As Passed by the Senate 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-BRADY-
SHOEMAKER-FINGERHUT-FURNEY-PRENTISS-DiDONATO-NEIN-ESPY- 20
OELSLAGER-CUPP-WATTS 21
_________________________________________________________________ 23
A B I L L
To amend section 5709.12 of the Revised Code to 25
exempt from taxation residential real property 26
constructed or rehabilitated and held by a
nonprofit charitable organization for the purpose 27
of transferring the property to qualified 28
low-income families.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 30
Section 1. That section 5709.12 of the Revised Code be 32
amended to read as follows: 33
Sec. 5709.12. (A) As used in this section, "independent 42
living facilities" means any residential housing facilities and 43
related property that are not a nursing home, residential care 45
facility, or adult care facility as defined in division (A) of 46
2
section 5701.13 of the Revised Code. 47
(B) Lands, houses, and other buildings belonging to a 49
county, township, or municipal corporation and used exclusively 50
for the accommodation or support of the poor, or leased to the 51
state or any political subdivision for public purposes shall be 52
exempt from taxation. Real and tangible personal property 53
belonging to institutions that is used exclusively for charitable 54
purposes shall be exempt from taxation. All property owned and 55
used by a nonprofit organization exclusively for a home for the 56
aged, as defined in section 5701.13 of the Revised Code, also 57
shall be exempt from taxation. 58
(C) If a home for the aged is operated in conjunction with 60
or at the same site as independent living facilities, the 61
exemption granted in division (B) of this section shall include 62
kitchen, dining room, clinic, entry ways, maintenance and storage 63
areas, and land necessary for access commonly used by both 64
residents of the home for the aged and residents of the 65
independent living facilities. Other facilities commonly used by 66
both residents of the home for the aged and residents of 67
independent living units shall be exempt from taxation only if 68
the other facilities are used primarily by the residents of the 69
home for the aged. Vacant land currently unused by the home, and 70
independent living facilities and the lands connected with them 71
are not exempt from taxation. Except as provided in division (A) 72
of section 5709.121 of the Revised Code, property of a home 73
leased for nonresidential purposes is not exempt from taxation. 74
(D) A private corporation established under federal law, 76
defined in 36 U.S.C. 1101, Pub. L. NO. 102-199, 105 Stat. 1629, 79
as amended, the objects of which include encouraging the 80
advancement of science generally, or of a particular branch of 81
science, the promotion of scientific research, the improvement of 82
the qualifications and usefulness of scientists, or the increase 83
and diffusion of scientific knowledge is conclusively presumed to 84
be a charitable or educational institution. A private 85
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corporation established as a nonprofit corporation under the laws 86
of a state, that is exempt from federal income taxation under 87
section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 88
2085, 26 U.S.C.A. 1, as amended, and has as its principal purpose 89
one or more of the foregoing objects, also is conclusively 90
presumed to be a charitable or educational institution. 91
The fact that an organization described in this division 93
operates in a manner that results in an excess of revenues over 94
expenses shall not be used to deny the exemption granted by this 95
section, provided such excess is used, or is held for use, for 96
exempt purposes or to establish a reserve against future 97
contingencies; and, provided further, that such excess may not be 98
distributed to individual persons or to entities that would not 99
be entitled to the tax exemptions provided by this chapter. Nor 100
shall the fact that any scientific information diffused by the 101
organization is of particular interest or benefit to any of its 102
individual members be used to deny the exemption granted by this 103
section, provided that such scientific information is available 104
to the public for purchase or otherwise. 105
When a private corporation as described in this division 107
sells all or any portion of a tract, lot, or parcel of real 108
estate that has been exempt from taxation under this section and 109
section 5709.121 of the Revised Code, the portion sold shall be 110
restored to the tax list for the year following the year of the 111
sale and a charge shall be levied against the sold property in an 112
amount equal to the tax savings on such property during the four 113
tax years preceding the year the property is placed on the tax 114
list. The tax savings equals the amount of the additional taxes 115
that would have been levied if such property had not been exempt 116
from taxation. 117
The charge constitutes a lien of the state upon such 119
property as of the first day of January of the tax year in which 120
the charge is levied and continues until discharged as provided 121
by law. The charge may also be remitted for all or any portion 122
4
of such property that the tax commissioner determines is entitled 123
to exemption from real property taxation for the year such 124
property is restored to the tax list under any provision of the 125
Revised Code, other than sections 725.02, 1728.10, 3735.67, 126
5709.40, 5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, 127
and 5709.84, upon an application for exemption covering the year 128
such property is restored to the tax list filed under section 129
5715.27 of the Revised Code. 130
(E) REAL PROPERTY HELD BY AN ORGANIZATION ORGANIZED AND 133
OPERATED EXCLUSIVELY FOR CHARITABLE PURPOSES AS DESCRIBED UNDER 134
SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND EXEMPT FROM 135
FEDERAL TAXATION UNDER SECTION 501(a) OF THE INTERNAL REVENUE 137
CODE, 26 U.S.C.A. 501(a) AND (c)(3), AS AMENDED, FOR THE PURPOSE 139
OF CONSTRUCTING OR REHABILITATING RESIDENCES FOR EVENTUAL 140
TRANSFER TO QUALIFIED LOW-INCOME FAMILIES THROUGH SALE, LEASE, OR 141
LAND INSTALLMENT CONTRACT, SHALL BE EXEMPT FROM TAXATION. 142
THE EXEMPTION SHALL COMMENCE ON THE DAY TITLE TO THE 145
PROPERTY IS TRANSFERRED TO THE ORGANIZATION AND SHALL CONTINUE TO 146
THE END OF THE TAX YEAR IN WHICH THE ORGANIZATION TRANSFERS TITLE 147
TO THE PROPERTY TO A QUALIFIED LOW-INCOME FAMILY. IN NO CASE 148
SHALL THE EXEMPTION EXTEND BEYOND THE SECOND SUCCEEDING TAX YEAR 149
FOLLOWING THE YEAR IN WHICH THE TITLE WAS TRANSFERRED TO THE 150
ORGANIZATION. IF THE TITLE IS TRANSFERRED TO THE ORGANIZATION 151
AND FROM THE ORGANIZATION TO A QUALIFIED LOW-INCOME FAMILY IN THE
SAME TAX YEAR, THE EXEMPTION SHALL CONTINUE TO THE END OF THAT 152
TAX YEAR. THE PROPORTIONATE AMOUNT OF TAXES THAT ARE A LIEN BUT 154
NOT YET DETERMINED, ASSESSED, AND LEVIED FOR THE TAX YEAR IN
WHICH TITLE IS TRANSFERRED TO THE ORGANIZATION SHALL BE REMITTED 155
BY THE COUNTY AUDITOR FOR EACH DAY OF THE YEAR THAT TITLE IS HELD 156
BY THE ORGANIZATION. 157
UPON TRANSFERRING THE TITLE TO ANOTHER PERSON, THE 159
ORGANIZATION SHALL FILE WITH THE COUNTY AUDITOR AN AFFIDAVIT 160
AFFIRMING THAT THE TITLE WAS TRANSFERRED TO A QUALIFIED 161
LOW-INCOME FAMILY OR THAT THE TITLE WAS NOT TRANSFERRED TO A
5
QUALIFIED LOW-INCOME FAMILY, AS THE CASE MAY BE; IF THE TITLE WAS 162
TRANSFERRED TO A QUALIFIED LOW-INCOME FAMILY, THE AFFIDAVIT SHALL 163
IDENTIFY THE TRANSFEREE BY NAME. IF THE ORGANIZATION TRANSFERS 164
TITLE TO THE PROPERTY TO ANYONE OTHER THAN A QUALIFIED LOW-INCOME 166
FAMILY, THE EXEMPTION, IF IT HAS NOT PREVIOUSLY EXPIRED, SHALL 167
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 168
LEVIED AGAINST THE PROPERTY IN AN AMOUNT EQUAL TO THE AMOUNT OF 169
ADDITIONAL TAXES THAT WOULD HAVE BEEN LEVIED IF SUCH PROPERTY HAD 170
NOT BEEN EXEMPT FROM TAXATION. THE CHARGE CONSTITUTES A LIEN OF 171
THE STATE UPON SUCH PROPERTY AS OF THE FIRST DAY OF JANUARY OF 172
THE TAX YEAR IN WHICH THE CHARGE IS LEVIED AND CONTINUES UNTIL 173
DISCHARGED AS PROVIDED BY LAW.
THE APPLICATION FOR EXEMPTION SHALL BE FILED AS OTHERWISE 175
REQUIRED UNDER SECTION 5715.27 OF THE REVISED CODE, EXCEPT THAT 176
THE ORGANIZATION HOLDING THE PROPERTY SHALL FILE WITH ITS 177
APPLICATION DOCUMENTATION SUBSTANTIATING ITS STATUS AS AN 178
ORGANIZATION ORGANIZED AND OPERATED EXCLUSIVELY FOR CHARITABLE 179
PURPOSES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND 181
ITS QUALIFICATION FOR EXEMPTION FROM FEDERAL TAXATION UNDER 182
SECTION 501(a) OF THE INTERNAL REVENUE CODE, AND AFFIRMING ITS 183
INTENTION TO CONSTRUCT OR REHABILITATE THE PROPERTY FOR THE 184
EVENTUAL TRANSFER TO QUALIFIED LOW-INCOME FAMILIES. 185
AS USED IN THIS DIVISION, "QUALIFIED LOW-INCOME FAMILY" 187
MEANS A FAMILY WHOSE INCOME DOES NOT EXCEED TWO HUNDRED PER CENT 188
OF THE OFFICIAL FEDERAL POVERTY GUIDELINES AS REVISED ANNUALLY IN 190
ACCORDANCE WITH SECTION 673(2) OF THE "OMNIBUS BUDGET 191
RECONCILIATION ACT OF 1981," 95 STAT. 511, 42 U.S.C.A. 9902, AS 192
AMENDED, FOR A FAMILY SIZE EQUAL TO THE SIZE OF THE FAMILY WHOSE 193
INCOME IS BEING DETERMINED.
Section 2. That existing section 5709.12 of the Revised 195
Code is hereby repealed. 196