As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 27 5
1999-2000 6
REPRESENTATIVES GRENDELL-METELSKY-BRITTON-HARTNETT-PETERSON- 8
HOLLISTER-JOLIVETTE-HAINES-BEATTY-OLMAN-DePIERO-SCHULER- 9
BARRETT-PRINGLE-BUCHY-ROBERTS-BARNES-SENATOR BLESSING 10
_________________________________________________________________ 12
A B I L L
To amend sections 5709.61, 5709.62, 5709.63, 15
5709.631, and 5723.06 of the Revised Code to
specify that certain places of business where 16
electricity is generated are facilities eligible 17
for tax abatements under the enterprise zone 18
program, to prohibit sales of forfeited lands to
delinquent property taxpayers, and to permit, for 20
a limited time, the abatement of unpaid property
taxes, penalties, and interest owed on property 22
that would have been tax exempt except for a
failure to comply with certain tax exemption 23
procedures. 24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 5709.61, 5709.62, 5709.63, 29
5709.631, and 5723.06 of the Revised Code be amended to read as 30
follows:
Sec. 5709.61. As used in sections 5709.61 to 5709.69 of 39
the Revised Code: 40
(A) "Enterprise zone" or "zone" means any of the 42
following: 43
(1) An area with a single continuous boundary designated 45
in the manner set forth in section 5709.62 or 5709.63 of the 46
Revised Code and certified by the director of development as 47
having a population of at least four thousand according to the 48
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best and most recent data available to the director and having at 49
least two of the following characteristics: 50
(a) It is located in a municipal corporation defined by 52
the United States office of management and budget as a central 53
city of a metropolitan statistical area; 54
(b) It is located in a county designated as being in the 56
"Appalachian region" under the "Appalachian Regional Development 57
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended; 58
(c) Its average rate of unemployment, during the most 60
recent twelve-month period for which data are available, is equal 61
to at least one hundred twenty-five per cent of the average rate 62
of unemployment for the state of Ohio for the same period; 63
(d) There is a prevalence of commercial or industrial 65
structures in the area that are vacant or demolished, or are 66
vacant and the taxes charged thereon are delinquent, and 67
certification of the area as an enterprise zone would likely 68
result in the reduction of the rate of vacant or demolished 69
structures or the rate of tax delinquency in the area; 70
(e) The population of all census tracts in the area, 72
according to the federal census of 1990, decreased by at least 73
ten per cent between the years 1970 and 1990; 74
(f) At least fifty-one per cent of the residents of the 76
area have incomes of less than eighty per cent of the median 77
income of residents of the municipal corporation or municipal 78
corporations in which the area is located, as determined in the 79
same manner specified under section 119(b) of the "Housing and 80
Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318, 81
as amended; 82
(g) The area contains structures previously used for 84
industrial purposes but currently not so used due to age, 85
obsolescence, deterioration, relocation of the former occupant's 86
operations, or cessation of operations resulting from unfavorable 87
economic conditions either generally or in a specific economic 88
sector; 89
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(h) An area IT IS located within one or more adjacent 91
city, local, or exempted village school districts, the 92
income-weighted tax capacity of each of which is less than 93
seventy per cent of the average of the income-weighted tax 94
capacity of all city, local, or exempted village school districts 95
in the state according to the most recent data available to the 96
director from the department of taxation. 97
The director of development shall adopt rules in accordance 99
with Chapter 119. of the Revised Code establishing conditions 100
constituting the characteristics described in divisions 101
(A)(1)(d), (g), and (h) of this section. 102
If an area could not be certified as an enterprise zone 104
unless it satisfied division (A)(1)(g) of this section, the 105
legislative authority may enter into agreements in that zone 106
under section 5709.62, 5709.63, or 5709.632 of the Revised Code 107
only if such agreements result in the development of the 108
facilities described in that division, the parcel of land on 109
which such facilities are situated, or adjacent parcels. The 110
director of development annually shall review all agreements in 111
such zones to determine whether the agreements have resulted in 112
such development; if the director determines that the agreements 113
have not resulted in such development, the director immediately 114
shall revoke certification of the zone and notify the legislative 115
authority of such revocation. Any agreements entered into prior 116
to revocation under this paragraph shall continue in effect for 117
the period provided in the agreement. 118
(2) An area with a single continuous boundary designated 120
in the manner set forth in section 5709.63 of the Revised Code 121
and certified by the director of development as: 122
(a) Being located within a county that contains a 124
population of three hundred thousand or less; 125
(b) Having a population of at least one thousand according 127
to the best and most recent data available to the director; 128
(c) Having at least two of the characteristics described 130
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in divisions (A)(1)(b) to (h) of this section. 131
(3) An area with a single continuous boundary designated 133
in the manner set forth under division (A)(1) of section 5709.632 134
of the Revised Code and certified by the director of development 135
as having a population of at least four thousand, or under 136
division (A)(2) of that section and certified as having a 137
population of at least one thousand, according to the best and 138
most recent data available to the director. 139
(B) "Enterprise" means any form of business organization 141
including, but not limited to, any partnership, sole 142
proprietorship, or corporation, including an S corporation as 143
defined in section 1361 of the Internal Revenue Code and any 144
corporation that is majority work-owned either directly through 145
the ownership of stock or indirectly through participation in an 146
employee stock ownership plan. 147
(C) "Facility" means an enterprise's place of business in 149
a zone, including land, buildings, machinery, equipment, and 150
other materials, except inventory, used in business. "Facility" 151
INCLUDES LAND, BUILDINGS, MACHINERY, PRODUCTION AND STATION 152
EQUIPMENT, OTHER EQUIPMENT, AND OTHER MATERIALS, EXCEPT 154
INVENTORY, USED IN BUSINESS TO GENERATE ELECTRICITY THAT IS 155
DESIGNED AND INTENDED TO OPERATE DURING PEAK LOAD PERIODS AND TO
GENERATE ELECTRICITY DURING NO MORE THAN FOUR THOUSAND THREE 156
HUNDRED FIFTY HOURS IN A CALENDAR YEAR, PROVIDED THAT, FOR 157
PURPOSES OF SECTIONS 5709.61 TO 5709.69 OF THE REVISED CODE, THE 158
VALUE OF THE PROPERTY AT SUCH A FACILITY SHALL BE REDUCED BY THE 160
VALUE, IF ANY, THAT IS NOT APPORTIONED UNDER SECTION 5727.15 OF 161
THE REVISED CODE TO THE TAXING DISTRICT IN WHICH THE FACILITY IS 162
PHYSICALLY LOCATED. IN THE CASE OF SUCH A FACILITY THAT IS 163
PHYSICALLY LOCATED IN TWO ADJACENT TAXING DISTRICTS, THE PROPERTY 164
LOCATED IN EACH TAXING DISTRICT CONSTITUTES A SEPARATE FACILITY. 166
"FACILITY" does not include any portion of an enterprise's 168
place of business used primarily for making retail sales unless 170
the place of business is located in an impacted city as defined 171
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in section 1728.01 of the Revised Code. 172
(D) "Vacant facility" means a facility that has been 174
vacant for at least ninety days immediately preceding the date on 175
which an agreement is entered INTO under section 5709.62 or 176
5709.63 of the Revised Code. 177
(E) "Expand" means to make expenditures to add land, 179
buildings, machinery, equipment, or other materials, except 180
inventory, to a facility that equal at least ten per cent of the 181
market value of the facility prior to such expenditures, as 182
determined for the purposes of local property taxation. 183
(F) "Renovate" means to make expenditures to alter or 185
repair a facility that equal at least fifty per cent of the 186
market value of the facility prior to such expenditures, as 187
determined for the purposes of local property taxation. 188
(G) "Occupy" means to make expenditures to alter or repair 190
a vacant facility equal to at least twenty per cent of the market 191
value of the facility prior to such expenditures, as determined 192
for the purposes of local property taxation. 193
(H) "Project site" means all or any part of a facility 195
that is newly constructed, expanded, renovated, or occupied by an 196
enterprise. 197
(I) "Project" means any undertaking by an enterprise to 199
establish a facility or to improve a project site by expansion, 200
renovation, or occupancy. 201
(J) "Position" means the position of one full-time 203
employee performing a particular set of tasks and duties. 204
(K) "Full-time employee" means an individual who is 206
employed for consideration by an enterprise for at least 207
thirty-five hours a week, or who renders any other standard of 208
service generally accepted by custom or specified by contract as 209
full-time employment. 210
(L) "New employee" means a full-time employee first 212
employed by an enterprise at a facility that is a project site 213
after the enterprise enters an agreement under section 5709.62 or 214
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5709.63 of the Revised Code. "New employee" does not include an 215
employee if, immediately prior to being employed by the 216
enterprise, the employee was employed by an enterprise that is a 217
related member or predecessor enterprise of that enterprise. 218
(M) "Unemployed person" means any person who is totally 220
unemployed in this state, as that term is defined in division (M) 221
of section 4141.01 of the Revised Code, for at least ten 222
consecutive weeks immediately preceding that person's employment 224
at a facility that is a project site, or who is so unemployed for 225
at least twenty-six of the fifty-two weeks immediately preceding 226
that person's employment at such a facility. 228
(N) "JTPA eligible employee" means any individual who is 230
eligible for employment or training under the "Job Training 231
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as 232
amended.
(O) "First used in business" means that the property 234
referred to has not been used in business in this state by the 235
enterprise that owns it, or by an enterprise that is a related 236
member or predecessor enterprise of such an enterprise, other 237
than as inventory, prior to being used in business at a facility 238
as the result of a project. 239
(P) "Training program" means any noncredit training 241
program or course of study that is offered by any state college 242
or university; university branch district; community college; 243
technical college; nonprofit college or university certified 244
under section 1713.02 of the Revised Code; school district; joint 245
vocational school district; school registered and authorized to 246
offer programs under section 3332.05 of the Revised Code; an 247
entity administering any federal, state, or local adult education 248
and training program; or any enterprise; and that meets all of 249
the following requirements: 250
(1) It is approved by the director of development; 252
(2) It is established or operated to satisfy the need of a 254
particular industry or enterprise for skilled or semi-skilled 255
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employees; 256
(3) An individual is required to complete the course or 258
program before filling a position at a project site. 259
(Q) "Development" means to engage in the process of 261
clearing and grading land, making, installing, or constructing 262
water distribution systems, sewers, sewage collection systems, 263
steam, gas, and electric lines, roads, curbs, gutters, sidewalks, 264
storm drainage facilities, and construction of other facilities 265
or buildings equal to at least fifty per cent of the market value 266
of the facility prior to the expenditures, as determined for the 267
purposes of local property taxation. 268
(R) "Large manufacturing facility" means a single Ohio 270
facility that employed an average of at least one thousand 271
individuals during the five calendar years preceding an agreement 273
authorized under division (C)(3) of section 5709.62 or division 274
(B)(2) of section 5709.63 of the Revised Code. For purposes of
this division, both of the following apply: 275
(1) A single Ohio manufacturing facility employed an 278
average of at least one thousand individuals during the five 279
calendar years preceding entering into such an agreement if 280
one-fifth of the sum of the number of employees employed on the 281
highest employment day during each of the five calendar years 282
equals or exceeds one thousand. 283
(2) The highest employment day is the day or days during a 286
calendar year on which the number of employees employed at a
single Ohio manufacturing facility was greater than on any other 288
day during the calendar year.
(S) "Business cycle" means the cycle of business activity 290
usually regarded as passing through alternating stages of 291
prosperity and depression. 292
(T) "Making retail sales" means the effecting of 294
transactions wherein one party is obligated to pay the price and 295
the other party is obligated to provide a service or to transfer 296
title to or possession of the item sold. 297
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(U) "Environmentally contaminated" means that hazardous 299
substances exist at a facility under conditions that have caused 300
or would cause the facility to be identified as contaminated by 301
the state or federal environmental protection agency. These may 302
include facilities located at sites identified in the master 303
sites list or similar database maintained by the state 304
environmental protection agency if the sites have been 305
investigated by the agency and found to be contaminated. 306
(V) "Remediate" means to make expenditures to clean up an 308
environmentally contaminated facility so that it is no longer 309
environmentally contaminated that equal at least ten per cent of 310
the real property market value of the facility prior to such 311
expenditures as determined for the purposes of property taxation. 312
(W) "Related member" has the same meaning as defined in 314
section 5733.042 of the Revised Code without regard to division 315
(B) of that section, except that it is used with respect to an 316
enterprise rather than a taxpayer. 317
(X) "Predecessor enterprise" means an enterprise from 319
which the assets or equity of another enterprise has been 320
transferred, which transfer resulted in the full or partial 321
nonrecognition of gain or loss, or resulted in a carryover basis, 322
both as determined by rule adopted by the tax commissioner. 323
(Y) "Successor enterprise" means an enterprise to which 325
the assets or equity of another enterprise has been transferred, 326
which transfer resulted in the full or partial nonrecognition of 327
gain or loss, or resulted in a carryover basis, both as 328
determined by rule adopted by the tax commissioner. 329
Sec. 5709.62. (A) In any municipal corporation that is 338
defined by the United States office of management and budget as a 339
central city of a metropolitan statistical area, the legislative 340
authority of the municipal corporation may designate one or more 341
areas within its municipal corporation as proposed enterprise 342
zones. Upon designating an area, the legislative authority shall 343
petition the director of development for certification of the 344
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area as having the characteristics set forth in division (A)(1) 345
of section 5709.61 of the Revised Code as amended by Substitute 346
Senate Bill No. 19 of the 120th general assembly. Except as 347
otherwise provided in division (E) of this section, on and after 348
July 1, 1994, legislative authorities shall not enter into 349
agreements under this section unless the legislative authority 350
has petitioned the director and the director has certified the 351
zone under this section as amended by that act; however, all 352
agreements entered into under this section as it existed prior to 353
July 1, 1994, and the incentives granted under those agreements 354
shall remain in effect for the period agreed to under those 355
agreements. Within sixty days after receiving such a petition, 356
the director shall determine whether the area has the 357
characteristics set forth in division (A)(1) of section 5709.61 358
of the Revised Code, and shall forward the findings to the 360
legislative authority of the municipal corporation. If the 361
director certifies the area as having those characteristics, and 362
thereby certifies it as a zone, the legislative authority may 363
enter into an agreement with an enterprise under division (C) of 364
this section. 365
(B) Any enterprise that wishes to enter into an agreement 367
with a municipal corporation under division (C) of this section 368
shall submit a proposal to the legislative authority of the 369
municipal corporation on a form prescribed by the director of 370
development, together with the application fee established under 371
section 5709.68 of the Revised Code. The form shall require the 372
following information: 373
(1) An estimate of the number of new employees whom the 375
enterprise intends to hire, or of the number of employees whom 376
the enterprise intends to retain, within the zone at a facility 377
that is a project site, and an estimate of the amount of payroll 378
of the enterprise attributable to these employees; 379
(2) An estimate of the amount to be invested by the 381
enterprise to establish, expand, renovate, or occupy a facility, 382
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including investment in new buildings, additions or improvements 383
to existing buildings, machinery, equipment, furniture, fixtures, 384
and inventory; 385
(3) A listing of the enterprise's current investment, if 387
any, in a facility as of the date of the proposal's submission. 388
The enterprise shall review and update the listings 390
required under this division to reflect material changes, and any 391
agreement entered into under division (C) of this section shall 392
set forth final estimates and listings as of the time the 393
agreement is entered into. The legislative authority may, on a 394
separate form and at any time, require any additional information 395
necessary to determine whether an enterprise is in compliance 396
with an agreement and to collect the information required to be 397
reported under section 5709.68 of the Revised Code. 398
(C) Upon receipt and investigation of a proposal under 400
division (B) of this section, if the legislative authority finds 401
that the enterprise submitting the proposal is qualified by 402
financial responsibility and business experience to create and 403
preserve employment opportunities in the zone and improve the 404
economic climate of the municipal corporation, the legislative 405
authority, on or before June 30, 1999, may do one of the 408
following:
(1) Enter into an agreement with the enterprise under 410
which the enterprise agrees to establish, expand, renovate, or 411
occupy a facility and hire new employees, or preserve employment 412
opportunities for existing employees, in return for one or more 413
of the following incentives: 414
(a) Exemption for a specified number of years, not to 416
exceed ten, of a specified portion, up to seventy-five per cent, 417
of the assessed value of tangible personal property first used in 418
business at the project site as a result of the agreement. An 419
exemption granted pursuant to this division applies to inventory 420
required to be listed pursuant to sections 5711.15 and 5711.16 of 421
the Revised Code, except that, in the instance of an expansion or 422
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other situations in which an enterprise was in business at the 423
facility prior to the establishment of the zone, the inventory 424
which THAT is exempt is that amount or value of inventory in 425
excess of the amount or value of inventory required to be listed 427
in the personal property tax return of the enterprise in the 428
return for the tax year in which the agreement is entered into. 429
(b) Exemption for a specified number of years, not to 431
exceed ten, of a specified portion, up to seventy-five per cent, 432
of the increase in the assessed valuation of real property 433
constituting the project site subsequent to formal approval of 434
the agreement by the legislative authority; 435
(c) Provision for a specified number of years, not to 437
exceed ten, of any optional services or assistance that the 438
municipal corporation is authorized to provide with regard to the 439
project site. 440
(2) An ENTER INTO AN agreement under which the enterprise 442
agrees to remediate an environmentally contaminated facility, to 444
spend an amount equal to at least two hundred fifty per cent of 445
the true value in money of the real property of the facility 446
prior to remediation as determined for the purposes of property 447
taxation to establish, expand, renovate, or occupy the remediated 448
facility, and to hire new employees or preserve employment 449
opportunities for existing employees at the remediated facility, 450
in return for one or more of the following incentives: 451
(a) Exemption for a specified number of years, not to 453
exceed ten, of a specified portion, not to exceed fifty per cent, 454
of the assessed valuation of the real property of the facility 455
prior to remediation; 456
(b) Exemption for a specified number of years, not to 458
exceed ten, of a specified portion, not to exceed one hundred per 459
cent, of the increase in the assessed valuation of the real 460
property of the facility during or after remediation; 461
(c) The incentive under division (C)(1)(a) of this 463
section, except that the percentage of the assessed value of such 464
12
property exempted from taxation shall not exceed one hundred per 465
cent; 466
(d) The incentive under division (C)(1)(c) of this 468
section. 469
(3) Enter into an agreement with an enterprise that plans 471
to purchase and operate a large manufacturing facility that has 472
ceased operation or announced its intention to cease operation, 473
in return for exemption for a specified number of years, not to 474
exceed ten, of a specified portion, up to one hundred per cent, 475
of the assessed value of tangible personal property used in 476
business at the project site as a result of the agreement, or of 477
the assessed valuation of real property constituting the project 478
site, or both. 479
(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this 481
section, the portion of the assessed value of tangible personal 482
property or of the increase in the assessed valuation of real 483
property exempted from taxation under those divisions may exceed 484
seventy-five per cent in any year for which that portion is 485
exempted if the average percentage exempted for all years in 486
which the agreement is in effect does not exceed sixty per cent, 487
or if the board of education of the city, local, or exempted 488
village school district within the territory of which the 489
property is or will be located approves a percentage in excess of 490
seventy-five per cent. For the purpose of obtaining such 491
approval, the legislative authority shall deliver to the board of 492
education a notice not later than forty-five days prior to 493
approving the agreement, excluding Saturdays, Sundays, and legal 495
holidays as defined in section 1.14 of the Revised Code. The
notice shall state the percentage to be exempted, an estimate of 497
the true value of the property to be exempted, and the number of 498
years the property is to be exempted. The board of education, by 499
resolution adopted by a majority of the board, shall approve or 500
disapprove the agreement and certify a copy of the resolution to 501
the legislative authority not later than fourteen days prior to 502
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the date stipulated by the legislative authority as the date upon 503
which approval of the agreement is to be formally considered by 504
the legislative authority. The board of education may include in 505
the resolution conditions under which the board would approve the 506
agreement, including the execution of an agreement to compensate 507
the school district under division (B) of section 5709.82 of the 508
Revised Code. The legislative authority may approve the 509
agreement at any time after the board of education certifies its 510
resolution approving the agreement to the legislative authority, 511
or, if the board approves the agreement conditionally, at any 512
time after the conditions are agreed to by the board and the 513
legislative authority.
If a board of education has adopted a resolution waiving 515
its right to approve agreements and the resolution remains in 517
effect, approval of an agreement by the board is not required 518
under this division. If a board of education has adopted a 519
resolution allowing a legislative authority to deliver the notice 520
required under this division fewer than forty-five business days 521
prior to the legislative authority's approval of the agreement, 522
the legislative authority shall deliver the notice to the board 523
not later than the number of days prior to such approval as 524
prescribed by the board in its resolution. If a board of 525
education adopts a resolution waiving its right to approve 526
agreements or shortening the notification period, the board shall 527
certify a copy of the resolution to the legislative authority. 528
If the board of education rescinds such a resolution, it shall 529
certify notice of the rescission to the legislative authority. 530
(2) The legislative authority shall comply with section 532
5709.83 of the Revised Code unless the board of education has 535
adopted a resolution under that section waiving its right to 536
receive such notice.
(E) This division applies to zones certified by the 538
director of development under this section prior to July 22, 540
1994. 541
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On or before June 30, 1999, the legislative authority that 545
designated a zone to which this division applies may enter into 546
an agreement with an enterprise if the legislative authority
makes the finding required under that division and determines 547
that the enterprise satisfies one of the criteria described in 548
divisions (E)(1) to (5) of this section: 549
(1) The enterprise currently has no operations in this 551
state and, subject to approval of the agreement, intends to 552
establish operations in the zone; 553
(2) The enterprise currently has operations in this state 555
and, subject to approval of the agreement, intends to establish 556
operations at a new location in the zone that would not result in 557
a reduction in the number of employee positions at any of the 558
enterprise's other locations in this state; 559
(3) The enterprise, subject to approval of the agreement, 561
intends to relocate operations, currently located in another 562
state, to the zone; 563
(4) The enterprise, subject to approval of the agreement, 565
intends to expand operations at an existing site in the zone that 566
the enterprise currently operates; 567
(5) The enterprise, subject to approval of the agreement, 569
intends to relocate operations, currently located in this state, 570
to the zone, and the director of development has issued a waiver 571
for the enterprise under division (B) of section 5709.633 of the 572
Revised Code. 573
The agreement shall require the enterprise to agree to 575
establish, expand, renovate, or occupy a facility in the zone and 576
hire new employees, or preserve employment opportunities for 577
existing employees, in return for one or more of the incentives 578
described in division (C) of this section. 579
(F) All agreements entered into under this section shall 581
be in the form prescribed under section 5709.631 of the Revised 582
Code. After an agreement is entered into under this division, if 583
the legislative authority revokes its designation of a zone, or 584
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if the director of development revokes the zone's certification, 585
any entitlements granted under the agreement shall continue for 586
the number of years specified in the agreement. 587
(G) Except as otherwise provided in this division, an 589
agreement entered into under this section shall require that the 590
enterprise pay an annual fee equal to the greater of one per cent 591
of the dollar value of incentives offered under the agreement or 592
five hundred dollars; provided, however, that if the value of the 593
incentives exceeds two hundred fifty thousand dollars, the fee 594
shall not exceed two thousand five hundred dollars. The fee 595
shall be payable to the legislative authority once per year for 596
each year the agreement is effective on the days and in the form 597
specified in the agreement. Fees paid shall be deposited in a 598
special fund created for such purpose by the legislative 599
authority and shall be used by the legislative authority 600
exclusively for the purpose of complying with section 5709.68 of 601
the Revised Code and by the tax incentive review council created 602
under section 5709.85 of the Revised Code exclusively for the 603
purposes of performing the duties prescribed under that section. 604
The legislative authority may waive or reduce the amount of the 605
fee charged against an enterprise, but such a waiver or reduction 606
does not affect the obligations of the legislative authority or 607
the tax incentive review council to comply with section 5709.68 608
or 5709.85 of the Revised Code. 609
(H) When an agreement is entered into pursuant to this 611
section, the legislative authority authorizing the agreement 612
shall forward a copy of the agreement to the director of 613
development and to the tax commissioner within fifteen days after 614
the agreement is entered into. 615
(I) After an agreement is entered into, the enterprise 617
shall file with each personal property tax return required to be 618
filed, OR ANNUAL REPORT REQUIRED TO BE FILED UNDER SECTION 619
5727.08 OF THE REVISED CODE, while the agreement is in effect, an 621
informational return, on a form prescribed by the tax 622
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commissioner for that purpose, setting forth separately the 623
property, and related costs and values, exempted from taxation 624
under the agreement.
(J) Enterprises may agree to give preference to residents 626
of the zone within which the agreement applies relative to 627
residents of this state who do not reside in the zone when hiring 628
new employees under the agreement. 629
(K) An agreement entered into under this section may 631
include a provision requiring the enterprise to create one or 632
more temporary internship positions for students enrolled in a 633
course of study at a school or other educational institution in 634
the vicinity, and to create a scholarship or provide another form 635
of educational financial assistance for students holding such a 636
position in exchange for the student's commitment to work for the 637
enterprise at the completion of the internship. 638
Sec. 5709.63. (A) With the consent of the legislative 647
authority of each affected municipal corporation or of a board of 648
township trustees, a board of county commissioners may, in the 649
manner set forth in section 5709.62 of the Revised Code, 650
designate one or more areas in one or more municipal corporations 651
or in unincorporated areas of the county as proposed enterprise 653
zones. A board of county commissioners may designate no more 654
than one area within a township, or within adjacent townships, as 655
a proposed enterprise zone. The board shall petition the 656
director of development for certification of the area as having 657
the characteristics set forth in division (A)(1) or (2) of
section 5709.61 of the Revised Code as amended by Substitute 658
Senate Bill No. 19 of the 120th general assembly. Except as 659
otherwise provided in division (D) of this section, on and after 660
July 1, 1994, boards of county commissioners shall not enter into 661
agreements under this section unless the board has petitioned the 662
director and the director has certified the zone under this
section as amended by that act; however, all agreements entered 663
into under this section as it existed prior to July 1, 1994, and 664
17
the incentives granted under those agreements shall remain in 665
effect for the period agreed to under those agreements. The 666
director shall make the determination in the manner provided 667
under section 5709.62 of the Revised Code. Any enterprise 668
wishing to enter into an agreement with the board under division 669
(B) or (D) of this section shall submit a proposal to the board 671
on the form and accompanied by the application fee prescribed
under division (B) of section 5709.62 of the Revised Code. The 673
enterprise shall review and update the estimates and listings 674
required by the form in the manner required under that division. 675
The board may, on a separate form and at any time, require any 676
additional information necessary to determine whether an 677
enterprise is in compliance with an agreement and to collect the 678
information required to be reported under section 5709.68 of the 679
Revised Code.
(B) If the board of county commissioners finds that an 681
enterprise submitting a proposal is qualified by financial 682
responsibility and business experience to create and preserve 683
employment opportunities in the zone and to improve the economic 684
climate of the municipal corporation or municipal corporations or 685
the unincorporated areas in which the zone is located and to 686
which the proposal applies, the board, on or before June 30, 687
1999, and with the consent of the legislative authority of each 690
affected municipal corporation or of the board of township 691
trustees may do either of the following: 692
(1) Enter into an agreement with the enterprise under 694
which the enterprise agrees to establish, expand, renovate, or 695
occupy a facility in the zone and hire new employees, or preserve 696
employment opportunities for existing employees, in return for 697
the following incentives: 698
(a) When the facility is located in a municipal 700
corporation, the board may enter into an agreement for one or 701
more of the incentives provided in division (C) of section 702
5709.62 of the Revised Code, subject to division (D) of that 703
18
section;
(b) When the facility is located in an unincorporated 705
area, the board may enter into an agreement for one or more of 706
the following incentives: 707
(i) Exemption for a specified number of years, not to 709
exceed ten, of a specified portion, up to sixty per cent, of the 711
assessed value of tangible personal property first used in
business at a project site as a result of the agreement. An 713
exemption granted pursuant to this division applies to inventory 714
required to be listed pursuant to sections 5711.15 and 5711.16 of 715
the Revised Code, except, in the instance of an expansion or 716
other situations in which an enterprise was in business at the 717
facility prior to the establishment of the zone, the inventory 718
which THAT is exempt is that amount or value of inventory in 720
excess of the amount or value of inventory required to be listed 721
in the personal property tax return of the enterprise in the 722
return for the tax year in which the agreement is entered into. 723
(ii) Exemption for a specified number of years, not to 725
exceed ten, of a specified portion, up to sixty per cent, of the 727
increase in the assessed valuation of real property constituting
the project site subsequent to formal approval of the agreement 728
by the board;
(iii) Provision for a specified number of years, not to 730
exceed ten, of any optional services or assistance the board is 731
authorized to provide with regard to the project site; 732
(iv) The incentive described in division (C)(2) of section 734
5709.62 of the Revised Code. 735
(2) Enter into an agreement with an enterprise that plans 737
to purchase and operate a large manufacturing facility that has 738
ceased operation or has announced its intention to cease 739
operation, in return for exemption for a specified number of 740
years, not to exceed ten, of a specified portion, up to one 741
hundred per cent, of tangible personal property used in business 742
at the project site as a result of the agreement, or of real 743
19
property constituting the project site, or both. 744
(C)(1) Notwithstanding divisions (B)(1)(b)(i) and (ii) of 746
this section, the portion of the assessed value of tangible 749
personal property or of the increase in the assessed valuation of 750
real property exempted from taxation under those divisions may 751
exceed sixty per cent in any year for which that portion is
exempted if the average percentage exempted for all years in 752
which the agreement is in effect does not exceed fifty per cent, 753
or if the board of education of the city, local, or exempted 754
village school district within the territory of which the 755
property is or will be located approves a percentage in excess of 756
sixty per cent. For the purpose of obtaining such approval, the
board of commissioners shall deliver to the board of education a 757
notice not later than forty-five days prior to approving the 759
agreement, excluding Saturdays, Sundays, and legal holidays as 761
defined in section 1.14 of the Revised Code. The notice shall 763
state the percentage to be exempted, an estimate of the true 765
value of the property to be exempted, and the number of years the 766
property is to be exempted. The board of education, by 767
resolution adopted by a majority of the board, shall approve or 768
disapprove the agreement and certify a copy of the resolution to
the board of commissioners not later than fourteen days prior to 769
the date stipulated by the board of commissioners as the date 770
upon which approval of the agreement is to be formally considered 771
by the board of commissioners. The board of education may 772
include in the resolution conditions under which the board would
approve the agreement, including the execution of an agreement to 773
compensate the school district under division (B) of section 774
5709.82 of the Revised Code. The board of county commissioners 776
may approve the agreement at any time after the board of 777
education certifies its resolution approving the agreement to the 778
board of county commissioners, or, if the board of education 779
approves the agreement conditionally, at any time after the 780
conditions are agreed to by the board of education and the board 781
20
of county commissioners.
If a board of education has adopted a resolution waiving 783
its right to approve agreements and the resolution remains in 785
effect, approval of an agreement by the board of education is not 786
required under division (C) of this section. If a board of 787
education has adopted a resolution allowing a board of county 788
commissioners to deliver the notice required under this division 789
fewer than forty-five business days prior to approval of the 791
agreement by the board of county commissioners, the board of
county commissioners shall deliver the notice to the board of 792
education not later than the number of days prior to such 794
approval as prescribed by the board of education in its 795
resolution. If a board of education adopts a resolution waiving 796
its right to approve agreements or shortening the notification 797
period, the board of education shall certify a copy of the
resolution to the board of county commissioners. If the board of 798
education rescinds such a resolution, it shall certify notice of 799
the rescission to the board of county commissioners. 800
(2) The board of county commissioners shall comply with 802
section 5709.83 of the Revised Code unless the board of education 805
has adopted a resolution under that section waiving its right to 806
receive such notice.
(D) This division applies to zones certified by the 808
director of development under this section prior to July 22, 810
1994.
On or before June 30, 1999, and with the consent of the 814
legislative authority of each affected municipal corporation or 815
board of township trustees of each affected township, the board 816
of commissioners that designated a zone to which this division 817
applies may enter into an agreement with an enterprise if the 818
board makes the finding required under that division and
determines that the enterprise satisfies one of the criteria 819
described in divisions (D)(1) to (5) of this section: 820
(1) The enterprise currently has no operations in this 822
21
state and, subject to approval of the agreement, intends to 823
establish operations in the zone;
(2) The enterprise currently has operations in this state 825
and, subject to approval of the agreement, intends to establish 826
operations at a new location in the zone that would not result in 827
a reduction in the number of employee positions at any of the 828
enterprise's other locations in this state;
(3) The enterprise, subject to approval of the agreement, 830
intends to relocate operations, currently located in another 831
state, to the zone;
(4) The enterprise, subject to approval of the agreement, 833
intends to expand operations at an existing site in the zone that 834
the enterprise currently operates; 835
(5) The enterprise, subject to approval of the agreement, 837
intends to relocate operations, currently located in this state, 838
to the zone, and the director of development has issued a waiver 839
for the enterprise under division (B) of section 5709.633 of the 840
Revised Code.
The agreement shall require the enterprise to agree to 842
establish, expand, renovate, or occupy a facility in the zone and 843
hire new employees, or preserve employment opportunities for 844
existing employees, in return for one or more of the incentives 845
described in division (B) of this section.
(E) All agreements entered into under this section shall 847
be in the form prescribed under section 5709.631 of the Revised 848
Code. After an agreement under this section is entered into, if 849
the board of county commissioners revokes its designation of the 850
zone, or if the director of development revokes the zone's 851
certification, any entitlements granted under the agreement shall
continue for the number of years specified in the agreement. 852
(F) Except as otherwise provided in this paragraph, an 854
agreement entered into under this section shall require that the 855
enterprise pay an annual fee equal to the greater of one per cent 856
of the dollar value of incentives offered under the agreement or 857
22
five hundred dollars; provided, however, that if the value of the 858
incentives exceeds two hundred fifty thousand dollars, the fee
shall not exceed two thousand five hundred dollars. The fee 859
shall be payable to the board of commissioners once per year for 860
each year the agreement is effective on the days and in the form 861
specified in the agreement. Fees paid shall be deposited in a 862
special fund created for such purpose by the board and shall be
used by the board exclusively for the purpose of complying with 863
section 5709.68 of the Revised Code and by the tax incentive 864
review council created under section 5709.85 of the Revised Code 865
exclusively for the purposes of performing the duties prescribed 866
under that section. The board may waive or reduce the amount of 867
the fee charged against an enterprise, but such waiver or
reduction does not affect the obligations of the board or the tax 868
incentive review council to comply with section 5709.68 or 869
5709.85 of the Revised Code, respectively. 870
(G) With the approval of the legislative authority of a 872
municipal corporation or the board of township trustees of a 873
township in which a zone is designated under division (A) of this 874
section, the board of county commissioners may delegate to that 875
legislative authority or board any powers and duties of the board 876
to negotiate and administer agreements with regard to that zone
under this section. 877
(H) When an agreement is entered into pursuant to this 879
section, the legislative authority authorizing the agreement 880
shall forward a copy of the agreement to the director of 881
development and to the tax commissioner within fifteen days after 882
the agreement is entered into.
(I) After an agreement is entered into, the enterprise 884
shall file with each personal property tax return required to be 885
filed, OR ANNUAL REPORT THAT IS REQUIRED TO BE FILED UNDER 886
SECTION 5727.08 OF THE REVISED CODE, while the agreement is in 887
effect, an informational return, on a form prescribed by the tax 888
commissioner for that purpose, setting forth separately the 889
23
property, and related costs and values, exempted from taxation 890
under the agreement.
(J) Enterprises may agree to give preference to residents 892
of the zone within which the agreement applies relative to 893
residents of this state who do not reside in the zone when hiring 894
new employees under the agreement.
(K) An agreement entered into under this section may 896
include a provision requiring the enterprise to create one or 897
more temporary internship positions for students enrolled in a 898
course of study at a school or other educational institution in 899
the vicinity, and to create a scholarship or provide another form 900
of educational financial assistance for students holding such a
position in exchange for the student's commitment to work for the 901
enterprise at the completion of the internship. 902
Sec. 5709.631. Each agreement entered into under sections 911
5709.62, 5709.63, and 5709.632 of the Revised Code on or after 912
April 1, 1994, shall be in writing and shall include all of the 913
information and statements prescribed by this section. Agreements 915
may include terms not prescribed by this section, but such terms 916
shall in no way derogate from the information and statements 917
prescribed by this section.
(A) Each agreement shall include the following 919
information: 920
(1) The names of all parties to the agreement; 922
(2) A description of the investments to be made by the 924
applicant enterprise or by another party at the facility whether 925
or not the investments are exempted from taxation, including 926
existing or new building size and cost thereof; the value of 927
machinery, equipment, furniture, and fixtures, including an 928
itemization of the value of machinery, equipment, furniture, and 929
fixtures used at another location in this state prior to the 930
agreement and relocated or to be relocated from that location to 931
the facility and the value of machinery, equipment, furniture, 932
and fixtures at the facility prior to the execution of the 933
24
agreement that will not be exempted from taxation; the value of 934
inventory at the facility, including an itemization of the value 935
of inventory held at another location in this state prior to the 936
agreement and relocated or to be relocated from that location to 937
the facility, and the value of inventory held at the facility 938
prior to the execution of the agreement that will not be exempted 939
from taxation; 940
(3) The scheduled starting and completion dates of 942
investments made in building, machinery, equipment, furniture, 943
fixtures, and inventory; 944
(4) Estimates of the number of employee positions to be 946
created each year of the agreement and of the number of employee 947
positions retained by the applicant enterprise due to the 948
project, itemized as to the number of full-time, part-time, 949
permanent, and temporary positions; 950
(5) Estimates of the dollar amount of payroll attributable 952
to the positions set forth in division (A)(4) of this section, 953
similarly itemized; 954
(6) The number of employee positions, if any, at the 956
project site and at any other location in the state at the time 957
the agreement is executed, itemized as to the number of 958
full-time, part-time, permanent, and temporary positions. 959
(B) Each agreement shall set forth the following 961
information and incorporate the following statements: 962
(1) A description of real property to be exempted from 964
taxation under the agreement, the percentage of the assessed 965
valuation of the real property exempted from taxation, and the 966
period for which the exemption is granted, accompanied by the 967
statement: "The exemption commences the first year for which the 968
real property would first be taxable were that property not 969
exempted from taxation. No exemption shall commence after 970
.......... (insert date) nor extend beyond .......... (insert 971
date)." The tax commissioner shall adopt rules prescribing the 972
form the description of such property shall assume in order to 973
25
ensure that the property to be exempted from taxation under the 974
agreement is distinguishable from property that is not to be 975
exempted under that agreement. 976
(2) A description of tangible personal property to be 978
exempted from taxation under the agreement, the percentage of the 979
assessed value of the tangible personal property exempted from 980
taxation, and the period for which the exemption is granted, 981
accompanied by the statement: "The exemption commences the first 982
year for which the tangible personal property would first be 983
taxable were that property not exempted from taxation. No 984
exemption shall commence after .......... (insert date) nor 985
extend beyond .......... (insert date)." The tax commissioner 986
shall adopt rules prescribing the form the description of such 987
property shall assume in order to ensure that the property to be 988
exempted from taxation under the agreement is distinguishable 989
from property that is not to be exempted under that agreement. 990
(3) ".......... (insert name of enterprise) shall pay such 992
real and tangible personal property taxes as are not exempted 993
under this agreement and are charged against such property and 994
shall file all tax reports and returns as required by law. If 995
.......... (insert name of enterprise) fails to pay such taxes or 996
file such returns and reports, all incentives granted under this 997
agreement are rescinded beginning with the year for which such 998
taxes are charged or such reports or returns are required to be 999
filed and thereafter." 1,000
(4) ".......... (insert name of enterprise) hereby 1,002
certifies that at the time this agreement is executed, .......... 1,003
(insert name of enterprise) does not owe any delinquent real or 1,004
tangible personal property taxes to any taxing authority of the 1,005
State of Ohio, and does not owe delinquent taxes for which 1,006
.......... (insert name of enterprise) is liable under Chapter 1,007
5727., 5733., 5735., 5739., 5741., 5743., 5747., or 5753. of the 1,008
Revised Code, or, if such delinquent taxes are owed, .......... 1,009
(insert name of enterprise) currently is paying the delinquent 1,010
26
taxes pursuant to an undertaking enforceable by the State of Ohio 1,011
or an agent or instrumentality thereof, has filed a petition in 1,012
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has 1,013
been filed against .......... (insert name of enterprise). For 1,014
the purposes of the certification, delinquent taxes are taxes 1,015
that remain unpaid on the latest day prescribed for payment 1,016
without penalty under the chapter of the Revised Code governing 1,017
payment of those taxes." 1,018
(5) ".......... (insert name of municipal corporation or 1,020
county) shall perform such acts as are reasonably necessary or 1,021
appropriate to effect, claim, reserve, and maintain exemptions 1,022
from taxation granted under this agreement including, without 1,023
limitation, joining in the execution of all documentation and 1,024
providing any necessary certificates required in connection with 1,025
such exemptions." 1,026
(6) "If for any reason the enterprise zone designation 1,028
expires, the Director of the Ohio Department of Development 1,029
revokes certification of the zone, or .......... (insert name of 1,030
municipal corporation or county) revokes the designation of the 1,031
zone, entitlements granted under this agreement shall continue 1,032
for the number of years specified under this agreement, unless 1,033
.......... (insert name of enterprise) materially fails to 1,034
fulfill its obligations under this agreement and .......... 1,035
(insert name of municipal corporation or county) terminates or 1,036
modifies the exemptions from taxation granted under this 1,037
agreement." 1,038
(7) "If .......... (insert name of enterprise) materially 1,040
fails to fulfill its obligations under this agreement, or if 1,041
.......... (insert name of municipal corporation or county) 1,042
determines that the certification as to delinquent taxes required 1,043
by this agreement is fraudulent, .......... (insert name of 1,044
municipal corporation or county) may terminate or modify the 1,045
exemptions from taxation granted under this agreement." 1,046
(8) ".......... (insert name of enterprise) shall provide 1,048
27
to the proper tax incentive review council any information 1,049
reasonably required by the council to evaluate the enterprise's 1,050
compliance with the agreement, including returns OR ANNUAL 1,051
REPORTS filed pursuant to section 5711.02 OR 5727.08 of the Ohio 1,053
Revised Code if requested by the council." 1,055
(9) ".......... (insert name of enterprise) and .......... 1,057
(insert name of municipal corporation or county) acknowledge that 1,058
this agreement must be approved by formal action of the 1,059
legislative authority of .......... (insert name of municipal 1,060
corporation or county) as a condition for the agreement to take 1,061
effect. This agreement takes effect upon such approval." 1,062
(10) "This agreement is not transferable or assignable 1,064
without the express, written approval of .......... (insert name 1,065
of municipal corporation or county)." 1,066
(11) "Exemptions from taxation granted under this 1,068
agreement shall be revoked if it is determined that 1,069
............... (insert name of enterprise), any successor 1,070
enterprise, or any related member (as those terms are defined in 1,071
section 5709.61 of the Ohio Revised Code) has violated the 1,072
prohibition against entering into this agreement under division 1,073
(E) of section 3735.671 or section 5709.62, 5709.63, or 5709.632 1,074
of the Ohio Revised Code prior to the time prescribed by that 1,075
division or either of those sections." 1,076
The statement described in division (B)(7) of this section 1,078
may include the following statement, appended at the end of the 1,079
statement: "and may require the repayment of the amount of taxes 1,080
that would have been payable had the property not been exempted 1,081
from taxation under this agreement." 1,082
(C) If the director of development had to issue a waiver 1,084
under section 5709.633 of the Revised Code as a condition for the 1,085
agreement to be executed, the agreement shall include the 1,086
following statement: 1,087
"Continuation of this agreement is subject to the validity 1,089
of the circumstance upon which .......... (insert name of 1,090
28
enterprise) applied for, and the Director of the Ohio Department 1,091
of Development issued, the waiver pursuant to section 5709.633 of 1,092
the Ohio Revised Code. If, after formal approval of this 1,093
agreement by .......... (insert name of municipal corporation or 1,094
county), the Director or ............. (insert name of municipal 1,095
corporation or county) discovers that such a circumstance did not 1,096
exist, ........... (insert name of enterprise) shall be deemed to 1,097
have materially failed to comply with this agreement." 1,098
If the director issued a waiver on the basis of the 1,100
circumstance described in division (B)(3) of section 5709.633 of 1,101
the Ohio Revised Code, the conditions enumerated in divisions 1,102
(B)(3)(a)(i) and (ii) or divisions (B)(3)(b)(i) and (ii) of that 1,103
section shall be incorporated in the information described in 1,104
divisions (A)(2), (3), and (4) of this section. 1,105
Sec. 5723.06. (A)(1) The county auditor, on the day set 1,114
for the sale of forfeited lands provided in section 5723.04 of 1,115
the Revised Code, shall attend at the courthouse and offer for 1,116
sale the whole of each tract of land as contained in the list 1,117
provided for in such section, at public auction, to the highest 1,118
bidder, for an amount sufficient to pay the lesser of the amounts 1,119
described in divisions (A)(1) and (2) of section 5721.16 of the 1,120
Revised Code. 1,121
The county auditor shall offer each tract separately, 1,123
beginning with the first tract contained in the list. 1,125
(2) If no bid is received for any of the tracts in an 1,127
amount sufficient to pay the required amount, and no notice is 1,128
given under section 5722.04 of the Revised Code or division (B) 1,129
of this section, the auditor may offer such tract for sale 1,130
forthwith, and sell it for the best price obtainable. The county 1,131
auditor shall continue through such list and may adjourn the sale 1,132
from day to day until the county auditor has disposed of or 1,133
offered for sale each tract of land specified in the notice. The 1,135
county auditor may offer a tract of land two or more times at the 1,137
same sale.
29
(3) Notwithstanding the minimum sales price provisions of 1,139
divisions (A)(1) and (2) of this section to the contrary, 1,140
forfeited lands sold pursuant to this section shall not be sold 1,141
for IN EITHER OF THE FOLLOWING CIRCUMSTANCES: 1,142
(a) TO ANY PERSON THAT IS DELINQUENT ON REAL PROPERTY 1,144
TAXES IN THIS STATE; 1,145
(b) FOR less than the total amount of the taxes, 1,147
assessments, penalties, interest, and costs that stand charged 1,148
against the land if the highest bidder is the owner of record of 1,149
the parcel immediately prior to the judgment of foreclosure or 1,150
foreclosure and forfeiture, or a member of the following class of 1,151
parties connected to that owner: a member of that owner's 1,152
immediate family, a person with a power of attorney appointed by 1,153
that owner who subsequently transfers the parcel to the owner, a 1,154
sole proprietorship owned by that owner or a member of that 1,155
owner's immediate family, or a partnership, trust, business 1,157
trust, corporation, or association in which the owner or a member 1,158
of the owner's immediate family owns or controls directly or 1,159
indirectly more than fifty per cent. If 1,160
IF a parcel sells for less than the total amount of the 1,163
taxes, assessments, penalties, interest, and costs that stand
charged against it, the officer conducting the sale shall require 1,164
the buyer to complete an affidavit prepared by the officer 1,165
stating that the buyer is not the owner of record immediately 1,167
prior to the judgment of foreclosure or foreclosure and 1,168
forfeiture, or a member of the specified class of parties 1,169
connected to that owner, and the affidavit shall become part of 1,170
the court records of the proceeding. If the county auditor 1,171
discovers within three years after the date of the sale that a 1,174
parcel was sold to that owner or a member of the specified class 1,175
of parties connected to that owner for a price less than the 1,176
amount so described, and if the parcel is still owned by that 1,177
owner or a member of the specified class of parties connected to 1,178
that owner, the auditor within thirty days after such discovery 1,179
30
shall add the difference between that amount and the sale price 1,180
to the amount of taxes that then stand charged against the parcel 1,181
and is payable at the next succeeding date for payment of real 1,182
property taxes. As used in this paragraph, "immediate family" 1,183
means a spouse who resides in the same household and children. 1,184
(B) The director of natural resources may give written 1,186
notice to the auditor prior to the time of the sale of the 1,187
director's intention to purchase forfeited land for the state. 1,189
Such notice is a legal minimum bid at the time of the sale, and, 1,190
if no bid is received in an amount sufficient to pay the lesser 1,191
of the amounts described in divisions (A)(1) and (2) of section 1,192
5721.16 of the Revised Code, the land is deemed sold to the state 1,193
for no consideration. The director of natural resources shall 1,194
record the deed. 1,195
(C) The sale of forfeited land under this section conveys 1,197
the title to the tract or parcel of land, divested of all 1,198
liability for any taxes, assessments, charges, penalties, 1,199
interest, and costs due at the time of sale that remain after 1,200
applying the amount for which it was sold, except as otherwise 1,201
provided in division (D) of this section. 1,202
(D) If the parcel is sold for the amount described in 1,204
division (A)(2) of section 5721.16 of the Revised Code, and the 1,205
county treasurer's estimate of that amount exceeds the amount of 1,206
taxes, assessments, interest, penalties, and costs actually 1,207
payable when the deed is transferred to the purchaser, the county 1,208
auditor shall refund to the purchaser the difference between the 1,209
estimate and the amount actually payable. If the amount of 1,210
taxes, assessments, interest, penalties, and costs actually 1,211
payable when the deed is transferred to the purchaser exceeds the 1,212
county treasurer's estimate, the county auditor shall certify the 1,213
amount of the excess to the treasurer, who shall enter that 1,214
amount on the real and public utility property tax duplicate 1,215
opposite the property; the amount of the excess shall be payable 1,216
at the next succeeding date prescribed for payment of taxes in 1,217
31
section 323.12 of the Revised Code. 1,218
Section 2. That existing sections 5709.61, 5709.62, 1,220
5709.63, 5709.631, and 5723.06 of the Revised Code are hereby 1,221
repealed.
Section 3. As used in this section, "qualified property" 1,223
means real and tangible personal property that satisfies the 1,224
qualifications for tax exemption under the terms of section 1,225
3313.44, 5709.07, 5709.08, 5709.10, 5709.12, 5709.121, or 5709.14 1,226
of the Revised Code. 1,227
Notwithstanding section 5713.081 of the Revised Code, when 1,229
qualified property has not received tax exemption due to a 1,231
failure to comply with Chapter 5713. or section 5715.27 of the 1,233
Revised Code, the owner of the property, at any time on or before 1,234
six months after the effective date of this section, may file 1,235
with the Tax Commissioner an application requesting that the 1,236
property be placed on the tax exempt list and that all unpaid 1,237
taxes, penalties, and interest on the property be abated.
The application shall be made on the form prescribed by the 1,239
Tax Commissioner under section 5715.27 of the Revised Code and 1,240
shall list the name of the county in which the property is 1,241
located; the property's legal description; its taxable value; the 1,242
amount in dollars of the unpaid taxes, penalties, and interest; 1,243
the date of acquisition of title to the property; the use of the
property during any time that the unpaid taxes accrued; and any 1,244
other information required by the commissioner. The county 1,245
auditor shall supply the required information upon request of the 1,246
applicant.
Upon request of the applicant, the county treasurer shall 1,248
determine if all taxes, penalties, and interest that became a 1,249
lien on the qualified property before it first was used for an 1,250
exempt purpose and all special assessments charged against the 1,251
property have been paid in full. If so, the county treasurer 1,252
shall issue a certificate to the applicant stating that all such 1,253
taxes, penalties, interest, and assessments have been paid in 1,254
32
full. Prior to filing the application with the Tax Commissioner, 1,255
the applicant shall attach the county treasurer's certificate to 1,256
it. The commissioner shall not consider an application filed 1,257
under this section unless such a certificate is attached to it. 1,258
Upon receipt of the application and after consideration of 1,260
it, the Tax Commissioner shall determine if the applicant meets 1,261
the qualifications set forth in this section, and if so shall 1,262
issue an order directing that the property be placed on the tax 1,263
exempt list of the county and that all unpaid taxes, penalties, 1,264
and interest for every year the property met the qualifications 1,265
for exemption described in section 3313.44, 5709.07, 5709.08,
5709.10, 5709.12, 5709.121, or 5709.14 of the Revised Code be 1,268
abated. If the commissioner finds that the property is not now
being so used or is being used for a purpose that would foreclose 1,269
its right to tax exemption, the commissioner shall issue an order 1,270
denying the application.
If the Tax Commissioner finds that the property is not 1,272
entitled to tax exemption and to the abatement of unpaid taxes, 1,273
penalties, and interest for any of the years for which the owner 1,274
claims an exemption or abatement, the commissioner shall order 1,275
the county treasurer of the county in which property is located 1,276
to collect all taxes, penalties, and interest due on the property
for those years in accordance with law. 1,277
The Tax Commissioner may apply this section to any 1,279
qualified property that is the subject of an application for 1,280
exemption pending before the commissioner on the effective date 1,281
of this section, without requiring the property owner to file an 1,282
additional application. The commissioner also may apply this
section to any qualified property that is the subject of an 1,283
application for exemption filed on or after the effective date of 1,284
this section and on or before six months after that effective 1,285
date, even though the application does not expressly request 1,286
abatement of unpaid taxes.