As Passed by the Senate

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 160

Representative Bubp 

Cosponsors: Representatives Latta, Seitz, Book, Adams, Batchelder, Blessing, Brown, Budish, Chandler, Coley, Combs, Daniels, DeBose, Domenick, Fende, Gibbs, Harwood, Hite, Huffman, Hughes, Letson, Luckie, Otterman, Raussen, Schindel, Schneider, Stebelton, Wagoner, Zehringer 

Senators Goodman, Seitz, Kearney, Harris, Schaffer, Spada 

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A BILL

To amend sections 319.20, 1705.02, 5713.08, 5715.27,

1

and 5815.36 and to enact section 5701.14 of the

2

Revised Code to clarify and modify the law

3

relating to disclaimers under the Ohio Trust

4

Code, to provide that a limited liability company

5

may be a nonprofit entity, and to make changes

6

regarding certain tax exemptions.

7

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

Section 1. That sections 319.20, 1705.02, 5713.08, 5715.27,	8
and 5815.36 be amended and section 5701.14 of the Revised Code be	9
enacted to read as follows:	10

Sec. 319.20.  After complying with sections 319.202, 315.251,	11
and 319.203 of the Revised Code, and on application and	12
presentation of title, with the affidavits required by law, or the	13
proper order of a court, bearing the last known address of the	14
grantee, or of any one of the grantees named in the title, and a	15
reference to the volume and page of the recording of the next	16
preceding recorded instrument by or through which the grantor	17
claims title, the county auditor shall transfer any land or town	18
lot or part thereof, minerals therein, or mineral rights thereto,	19
charged with taxes on the tax list, from the name in which it	20
stands into the name of the owner, when rendered necessary by a	21
conveyance, partition, devise, descent, or otherwise. If by reason	22
of the conveyance or otherwise, a part only of a tract or lot,	23
minerals therein, or mineral rights thereto, as charged in the tax	24
list, is to be transferred, the auditor shall determine the tax	25
value of the part of a tract or lot of real estate, minerals	26
therein, or mineral rights thereto, so transferred, and the value	27
of the remaining part compared with the value of the whole.	28

Whenever a part only of a tract or lot of real estate has	29
been transferred by the auditor and the tract or lot bears unpaid	30
taxes, penalties, interest, or special assessments, the unpaid	31
taxes, penalties, interest, or special assessments shall	32
immediately be apportioned, upon demand or request by the	33
transferee or remaining owner, in the following manner:	34

(A) The auditor shall allocate to the part so transferred,	35
and to the remaining part, amounts of any current or delinquent	36
taxes, interest, or penalties that have accrued against the parcel	37
as a whole, proportionate to their respective values.	38

(B) The lien of taxes, penalties, interest, and special	39
assessments, as levied against the original tract, shall extend to	40
the part so transferred and the part remaining only to the extent	41
of the amounts so allocated to the respective parts.	42

This section does not change the total amount of taxes,	43
special assessments, or other charges as originally levied, or the	44
total amount of the balance due. The auditor shall certify such	45
apportionments to the county treasurer.	46

Whenever the state acquires an entire parcel or a part only	47
of a parcel of real property in fee simple, the county auditor,	48
upon application of the grantor or property owner or the state,	49
which application shall contain a description of the property as	50
it appears on the tax list and the date of transfer of ownership,	51
shall prepare an estimate of the taxes that are a lien on the	52
property, but have not been determined, assessed, and levied for	53
the year in which the property was acquired. The county auditor	54
shall thereupon apportion the estimated taxes proportionately	55
between the grantor and the state for the period of the lien year	56
that each had or shall have had ownership or possession of the	57
property, whichever is earlier. The county treasurer shall accept	58
payment from the state for estimated taxes at the time that the	59
real property is acquired. If the state has paid in full in the	60
year in which the property is acquired that proportion of the	61
estimated taxes that the tax commissioner determines are not	62
subject to remission by the county auditor for such year under	63
division (C)(D) of section 5713.08 of the Revised Code, the	64
estimated taxes paid shall be considered the tax liability on the	65
exempted property for that year.	66

Section 319.42 of the Revised Code applies to the	67
apportionment of special assessments.	68

Complaint against such values as determined by the auditor or	69
the allocation of assessments by the certifying authority may be	70
filed by the transferee or the remaining owner, and if filed,	71
proceedings including appeals shall be had in the manner and	72
within the time provided by sections 5717.01 to 5717.06 and	73
5715.19 to 5715.22 of the Revised Code, for complaints against	74
valuation or assessment of real property.	75

The auditor shall endorse on the deed or other evidences of	76
title presented to the auditor that the proper transfer of the	77
real estate described in the deed has been made in the auditor's	78
office or that it is not entered for taxation, and sign the	79
auditor's name to the deed. The address of the grantee, or any	80
one of the grantees, set forth in the deed or other evidences of	81
title shall be entered by the auditor on the transfer sheets and	82
on the general tax list of real property prepared pursuant to	83
section 319.28 of the Revised Code.	84

Sec. 1705.02.  A limited liability company may be formed for	85
any purpose or purposes for which individuals lawfully may	86
associate themselves, including for any profit or nonprofit	87
purpose, except that, if the Revised Code contains special	88
provisions for the formation of any designated type of corporation	89
other than a professional association, a limited liability company	90
shall not be formed for the purpose or purposes for which that	91
type of corporation may be formed. At the request or direction of	92
the government of the United States or any agency of that	93
government, a limited liability company may transact any lawful	94
business in aid of the national defense or in the prosecution of	95
any war in which the United States is engaged.	96

Sec. 5701.14.  For purposes of Title LVII of the Revised	97
Code:	98

(A) In order to determine a limited liability company's	99
nonprofit status, an entity is operating with a nonprofit purpose	100
under section 1705.02 of the Revised Code if that entity is	101
organized other than for the pecuniary gain or profit of, and its	102
net earnings or any part of its net earnings are not	103
distributable to, its members, its directors, its officers, or	104
other private persons, except that the payment of reasonable	105
compensation for services rendered, payments and distributions in	106
furtherance of its nonprofit purpose, and the distribution of	107
assets on dissolution permitted by section 1702.49 of the Revised	108
Code are not pecuniary gain or profit or distribution of net	109
earnings. In no event shall payments and distributions in	110
furtherance of an entity's nonprofit purpose deprive the entity of	111
its nonprofit status as long as all of the members of that entity	112
are operating with a nonprofit purpose.	113

(B) A single member limited liability company that operates	114
with a nonprofit purpose, as described in division (A) of this	115
section, shall be treated as part of the same legal entity as its	116
nonprofit member, and all assets and liabilities of that single	117
member limited liability company shall be considered to be that	118
of the nonprofit member. Filings or applications for exemptions	119
or other tax purposes may be made either by the single member	120
limited liability company or its nonprofit member.	121

Sec. 5713.08.  (A) The county auditor shall make a list of	122
all real and personal property in the auditor's county, including	123
money, credits, and investments in bonds, stocks, or otherwise,	124
whichthat is exempted from taxation. Such list shall show the	125
name of the owner, the value of the property exempted, and a	126
statement in brief form of the ground on which such exemption has	127
been granted. It shall be corrected annually by adding thereto the	128
items of property which have been exempted during the year, and by	129
striking therefrom the items which in the opinion of the auditor	130
have lost their right of exemption and which have been reentered	131
on the taxable list, but no property shall be struck from the	132
exempt property list solely because the property has been conveyed	133
to a single member limited liability company with a nonprofit	134
purpose from its nonprofit member or because the property has	135
been conveyed by a single member limited liability company with a	136
nonprofit purpose to its nonprofit member. No additions shall be	137
made to such exempt lists and no additional items of property	138
shall be exempted from taxation without the consent of the tax	139
commissioner as is provided for in section 5715.27 of the Revised	140
Code or without the consent of the housing officer under section	141
3735.67 of the Revised Code. When any personal property or	142
endowment fund of an institution has once been held by the	143
commissioner to be properly exempt from taxation, it is not	144
necessary to obtain the commissioner's consent to the exemption of	145
additional property or investments of the same kind belonging to	146
the same institution, but such property shall appear on the	147
abstract filed annually with the commissioner. The commissioner	148
may revise at any time the list in every county so that no	149
property is improperly or illegally exempted from taxation. The	150
auditor shall follow the orders of the commissioner given under	151
this section. An abstract of such list shall be filed annually	152
with the commissioner, on a form approved by the commissioner,	153
and a copy thereof shall be kept on file in the office of each	154
auditor for public inspection.	155

The commissioner shall not consider anAn application for	156
exemption of property unless the application has attached thereto	157
shall include a certificate executed by the county treasurer	158
certifying one of the following:	159

(1) That all taxes, assessments, interest, and penalties	160
levied and assessed against the property sought to be exempted	161
have been paid in full tofor all of the tax years preceding the	162
date upontax year for which the application for exemption is	163
filed, except for such taxes, interest, and penalties that may be	164
remitted under division (B)(C) of this section;	165

(2) That the applicant has entered into a valid delinquent	166
tax contract with the county treasurer pursuant to division (A) of	167
section 323.31 of the Revised Code to pay all of the delinquent	168
taxes, assessments, interest, and penalties charged against the	169
property, except for such taxes, interest, and penalties that may	170
be remitted under division (B)(C) of this section. If the auditor	171
receives notice under section 323.31 of the Revised Code that such	172
a written delinquent tax contract has become void, the auditor	173
shall strike such property from the list of exempted property and	174
reenter such property on the taxable list. If property is removed	175
from the exempt list because a written delinquent tax contract has	176
become void, current taxes shall first be extended against that	177
property on the general tax list and duplicate of real and public	178
utility property for the tax year in which the auditor receives	179
the notice required by division (A) of section 323.31 of the	180
Revised Code that the delinquent tax contract has become void or,	181
if that notice is not timely made, for the tax year in which falls	182
the latest date by which the treasurer is required by such section	183
to give such notice. A county auditor shall not remove from any	184
tax list and duplicate the amount of any unpaid delinquent taxes,	185
assessments, interest, or penalties owed on property that is	186
placed on the exempt list pursuant to this division.	187

(3) That a tax certificate has been issued under section	188
5721.32 or 5721.33 of the Revised Code with respect to the	189
property that is the subject of the application, and the tax	190
certificate is outstanding.	191

(B) If the treasurer's certificate is not included with the	192
application or the certificate reflects unpaid taxes, penalties,	193
and interest that may not be remitted, the tax commissioner shall	194
notify the property owner of that fact, and the applicant shall	195
be given sixty days from the date that notification was mailed in	196
which to provide the tax commissioner with a corrected	197
treasurer's certificate. If a corrected treasurer's certificate	198
is not received within the time permitted, the tax commissioner	199
does not have authority to consider the tax exemption	200
application.	201

(C) Any taxes, interest, and penalties which have become a	202
lien after the property was first used for the exempt purpose, but	203
in no case prior to the date of acquisition of the title to the	204
property by the applicant, may be remitted by the commissioner,	205
except as is provided in division (A) of section 5713.081 of the	206
Revised Code.	207

(C)(D) Real property acquired by the state in fee simple is	208
exempt from taxation from the date of acquisition of title or date	209
of possession, whichever is the earlier date, provided that all	210
taxes, interest, and penalties as provided in the apportionment	211
provisions of section 319.20 of the Revised Code have been paid to	212
the date of acquisition of title or date of possession by the	213
state, whichever is earlier. The proportionate amount of taxes	214
that are a lien but not yet determined, assessed, and levied for	215
the year in which the property is acquired, shall be remitted by	216
the county auditor for the balance of the year from date of	217
acquisition of title or date of possession, whichever is earlier.	218
This section shall not be construed to authorize the exemption of	219
such property from taxation or the remission of taxes, interest,	220
and penalties thereon until all private use has terminated.	221

Sec. 5715.27.  (A) Except as provided in section 3735.67 of	222
the Revised Code, the owner, a vendee in possession under a	223
purchase agreement or a land contract, the beneficiary of a trust,	224
or a lessee for an initial term of not less than thirty years of	225
any property may file an application with the tax commissioner, on	226
forms prescribed by the commissioner, requesting that such	227
property be exempted from taxation and that taxes, interest, and	228
penalties be remitted as provided in division (B)(C) of section	229
5713.08 of the Revised Code.	230

(B) The board of education of any school district may request	231
the tax commissioner to provide it with notification of	232
applications for exemption from taxation for property located	233
within that district. If so requested, the commissioner shall send	234
to the board for the quarters ending on the last day of March,	235
June, September, and December of each year,on a monthly basis	236
reports that contain sufficient information to enable the board to	237
identify each property that is the subject of an exemption	238
application, including, but not limited to, the name of the	239
property owner or applicant, the address of the property, and the	240
auditor's parcel number. The commissioner shall mail the reports	241
on or aboutby the fifteenth day of the month following the end of	242
the quartermonth in which the commissioner receives the	243
applications for exemption.	244

(C) A board of education that has requested notification	245
under division (B) of this section may, with respect to any	246
application for exemption of property located in the district and	247
included in the commissioner's most recent report provided under	248
that division, file a statement with the commissioner and with the	249
applicant indicating its intent to submit evidence and participate	250
in any hearing on the application. The statements shall be filed	251
prior to the first day of the third month following the end of the	252
quartermonth in which that application was docketed by the	253
commissioner. A statement filed in compliance with this division	254
entitles the district to submit evidence and to participate in any	255
hearing on the property and makes the district a party for	256
purposes of sections 5717.02 to 5717.04 of the Revised Code in any	257
appeal of the commissioner's decision to the board of tax appeals.	258

(D) The commissioner shall not hold a hearing on or grant or	259
deny an application for exemption of property in a school district	260
whose board of education has requested notification under division	261
(B) of this section until the end of the period within which the	262
board may submit a statement with respect to that application	263
under division (C) of this section. The commissioner may act upon	264
an application at any time prior to that date upon receipt of a	265
written waiver from each such board of education, or, in the case	266
of exemptions authorized by section 725.02, 1728.10, 5709.40,	267
5709.41, 5709.411, 5709.62, or 5709.63, 5709.632, 5709.73,	268
5709.78, 5709.84, or 5709.88 of the Revised Code, upon the request	269
of the property owner. Failure of a board of education to receive	270
the report required in division (B) of this section shall not void	271
an action of the commissioner with respect to any application. The	272
commissioner may extend the time for filing a statement under	273
division (C) of this section.	274

(E) A complaint may also be filed with the commissioner by	275
any person, board, or officer authorized by section 5715.19 of the	276
Revised Code to file complaints with the county board of revision	277
against the continued exemption of any property granted exemption	278
by the commissioner under this section.	279

(F) An application for exemption and a complaint against	280
exemption shall be filed prior to the thirty-first day of December	281
of the tax year for which exemption is requested or for which the	282
liability of the property to taxation in that year is requested.	283
The commissioner shall consider such application or complaint in	284
accordance with procedures established by the commissioner,	285
determine whether the property is subject to taxation or exempt	286
therefrom, and certify the commissioner's findings to the auditor,	287
who shall correct the tax list and duplicate accordingly. If a	288
tax certificate has been sold under section 5721.32 or 5721.33 of	289
the Revised Code with respect to property for which an exemption	290
has been requested, the tax commissioner shall also certify the	291
findings to the county treasurer of the county in which the	292
property is located.	293

(G) Applications and complaints, and documents of any kind	294
related to applications and complaints, filed with the tax	295
commissioner under this section, are public records within the	296
meaning of section 149.43 of the Revised Code.	297

(H) If the commissioner determines that the use of property	298
or other facts relevant to the taxability of property that is the	299
subject of an application for exemption or a complaint under this	300
section has changed while the application or complaint was	301
pending, the commissioner may make the determination under	302
division (F) of this section separately for each tax year	303
beginning with the year in which the application or complaint was	304
filed or the year for which remission of taxes under division	305
(B)(C) of section 5713.08 of the Revised Code was requested, and	306
including each subsequent tax year during which the application or	307
complaint is pending before the commissioner.	308

Sec. 5815.36.  (A) As used in this section:

309

(1) "Disclaimant" means any person, any guardian or personal	310
representative of a person or estate of a person, or any	311
attorney-in-fact or agent of a person having a general or specific	312
authority to act granted in a written instrument, who is any of	313
the following:	314

(a) With respect to testamentary instruments and intestate	315
succession, an heir, next of kin, devisee, legatee, donee, person	316
succeeding to a disclaimed interest, surviving joint tenant,	317
surviving tenant by the entireties, surviving tenant of a tenancy	318
with a right of survivorship, beneficiary under a testamentary	319
instrument, or person designated to take pursuant to a power of	320
appointment exercised by a testamentary instrument;	321

(b) With respect to nontestamentary instruments, a grantee,	322
donee, person succeeding to a disclaimed interest, surviving joint	323
tenant, surviving tenant by the entireties, surviving tenant of a	324
tenancy with a right of survivorship, beneficiary under a	325
nontestamentary instrument, or person designated to take pursuant	326
to a power of appointment exercised by a nontestamentary	327
instrument;	328

(c) With respect to fiduciary rights, privileges, powers, and	329
immunities, a fiduciary under a testamentary or nontestamentary	330
instrument. ThisDivision (A)(1)(c) of this section does not	331
authorize a fiduciary who disclaims fiduciary rights, privileges,	332
powers, and immunities to disclaimcause the rights of	333
beneficiariesany beneficiary to be disclaimed unless the	334
instrument creating the fiduciary relationship authorizes the	335
fiduciary to make such a disclaimer.	336

(d) Any person entitled to take an interest in property upon	337
the death of a person or upon the occurrence of any other event.	338

(2) "Personal representative" includes any fiduciary as	339
defined in section 2109.01 of the Revised Code and any executor,	340
trustee, guardian, or other person or entity having a fiduciary	341
relationship with regard to any interest in property passing to	342
the fiduciary, executor, trustee, guardian, or other person or	343
entity by reason of a disclaimant's death.	344

(3) "Property" means all forms of property, real and	345
personal, tangible and intangible.	346

(B)(1) A disclaimant, other than a fiduciary under an	347
instrument who is not authorized by the instrument to disclaim the	348
interest of a beneficiary, may disclaim, in whole or in part, the	349
succession to any property by executing and by delivering, filing,	350
or recording a written disclaimer instrument in the manner	351
provided in this section.	352

(2) A disclaimant who is a fiduciary under an instrument may	353
disclaim, in whole or in part, any right, power, privilege, or	354
immunity, by executing and by delivering, filing, or recording a	355
written disclaimer instrument in the manner provided in this	356
section.	357

(3) The written instrument of disclaimer shall be signed and	358
acknowledged by the disclaimant and shall contain all of the	359
following:	360

(a) A reference to the donative instrument;

361

(b) A description of the property, part of property, or	362
interest disclaimed, and of any fiduciary right, power, privilege,	363
or immunity disclaimed;	364

(c) A declaration of the disclaimer and its extent.

365

(4) The guardian of the estate of a minor or an incompetent,	366
or the personal representative of a deceased person, whether or	367
not authorized by the instrument to disclaim, with the consent of	368
the probate division of the court of common pleas, may disclaim,	369
in whole or in part, the succession to any property, or interest	370
in property, that the ward, if an adult and competent, or the	371
deceased, if living, might have disclaimed. The guardian or	372
personal representative, or any interested person may file an	373
application with the probate division of the court of common pleas	374
that has jurisdiction of the estate, asking that the court order	375
the guardian or personal representative to execute and deliver,	376
file, or record the disclaimer on behalf of the ward or, estate,	377
or deceased person. The court shall order the guardian or personal	378
representative to execute and deliver, file, or record the	379
disclaimer if the court finds, upon hearing after notice to	380
interested parties and such other persons as the court shall	381
direct, that:	382

(a) It is in the best interests of those interested in the	383
estate of the person and of those who will take the disclaimed	384
interest;	385

(b) It would not materially, adversely affect the minor or	386
incompetent, or the beneficiaries of the estate of the decedent,	387
taking into consideration other available resources and the age,	388
probable life expectancy, physical and mental condition, and	389
present and reasonably anticipated future needs of the minor or	390
incompetent or the beneficiaries of the estate of the decedent.	391

A written instrument of disclaimer ordered by the court under	392
this division shall be executed and be delivered, filed, or	393
recorded within the time and in the manner in which the person	394
could have disclaimed if the person were living, an adult, and	395
competent.	396

(C) A partial disclaimer of property that is subject to a	397
burdensome interest created by the donative instrument is not	398
effective unless the disclaimed property constitutes a gift that	399
is separate and distinct from undisclaimed gifts.	400

(D) The disclaimant shall deliver, file, or record the	401
disclaimer, or cause the same to be done, not later than nine	402
monthsprior to accepting any benefits of the disclaimed interest	403
and at any time after the latest of the following dates:	404

(1) The effective date of the donative instrument if both the	405
taker and the taker's interest in the property are finally	406
ascertained on that date;	407

(2) The date of the occurrence of the event upon which both	408
the taker and the taker's interest in the property become finally	409
ascertainable;	410

(3) The date on which the disclaimant attains twenty-one	411
eighteen years of age or is no longer an incompetent, without	412
tendering or repaying any benefit received while the disclaimant	413
was under twenty-oneeighteen years of age or an incompetent, and	414
even if a guardian of a minor or incompetent had filed an	415
application pursuant to division (B)(4) of this section and the	416
probate division of the court of common pleas involved did not	417
consent to the guardian executing a disclaimer.	418

(E) No disclaimer instrument is effective under this section	419
if either of the following applies under the terms of the	420
disclaimer instrument:	421

(1) The disclaimant has power to revoke the disclaimer.

422

(2) The disclaimant may transfer, or direct to be	423
transferred, to self the entire legal and equitable ownership of	424
the property subject to the disclaimer instrument.	425

(F)(1) Subject to division (F)(2) of this section, if the	426
interest disclaimed is created by a nontestamentary instrument,	427
the disclaimer instrument shall be delivered personally or by	428
certified mail to the trustee or other person who has legal title	429
to, or possession of, the property disclaimed.	430

(2) If the interest disclaimed is created by a testamentary	431
instrument, by intestate succession, by a transfer on death deed	432
pursuant to section 5302.22 of the Revised Code, or by a	433
certificate of title to a motor vehicle, watercraft, or outboard	434
motor that evidences ownership of the motor vehicle, watercraft,	435
or outboard motor that is transferable on death pursuant to	436
section 2131.13 of the Revised Code, the disclaimer instrument	437
shall be filed in the probate division of the court of common	438
pleas in the county in which proceedings for the administration of	439
the decedent's estate have been commenced, and an executed copy of	440
the disclaimer instrument shall be delivered personally or by	441
certified mail to the personal representative of the decedent's	442
estate.	443

(3) If no proceedings for the administration of the	444
decedent's estate have been commenced, the disclaimer instrument	445
shall be filed in the probate division of the court of common	446
pleas in the county in which proceedings for the administration of	447
the decedent's estate might be commenced according to law. The	448
disclaimer instrument shall be filed and indexed, and fees	449
charged, in the same manner as provided by law for an application	450
to be appointed as personal representative to administer the	451
decedent's estate. The disclaimer is effective whether or not	452
proceedings thereafter are commenced to administer the decedent's	453
estate. If proceedings thereafter are commenced for the	454
administration of the decedent's estate, they shall be filed	455
under, or consolidated with, the case number assigned to the	456
disclaimer instrument.	457

(4) If an interest in real estate is disclaimed, an executed	458
copy of the disclaimer instrument also shall be recorded in the	459
office of the recorder of the county in which the real estate is	460
located. The disclaimer instrument shall include a description of	461
the real estate with sufficient certainty to identify it, and	462
shall contain a reference to the record of the instrument that	463
created the interest disclaimed. If title to the real estate is	464
registered under Chapters 5309. and 5310. of the Revised Code, the	465
disclaimer interest shall be entered as a memorial on the last	466
certificate of title. A spouse of a disclaimant has no dower or	467
other interest in the real estate disclaimed.	468

(G) Unless theIf a donative instrument expressly provides	469
that, if there isfor the distribution of property, part of	470
property, or interest in property if there is a disclaimer, there	471
shall not be any acceleration of remainders or other interests,	472
the property, part of property, or interest disclaimed shall be	473
distributed or disposed of, and accelerated or not accelerated, in	474
accordance with the donative instrument. In the absence of express	475
provisions to the contrary in the donative instrument, the	476
property, part of property, or interest in property disclaimed,	477
and any future interest that is to take effect in possession or	478
enjoyment at or after the termination of the interest disclaimed,	479
shall descend, be distributed, or otherwise be disposed of, and	480
shall be accelerated, in the following manner:	481

(1) If intestate or testate succession is disclaimed, as if	482
the disclaimant had predeceased the decedent;	483

(2) If the disclaimant is one designated to take pursuant to	484
a power of appointment exercised by a testamentary instrument, as	485
if the disclaimant had predeceased the donee of the power;	486

(3) If the donative instrument is a nontestamentary	487
instrument, as if the disclaimant had died before the effective	488
date of the nontestamentary instrument;	489

(4) If the disclaimer is of a fiduciary right, power,	490
privilege, or immunity, as if the right, power, privilege, or	491
immunity was never in the donative instrument.	492

(H) A disclaimer pursuant to this section is effective as of,	493
and relates back for all purposes to, the date upon which the	494
taker and the taker's interest have been finally ascertained.	495

(I) A disclaimant who has a present and future interest in	496
property, and disclaims the disclaimant's present interest in	497
whole or in part, is considered to have disclaimed the	498
disclaimant's future interest to the same extent, unless a	499
contrary intention appears in the disclaimer instrument or the	500
donative instrument. A disclaimant is not precluded from	501
receiving, as an alternative taker, a beneficial interest in the	502
property disclaimed, unless a contrary intention appears in the	503
disclaimer instrument or in the donative instrument.	504

(J) The disclaimant's right to disclaim under this section is	505
barred if, before the expiration of the period within which the	506
disclaimant may disclaim the interest, the disclaimant does any of	507
the following:	508

(1) Assigns, conveys, encumbers, pledges, or transfers, or	509
contracts to assign, convey, encumber, pledge, or transfer, the	510
property or any interest in it;	511

(2) Waives in writing the disclaimant's right to disclaim and	512
executes and delivers, files, or records the waiver in the manner	513
provided in this section for a disclaimer instrument;	514

(3) Accepts the property or an interest in it;

515

(4) Permits or suffers a sale or other disposition of the	516
property pursuant to judicial action against the disclaimant.	517

(K) ANeither a fiduciary's application for appointment or	518
assumption of duties as a fiduciary does not waivenor a	519
beneficiary's application for appointment as a personal	520
representative or fiduciary waives or barbars the disclaimant's	521
right to disclaim a right, power, privilege, or immunity as a	522
personal representative or fiduciary or the beneficiary's right to	523
disclaim property.	524

(L) The right to disclaim under this section exists	525
irrespective of any limitation on the interest of the disclaimant	526
in the nature of a spendthrift provision or similar restriction.	527

(M) A disclaimer instrument or written waiver of the right to	528
disclaim that has been executed and delivered, filed, or recorded	529
as required by this section is final and binding upon all persons.	530

(N) The right to disclaim and the procedures for disclaimer	531
established by this section are in addition to, and do not exclude	532
or abridge, any other rights or procedures existingthat exist or	533
formerly existed under any other section of the Revised Code or at	534
common law to assign, convey, release, refuse to accept, renounce,	535
waive, or disclaim property.	536

(O)(1) No person is liable for distributing or disposing of	537
property in a manner inconsistent with the terms of a valid	538
disclaimer if the distribution or disposition is otherwise proper	539
and the person has no actual knowledge of the disclaimer.	540

(2) No person is liable for distributing or disposing of	541
property in reliance upon the terms of a disclaimer that is	542
invalid because the right of disclaimer has been waived or barred	543
if the distribution or disposition is otherwise proper and the	544
person has no actual knowledge of the facts that constitute a	545
waiver or bar to the right to disclaim.	546

(P)(1) A disclaimant may disclaim pursuant to this section	547
any interest in property that is in existence on September 27,	548
1976, if either the interest in the property or the taker of the	549
interest in the property is not finally ascertained on that date.	550

(2) No disclaimer executed pursuant to this section destroys	551
or diminishes an interest in property that exists on September 27,	552
1976, in any person other than the disclaimant.	553

(Q) This section may be applied separately to different	554
interests or powers created in the disclaimant by the same	555
testamentary or nontestamentary instrument.	556

Section 2. That existing sections 319.20, 1705.02, 5713.08,	557
5715.27, and 5815.36 of the Revised Code are hereby repealed.	558

Section 3. Sections 319.20, 5713.08, and 5715.27 of the	559
Revised Code, as amended by this act, are remedial in nature and	560
apply to the tax years at issue in any application for exemption	561
from taxation pending before the Tax Commissioner, the Board of	562
Tax Appeals, the Court of Appeals, or the Supreme Court on the	563
effective date of this act and to that property that is the	564
subject of any application.	565

Section 4. The amendments to divisions (A), (B), (G), (K),	566
(N), and (Q) of section 5815.36 of the Revised Code contained in	567
Section 1 of this act are intended to clarify and be declaratory	568
of the law as it existed prior to the enactment of this act and	569
shall be construed accordingly.	570

Section 5. The General Assembly recognizes that section 2518	571
of the Internal Revenue Code defines a qualified disclaimer, in	572
part, as a written refusal by a person to accept an interest in	573
property that is received by the transferor of the interest within	574
nine months after the later of the date on which the transfer	575
creating the interest is made and the date on which the person	576
attains twenty-one years of age. By amending division (D) of	577
section 5815.36 of the Revised Code to eliminate a reference to	578
the nine-month period, the General Assembly intends to create the	579
possibility that some disclaimers governed by the law of this	580
state will be qualified under section 2518 of the Internal Revenue	581
Code and some will not be qualified under that section.	582

Section 6. Section 1705.02 of the Revised Code, as amended	583
by this act, and section 5701.14 of the Revised Code, as enacted	584
by this act, apply to limited liability companies that were in	585
existence prior to the effective date of this act and that assert	586
to be nonprofit limited liability companies.	587