As Reported by the Senate Ways and Means Committee 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- 19
SENATORS BLESSING-JOHNSON-DRAKE-HERINGTON-McLIN
_________________________________________________________________ 21
A B I L L
To amend section 5709.12 of the Revised Code to 23
exempt from taxation residential real property 24
constructed or rehabilitated and held by a
nonprofit charitable organization for the purpose 25
of transferring the property to qualified 26
low-income families.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That section 5709.12 of the Revised Code be 30
amended to read as follows: 31
Sec. 5709.12. (A) As used in this section, "independent 40
living facilities" means any residential housing facilities and 41
related property that are not a nursing home, residential care 43
facility, or adult care facility as defined in division (A) of 44
section 5701.13 of the Revised Code. 45
(B) Lands, houses, and other buildings belonging to a 47
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county, township, or municipal corporation and used exclusively 48
for the accommodation or support of the poor, or leased to the 49
state or any political subdivision for public purposes shall be 50
exempt from taxation. Real and tangible personal property 51
belonging to institutions that is used exclusively for charitable 52
purposes shall be exempt from taxation. All property owned and 53
used by a nonprofit organization exclusively for a home for the 54
aged, as defined in section 5701.13 of the Revised Code, also 55
shall be exempt from taxation. 56
(C) If a home for the aged is operated in conjunction with 58
or at the same site as independent living facilities, the 59
exemption granted in division (B) of this section shall include 60
kitchen, dining room, clinic, entry ways, maintenance and storage 61
areas, and land necessary for access commonly used by both 62
residents of the home for the aged and residents of the 63
independent living facilities. Other facilities commonly used by 64
both residents of the home for the aged and residents of 65
independent living units shall be exempt from taxation only if 66
the other facilities are used primarily by the residents of the 67
home for the aged. Vacant land currently unused by the home, and 68
independent living facilities and the lands connected with them 69
are not exempt from taxation. Except as provided in division (A) 70
of section 5709.121 of the Revised Code, property of a home 71
leased for nonresidential purposes is not exempt from taxation. 72
(D) A private corporation established under federal law, 74
defined in 36 U.S.C. 1101, Pub. L. NO. 102-199, 105 Stat. 1629, 77
as amended, the objects of which include encouraging the 78
advancement of science generally, or of a particular branch of 79
science, the promotion of scientific research, the improvement of 80
the qualifications and usefulness of scientists, or the increase 81
and diffusion of scientific knowledge is conclusively presumed to 82
be a charitable or educational institution. A private 83
corporation established as a nonprofit corporation under the laws 84
of a state, that is exempt from federal income taxation under 85
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section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 86
2085, 26 U.S.C.A. 1, as amended, and has as its principal purpose 87
one or more of the foregoing objects, also is conclusively 88
presumed to be a charitable or educational institution. 89
The fact that an organization described in this division 91
operates in a manner that results in an excess of revenues over 92
expenses shall not be used to deny the exemption granted by this 93
section, provided such excess is used, or is held for use, for 94
exempt purposes or to establish a reserve against future 95
contingencies; and, provided further, that such excess may not be 96
distributed to individual persons or to entities that would not 97
be entitled to the tax exemptions provided by this chapter. Nor 98
shall the fact that any scientific information diffused by the 99
organization is of particular interest or benefit to any of its 100
individual members be used to deny the exemption granted by this 101
section, provided that such scientific information is available 102
to the public for purchase or otherwise. 103
When a private corporation as described in this division 105
sells all or any portion of a tract, lot, or parcel of real 106
estate that has been exempt from taxation under this section and 107
section 5709.121 of the Revised Code, the portion sold shall be 108
restored to the tax list for the year following the year of the 109
sale and a charge shall be levied against the sold property in an 110
amount equal to the tax savings on such property during the four 111
tax years preceding the year the property is placed on the tax 112
list. The tax savings equals the amount of the additional taxes 113
that would have been levied if such property had not been exempt 114
from taxation. 115
The charge constitutes a lien of the state upon such 117
property as of the first day of January of the tax year in which 118
the charge is levied and continues until discharged as provided 119
by law. The charge may also be remitted for all or any portion 120
of such property that the tax commissioner determines is entitled 121
to exemption from real property taxation for the year such 122
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property is restored to the tax list under any provision of the 123
Revised Code, other than sections 725.02, 1728.10, 3735.67, 124
5709.40, 5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, 125
and 5709.84, upon an application for exemption covering the year 126
such property is restored to the tax list filed under section 127
5715.27 of the Revised Code. 128
(E) REAL PROPERTY HELD BY AN ORGANIZATION ORGANIZED AND 131
OPERATED EXCLUSIVELY FOR CHARITABLE PURPOSES AS DESCRIBED UNDER 132
SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND EXEMPT FROM 133
FEDERAL TAXATION UNDER SECTION 501(a) OF THE INTERNAL REVENUE 135
CODE, 26 U.S.C.A. 501(a) AND (c)(3), AS AMENDED, FOR THE PURPOSE 137
OF CONSTRUCTING OR REHABILITATING RESIDENCES FOR EVENTUAL 138
TRANSFER TO QUALIFIED LOW-INCOME FAMILIES THROUGH SALE, LEASE, OR 139
LAND INSTALLMENT CONTRACT, SHALL BE EXEMPT FROM TAXATION. 140
THE EXEMPTION SHALL COMMENCE ON THE DAY TITLE TO THE 143
PROPERTY IS TRANSFERRED TO THE ORGANIZATION AND SHALL CONTINUE TO 144
THE END OF THE TAX YEAR IN WHICH THE ORGANIZATION TRANSFERS TITLE 145
TO THE PROPERTY TO A QUALIFIED LOW-INCOME FAMILY. IN NO CASE 146
SHALL THE EXEMPTION EXTEND BEYOND THE SECOND SUCCEEDING TAX YEAR 147
FOLLOWING THE YEAR IN WHICH THE TITLE WAS TRANSFERRED TO THE 148
ORGANIZATION. IF THE TITLE IS TRANSFERRED TO THE ORGANIZATION 149
AND FROM THE ORGANIZATION TO A QUALIFIED LOW-INCOME FAMILY IN THE
SAME TAX YEAR, THE EXEMPTION SHALL CONTINUE TO THE END OF THAT 150
TAX YEAR. THE PROPORTIONATE AMOUNT OF TAXES THAT ARE A LIEN BUT 152
NOT YET DETERMINED, ASSESSED, AND LEVIED FOR THE TAX YEAR IN
WHICH TITLE IS TRANSFERRED TO THE ORGANIZATION SHALL BE REMITTED 153
BY THE COUNTY AUDITOR FOR EACH DAY OF THE YEAR THAT TITLE IS HELD 154
BY THE ORGANIZATION. 155
UPON TRANSFERRING THE TITLE TO ANOTHER PERSON, THE 157
ORGANIZATION SHALL FILE WITH THE COUNTY AUDITOR AN AFFIDAVIT 158
AFFIRMING THAT THE TITLE WAS TRANSFERRED TO A QUALIFIED 159
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 160
TRANSFERRED TO A QUALIFIED LOW-INCOME FAMILY, THE AFFIDAVIT SHALL 161
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IDENTIFY THE TRANSFEREE BY NAME. IF THE ORGANIZATION TRANSFERS 162
TITLE TO THE PROPERTY TO ANYONE OTHER THAN A QUALIFIED LOW-INCOME 164
FAMILY, THE EXEMPTION, IF IT HAS NOT PREVIOUSLY EXPIRED, SHALL 165
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 166
LEVIED AGAINST THE PROPERTY IN AN AMOUNT EQUAL TO THE AMOUNT OF 167
ADDITIONAL TAXES THAT WOULD HAVE BEEN LEVIED IF SUCH PROPERTY HAD 168
NOT BEEN EXEMPT FROM TAXATION. THE CHARGE CONSTITUTES A LIEN OF 169
THE STATE UPON SUCH PROPERTY AS OF THE FIRST DAY OF JANUARY OF 170
THE TAX YEAR IN WHICH THE CHARGE IS LEVIED AND CONTINUES UNTIL 171
DISCHARGED AS PROVIDED BY LAW.
THE APPLICATION FOR EXEMPTION SHALL BE FILED AS OTHERWISE 173
REQUIRED UNDER SECTION 5715.27 OF THE REVISED CODE, EXCEPT THAT 174
THE ORGANIZATION HOLDING THE PROPERTY SHALL FILE WITH ITS 175
APPLICATION DOCUMENTATION SUBSTANTIATING ITS STATUS AS AN 176
ORGANIZATION ORGANIZED AND OPERATED EXCLUSIVELY FOR CHARITABLE 177
PURPOSES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND 179
ITS QUALIFICATION FOR EXEMPTION FROM FEDERAL TAXATION UNDER 180
SECTION 501(a) OF THE INTERNAL REVENUE CODE, AND AFFIRMING ITS 181
INTENTION TO CONSTRUCT OR REHABILITATE THE PROPERTY FOR THE 182
EVENTUAL TRANSFER TO QUALIFIED LOW-INCOME FAMILIES. 183
AS USED IN THIS DIVISION, "QUALIFIED LOW-INCOME FAMILY" 185
MEANS A FAMILY WHOSE INCOME DOES NOT EXCEED TWO HUNDRED PER CENT 186
OF THE OFFICIAL FEDERAL POVERTY GUIDELINES AS REVISED ANNUALLY IN 188
ACCORDANCE WITH SECTION 673(2) OF THE "OMNIBUS BUDGET 189
RECONCILIATION ACT OF 1981," 95 STAT. 511, 42 U.S.C.A. 9902, AS 190
AMENDED, FOR A FAMILY SIZE EQUAL TO THE SIZE OF THE FAMILY WHOSE 191
INCOME IS BEING DETERMINED.
Section 2. That existing section 5709.12 of the Revised 193
Code is hereby repealed. 194