As Passed by the House

125th General Assembly
Regular Session
2003-2004
Sub. H. B. No. 127


REPRESENTATIVES Jolivette, Young, Price, S. Patton, Hartnett, Seitz, Widowfield, Olman, Hagan, Carano, Hollister, Koziura, Hughes, Niehaus, McGregor, Collier, Latta, Taylor, Schaffer, Ujvagi, Kilbane, Allen, Aslanides, Barrett, Beatty, Brown, Chandler, Cirelli, Daniels, DeBose, DePiero, Distel, Driehaus, Flowers, Gilb, Hoops, Key, Miller, T. Patton, Perry, Raussen, Reidelbach, Schlichter, Schmidt, Setzer, Sferra, G. Smith, S. Smith, D. Stewart, Wagner, Webster, Wilson, Wolpert



A BILL
To amend sections 323.152, 718.01, 718.14, 4503.065, 1
5722.01, and 5722.02 and to enact section 5722.21 2
of the Revised Code to permit municipal 3
corporations and townships to acquire 4
tax-delinquent land for redevelopment free from 5
liens for the unpaid taxes, to revise municipal 6
taxation of non-Ohio source S corporation income, 7
and to change the inflation adjustment rounding 8
for homestead exemption tax reductions.9


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 323.152, 718.01, 718.14, 4503.065, 10
5722.01, and 5722.02 be amended and section 5722.21 of the Revised 11
Code be enacted to read as follows:12

       Sec. 323.152.  In addition to the reduction in taxes required13
under section 319.302 of the Revised Code, taxes shall be reduced14
as provided in divisions (A) and (B) of this section.15

       (A)(1) Division (A) of this section applies to any of the16
following:17

       (a) A person who is permanently and totally disabled;18

       (b) A person who is sixty-five years of age or older;19

       (c) A person who is the surviving spouse of a deceased person 20
who was permanently and totally disabled or sixty-five years of 21
age or older and who applied and qualified for a reduction in 22
taxes under this division in the year of death, provided the23
surviving spouse is at least fifty-nine but not sixty-five or more 24
years of age on the date the deceased spouse dies.25

       (2) Real property taxes on a homestead owned and occupied, or 26
a homestead in a housing cooperative occupied, by a person to whom 27
division (A) of this section applies shall be reduced for each 28
year for which the owner obtains a certificate of reduction from 29
the county auditor under section 323.154 of the Revised Code or 30
for which the occupant obtains a certificate of reduction in31
accordance with section 323.159 of the Revised Code. The reduction32
shall equal the amount obtained by multiplying the tax rate for 33
the tax year for which the certificate is issued by the reduction 34
in taxable value shown in the following schedule:35

Reduce Taxable Value 36
Total Income by the Lesser of: 37

$11,900 or less $5,000 or seventy-five per cent 38
More than $11,900 but not more than $17,500 $3,000 or sixty per cent 39
More than $17,500 but not more than $23,000 $1,000 or twenty-five per cent 40
More than $23,000 -0- 41

       (3) Each calendar year, the tax commissioner shall adjust the 42
foregoing schedule by completing the following calculations in 43
September of each year:44

       (a) Determine the percentage increase in the gross domestic45
product deflator determined by the bureau of economic analysis of46
the United States department of commerce from the first day of 47
January of the preceding calendar year to the last day of December 48
of the preceding calendar year;49

       (b) Multiply that percentage increase by each of the total50
income amounts, and by each dollar amount by which taxable value51
is reduced, for the current tax year;52

       (c) Add the resulting product to each of the total income53
amounts, and to each of the dollar amounts by which taxable value54
is reduced, for the current tax year;55

       (d) Round the resulting sum for each of the total income 56
amounts to the nearest multiple of one hundred dollars;57

       (e) Round the resulting sum for each of the dollar amounts by 58
which taxable value is reduced to the nearest multiple of ten 59
dollars.60

       The commissioner shall certify the amounts resulting from the61
adjustment to each county auditor not later than the first day of62
December each year. The certified amounts apply to the following63
tax year. The commissioner shall not make the adjustment in any64
calendar year in which the amounts resulting from the adjustment65
would be less than the total income amounts, or less than the66
dollar amounts by which taxable value is reduced, for the current67
tax year.68

       (B) Real property taxes on any homestead, and manufactured69
home taxes on any manufactured or mobile home on which a70
manufactured home tax is assessed pursuant to division (D)(2) of71
section 4503.06 of the Revised Code, shall be reduced for each72
year for which the owner obtains a certificate of reduction from73
the county auditor under section 323.154 of the Revised Code. The74
amount of the reduction shall equal one-fourth of the amount by75
which the taxes charged and payable on the homestead or the76
manufactured or mobile home are reduced for such year under77
section 319.302 of the Revised Code.78

       (C) The reductions granted by this section do not apply to79
special assessments or respread of assessments levied against the80
homestead, and if there is a transfer of ownership subsequent to81
the filing of an application for a reduction in taxes, such82
reductions are not forfeited for such year by virtue of such83
transfer.84

       (D) The reductions in taxable value referred to in this85
section shall be applied solely as a factor for the purpose of86
computing the reduction of taxes under this section and shall not87
affect the total value of property in any subdivision or taxing88
district as listed and assessed for taxation on the tax lists and89
duplicates, or any direct or indirect limitations on indebtedness90
of a subdivision or taxing district. If after application of91
sections 5705.31 and 5705.32 of the Revised Code, including the92
allocation of all levies within the ten-mill limitation to debt93
charges to the extent therein provided, there would be94
insufficient funds for payment of debt charges not provided for by95
levies in excess of the ten-mill limitation, the reduction of96
taxes provided for in sections 323.151 to 323.159 of the Revised97
Code shall be proportionately adjusted to the extent necessary to98
provide such funds from levies within the ten-mill limitation.99

       (E) No reduction shall be made on the taxes due on the100
homestead of any person convicted of violating division (C) or (D)101
of section 323.153 of the Revised Code for a period of three years102
following the conviction.103

       Sec. 718.01.  (A) As used in this chapter:104

       (1) "Internal Revenue Code" means the Internal Revenue Code105
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.106

       (2) "Schedule C" means internal revenue service schedule C107
filed by a taxpayer pursuant to the Internal Revenue Code.108

       (3) "Form 2106" means internal revenue service form 2106109
filed by a taxpayer pursuant to the Internal Revenue Code.110

       (4) "Intangible income" means income of any of the following111
types: income yield, interest, dividends, or other income arising112
from the ownership, sale, exchange, or other disposition of113
intangible property including, but not limited to, investments,114
deposits, money, or credits as those terms are defined in Chapter115
5701. of the Revised Code.116

       (5) "S corporation" means a corporation that has made an117
election under subchapter S of Chapter 1 of Subtitle A of the118
Internal Revenue Code for its taxable year.119

       (B) No municipal corporation with respect to that income that 120
it may tax shall tax such income at other than a uniform rate.121

       (C) No municipal corporation shall levy a tax on income at a122
rate in excess of one per cent without having obtained the123
approval of the excess by a majority of the electors of the124
municipality voting on the question at a general, primary, or125
special election. The legislative authority of the municipal126
corporation shall file with the board of elections at least127
seventy-five days before the day of the election a copy of the128
ordinance together with a resolution specifying the date the129
election is to be held and directing the board of elections to130
conduct the election. The ballot shall be in the following form:131
"Shall the Ordinance providing for a ... per cent levy on income132
for (Brief description of the purpose of the proposed levy) be133
passed?134

       FOR THE INCOME TAX135

       AGAINST THE INCOME TAX"136

       In the event of an affirmative vote, the proceeds of the levy137
may be used only for the specified purpose.138

       (D)(1) Except as otherwise provided in division (D)(2) or139
(F)(9) of this section, no municipal corporation shall exempt from140
a tax on income, compensation for personal services of individuals141
over eighteen years of age or the net profit from a business or142
profession.143

       (2) The legislative authority of a municipal corporation may, 144
by ordinance or resolution, exempt from a tax on income any145
compensation arising from the grant, sale, exchange, or other146
disposition of a stock option; the exercise of a stock option; or147
the sale, exchange, or other disposition of stock purchased under148
a stock option.149

       (E) Nothing in this section shall prevent a municipal150
corporation from permitting lawful deductions as prescribed by151
ordinance. If a taxpayer's taxable income includes income against152
which the taxpayer has taken a deduction for federal income tax153
purposes as reportable on the taxpayer's form 2106, and against154
which a like deduction has not been allowed by the municipal155
corporation, the municipal corporation shall deduct from the156
taxpayer's taxable income an amount equal to the deduction shown157
on such form allowable against such income, to the extent not158
otherwise so allowed as a deduction by the municipal corporation.159
In the case of a taxpayer who has a net profit from a business or160
profession that is operated as a sole proprietorship, no municipal161
corporation may tax or use as the base for determining the amount162
of the net profit that shall be considered as having a taxable163
situs in the municipal corporation, a greater amount than the net164
profit reported by the taxpayer on schedule C filed in reference165
to the year in question as taxable income from such sole166
proprietorship, except as otherwise specifically provided by167
ordinance or regulation.168

       (F) A municipal corporation shall not tax any of the169
following:170

       (1) The military pay or allowances of members of the armed171
forces of the United States and of members of their reserve172
components, including the Ohio national guard;173

       (2) The income of religious, fraternal, charitable,174
scientific, literary, or educational institutions to the extent175
that such income is derived from tax-exempt real estate,176
tax-exempt tangible or intangible property, or tax-exempt177
activities;178

       (3) Except as otherwise provided in division (G) of this179
section, intangible income;180

       (4) Compensation paid under section 3501.28 or 3501.36 of the 181
Revised Code to a person serving as a precinct election official, 182
to the extent that such compensation does not exceed one thousand 183
dollars annually. Such compensation in excess of one thousand 184
dollars may be subjected to taxation by a municipal corporation. A 185
municipal corporation shall not require the payer of such186
compensation to withhold any tax from that compensation.187

       (5) Compensation paid to an employee of a transit authority,188
regional transit authority, or regional transit commission created189
under Chapter 306. of the Revised Code for operating a transit bus190
or other motor vehicle for the authority or commission in or191
through the municipal corporation, unless the bus or vehicle is192
operated on a regularly scheduled route, the operator is subject193
to such a tax by reason of residence or domicile in the municipal194
corporation, or the headquarters of the authority or commission is195
located within the municipal corporation;196

       (6) The income of a public utility when that public utility197
is subject to the tax levied under section 5727.24 or 5727.30 of198
the Revised Code, except starting January 1, 2002, the income of199
an electric company or combined company, as defined in section200
5727.01 of the Revised Code, may be taxed by a municipal201
corporation, subject to Chapter 5745. of the Revised Code.202

       (7) On and after January 1, 2003, items excluded from federal 203
gross income pursuant to section 107 of the Internal Revenue Code;204

       (8) On and after January 1, 2001, compensation paid to a205
nonresident individual to the extent prohibited under section206
718.011 of the Revised Code;207

       (9)(a) An S corporation shareholder's distributive share of 208
net profits of the S corporation to the extent such distributive 209
share would not be allocated or apportioned to this state under 210
divisions (B)(1) and (2) of section 5733.05 of the Revised Code if 211
the S corporation were a corporation subject to the taxes imposed 212
under Chapter 5733. of the Revised Code.213

       (b) Except as provided in division (H) of this section, an S214
corporation shareholder's distributive share of net profits of the215
S corporation that would be so allocated or apportioned to this 216
state, other than any part of the distributive share of net217
profits that represents wages as defined in section 3121(a) of the 218
Internal Revenue Code or net earnings from self-employment as219
defined in section 1402(a) of the Internal Revenue Code, to the220
extent such distributive share would not be allocated or221
apportioned to this state under division (B)(1) and (2) of section222
5733.05 of the Revised Code if the S corporation were a223
corporation subject to the taxes imposed under Chapter 5733. of224
the Revised Code.225

       (G) Any municipal corporation that taxes any type of226
intangible income on March 29, 1988, pursuant to Section 3 of227
Amended Substitute Senate Bill No. 238 of the 116th general228
assembly, may continue to tax that type of income after 1988 if a229
majority of the electors of the municipal corporation voting on230
the question of whether to permit the taxation of that type of231
intangible income after 1988 vote in favor thereof at an election232
held on November 8, 1988.233

       (H) Any municipal corporation that, on December 6, 2002,234
taxes an S corporation shareholder's distributive share of net235
profits of the S corporation to any greater extent than that236
permitted under division (F)(9)(b) of this section may continue 237
after 2002 to tax such distributive shares to such greater extent 238
only if a majority of the electors of the municipal corporation 239
voting on the question of such continuation vote in favor thereof 240
at an election held on November 4, 2003. If a majority of electors 241
vote in favor of that question, then, for purposes of section 242
718.14 of the Revised Code, "pass-through entity" includes S 243
corporations, "income from a pass-through entity" includes 244
distributive shares from an S corporation, and "owner" includes a 245
shareholder of an S corporation, notwithstanding that section to 246
the contrary.247

       (I) Nothing in this section or section 718.02 of the Revised248
Code shall authorize the levy of any tax on income that a249
municipal corporation is not authorized to levy under existing250
laws or shall require a municipal corporation to allow a deduction251
from taxable income for losses incurred from a sole proprietorship252
or partnership.253

       Sec. 718.14.  (A) As used in this section:254

       (1) "Limited liability company" means a limited liability255
company formed under Chapter 1705. of the Revised Code or under256
the laws of another state.257

       (2) "Pass-through entity" means a partnership, limited 258
liability company, S corporation, or any other class of entity the 259
income or profits from which are given pass-through treatment 260
under the Internal Revenue Code, excluding an S corporation.261

       (3) "Income from a pass-through entity" means partnership262
income of partners, membership interests of members of a limited263
liability company, distributive shares of shareholders of an S 264
corporation, or other distributive or proportionate shares of265
income from other pass-through entities.266

       (4) "Owner" means a partner of a partnership, a member of a 267
limited liability company, a shareholder of an S corporation, or268
other person with an ownership interest in a pass-through entity.269

       (5) "Owner's proportionate share," with respect to each owner270
of a pass-through entity, means the ratio of (a) the owner's271
income from the pass-through entity that is subject to taxation by272
the municipal corporation, to (b) the total income from that273
entity of all owners whose income from the entity is subject to274
taxation by that municipal corporation.275

       (B) On and after January 1, 2003, any municipal corporation276
imposing a tax that applies to income from a pass-through entity277
shall grant a credit to each owner who is domiciled in the278
municipal corporation for taxes paid to another municipal279
corporation by a pass-through entity that does not conduct280
business in the municipal corporation. The amount of the credit281
shall equal the lesser of the following amounts, subject to282
division (C) of this section:283

       (1) The owner's proportionate share of the amount, if any, of 284
tax paid by the pass-through entity to another municipal285
corporation in this state;286

       (2) The owner's proportionate share of the amount of tax that 287
would be imposed on the pass-through entity by the municipal288
corporation in which the taxpayer is domiciled if the pass-through289
entity conducted business in the municipal corporation.290

       (C) If a municipal corporation grants a credit for a291
percentage, less than one hundred per cent, of the amount of292
income taxes paid on compensation by an individual who resides or293
is domiciled in the municipal corporation to another municipal294
corporation, the amount of credit otherwise required by division295
(B) of this section shall be multiplied by that percentage.296

       (D) On and after January 1, 2003, any municipal corporation297
that imposes a tax on income of or from a pass-through entity298
shall specify by ordinance or rule whether the tax applies to299
income of the pass-through entity in the hands of the entity or to300
income from the pass-through entity in the hands of the owners of301
the entity. A municipal corporation may specify a different302
ordinance or rule under this division for each of the classes of303
pass-through entity enumerated in division (A)(2) of this section.304

       Sec. 4503.065.  (A) This section applies to any of the305
following:306

       (1) An individual who is permanently and totally disabled;307

       (2) An individual who is sixty-five years of age or older;308

       (3) An individual who is the surviving spouse of a deceased309
person who was permanently and totally disabled or sixty-five310
years of age or older and who applied and qualified for a311
reduction in assessable value under this section in the year of312
death, provided the surviving spouse is at least fifty-nine but313
not sixty-five or more years of age on the date the deceased314
spouse dies.315

       (B)(1) The manufactured home tax on a manufactured or mobile316
home that is paid pursuant to division (C) of section 4503.06 of317
the Revised Code and that is owned and occupied as a home by an318
individual whose domicile is in this state and to whom this319
section applies, shall be reduced for any tax year for which the320
owner obtains a certificate of reduction from the county auditor321
under section 4503.067 of the Revised Code, provided the322
individual did not acquire ownership from a person, other than the323
individual's spouse, related by consanguinity or affinity for the324
purpose of qualifying for the reduction in assessable value. An325
owner includes a settlor of a revocable inter vivos trust holding326
the title to a manufactured or mobile home occupied by the settlor327
as of right under the trust. The reduction shall equal the amount328
obtained by multiplying the tax rate for the tax year for which329
the certificate is issued by the reduction in assessable value330
shown in the following schedule.331

Reduce Assessable Value 332
Total Income by the Lesser of: 333
Column A Column B 334

$11,900 or less $5,000 or seventy-five per cent 335
More than $11,900 but not more than $17,500 $3,000 or sixty per cent 336
More than $17,500 but not more than $23,000 $1,000 or twenty-five per cent 337
More than $23,000 -0- 338

       (2) Each calendar year, the tax commissioner shall adjust the 339
foregoing schedule by completing the following calculations in 340
September of each year:341

       (a) Determine the percentage increase in the gross domestic342
product deflator determined by the bureau of economic analysis of343
the United States department of commerce from the first day of 344
January of the preceding calendar year to the last day of December 345
of the preceding calendar year;346

       (b) Multiply that percentage increase by each of the total347
income amounts, and by each dollar amount by which assessable348
value is reduced, for the ensuing tax year;349

       (c) Add the resulting product to each of the total income350
amounts, and to each of the dollar amounts by which assessable351
value is reduced, for the ensuing tax year;352

       (d) Round the resulting sum for each of the total income 353
amounts to the nearest multiple of one hundred dollars;354

       (e) Round the resulting sum for each of the dollar amounts by 355
which assessable value is reduced to the nearest multiple of ten 356
dollars.357

       The commissioner shall certify the amounts resulting from the358
adjustment to each county auditor not later than the first day of359
December each year. The certified amounts apply to the second360
ensuing tax year. The commissioner shall not make the adjustment361
in any calendar year in which the amounts resulting from the362
adjustment would be less than the total income amounts, or less363
than the dollar amounts by which assessable value is reduced, for364
the ensuing tax year.365

       (C) If the owner or the spouse of the owner of a manufactured 366
or mobile home is eligible for a homestead exemption on the land 367
upon which the home is located, the reduction in assessable value 368
to which the owner or spouse is entitled under this section shall 369
not exceed the difference between the reduction in assessable 370
value to which the owner or spouse is entitled under column A of 371
the above schedule and the amount of the reduction in taxable 372
value that was used to compute the homestead exemption.373

       (D) No reduction shall be made on the assessable value of the374
home of any person convicted of violating division (C) or (D) of 375
section 4503.066 of the Revised Code for a period of three years 376
following the conviction.377

       Sec. 5722.01.  As used in this chapter:378

       (A) "Electing subdivision" means a municipal corporation that 379
has enacted an ordinance or a township or county that has adopted 380
a resolution pursuant to section 5722.02 of the Revised Code for 381
purposes of adopting and implementing the procedures set forth in 382
this chaptersections 5722.02 to 5722.15 of the Revised Code.383

       (B) "Delinquent lands" and "delinquent vacant lands" have the 384
same meanings as in section 5721.01 of the Revised Code.385

       (C) "Land reutilization program" means the procedures and386
activities concerning the acquisition, management, and disposition 387
of affected delinquent lands set forth in this chaptersections 388
5722.02 to 5722.15 of the Revised Code.389

       (D) "Minimum bid," in the case of a sale of property390
foreclosed pursuant to section 323.25 or 5721.18 or foreclosed and 391
forfeited pursuant to section 5721.14 of the Revised Code, means a 392
bid in an amount equal to the sum of the taxes, assessments, 393
charges, penalties, and interest due and payable on the parcel 394
subsequent to the delivery to the county prosecuting attorney of 395
the delinquent land or delinquent vacant land tax certificate or 396
master list of delinquent or delinquent vacant tracts containing 397
the parcel, and prior to the transfer of the deed of the parcel to 398
the purchaser following confirmation of sale, plus the costs of 399
foreclosure or foreclosure and forfeiture proceedings against the 400
property.401

       (E) "Nonproductive land" means any parcel of delinquent402
vacant land with respect to which a foreclosure proceeding403
pursuant to section 323.25, a foreclosure proceeding pursuant to404
division (A) or (B) of section 5721.18, or a foreclosure and405
forfeiture proceeding pursuant to section 5721.14 of the Revised406
Code has been instituted; and any parcel of delinquent land with407
respect to which a foreclosure proceeding pursuant to section408
323.25 or division (A) or (B) of section 5721.18 of the Revised409
Code has been instituted, and upon which there are no buildings or 410
other structures, or upon which there are either:411

       (1) Buildings or other structures that are not in the412
occupancy of any person and as to which the township or municipal413
corporation within whose boundaries the parcel is situated has414
instituted proceedings under section 505.86 or 715.26 of the415
Revised Code, or Section 3 of Article XVIII, Ohio Constitution,416
for the removal or demolition of such buildings or other417
structures by the township or municipal corporation because of418
their insecure, unsafe, or structurally defective condition;419

       (2) Buildings or structures that are not in the occupancy of 420
any person at the time the foreclosure proceeding is initiated and 421
whose acquisition the municipal corporation, county, or township 422
determines to be necessary for the implementation of an effective 423
land reutilization program.424

       (F) "Occupancy" means the actual, continuous, and exclusive 425
use and possession of a parcel by a person having a lawful right 426
to such use and possession.427

       (G) "Land within an electing subdivision's boundaries" does 428
not include land within the boundaries of a municipal corporation 429
unless the electing subdivision is the municipal corporation.430

       Sec. 5722.02.  Any municipal corporation, county, or township 431
may elect to adopt and implement the procedures set forth in this 432
chaptersections 5722.02 to 5722.15 of the Revised Code to 433
facilitate the effective reutilization of nonproductive land 434
situated within its boundaries. Such election shall be made by 435
ordinance in the case of a municipal corporation, and by 436
resolution in the case of a county or township. The ordinance or 437
resolution shall state that the existence of nonproductive land 438
within its boundaries is such as to necessitate the implementation 439
of a land reutilization program to foster either the return of 440
such nonproductive land to tax revenue generating status or the 441
devotion thereof to public use.442

       An electing subdivision shall promptly deliver certified443
copies of such ordinance or resolution to the auditor, treasurer,444
and the prosecutor of each county in which the electing445
subdivision is situated. On and after the effective date of such446
ordinance or resolution, the foreclosure, sale, management, and447
disposition of all nonproductive land situated within the electing 448
subdivision's boundaries shall be governed by the procedures set 449
forth in this chaptersections 5722.02 to 5722.15 of the Revised 450
Code.451

       Sec. 5722.21. (A) As used in this section:452

       (1) "Eligible delinquent land" means delinquent land or 453
delinquent vacant land, as defined in section 5721.01 of the 454
Revised Code, included in a delinquent tax list or delinquent 455
vacant land tax list that has been certified delinquent within the 456
meaning of section 5721.03 of the Revised Code, excluding any 457
certificate parcel as defined in section 5721.30 of the Revised 458
Code.459

       (2) "Delinquent taxes" means the cumulative amount of unpaid 460
taxes, assessments, recoupment charges, penalties, and interest 461
charged against eligible delinquent land that became delinquent 462
before transfer of title to a municipal corporation or township 463
under this section.464

       (3) "Foreclosure costs" means the sum of all costs or other 465
charges of publication, service of notice, prosecution, or other 466
proceedings against the land under sections 323.25 to 323.28 or 467
Chapter 5721. of the Revised Code as may pertain to delinquent 468
land or be fairly apportioned to it by the county treasurer.469

       (4) "Tax foreclosure sale" means a sale of delinquent land 470
pursuant to foreclosure proceedings under sections 323.25 to 471
323.28 or section 5721.14 or 5721.18 of the Revised Code.472

       (5) "Taxing authority" means the legislative authority of any 473
taxing unit, as defined in section 5705.01 of the Revised Code, in 474
which is located a parcel of eligible delinquent land acquired or 475
to be acquired by a municipal corporation or township in which a 476
declaration under division (B) of this section is in effect.477

       (B) The legislative authority of a municipal corporation or a 478
board of township trustees may declare by ordinance or resolution 479
that it is in the public interest for the municipal corporation or 480
township to acquire tax-delinquent real property within the 481
municipal corporation or township for the public purpose of 482
redeveloping the property or otherwise rendering it suitable for 483
productive, tax-paying use. In any municipal corporation or 484
township in which such a declaration is in effect, the municipal 485
corporation or township may purchase or otherwise acquire title to 486
eligible delinquent land, other than by appropriation, and the 487
title shall pass free and clear of the lien for delinquent taxes 488
to the extent provided in division (D) of this section. The 489
authority granted by this section is supplemental to the authority 490
granted under sections 5722.01 to 5722.15 of the Revised Code.491

       (C) With respect to any parcel of eligible delinquent land 492
purchased or acquired by a municipal corporation or township in 493
which a declaration is in effect under this section, the municipal 494
corporation or township may obtain the consent of each taxing 495
authority for release of any claim on the delinquent taxes and 496
associated costs attaching to that property at the time of 497
conveyance to the municipal corporation or township. Consent shall 498
be obtained in writing, and shall be certified by the taxing 499
authority granting consent or by the fiscal officer or other 500
person authorized by the taxing authority to provide such consent. 501
Consent may be obtained before or after title to the eligible 502
delinquent land is transferred to the municipal corporation or 503
township.504

       The taxing authority of a taxing unit and a municipal 505
corporation or township in which a declaration is in effect under 506
this section may enter into an agreement whereby the taxing 507
authority consents in advance to release of the taxing authority's 508
claim on delinquent taxes and associated costs with respect to all 509
or specified number of parcels of eligible delinquent land that 510
may be purchased or acquired by the municipal corporation or 511
township for the purposes of this section. The agreement shall 512
provide for any terms and conditions on the release of such claim 513
as are mutually agreeable to the taxing authority and municipal 514
corporation or township, including any notice to be provided by 515
the municipal corporation or township to the taxing authority of 516
the purchase or acquisition of eligible delinquent land situated 517
in the taxing unit; any option vesting in the taxing authority to 518
revoke its release with respect to any parcel of eligible 519
delinquent land before the release becomes effective; and the 520
manner in which notice of such revocation shall be effected. 521
Nothing in this section or in such an agreement shall be construed 522
to bar a taxing authority from revoking its advance consent with 523
respect to any parcels of eligible delinquent land purchased or 524
acquired by the municipal corporation or township before the 525
municipal corporation or township enters into a purchase or other 526
agreement for acquisition of the parcels.527

       (D) The lien for so much of the delinquent taxes and 528
associated costs for which taxing authorities have consented to 529
release their claim under this section is hereby extinguished, and 530
the transfer of title to such delinquent land to the municipal 531
corporation or township shall be transferred free and clear of the 532
lien for such taxes and costs to that extent. If a taxing 533
authority does not consent to the release of its claim on 534
delinquent taxes and associated costs, the lien for such taxes and 535
costs shall continue as otherwise provided by law until paid or 536
otherwise discharged according to law.537

       (E) All eligible delinquent land acquired by a municipal 538
corporation or township under this section is real property held 539
for a public purpose and is exempted from taxation until the 540
municipal corporation or township sells or otherwise disposes of 541
property.542

       (F) If a municipal corporation or township sells or otherwise 543
disposes of delinquent land it purchased or acquired and for which 544
all or a portion of a taxing authority's claim for delinquent 545
taxes was released under this section, the net proceeds from such 546
sale or disposition shall be used for such redevelopment purposes 547
the legislative authority of the municipal corporation or the 548
board of township trustees considers necessary or appropriate.549

       Section 2. That existing sections 323.152, 718.01, 718.14, 550
4503.065, 5722.01, and 5722.02 of the Revised Code are hereby 551
repealed.552

       Section 3. (A) The amendment by this act of section 323.152 553
of the Revised Code applies to tax year 2003 and thereafter.554

       (B) The amendment by this act of section 4503.065 of the 555
Revised Code applies to taxes levied in 2004 and thereafter.556