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| To amend section 5709.07 of the Revised Code to | 1 |
| exempt from property taxation real property | 2 |
| procured for use by a school through a for-profit | 3 |
| lease. | 4 |
| Section 1. That section 5709.07 of the Revised Code be | 5 |
| amended to read as follows: | 6 |
| Sec. 5709.07. (A) The following property shall be exempt | 7 |
| from taxation: | 8 |
| (1) | 9 |
| 10 | |
| 11 | |
| 12 | |
| school for primary or secondary educational purposes, including | 13 |
| only so much of the land as is necessary for the proper occupancy, | 14 |
| use, and enjoyment of such real property. Real property otherwise | 15 |
| qualifying for exemption under division (A)(1) of this section is | 16 |
| not disqualified because it is procured for use by the school | 17 |
| through a for-profit lease. | 18 |
| For purposes of division (A)(1) of this section: | 19 |
| (a) "School" means a public or nonpublic school. "School" | 20 |
| excludes home instruction as authorized under section 3321.04 of | 21 |
| the Revised Code. | 22 |
| (b) "Public school" includes schools of a school district, | 23 |
| STEM schools established under Chapter 3326. of the Revised Code, | 24 |
| community schools established under Chapter 3314. of the Revised | 25 |
| Code, and educational service centers established under section | 26 |
| 3311.05 of the Revised Code. | 27 |
| (c) "Nonpublic school" means a nonpublic school for which the | 28 |
| state board of education prescribes minimum standards under | 29 |
| division (D)(2) of section 3301.07 of the Revised Code. | 30 |
| (2) Houses used exclusively for public worship, the books and | 31 |
| furniture in them, and the ground attached to them that is not | 32 |
| leased or otherwise used with a view to profit and that is | 33 |
| necessary for their proper occupancy, use, and enjoyment; | 34 |
| (3) Real property owned and operated by a church that is used | 35 |
| primarily for church retreats or church camping, and that is not | 36 |
| used as a permanent residence. Real property exempted under | 37 |
| division (A)(3) of this section may be made available by the | 38 |
| church on a limited basis to charitable and educational | 39 |
| institutions if the property is not leased or otherwise made | 40 |
| available with a view to profit. | 41 |
| (4) Public colleges and academies and all buildings connected | 42 |
| with them, and all lands connected with public institutions of | 43 |
| learning, not used with a view to profit, including those | 44 |
| buildings and lands that satisfy all of the following: | 45 |
| (a) The buildings are used for housing for full-time students | 46 |
| or housing-related facilities for students, faculty, or employees | 47 |
| of a state university, or for other purposes related to the state | 48 |
| university's educational purpose, and the lands are underneath the | 49 |
| buildings or are used for common space, walkways, and green spaces | 50 |
| for the state university's students, faculty, or employees. As | 51 |
| used in this division, "housing-related facilities" includes both | 52 |
| parking facilities related to the buildings and common buildings | 53 |
| made available to students, faculty, or employees of a state | 54 |
| university. The leasing of space in housing-related facilities | 55 |
| shall not be considered an activity with a view to profit for | 56 |
| purposes of division (A)(4) of this section. | 57 |
| (b) The buildings and lands are supervised or otherwise under | 58 |
| the control, directly or indirectly, of an organization that is | 59 |
| exempt from federal income taxation under section 501(c)(3) of the | 60 |
| Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as | 61 |
| amended, and the state university has entered into a qualifying | 62 |
| joint use agreement with the organization that entitles the | 63 |
| students, faculty, or employees of the state university to use the | 64 |
| lands or buildings; | 65 |
| (c) The state university has agreed, under the terms of the | 66 |
| qualifying joint use agreement with the organization described in | 67 |
| division (A)(4)(b) of this section, that the state university, to | 68 |
| the extent applicable under the agreement, will make payments to | 69 |
| the organization in amounts sufficient to maintain agreed-upon | 70 |
| debt service coverage ratios on bonds related to the lands or | 71 |
| buildings. | 72 |
| (B) This section shall not extend to leasehold estates or | 73 |
| real property held under the authority of a college or university | 74 |
| of learning in this state; but leaseholds, or other estates or | 75 |
| property, real or personal, the rents, issues, profits, and income | 76 |
| of which is given to a municipal corporation, school district, or | 77 |
| subdistrict in this state exclusively for the use, endowment, or | 78 |
| support of schools for the free education of youth without charge | 79 |
| shall be exempt from taxation as long as such property, or the | 80 |
| rents, issues, profits, or income of the property is used and | 81 |
| exclusively applied for the support of free education by such | 82 |
| municipal corporation, district, or subdistrict. Division (B) of | 83 |
| this section shall not apply with respect to buildings and lands | 84 |
| that satisfy all of the requirements specified in divisions | 85 |
| (A)(4)(a) to (c) of this section. | 86 |
| (C) For purposes of this section, if the requirements | 87 |
| specified in divisions (A)(4)(a) to (c) of this section are | 88 |
| satisfied, the buildings and lands with respect to which exemption | 89 |
| is claimed under division (A)(4) of this section shall be deemed | 90 |
| to be used with reasonable certainty in furthering or carrying out | 91 |
| the necessary objects and purposes of a state university. | 92 |
| (D) As used in this section: | 93 |
| (1) "Church" means a fellowship of believers, congregation, | 94 |
| society, corporation, convention, or association that is formed | 95 |
| primarily or exclusively for religious purposes and that is not | 96 |
| formed for the private profit of any person. | 97 |
| (2) "State university" has the same meaning as in section | 98 |
| 3345.011 of the Revised Code. | 99 |
| (3) "Qualifying joint use agreement" means an agreement that | 100 |
| satisfies all of the following: | 101 |
| (a) The agreement was entered into before June 30, 2004; | 102 |
| (b) The agreement is between a state university and an | 103 |
| organization that is exempt from federal income taxation under | 104 |
| section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. | 105 |
| 2085, 26 U.S.C. 1, as amended; and | 106 |
| (c) The state university that is a party to the agreement | 107 |
| reported to the Ohio board of regents that the university | 108 |
| maintained a headcount of at least twenty-five thousand students | 109 |
| on its main campus during the academic school year that began in | 110 |
| calendar year 2003 and ended in calendar year 2004. | 111 |
| Section 2. That existing section 5709.07 of the Revised Code | 112 |
| is hereby repealed. | 113 |