Assembly 4
Regular Session Am. 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-PADGETT- 10
HARTNETT-D.MILLER-JOLIVETTE-OLMAN-ALLEN-VESPER-JAMES- 11
WILLAMOWSKI-SMITH-PRINGLE-DePIERO-HOLLISTER-MOTTLEY- 12
AMSTUTZ-FLANNERY-CORBIN-BRITTON-AUSTRIA-HAINES- 13
DISTEL-BARNES-GRENDELL-PERRY-PETERSON-TERWILLEGER- 14
CAREY-SALERNO-PATTON-VERICH-MAIER-KRUPINSKI-FERDERBER- 15
WILSON-LOGAN-BRADING-TRAKAS-CATES-MYERS-EVANS-CALVERT- 16
MEAD-BUEHRER-SULZER-ROBERTS-R.MILLER-SCHURING-BUCHY- 17
NETZLEY-HARRIS-PERZ-METZGER-CLANCY-BARRETT-BOYD 18
_________________________________________________________________ 19
A B I L L
To amend section 5709.12 of the Revised Code to 21
exempt from taxation residential real property 22
constructed or rehabilitated and held by a
nonprofit charitable organization for the purpose 23
of transferring the property to qualified 24
low-income families.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That section 5709.12 of the Revised Code be 28
amended to read as follows: 29
Sec. 5709.12. (A) As used in this section, "independent 38
living facilities" means any residential housing facilities and 39
related property that are not a nursing home, residential care 41
facility, or adult care facility as defined in division (A) of 42
section 5701.13 of the Revised Code. 43
(B) Lands, houses, and other buildings belonging to a 45
county, township, or municipal corporation and used exclusively 46
2
for the accommodation or support of the poor, or leased to the 47
state or any political subdivision for public purposes shall be 48
exempt from taxation. Real and tangible personal property 49
belonging to institutions that is used exclusively for charitable 50
purposes shall be exempt from taxation. All property owned and 51
used by a nonprofit organization exclusively for a home for the 52
aged, as defined in section 5701.13 of the Revised Code, also 53
shall be exempt from taxation. 54
(C) If a home for the aged is operated in conjunction with 56
or at the same site as independent living facilities, the 57
exemption granted in division (B) of this section shall include 58
kitchen, dining room, clinic, entry ways, maintenance and storage 59
areas, and land necessary for access commonly used by both 60
residents of the home for the aged and residents of the 61
independent living facilities. Other facilities commonly used by 62
both residents of the home for the aged and residents of 63
independent living units shall be exempt from taxation only if 64
the other facilities are used primarily by the residents of the 65
home for the aged. Vacant land currently unused by the home, and 66
independent living facilities and the lands connected with them 67
are not exempt from taxation. Except as provided in division (A) 68
of section 5709.121 of the Revised Code, property of a home 69
leased for nonresidential purposes is not exempt from taxation. 70
(D) A private corporation established under federal law, 72
as defined in 36 U.S.C. 1101, Pub. L. NO. 102-199, 105 Stat. 74
1629, as amended, the objects of which include encouraging the 76
advancement of science generally, or of a particular branch of 77
science, the promotion of scientific research, the improvement of 78
the qualifications and usefulness of scientists, or the increase 79
and diffusion of scientific knowledge is conclusively presumed to 80
be a charitable or educational institution. A private 81
corporation established as a nonprofit corporation under the laws 82
of a state, that is exempt from federal income taxation under 83
section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 84
3
2085, 26 U.S.C.A. 1, as amended, and has as its principal purpose 85
one or more of the foregoing objects, also is conclusively 86
presumed to be a charitable or educational institution. 87
The fact that an organization described in this division 89
operates in a manner that results in an excess of revenues over 90
expenses shall not be used to deny the exemption granted by this 91
section, provided such excess is used, or is held for use, for 92
exempt purposes or to establish a reserve against future 93
contingencies; and, provided further, that such excess may not be 94
distributed to individual persons or to entities that would not 95
be entitled to the tax exemptions provided by this chapter. Nor 96
shall the fact that any scientific information diffused by the 97
organization is of particular interest or benefit to any of its 98
individual members be used to deny the exemption granted by this 99
section, provided that such scientific information is available 100
to the public for purchase or otherwise. 101
When a private corporation as described in this division 103
sells all or any portion of a tract, lot, or parcel of real 104
estate that has been exempt from taxation under this section and 105
section 5709.121 of the Revised Code, the portion sold shall be 106
restored to the tax list for the year following the year of the 107
sale and a charge shall be levied against the sold property in an 108
amount equal to the tax savings on such property during the four 109
tax years preceding the year the property is placed on the tax 110
list. The tax savings equals the amount of the additional taxes 111
that would have been levied if such property had not been exempt 112
from taxation. 113
The charge constitutes a lien of the state upon such 115
property as of the first day of January of the tax year in which 116
the charge is levied and continues until discharged as provided 117
by law. The charge may also be remitted for all or any portion 118
of such property that the tax commissioner determines is entitled 119
to exemption from real property taxation for the year such 120
property is restored to the tax list under any provision of the 121
4
Revised Code, other than sections 725.02, 1728.10, 3735.67, 122
5709.40, 5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, 123
and 5709.84, upon an application for exemption covering the year 124
such property is restored to the tax list filed under section 125
5715.27 of the Revised Code. 126
(E) REAL PROPERTY HELD BY AN ORGANIZATION ORGANIZED AND 129
OPERATED EXCLUSIVELY FOR CHARITABLE PURPOSES AS DESCRIBED UNDER 130
SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND EXEMPT FROM 131
FEDERAL TAXATION UNDER SECTION 501(a) OF THE INTERNAL REVENUE 133
CODE, 26 U.S.C.A. 501(a) AND (c)(3), AS AMENDED, FOR THE PURPOSE 135
OF CONSTRUCTING OR REHABILITATING RESIDENCES FOR EVENTUAL 136
TRANSFER TO QUALIFIED LOW-INCOME FAMILIES THROUGH SALE, LEASE, OR 137
LAND INSTALLMENT CONTRACT, SHALL BE EXEMPT FROM TAXATION. 138
THE EXEMPTION SHALL COMMENCE ON THE DAY TITLE TO THE 141
PROPERTY IS TRANSFERRED TO THE ORGANIZATION AND SHALL CONTINUE TO 142
THE END OF THE TAX YEAR IN WHICH THE ORGANIZATION TRANSFERS TITLE 143
TO THE PROPERTY TO A QUALIFIED LOW-INCOME FAMILY. IN NO CASE 144
SHALL THE EXEMPTION EXTEND BEYOND THE SECOND SUCCEEDING TAX YEAR 145
FOLLOWING THE YEAR IN WHICH THE TITLE WAS TRANSFERRED TO THE 146
ORGANIZATION. IF THE TITLE IS TRANSFERRED TO THE ORGANIZATION 147
AND FROM THE ORGANIZATION TO A QUALIFIED LOW-INCOME FAMILY IN THE
SAME TAX YEAR, THE EXEMPTION SHALL CONTINUE TO THE END OF THAT 148
TAX YEAR. THE PROPORTIONATE AMOUNT OF TAXES THAT ARE A LIEN BUT 150
NOT YET DETERMINED, ASSESSED, AND LEVIED FOR THE TAX YEAR IN
WHICH TITLE IS TRANSFERRED TO THE ORGANIZATION SHALL BE REMITTED 151
BY THE COUNTY AUDITOR FOR EACH DAY OF THE YEAR THAT TITLE IS HELD 152
BY THE ORGANIZATION. 153
UPON TRANSFERRING THE TITLE TO ANOTHER PERSON, THE 155
ORGANIZATION SHALL FILE WITH THE COUNTY AUDITOR AN AFFIDAVIT 156
AFFIRMING THAT THE TITLE WAS TRANSFERRED TO A QUALIFIED 157
LOW-INCOME FAMILY OR THAT THE TITLE WAS NOT TRANSFERRED TO A
QUALIFIED LOW-INCOME FAMILY, AS THE CASE MAY BE; IF THE TITLE WAS 158
TRANSFERRED TO A QUALIFIED LOW-INCOME FAMILY, THE AFFIDAVIT SHALL 159
IDENTIFY THE TRANSFEREE BY NAME. IF THE ORGANIZATION TRANSFERS 160
5
TITLE TO THE PROPERTY TO ANYONE OTHER THAN A QUALIFIED LOW-INCOME 162
FAMILY, THE EXEMPTION, IF IT HAS NOT PREVIOUSLY EXPIRED, SHALL 163
TERMINATE, AND THE PROPERTY SHALL BE RESTORED TO THE TAX LIST FOR
THE YEAR FOLLOWING THE YEAR OF THE TRANSFER AND A CHARGE SHALL BE 164
LEVIED AGAINST THE PROPERTY IN AN AMOUNT EQUAL TO THE AMOUNT OF 165
ADDITIONAL TAXES THAT WOULD HAVE BEEN LEVIED IF SUCH PROPERTY HAD 166
NOT BEEN EXEMPT FROM TAXATION. THE CHARGE CONSTITUTES A LIEN OF 167
THE STATE UPON SUCH PROPERTY AS OF THE FIRST DAY OF JANUARY OF 168
THE TAX YEAR IN WHICH THE CHARGE IS LEVIED AND CONTINUES UNTIL 169
DISCHARGED AS PROVIDED BY LAW.
THE APPLICATION FOR EXEMPTION SHALL BE FILED AS OTHERWISE 171
REQUIRED UNDER SECTION 5715.27 OF THE REVISED CODE, EXCEPT THAT 172
THE ORGANIZATION HOLDING THE PROPERTY SHALL FILE WITH ITS 173
APPLICATION DOCUMENTATION SUBSTANTIATING ITS STATUS AS AN 174
ORGANIZATION ORGANIZED AND OPERATED EXCLUSIVELY FOR CHARITABLE 175
PURPOSES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND 177
ITS QUALIFICATION FOR EXEMPTION FROM FEDERAL TAXATION UNDER 178
SECTION 501(a) OF THE INTERNAL REVENUE CODE, AND AFFIRMING ITS 179
INTENTION TO CONSTRUCT OR REHABILITATE THE PROPERTY FOR THE 180
EVENTUAL TRANSFER TO QUALIFIED LOW-INCOME FAMILIES. 181
AS USED IN THIS DIVISION, "QUALIFIED LOW-INCOME FAMILY" 183
MEANS A FAMILY WHOSE INCOME DOES NOT EXCEED TWO HUNDRED PER CENT 184
OF THE OFFICIAL FEDERAL POVERTY GUIDELINES AS REVISED ANNUALLY IN 186
ACCORDANCE WITH SECTION 673(2) OF THE "OMNIBUS BUDGET 187
RECONCILIATION ACT OF 1981," 95 STAT. 511, 42 U.S.C.A. 9902, AS 188
AMENDED, FOR A FAMILY SIZE EQUAL TO THE SIZE OF THE FAMILY WHOSE 189
INCOME IS BEING DETERMINED.
Section 2. That existing section 5709.12 of the Revised 191
Code is hereby repealed. 192