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To amend section 5709.081 of the Revised Code to | 1 |
authorize property tax exemption for municipally | 2 |
owned facilities housing independent professional | 3 |
minor league baseball teams. | 4 |
Section 1. That section 5709.081 of the Revised Code be | 5 |
amended to read as follows: | 6 |
Sec. 5709.081. (A) Real and tangible personal property owned | 7 |
by a political subdivision that is a public recreational facility | 8 |
for athletic events shall be exempt from taxation if all of the | 9 |
following apply: | 10 |
(1) The property is controlled and managed by a political | 11 |
subdivision or a county-related corporation or by a similar | 12 |
corporation under the direct control of a political subdivision | 13 |
and whose members and trustees are chosen or appointed by the | 14 |
subdivision; | 15 |
(2) All revenues and receipts derived by the subdivision or | 16 |
corporation that controls and manages the property, after | 17 |
deducting amounts needed to pay necessary expenses for the | 18 |
operation and management of the property, accrue to the political | 19 |
subdivision owning the property; | 20 |
(3) The property is not occupied and used for more than seven | 21 |
days in any calendar month by any private entity for profit or for | 22 |
more than a total of fifteen days in any calendar month by all | 23 |
such private entities for profit; | 24 |
(4) The property is under the direction and control of the | 25 |
political subdivision or managing corporation whenever it is being | 26 |
used by a private entity for profit; | 27 |
(5) The primary user or users of the property, if such a | 28 |
primary user exists, are controlled and managed by the political | 29 |
subdivision or corporation that controls and manages the property. | 30 |
(B) Tangible personal property, and all buildings, | 31 |
structures, fixtures, and improvements of any kind to the land, | 32 |
that are constructed or, in the case of personal property, | 33 |
acquired after March 2, 1992, and are part of or used in a public | 34 |
recreational facility used by a major league professional athletic | 35 |
team or a class A to class AAA minor league affiliate of a major | 36 |
league baseball team for a significant portion of its home | 37 |
schedule, and land acquired by a political subdivision in 1999 for | 38 |
such purposes or originally leased from a political subdivision, | 39 |
such political subdivision qualifying as such pursuant to division | 40 |
(G) of this section, in 1998 for such purposes, are declared to be | 41 |
public property used for a public purpose and are exempt from | 42 |
taxation, if all of the following apply: | 43 |
(1) Such property, or the land upon which such property is | 44 |
located if such land was originally leased in 1998 from a | 45 |
political subdivision that qualifies as such pursuant to division | 46 |
(G) of this section, is owned by one or more political | 47 |
subdivisions or by a corporation controlled by such subdivisions; | 48 |
(2) Such property was or is any of the following: | 49 |
(a) Constructed or, in the case of personal property, | 50 |
acquired pursuant to an agreement with a municipal corporation to | 51 |
implement a development, redevelopment, or renewal plan for an | 52 |
area declared by the municipal corporation to be a slum or | 53 |
blighted area, as those terms are defined in section 725.01 of the | 54 |
Revised Code; | 55 |
(b) Financed in whole or in part with public obligations as | 56 |
defined in section 5709.76 of the Revised Code or otherwise paid | 57 |
for in whole or in part by one or more political subdivisions; | 58 |
(c) An improvement or addition to property defined in | 59 |
division (B)(2)(a) or (b) of this section. | 60 |
(3) Such property is controlled and managed by either of the | 61 |
following: | 62 |
(a) One or more of the political subdivisions or the | 63 |
corporation that owns it; | 64 |
(b) A designee, tenant, or agent of such political | 65 |
subdivision or subdivisions or corporation pursuant to a | 66 |
management, lease, or similar written agreement. | 67 |
(4) The primary user or users of such property, if a primary | 68 |
user or primary users exist, either: | 69 |
(a) Are controlled and managed by one or more of the | 70 |
political subdivisions or the corporation that owns the property; | 71 |
or | 72 |
(b) Operate under leases, licenses, management agreements, or | 73 |
similar arrangements with, and providing for the payment of rents, | 74 |
revenues, or other remuneration to, one or more of the political | 75 |
subdivisions or the corporation that owns the property. | 76 |
(5) Any residual cash accrues to the political subdivision or | 77 |
subdivisions that own the property or that control the corporation | 78 |
that owns the property, and is used for the public purposes of the | 79 |
subdivision or subdivisions. As used in division (B)(5) of this | 80 |
section, "residual cash" means any revenue and receipts derived | 81 |
from the property by the political subdivision or subdivisions or | 82 |
corporation that owns the property and that are available for | 83 |
unencumbered use by the political subdivision or subdivisions or | 84 |
corporation, after deducting amounts needed to make necessary | 85 |
expenditures, pay debt service, and provide for working capital | 86 |
related to the ownership, management, operation, and use of the | 87 |
property, including payments of taxes on the taxable part of the | 88 |
public recreational facility, contractually obligated payments or | 89 |
deposits into reserves or otherwise, and service payments under | 90 |
section 307.699 of the Revised Code. | 91 |
(C) The exemption provided in division (B) of this section | 92 |
also applies to both of the following: | 93 |
(1) The property during its construction or, in the case of | 94 |
tangible personal property, acquisition during the construction | 95 |
period, if the owner meets the condition of division (B)(1) of | 96 |
this section and has agreements that provide for the satisfaction | 97 |
of all other conditions of division (B) of this section upon the | 98 |
completion of the construction; | 99 |
(2) Any improvement or addition made after March 2, 1992, to | 100 |
a public recreational facility that was constructed before March | 101 |
2, 1992, as long as all other conditions in division (B) of this | 102 |
section are met. | 103 |
(D) A corporation that owns property exempt from taxation | 104 |
under division (B) of this section is a public body for the | 105 |
purposes of section 121.22 of the Revised Code. The corporation's | 106 |
records are public records for the purposes of section 149.43 of | 107 |
the Revised Code, except records related to matters set forth in | 108 |
division (G) of section 121.22 of the Revised Code and records | 109 |
related to negotiations that are not yet completed for financing, | 110 |
leases, or other agreements. | 111 |
(E) The exemption under division (B) of this section applies | 112 |
to property that is owned by the political subdivision or | 113 |
subdivisions or the corporation that owns the public recreational | 114 |
facility. Tangible personal property owned by users, managers, or | 115 |
lessees of the facility is taxable when used in the public | 116 |
recreational facility. | 117 |
(F) All real property constituting a public recreational | 118 |
facility, including the land on which the facility is situated, | 119 |
that is owned by a municipal corporation and used primarily by an | 120 |
independent professional minor league baseball team for a | 121 |
significant portion of its home schedule is declared to be public | 122 |
property used for a public purpose, and is exempt from taxation, | 123 |
if the facility is constructed in 2008 or thereafter, the team | 124 |
operates at the facility under a lease, license, management | 125 |
agreement, or similar arrangement with the municipal corporation | 126 |
that requires the team to pay rent, revenue, or other remuneration | 127 |
to the municipal corporation, and any residual cash, as defined in | 128 |
division (B)(5) of this section, that accrues to the municipal | 129 |
corporation is used for the public purposes of the municipal | 130 |
corporation. | 131 |
For the purposes of this division, an independent | 132 |
professional minor league baseball team is a baseball team that | 133 |
employs professional players and that is a member of an | 134 |
established league composed of teams that are not affiliated with | 135 |
a constituent member club of major league baseball, incorporated. | 136 |
(G) Nothing in this section or in any other section of the | 137 |
Revised Code prohibits or otherwise precludes an agreement between | 138 |
a political subdivision, or a corporation controlled by a | 139 |
political subdivision, that owns or operates a public recreational | 140 |
facility that is exempted from
taxation under division (A) | 141 |
(B), or (F) of this section and the board of education of a school | 142 |
district or the legislative authority of a municipal corporation, | 143 |
or both, in which all or a part of that facility is located, | 144 |
providing for payments to the school district or municipal | 145 |
corporation, or both, in lieu of taxes that otherwise would be | 146 |
charged against real and tangible personal property exempted from | 147 |
taxation under this section, for a period of time and under such | 148 |
terms and conditions as the legislative authority of the political | 149 |
subdivision and the board of education or municipal legislative | 150 |
authority, or both, may agree, which agreements are hereby | 151 |
specifically authorized. | 152 |
| 153 |
includes the state or an agency of the state if the city, local, | 154 |
or exempted village school district in which the property is | 155 |
situated expressly consents to exempting the property from | 156 |
taxation. | 157 |
Section 2. That existing section 5709.081 of the Revised Code | 158 |
is hereby repealed. | 159 |
Section 3. The amendment by this act of section 5709.081 of | 160 |
the Revised Code applies to tax years 2009 and thereafter. | 161 |
Notwithstanding section 5715.27 of the Revised Code, an | 162 |
application for exemption for property described in division (F) | 163 |
of section 5709.081 of the Revised Code, as amended by this act, | 164 |
for tax year 2009 may be filed after December 30, 2009, and before | 165 |
the first day of the second month following the month in which | 166 |
this act takes effect. If any taxes for tax year 2009 have been | 167 |
paid, the amount paid shall be refunded in the manner prescribed | 168 |
by section 5715.22 of the Revised Code for overpayment of taxes. | 169 |