H. B. No. 225 As Introduced

Sec. 5713.08. (A) The county auditor shall make a list of

203

all real and personal property in the auditor's county that is

204

exempted from taxation. Such list shall show the name of the

205

owner, the value of the property exempted, and a statement in

206

brief form of the ground on which such exemption has been granted.

207

It shall be corrected annually by adding thereto the items of

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property which have been exempted during the year, and by striking

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therefrom the items which in the opinion of the auditor have lost

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their right of exemption and which have been reentered on the

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taxable list, but no property shall be struck from the exempt

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property list solely because the property has been conveyed to a

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single member limited liability company with a nonprofit purpose

214

from its nonprofit member or because the property has been

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conveyed by a single member limited liability company with a

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nonprofit purpose to its nonprofit member. No additions shall be

217

made to such exempt lists and no additional items of property

218

shall be exempted from taxation without the consent of the tax

219

commissioner as is provided for in section 5715.27 of the Revised

220

Code or without the consent of the housing officer under section

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3735.67 of the Revised Code, except for property exempted by the

222

auditor under that section or qualifying agricultural real

223

property, as defined in section 5709.28 of the Revised Code, that

224

is enrolled in an agriculture security area that is exempt under

225

that section. The commissioner may revise at any time the list in

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every county so that no property is improperly or illegally

227

exempted from taxation. The auditor shall follow the orders of the

228

commissioner given under this section. An abstract of such list

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shall be filed annually with the commissioner, on a form approved

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by the commissioner, and a copy thereof shall be kept on file in

231

the office of each auditor for public inspection.

232

(C) Such public official may contract with a financial	32
institution for the services necessary to make direct deposits and	33
draw lump-sum checks or warrants payable to that institution in	34
the amount of the payments to be transferred.	35

(D) Before making any direct deposit as authorized under this	36
section, the public official shall ascertain that the account from	37
which the payment is to be made contains sufficient funds to cover	38
the amount of the payment.	39

(E) If the issuance of checks and warrants by a public	40
official requires authorization by a governing board, commission,	41
bureau, or other public body having jurisdiction over the public	42
official, the public official may only make direct deposits and	43
contracts under this section pursuant to a resolution of	44
authorization duly adopted by such governing board, commission,	45
bureau, or other public body.	46

(F) Pursuant to sections 307.55, 319.16, and 321.15 of the	47
Revised Code, a county auditor may issue, and a county treasurer	48
may redeem, electronic warrants authorizing direct deposit for	49
payment of county obligations in accordance with rules adopted by	50
the director of budget and management pursuant to Chapter 119. of	51
the Revised Code.	52

(G) A county auditor, for county employees, or a board of	53
township trustees, for township employees, may adopt a direct	54
deposit payroll policy under which all county employees or all	55
township employees, as the case may be, provide a written	56
authorization designating a financial institution and an account	57
number to which payment of the employee's compensation shall be	58
credited under the county's or township's direct deposit payroll	59
policy. The direct deposit payroll policy adopted by a county	60
auditor or a board of township trustees may exempt from the direct	61
deposit requirement those county or township employees who cannot	62
provide an account number, or for other reasons specified in the	63
policy. The written authorization is not a public record under	64
section 149.43 of the Revised Code.	65

Section 1. That sections 9.37, 5705.13, 5713.07, 5713.08,	14
5713.081, 5713.082, 5715.27, and 5717.02 of the Revised Code be	15
amended to read as follows:	16

Sec. 9.37. (A) As used in this section, "public official"	17
means any elected or appointed officer, employee, or agent of the	18
state, any state institution of higher education, any political	19
subdivision, board, commission, bureau, or other public body	20
established by law. "State institution of higher education" means	21
any state university or college as defined in division (A)(1) of	22
section 3345.12 of the Revised Code, community college, state	23
community college, university branch, or technical college.	24

(B) Except as provided in ~~division~~divisions (F) and (G) of	25
this section, any public official may make by direct deposit of	26
funds by electronic transfer, if the payee provides a written	27
authorization designating a financial institution and an account	28
number to which the payment is to be credited, any payment such	29
public official is permitted or required by law in the performance	30
of official duties to make by issuing a check or warrant.	31

Sec. 5705.13. (A) A taxing authority of a subdivision, by	66
resolution or ordinance, may establish reserve balance accounts to	67
accumulate currently available resources for the following	68
purposes:	69

(1) To stabilize subdivision budgets against cyclical changes	70
in revenues and expenditures;	71

(2) Except as otherwise provided by this section, to provide	72
for the payment of claims and deductibles under aan individual or	73
joint self-insurance program for the subdivision, if the	74
subdivision is permitted by law to establish such a program;	75

(3) To provide for the payment of claims, assessments, and	76
deductibles under a self-insurance program, individual	77
retrospective ratings plan, group rating plan, group retrospective	78
rating plan, medical only program, deductible plan, or large	79
deductible plan for workers' compensation.	80

The ordinance or resolution establishing a reserve balance	81
account shall state the purpose for which the account is	82
established, the fund in which the account is to be established,	83
and the total amount of money to be reserved in the account.	84

~~A subdivision that participates in a risk-sharing pool, by~~	85
~~which governments pool risks and funds and share in the costs of~~	86
~~losses, shall not establish a reserve balance account to provide~~	87
~~self-insurance for the subdivision.~~	88

Not more than one reserve balance account may be established	89
for each of the purposes permitted under divisions (A)(2) and (3)	90
of this section. Money to the credit of a reserve balance account	91
may be expended only for the purpose for which the account was	92
established.	93

A reserve balance account established for the purpose	94
described in division (A)(1) of this section may be established in	95
the general fund or in one or more special funds for operating	96
purposes of the subdivision. The amount of money to be reserved in	97
such an account in any fiscal year shall not exceed five per cent	98
of the revenue credited in the preceding fiscal year to the fund	99
in which the account is established, or, in the case of a reserve	100
balance account of a county, the greater of that amount or	101
one-sixth of the expenditures during the preceding fiscal year	102
from the fund in which the account is established. Subject to	103
division (G) of section 5705.29 of the Revised Code, any reserve	104
balance in an account established under division (A)(1) of this	105
section shall not be considered part of the unencumbered balance	106
or revenue of the subdivision under division (A) of section	107
5705.35 or division (A)(1) of section 5705.36 of the Revised Code.	108

At any time, a taxing authority of a subdivision, by	109
resolution or ordinance, may reduce or eliminate the reserve	110
balance in a reserve balance account established for the purpose	111
described in division (A)(1) of this section.	112

A reserve balance account established for the purpose	113
described in division (A)(2) or (3) of this section shall be	114
established in the general fund of the subdivision or by the	115
establishment of a separate internal service fund established to	116
account for the operation of ~~the~~an individual or joint	117
self-insurance ~~or retrospective ratings plan~~ program described in	118
division (A)(2) of this section or a workers' compensation program	119
or plan described in division (A)(3) of this section, and shall be	120
based on sound actuarial principles. The total amount of money in	121
a reserve balance account for self-insurance may be expressed in	122
dollars or as the amount determined to represent an adequate	123
reserve according to sound actuarial principles.	124

A taxing authority of a subdivision, by resolution or	125
ordinance, may rescind a reserve balance account established under	126
this division. If a reserve balance account is rescinded, money	127
that has accumulated in the account shall be transferred to the	128
fund or funds from which the money originally was transferred.	129

(B) A taxing authority of a subdivision, by resolution or	130
ordinance, may establish a special revenue fund for the purpose of	131
accumulating resources for the payment of accumulated sick leave	132
and vacation leave, and for payments in lieu of taking	133
compensatory time off, upon the termination of employment or the	134
retirement of officers and employees of the subdivision. The	135
special revenue fund may also accumulate resources for payment of	136
salaries during any fiscal year when the number of pay periods	137
exceeds the usual and customary number of pay periods.	138
Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the	139
Revised Code, the taxing authority, by resolution or ordinance,	140
may transfer money to the special revenue fund from any other fund	141
of the subdivision from which such payments may lawfully be made.	142
The taxing authority, by resolution or ordinance, may rescind a	143
special revenue fund established under this division. If a special	144
revenue fund is rescinded, money that has accumulated in the fund	145
shall be transferred to the fund or funds from which the money	146
originally was transferred.	147

(C) A taxing authority of a subdivision, by resolution or	148
ordinance, may establish a capital projects fund for the purpose	149
of accumulating resources for the acquisition, construction, or	150
improvement of fixed assets of the subdivision. For the purposes	151
of this section, "fixed assets" includes motor vehicles. More than	152
one capital projects fund may be established and may exist at any	153
time. The ordinance or resolution shall identify the source of the	154
money to be used to acquire, construct, or improve the fixed	155
assets identified in the resolution or ordinance, the amount of	156
money to be accumulated for that purpose, the period of time over	157
which that amount is to be accumulated, and the fixed assets that	158
the taxing authority intends to acquire, construct, or improve	159
with the money to be accumulated in the fund.	160

A taxing authority of a subdivision shall not accumulate	161
money in a capital projects fund for more than ten years after the	162
resolution or ordinance establishing the fund is adopted. If the	163
subdivision has not entered into a contract for the acquisition,	164
construction, or improvement of fixed assets for which money was	165
accumulated in such a fund before the end of that ten-year period,	166
the fiscal officer of the subdivision shall transfer all money in	167
the fund to the fund or funds from which that money originally was	168
transferred or the fund that originally was intended to receive	169
the money.	170

A taxing authority of a subdivision, by resolution or	171
ordinance, may rescind a capital projects fund. If a capital	172
projects fund is rescinded, money that has accumulated in the fund	173
shall be transferred to the fund or funds from which the money	174
originally was transferred.	175

Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the	176
Revised Code, the taxing authority of a subdivision, by resolution	177
or ordinance, may transfer money to the capital projects fund from	178
any other fund of the subdivision that may lawfully be used for	179
the purpose of acquiring, constructing, or improving the fixed	180
assets identified in the resolution or ordinance.	181

Sec. 5713.07. The county auditor, at the time of making the	182
assessment of real property subject to taxation, shall enter in a	183
separate list pertinent descriptions of all burying grounds,	184
public schoolhouses, houses used exclusively for public worship,	185
institutions of purely public charity, real property used	186
exclusively for a home for the aged, as defined in section 5701.13	187
of the Revised Code, public buildings and property used	188
exclusively for any public purpose, and any other property, with	189
the lot or tract of land on which such house, institution, public	190
building, or other property is situated, and which have been	191
exempted from taxation by ~~either~~ the tax commissioner or auditor	192
under section 5715.27 of the Revised Code or by the housing	193
officer under section 3735.67 of the Revised Code. The auditor	194
shall value such houses, buildings, property, and lots and tracts	195
of land at their taxable value in the same manner as the auditor	196
is required to value other real property, designating in each case	197
the township, municipal corporation, and number of the school	198
district, or the name or designation of the school, religious	199
society, or institution to which each house, lot, or tract	200
belongs. If such property is held and used for other public	201
purposes, the auditor shall state by whom or how it is held.	202

An application for exemption of property shall include a	233
certificate executed by the county treasurer certifying one of the	234
following:	235

(1) That all taxes, interest, and penalties levied and	236
assessed against the property sought to be exempted have been paid	237
in full for all of the tax years preceding the tax year for which	238
the application for exemption is filed, except for such taxes,	239
interest, and penalties that may be remitted under division (C) of	240
this section;	241

(2) That the applicant has entered into a valid delinquent	242
tax contract with the county treasurer pursuant to division (A) of	243
section 323.31 of the Revised Code to pay all of the delinquent	244
taxes, interest, and penalties charged against the property,	245
except for such taxes, interest, and penalties that may be	246
remitted under division (C) of this section. If the auditor	247
receives notice under section 323.31 of the Revised Code that such	248
a written delinquent tax contract has become void, the auditor	249
shall strike such property from the list of exempted property and	250
reenter such property on the taxable list. If property is removed	251
from the exempt list because a written delinquent tax contract has	252
become void, current taxes shall first be extended against that	253
property on the general tax list and duplicate of real and public	254
utility property for the tax year in which the auditor receives	255
the notice required by division (A) of section 323.31 of the	256
Revised Code that the delinquent tax contract has become void or,	257
if that notice is not timely made, for the tax year in which falls	258
the latest date by which the treasurer is required by such section	259
to give such notice. A county auditor shall not remove from any	260
tax list and duplicate the amount of any unpaid delinquent taxes,	261
assessments, interest, or penalties owed on property that is	262
placed on the exempt list pursuant to this division.	263

(3) That a tax certificate has been issued under section	264
5721.32 or 5721.33 of the Revised Code with respect to the	265
property that is the subject of the application, and the tax	266
certificate is outstanding.	267

(B) If the treasurer's certificate is not included with the	268
application or the certificate reflects unpaid taxes, penalties,	269
and interest that may not be remitted, the tax commissioner or	270
county auditor with whom the application was filed shall notify	271
the property owner of that fact, and the applicant shall be given	272
sixty days from the date that notification was mailed in which to	273
provide the tax commissioner or county auditor with a corrected	274
treasurer's certificate. If a corrected treasurer's certificate is	275
not received within the time permitted, the tax commissioner or	276
county auditor does not have authority to consider the tax	277
exemption application.	278

(C) Any taxes, interest, and penalties which have become a	279
lien after the property was first used for the exempt purpose, but	280
in no case prior to the date of acquisition of the title to the	281
property by the applicant, may be remitted by the commissioner or	282
county auditor, except as is provided in division (A) of section	283
5713.081 of the Revised Code.	284

(D) Real property acquired by the state in fee simple is	285
exempt from taxation from the date of acquisition of title or date	286
of possession, whichever is the earlier date, provided that all	287
taxes, interest, and penalties as provided in the apportionment	288
provisions of section 319.20 of the Revised Code have been paid to	289
the date of acquisition of title or date of possession by the	290
state, whichever is earlier. The proportionate amount of taxes	291
that are a lien but not yet determined, assessed, and levied for	292
the year in which the property is acquired, shall be remitted by	293
the county auditor for the balance of the year from date of	294
acquisition of title or date of possession, whichever is earlier.	295
This section shall not be construed to authorize the exemption of	296
such property from taxation or the remission of taxes, interest,	297
and penalties thereon until all private use has terminated.	298

Sec. 5713.081. (A) No application for real property tax	299
exemption and tax remission shall be filed with, or considered by,	300
the tax commissioner or county auditor in which tax remission is	301
requested for more than three tax years, and the commissioner or	302
auditor shall not remit more than three years' taxes, penalties,	303
and interest.	304

(B) All taxes, penalties, and interest, that have been	305
delinquent for more than three years, appearing on the general tax	306
list and duplicate of real property which have been levied and	307
assessed against parcels of real property owned by the state, any	308
political subdivision, or any other entity whose ownership of real	309
property would constitute public ownership, shall be collected by	310
the county auditor of the county where the real property is	311
located. ~~Such~~The auditor shall deduct from each distribution made	312
by the auditor, the amount necessary to pay the tax delinquency	313
from any revenues or funds to the credit of the state, any	314
political subdivision, or any other entity whose ownership of real	315
property would constitute public ownership thereof, passing under	316
the auditor's control, or which come into the auditor's	317
possession, and such deductions shall be made on a continuing	318
basis until all delinquent taxes, penalties, and interest noted in	319
this section have been paid.	320

(C) As used in division (B) of this section, "political	321
subdivision" includes townships, municipalities, counties, school	322
districts, boards of education, all state and municipal	323
universities, park boards, and any other entity whose ownership of	324
real property would constitute public ownership.	325