(7) "Public infrastructure improvement" includes, but is not | 62 |
limited to, public roads and highways; water and sewer lines; | 63 |
environmental remediation; land acquisition, including acquisition | 64 |
in aid of industry, commerce, distribution, or research; | 65 |
demolition, including demolition on private property when | 66 |
determined to be necessary for economic development purposes; | 67 |
stormwater and flood remediation projects, including such projects | 68 |
on private property when determined to be necessary for public | 69 |
health, safety, and welfare; the provision of gas, electric, and | 70 |
communications service facilities; and the enhancement of public | 71 |
waterways through improvements that allow for greater public | 72 |
access. | 73 |
(B) The legislative authority of a municipal corporation, by | 74 |
ordinance, may declare improvements to certain parcels of real | 75 |
property located in the municipal corporation to be a public | 76 |
purpose. Improvements with respect to a parcel that is used or to | 77 |
be used for residential purposes may be declared a public purpose | 78 |
under this division only if the parcel is located in a blighted | 79 |
area of an impacted city. For this purpose, "parcel that is used | 80 |
or to be used for residential purposes" means a parcel that, as | 81 |
improved, is used or to be used for purposes that would cause the | 82 |
tax commissioner to classify the parcel as residential property in | 83 |
accordance with rules adopted by the commissioner under section | 84 |
5713.041 of the Revised Code. Except with the approval under | 85 |
division (D) of this section of the board of education of each | 86 |
city, local, or exempted village school district within which the | 87 |
improvements are located, not more than seventy-five per cent of | 88 |
an improvement thus declared to be a public purpose may be | 89 |
exempted from real property taxation for a period of not more than | 90 |
ten years. The ordinance shall specify the percentage of the | 91 |
improvement to be exempted from taxation and the life of the | 92 |
exemption. | 93 |
(C)(1) The legislative authority of a municipal corporation | 104 |
may adopt an ordinance creating an incentive district and | 105 |
declaring improvements to parcels within the district to be a | 106 |
public purpose and, except as provided in division (F)(C)(2) of | 107 |
this section, exempt from taxation as provided in this section, | 108 |
but no legislative authority of a municipal corporation that has a | 109 |
population that exceeds twenty-five thousand, as shown by the most | 110 |
recent federal decennial census, shall adopt an ordinance that | 111 |
creates an incentive district if the sum of the taxable value of | 112 |
real property in the proposed district for the preceding tax year | 113 |
and the taxable value of all real property in the municipal | 114 |
corporation that would have been taxable in the preceding year | 115 |
were it not for the fact that the property was in an existing | 116 |
incentive district and therefore exempt from taxation exceeds | 117 |
twenty-five per cent of the taxable value of real property in the | 118 |
municipal corporation for the preceding tax year. The ordinance | 119 |
shall delineate the proposed boundary of the district and | 120 |
specifically identify each parcel within the district. A proposed | 121 |
district may not include any parcel that is or has been exempted | 122 |
from taxation under division (B) of this section or that is or has | 123 |
been within another district created under this division. An | 124 |
ordinance may create more than one such district, and more than | 125 |
one ordinance may be adopted under division (C)(1) of this | 126 |
section. | 127 |
(2)(a) Not later than thirty days prior to adopting an | 128 |
ordinance under division (C)(1) of this section, if the municipal | 129 |
corporation intends to apply for exemptions from taxation under | 130 |
section 5709.911 of the Revised Code on behalf of owners of real | 131 |
property located within the proposed incentive district, the | 132 |
legislative authority of a municipal corporation shall conduct a | 133 |
public hearing on the proposed ordinance. Not later than thirty | 134 |
days prior to the public hearing, the legislative authority shall | 135 |
give notice of the public hearing and the proposed ordinance by | 136 |
first class mail to every real property owner whose property is | 137 |
located within the boundaries of the proposed incentive district | 138 |
that is the subject of the proposed ordinance.
The notice shall | 139 |
inform the property owner of the owner's right to exclude their | 140 |
property from the incentive district by sending a written response | 141 |
in accordance with division (C)(2)(b) of this section. The notice | 142 |
also shall include information detailing the required contents of | 143 |
the response, the address to which the response may be mailed, and | 144 |
the deadline for submitting the response. | 145 |
(b) Any owner of real property located within the boundaries | 146 |
of an incentive district proposed under division (C)(1) of this | 147 |
section may exclude the property from the proposed incentive | 148 |
district by submitting a written response to the legislative | 149 |
authority of the municipal corporation not later than forty-five | 150 |
days after the postmark date on the notice required under division | 151 |
(C)(2)(a) of this section. The response shall be sent by first | 152 |
class mail or delivered in person at a public hearing held by the | 153 |
legislative authority under division (C)(2)(a) of this section. | 154 |
The response shall conform to any content requirements that may be | 155 |
established by the municipal corporation and included in the | 156 |
notice provided under this division. In the response, property | 157 |
owners may identify a parcel by street address, by the manner in | 158 |
which it is identified in the ordinance, or by other means | 159 |
allowing the identity of the parcel to be ascertained. | 160 |
(c) Before adopting an ordinance under division (C)(1) of | 161 |
this section, the legislative authority of a municipal corporation | 162 |
shall amend the ordinance to exclude any parcel for which a | 163 |
written response has been submitted under division (C)(2)(b) of | 164 |
this section. A municipal corporation shall not apply for | 165 |
exemptions from taxation under section 5709.911 of the Revised | 166 |
Code for any parcel of property for which a written response has | 167 |
been submitted under division (C)(2)(b) of this section, and | 168 |
service payments may not be required from the owner of the parcel. | 169 |
Improvements to a parcel excluded from an incentive district under | 170 |
this division may be exempted from taxation under division (B) of | 171 |
this section pursuant to an ordinance adopted under that division | 172 |
or under any other section of the Revised Code under which the | 173 |
parcel qualifies. | 174 |
(3)(a) An ordinance adopted under division (C)(1) of this | 175 |
section shall specify the life of the incentive district and the | 176 |
percentage of the improvements to be exempted, shall designate the | 177 |
public infrastructure improvements made, to be made, or in the | 178 |
process of being made, that benefit or serve, or, once made, will | 179 |
benefit or serve parcels in the district. The ordinance also shall | 180 |
identify one or more specific projects being, or to be, undertaken | 181 |
in the district that place additional demand on the public | 182 |
infrastructure improvements designated in the ordinance. The | 183 |
project identified may, but need not be, the project under | 184 |
division (C)(3)(b) of this section that places real property in | 185 |
use for commercial or industrial purposes. Except as otherwise | 186 |
permitted under that division, the service payments provided for | 187 |
in section 5709.42 of the Revised Code shall be used to finance | 188 |
the designated public infrastructure improvements, for the purpose | 189 |
described in division (D)(1) or, (E), or (F) of this section, or | 190 |
as provided in section 5709.43 of the Revised Code. | 191 |
(b) An ordinance adopted under division (C)(1) of this | 198 |
section may authorize the use of service payments provided for in | 199 |
section 5709.42 of the Revised Code for the purpose of housing | 200 |
renovations within the incentive district, provided that the | 201 |
ordinance also designates public infrastructure improvements that | 202 |
benefit or serve the district, and that a project within the | 203 |
district places real property in use for commercial or industrial | 204 |
purposes. Service payments may be used to finance or support | 205 |
loans, deferred loans, and grants to persons for the purpose of | 206 |
housing renovations within the district. The ordinance shall | 207 |
designate the parcels within the district that are eligible for | 208 |
housing renovation. The ordinance shall state separately the | 209 |
amounts or the percentages of the expected aggregate service | 210 |
payments that are designated for each public infrastructure | 211 |
improvement and for the general purpose of housing renovations. | 212 |
(4) Except with the approval of the board of education of | 213 |
each city, local, or exempted village school district within the | 214 |
territory of which the incentive district is or will be located, | 215 |
and subject to division (E) of this section, the life of an | 216 |
incentive district shall not exceed ten years, and the percentage | 217 |
of improvements to be exempted shall not exceed seventy-five per | 218 |
cent. With approval of the board of education, the life of a | 219 |
district may be not more than thirty years, and the percentage of | 220 |
improvements to be exempted may be not more than one hundred per | 221 |
cent. The approval of a board of education shall be obtained in | 222 |
the manner provided in division (D) of this section. | 223 |
(D)(1) If the ordinance declaring improvements to a parcel to | 224 |
be a public purpose or creating an incentive district specifies | 225 |
that payments in lieu of taxes provided for in section 5709.42 of | 226 |
the Revised Code shall be paid to the city, local, or exempted | 227 |
village, and joint vocational school district in which the parcel | 228 |
or incentive district is located in the amount of the taxes that | 229 |
would have been payable to the school district if the improvements | 230 |
had not been exempted from taxation, the percentage of the | 231 |
improvement that may be exempted from taxation may exceed | 232 |
seventy-five per cent, and the exemption may be granted for up to | 233 |
thirty years, without the approval of the board of education as | 234 |
otherwise required under division (D)(2) of this section. | 235 |
(2) Improvements with respect to a parcel may be exempted | 236 |
from taxation under division (B) of this section, and improvements | 237 |
to parcels within an incentive district may be exempted from | 238 |
taxation under division (C) of this section, for up to ten years | 239 |
or, with the approval under this paragraph of the board of | 240 |
education of the city, local, or exempted village school district | 241 |
within which the parcel or district is located, for up to thirty | 242 |
years. The percentage of the improvement exempted from taxation | 243 |
may, with such approval, exceed seventy-five per cent, but shall | 244 |
not exceed one hundred per cent. Not later than forty-five | 245 |
business days prior to adopting an ordinance under this section | 246 |
declaring improvements to be a public purpose that is subject to | 247 |
approval by a board of education under this division, the | 248 |
legislative authority shall deliver to the board of education a | 249 |
notice stating its intent to adopt an ordinance making that | 250 |
declaration. The notice regarding improvements with respect to a | 251 |
parcel under division (B) of this section shall identify the | 252 |
parcels for which improvements are to be exempted from taxation, | 253 |
provide an estimate of the true value in money of the | 254 |
improvements, specify the period for which the improvements would | 255 |
be exempted from taxation and the percentage of the improvement | 256 |
that would be exempted, and indicate the date on which the | 257 |
legislative authority intends to adopt the ordinance. The notice | 258 |
regarding improvements to parcels within an incentive district | 259 |
under division (C) of this section shall delineate the boundaries | 260 |
of the district, specifically identify each parcel within the | 261 |
district, identify each anticipated improvement in the district, | 262 |
provide an estimate of the true value in money of each such | 263 |
improvement, specify the life of the district and the percentage | 264 |
of improvements that would be exempted, and indicate the date on | 265 |
which the legislative authority intends to adopt the ordinance. | 266 |
The board of education, by resolution adopted by a majority of the | 267 |
board, may approve the exemption for the period or for the | 268 |
exemption percentage specified in the notice; may disapprove the | 269 |
exemption for the number of years in excess of ten, may disapprove | 270 |
the exemption for the percentage of the improvement to be exempted | 271 |
in excess of seventy-five per cent, or both; or may approve the | 272 |
exemption on the condition that the legislative authority and the | 273 |
board negotiate an agreement providing for compensation to the | 274 |
school district equal in value to a percentage of the amount of | 275 |
taxes exempted in the eleventh and subsequent years of the | 276 |
exemption period or, in the case of exemption percentages in | 277 |
excess of seventy-five per cent, compensation equal in value to a | 278 |
percentage of the taxes that would be payable on the portion of | 279 |
the improvement in excess of seventy-five per cent were that | 280 |
portion to be subject to taxation, or other mutually agreeable | 281 |
compensation. If an agreement is negotiated between the | 282 |
legislative authority and the board to compensate the school | 283 |
district for all or part of the taxes exempted, including | 284 |
agreements for payments in lieu of taxes under section 5709.42 of | 285 |
the Revised Code, the legislative authority shall compensate the | 286 |
joint vocational school district within which the parcel or | 287 |
district is located at the same rate and under the same terms | 288 |
received by the city, local, or exempted village school district. | 289 |
(3) The board of education shall certify its resolution to | 290 |
the legislative authority not later than fourteen days prior to | 291 |
the date the legislative authority intends to adopt the ordinance | 292 |
as indicated in the notice. If the board of education and the | 293 |
legislative authority negotiate a mutually acceptable compensation | 294 |
agreement, the ordinance may declare the improvements a public | 295 |
purpose for the number of years specified in the ordinance or, in | 296 |
the case of exemption percentages in excess of seventy-five per | 297 |
cent, for the exemption percentage specified in the ordinance. In | 298 |
either case, if the board and the legislative authority fail to | 299 |
negotiate a mutually acceptable compensation agreement, the | 300 |
ordinance may declare the improvements a public purpose for not | 301 |
more than ten years, and shall not exempt more than seventy-five | 302 |
per cent of the improvements from taxation. If the board fails to | 303 |
certify a resolution to the legislative authority within the time | 304 |
prescribed by this division, the legislative authority thereupon | 305 |
may adopt the ordinance and may declare the improvements a public | 306 |
purpose for up to thirty years, or, in the case of exemption | 307 |
percentages proposed in excess of seventy-five per cent, for the | 308 |
exemption percentage specified in the ordinance. The legislative | 309 |
authority may adopt the ordinance at any time after the board of | 310 |
education certifies its resolution approving the exemption to the | 311 |
legislative authority, or, if the board approves the exemption on | 312 |
the condition that a mutually acceptable compensation agreement be | 313 |
negotiated, at any time after the compensation agreement is agreed | 314 |
to by the board and the legislative authority. | 315 |
(4) If a board of education has adopted a resolution waiving | 316 |
its right to approve exemptions from taxation under this section | 317 |
and the resolution remains in effect, approval of exemptions by | 318 |
the board is not required under division (D) of this section. If a | 319 |
board of education has adopted a resolution allowing a legislative | 320 |
authority to deliver the notice required under division (D) of | 321 |
this section fewer than forty-five business days prior to the | 322 |
legislative authority's adoption of the ordinance, the legislative | 323 |
authority shall deliver the notice to the board not later than the | 324 |
number of days prior to such adoption as prescribed by the board | 325 |
in its resolution. If a board of education adopts a resolution | 326 |
waiving its right to approve agreements or shortening the | 327 |
notification period, the board shall certify a copy of the | 328 |
resolution to the legislative authority. If the board of education | 329 |
rescinds such a resolution, it shall certify notice of the | 330 |
rescission to the legislative authority. | 331 |
(E)(1) If a proposed ordinance under division (C)(1) of this | 339 |
section exempts improvements with respect to a parcel within an | 340 |
incentive district for more than ten years, or the percentage of | 341 |
the improvement exempted from taxation exceeds seventy-five per | 342 |
cent, not later than forty-five business days prior to adopting | 343 |
the ordinance the legislative authority of the municipal | 344 |
corporation shall deliver to the board of county commissioners of | 345 |
the county within which the incentive district will be located a | 346 |
notice that states its intent to adopt an ordinance creating an | 347 |
incentive district. The notice shall include a copy of the | 348 |
proposed ordinance, identify the parcels for which improvements | 349 |
are to be exempted from taxation, provide an estimate of the true | 350 |
value in money of the improvements, specify the period of time for | 351 |
which the improvements would be exempted from taxation, specify | 352 |
the percentage of the improvements that would be exempted from | 353 |
taxation, and indicate the date on which the legislative authority | 354 |
intends to adopt the ordinance. | 355 |
(2) The board of county commissioners, by resolution adopted | 356 |
by a majority of the board, may object to the exemption for the | 357 |
number of years in excess of ten, may object to the exemption for | 358 |
the percentage of the improvement to be exempted in excess of | 359 |
seventy-five per cent, or both. If the board of county | 360 |
commissioners objects, the board may negotiate a mutually | 361 |
acceptable compensation agreement with the legislative authority. | 362 |
In no case shall the compensation provided to the board exceed the | 363 |
property taxes forgone due to the exemption. If the board of | 364 |
county commissioners objects, and the board and legislative | 365 |
authority fail to negotiate a mutually acceptable compensation | 366 |
agreement, the ordinance adopted under division (C)(1) of this | 367 |
section shall provide to the board compensation in the eleventh | 368 |
and subsequent years of the exemption period equal in value to not | 369 |
more than fifty per cent of the taxes that would be payable to the | 370 |
county or, if the board's objection includes an objection to an | 371 |
exemption percentage in excess of seventy-five per cent, | 372 |
compensation equal in value to not more than fifty per cent of the | 373 |
taxes that would be payable to the county, on the portion of the | 374 |
improvement in excess of seventy-five per cent, were that portion | 375 |
to be subject to taxation. The board of county commissioners shall | 376 |
certify its resolution to the legislative authority not later than | 377 |
thirty days after receipt of the notice. | 378 |
(3) If the board of county commissioners does not object or | 379 |
fails to certify its resolution objecting to an exemption within | 380 |
thirty days after receipt of the notice, the legislative authority | 381 |
may adopt the ordinance, and no compensation shall be provided to | 382 |
the board of county commissioners. If the board timely certifies | 383 |
its resolution objecting to the ordinance, the legislative | 384 |
authority may adopt the ordinance at any time after a mutually | 385 |
acceptable compensation agreement is agreed to by the board and | 386 |
the legislative authority, or, if no compensation agreement is | 387 |
negotiated, at any time after the legislative authority agrees in | 388 |
the proposed ordinance to provide compensation to the board of | 389 |
fifty per cent of the taxes that would be payable to the county in | 390 |
the eleventh and subsequent years of the exemption period or on | 391 |
the portion of the improvement in excess of seventy-five per cent, | 392 |
were that portion to be subject to taxation. | 393 |
(F) Service payments in lieu of taxes that are attributable | 394 |
to any amount by which the effective tax rate of either a renewal | 395 |
levy with an increase or a replacement levy exceeds the effective | 396 |
tax rate of the levy renewed or replaced, or that are attributable | 397 |
to an additional levy, for a levy authorized by the voters for any | 398 |
of the following purposes on or after January 1, 2006, and which | 399 |
are provided pursuant to an ordinance creating an incentive | 400 |
district under division (C)(1) of this section that is adopted on | 401 |
or after January 1, 2006, shall be distributed to the appropriate | 402 |
taxing authority as required under division (C) of section 5709.42 | 403 |
of the Revised Code in an amount equal to the amount of taxes from | 404 |
that additional levy or from the increase in the effective tax | 405 |
rate of such renewal or replacement levy that would have been | 406 |
payable to that taxing authority from the following levies were it | 407 |
not for the exemption authorized under division (C) of this | 408 |
section: | 409 |
(G) An exemption from taxation granted under this section | 446 |
commences with the tax year specified in the ordinance so long as | 447 |
the year specified in the ordinance commences after the effective | 448 |
date of the ordinance. If the ordinance specifies a year | 449 |
commencing before the effective date of the resolution or | 450 |
specifies no year whatsoever, the exemption commences with the tax | 451 |
year in which an exempted improvement first appears on the tax | 452 |
list and duplicate of real and public utility property and that | 453 |
commences after the effective date of the ordinance. Except as | 454 |
otherwise provided in this division, the exemption ends on the | 455 |
date specified in the ordinance as the date the improvement ceases | 456 |
to be a public purpose or the incentive district expires, or ends | 457 |
on the date on which the public infrastructure improvements and | 458 |
housing renovations are paid in full from the municipal public | 459 |
improvement tax increment equivalent fund established under | 460 |
division (A) of section 5709.43 of the Revised Code, whichever | 461 |
occurs first. The exemption of an improvement with respect to a | 462 |
parcel or within an incentive district may end on a later date, as | 463 |
specified in the ordinance, if the legislative authority and the | 464 |
board of education of the city, local, or exempted village school | 465 |
district within which the parcel or district is located have | 466 |
entered into a compensation agreement under section 5709.82 of the | 467 |
Revised Code with respect to the improvement, and the board of | 468 |
education has approved the term of the exemption under division | 469 |
(D)(2) of this section, but in no case shall the improvement be | 470 |
exempted from taxation for more than thirty years. Exemptions | 471 |
shall be claimed and allowed in the same manner as in the case of | 472 |
other real property exemptions. If an exemption status changes | 473 |
during a year, the procedure for the apportionment of the taxes | 474 |
for that year is the same as in the case of other changes in tax | 475 |
exemption status during the year. | 476 |
(I) The municipal corporation, not later than fifteen days | 487 |
after the adoption of an ordinance under this section, shall | 488 |
submit to the director of development a copy of the ordinance. On | 489 |
or before the thirty-first day of March of each year, the | 490 |
municipal corporation shall submit a status report to the director | 491 |
of development. The report shall indicate, in the manner | 492 |
prescribed by the director, the progress of the project during | 493 |
each year that an exemption remains in effect, including a summary | 494 |
of the receipts from service payments in lieu of taxes; | 495 |
expenditures of money from the funds created under section 5709.43 | 496 |
of the Revised Code; a description of the public infrastructure | 497 |
improvements and housing renovations financed with such | 498 |
expenditures; and a quantitative summary of changes in employment | 499 |
and private investment resulting from each project. | 500 |
(2) "Further improvements" or "improvements" means the | 515 |
increase in the assessed value of real property that would first | 516 |
appear on the tax list and duplicate of real and public utility | 517 |
property after the effective date of a resolution adopted under | 518 |
this section were it not for the exemption granted by that | 519 |
resolution. For purposes of division (B) of this section, | 520 |
"improvements" do not include any property used or to be used for | 521 |
residential purposes. For this purpose, "property that is used or | 522 |
to be used for residential purposes" means property that, as | 523 |
improved, is used or to be used for purposes that would cause the | 524 |
tax commissioner to classify the property as residential property | 525 |
in accordance with rules adopted by the commissioner under section | 526 |
5713.041 of the Revised Code. | 527 |
(B) A board of township trustees may, by unanimous vote, | 535 |
adopt a resolution that declares to be a public purpose any public | 536 |
infrastructure improvements made that are necessary for the | 537 |
development of certain parcels of land located in the | 538 |
unincorporated area of the township. Except with the approval | 539 |
under division (D) of this section of the board of education of | 540 |
each city, local, or exempted village school district within which | 541 |
the improvements are located, the resolution may exempt from real | 542 |
property taxation not more than seventy-five per cent of further | 543 |
improvements to a parcel of land that directly benefits from the | 544 |
public infrastructure improvements, for a period of not more than | 545 |
ten years. The resolution shall specify the percentage of the | 546 |
further improvements to be exempted and the life of the exemption. | 547 |
(C)(1) A board of township trustees may adopt, by unanimous | 548 |
vote, a resolution creating an incentive district and declaring | 549 |
improvements to parcels within the district to be a public purpose | 550 |
and, except as provided in division (F)(C)(2) of this section, | 551 |
exempt from taxation as provided in this section, but no board of | 552 |
township trustees of a township that has a population that exceeds | 553 |
twenty-five thousand, as shown by the most recent federal | 554 |
decennial census, shall adopt a resolution that creates an | 555 |
incentive district if the sum of the taxable value of real | 556 |
property in the proposed district for the preceding tax year and | 557 |
the taxable value of all real property in the township that would | 558 |
have been taxable in the preceding year were it not for the fact | 559 |
that the property was in an existing incentive district and | 560 |
therefore exempt from taxation exceeds twenty-five per cent of the | 561 |
taxable value of real property in the township for the preceding | 562 |
tax year. The district shall be located within the unincorporated | 563 |
area of the township and shall not include any territory that is | 564 |
included within a district created under division (B) of section | 565 |
5709.78 of the Revised Code. The resolution shall delineate the | 566 |
boundary of the proposed district and specifically identify each | 567 |
parcel within the district. A proposed district may not include | 568 |
any parcel that is or has been exempted from taxation under | 569 |
division (B) of this section or that is or has been within another | 570 |
district created under this division. A resolution may create more | 571 |
than one district, and more than one resolution may be adopted | 572 |
under division (C)(1) of this section. | 573 |
(2)(a) Not later than thirty days prior to adopting a | 574 |
resolution under division (C)(1) of this section, if the township | 575 |
intends to apply for exemptions from taxation under section | 576 |
5709.911 of the Revised Code on behalf of owners of real property | 577 |
located within the proposed incentive district, the board shall | 578 |
conduct a public hearing on the proposed resolution. Not later | 579 |
than thirty days prior to the public hearing, the board shall give | 580 |
notice of the public hearing and the proposed resolution by first | 581 |
class mail to every real property owner whose property is located | 582 |
within the boundaries of the proposed incentive district that is | 583 |
the subject of the proposed resolution.
The notice shall inform | 584 |
the property owner of the owner's right to exclude their property | 585 |
from the incentive district by sending a written response in | 586 |
accordance with division (C)(2)(b) of this section. The notice | 587 |
also shall include information detailing the required contents of | 588 |
the response, the address to which the response may be mailed, and | 589 |
the deadline for submitting the response. | 590 |
(b) Any owner of real property located within the boundaries | 591 |
of an incentive district proposed under division (C)(1) of this | 592 |
section may exclude the property from the proposed incentive | 593 |
district by submitting a written response to the board not later | 594 |
than forty-five days after the postmark date on the notice | 595 |
required under division (C)(2)(a) of this section. The response | 596 |
shall be sent by first class mail or delivered in person at a | 597 |
public hearing held by the board under division (C)(2)(a) of this | 598 |
section. The response shall conform to any content requirements | 599 |
that may be established by the board and included in the notice | 600 |
provided under this division. In the response, property owners may | 601 |
identify a parcel by street address, by the manner in which it is | 602 |
identified in the resolution, or by other means allowing the | 603 |
identity of the parcel to be ascertained. | 604 |
(3)(a) A resolution adopted under division (C)(1) of this | 618 |
section shall specify the life of the incentive district and the | 619 |
percentage of the improvements to be exempted, shall designate the | 620 |
public infrastructure improvements made, to be made, or in the | 621 |
process of being made, that benefit or serve, or, once made, will | 622 |
benefit or serve parcels in the district. The resolution also | 623 |
shall identify one or more specific projects being, or to be, | 624 |
undertaken in the district that place additional demand on the | 625 |
public infrastructure improvements designated in the resolution. | 626 |
The project identified may, but need not be, the project under | 627 |
division (C)(3)(b) of this section that places real property in | 628 |
use for commercial or industrial purposes. | 629 |
(b) A resolution adopted under division (C)(1) of this | 636 |
section may authorize the use of service payments provided for in | 637 |
section 5709.74 of the Revised Code for the purpose of housing | 638 |
renovations within the incentive district, provided that the | 639 |
resolution also designates public infrastructure improvements that | 640 |
benefit or serve the district, and that a project within the | 641 |
district places real property in use for commercial or industrial | 642 |
purposes. Service payments may be used to finance or support | 643 |
loans, deferred loans, and grants to persons for the purpose of | 644 |
housing renovations within the district. The resolution shall | 645 |
designate the parcels within the district that are eligible for | 646 |
housing renovations. The resolution shall state separately the | 647 |
amount or the percentages of the expected aggregate service | 648 |
payments that are designated for each public infrastructure | 649 |
improvement and for the purpose of housing renovations. | 650 |
(4) Except with the approval of the board of education of | 651 |
each city, local, or exempted village school district within the | 652 |
territory of which the incentive district is or will be located, | 653 |
and subject to division (E) of this section, the life of an | 654 |
incentive district shall not exceed ten years, and the percentage | 655 |
of improvements to be exempted shall not exceed seventy-five per | 656 |
cent. With approval of the board of education, the life of a | 657 |
district may be not more than thirty years, and the percentage of | 658 |
improvements to be exempted may be not more than one hundred per | 659 |
cent. The approval of a board of education shall be obtained in | 660 |
the manner provided in division (D) of this section. | 661 |
(D) Improvements with respect to a parcel may be exempted | 662 |
from taxation under division (B) of this section, and improvements | 663 |
to parcels within an incentive district may be exempted from | 664 |
taxation under division (C) of this section, for up to ten years | 665 |
or, with the approval of the board of education of the city, | 666 |
local, or exempted village school district within which the parcel | 667 |
or district is located, for up to thirty years. The percentage of | 668 |
the improvements exempted from taxation may, with such approval, | 669 |
exceed seventy-five per cent, but shall not exceed one hundred per | 670 |
cent. Not later than forty-five business days prior to adopting a | 671 |
resolution under this section declaring improvements to be a | 672 |
public purpose that is subject to approval by a board of education | 673 |
under this division, the board of township trustees shall deliver | 674 |
to the board of education a notice stating its intent to adopt a | 675 |
resolution making that declaration. The notice regarding | 676 |
improvements with respect to a parcel under division (B) of this | 677 |
section shall identify the parcels for which improvements are to | 678 |
be exempted from taxation, provide an estimate of the true value | 679 |
in money of the improvements, specify the period for which the | 680 |
improvements would be exempted from taxation and the percentage of | 681 |
the improvements that would be exempted, and indicate the date on | 682 |
which the board of township trustees intends to adopt the | 683 |
resolution. The notice regarding improvements made under division | 684 |
(C) of this section to parcels within an incentive district shall | 685 |
delineate the boundaries of the district, specifically identify | 686 |
each parcel within the district, identify each anticipated | 687 |
improvement in the district, provide an estimate of the true value | 688 |
in money of each such improvement, specify the life of the | 689 |
district and the percentage of improvements that would be | 690 |
exempted, and indicate the date on which the board of township | 691 |
trustees intends to adopt the resolution. The board of education, | 692 |
by resolution adopted by a majority of the board, may approve the | 693 |
exemption for the period or for the exemption percentage specified | 694 |
in the notice; may disapprove the exemption for the number of | 695 |
years in excess of ten, may disapprove the exemption for the | 696 |
percentage of the improvements to be exempted in excess of | 697 |
seventy-five per cent, or both; or may approve the exemption on | 698 |
the condition that the board of township trustees and the board of | 699 |
education negotiate an agreement providing for compensation to the | 700 |
school district equal in value to a percentage of the amount of | 701 |
taxes exempted in the eleventh and subsequent years of the | 702 |
exemption period or, in the case of exemption percentages in | 703 |
excess of seventy-five per cent, compensation equal in value to a | 704 |
percentage of the taxes that would be payable on the portion of | 705 |
the improvements in excess of seventy-five per cent were that | 706 |
portion to be subject to taxation, or other mutually agreeable | 707 |
compensation. | 708 |
The board of education shall certify its resolution to the | 709 |
board of township trustees not later than fourteen days prior to | 710 |
the date the board of township trustees intends to adopt the | 711 |
resolution as indicated in the notice. If the board of education | 712 |
and the board of township trustees negotiate a mutually acceptable | 713 |
compensation agreement, the resolution may declare the | 714 |
improvements a public purpose for the number of years specified in | 715 |
the resolution or, in the case of exemption percentages in excess | 716 |
of seventy-five per cent, for the exemption percentage specified | 717 |
in the resolution. In either case, if the board of education and | 718 |
the board of township trustees fail to negotiate a mutually | 719 |
acceptable compensation agreement, the resolution may declare the | 720 |
improvements a public purpose for not more than ten years, and | 721 |
shall not exempt more than seventy-five per cent of the | 722 |
improvements from taxation. If the board of education fails to | 723 |
certify a resolution to the board of township trustees within the | 724 |
time prescribed by this section, the board of township trustees | 725 |
thereupon may adopt the resolution and may declare the | 726 |
improvements a public purpose for up to thirty years or, in the | 727 |
case of exemption percentages proposed in excess of seventy-five | 728 |
per cent, for the exemption percentage specified in the | 729 |
resolution. The board of township trustees may adopt the | 730 |
resolution at any time after the board of education certifies its | 731 |
resolution approving the exemption to the board of township | 732 |
trustees, or, if the board of education approves the exemption on | 733 |
the condition that a mutually acceptable compensation agreement be | 734 |
negotiated, at any time after the compensation agreement is agreed | 735 |
to by the board of education and the board of township trustees. | 736 |
If a mutually acceptable compensation agreement is negotiated | 737 |
between the board of township trustees and the board of education, | 738 |
including agreements for payments in lieu of taxes under section | 739 |
5709.74 of the Revised Code, the board of township trustees shall | 740 |
compensate the joint vocational school district within which the | 741 |
parcel or district is located at the same rate and under the same | 742 |
terms received by the city, local, or exempted village school | 743 |
district. | 744 |
If a board of education has adopted a resolution waiving its | 745 |
right to approve exemptions from taxation under this section and | 746 |
the resolution remains in effect, approval of such exemptions by | 747 |
the board of education is not required under division (D) of this | 748 |
section. If a board of education has adopted a resolution allowing | 749 |
a board of township trustees to deliver the notice required under | 750 |
division (D) of this section fewer than forty-five business days | 751 |
prior to adoption of the resolution by the board of township | 752 |
trustees, the board of township trustees shall deliver the notice | 753 |
to the board of education not later than the number of days prior | 754 |
to the adoption as prescribed by the board of education in its | 755 |
resolution. If a board of education adopts a resolution waiving | 756 |
its right to approve exemptions or shortening the notification | 757 |
period, the board of education shall certify a copy of the | 758 |
resolution to the board of township trustees. If the board of | 759 |
education rescinds the resolution, it shall certify notice of the | 760 |
rescission to the board of township trustees. | 761 |
(E)(1) If a proposed resolution under division (C)(1) of this | 771 |
section exempts improvements with respect to a parcel within an | 772 |
incentive district for more than ten years, or the percentage of | 773 |
the improvement exempted from taxation exceeds seventy-five per | 774 |
cent, not later than forty-five business days prior to adopting | 775 |
the resolution the board of township trustees shall deliver to the | 776 |
board of county commissioners of the county within which the | 777 |
incentive district is or will be located a notice that states its | 778 |
intent to adopt a resolution creating an incentive district. The | 779 |
notice shall include a copy of the proposed resolution, identify | 780 |
the parcels for which improvements are to be exempted from | 781 |
taxation, provide an estimate of the true value in money of the | 782 |
improvements, specify the period of time for which the | 783 |
improvements would be exempted from taxation, specify the | 784 |
percentage of the improvements that would be exempted from | 785 |
taxation, and indicate the date on which the board of township | 786 |
trustees intends to adopt the resolution. | 787 |
(2) The board of county commissioners, by resolution adopted | 788 |
by a majority of the board, may object to the exemption for the | 789 |
number of years in excess of ten, may object to the exemption for | 790 |
the percentage of the improvement to be exempted in excess of | 791 |
seventy-five per cent, or both. If the board of county | 792 |
commissioners objects, the board may negotiate a mutually | 793 |
acceptable compensation agreement with the board of township | 794 |
trustees. In no case shall the compensation provided to the board | 795 |
of county commissioners exceed the property taxes foregone due to | 796 |
the exemption. If the board of county commissioners objects, and | 797 |
the board of county commissioners and board of township trustees | 798 |
fail to negotiate a mutually acceptable compensation agreement, | 799 |
the resolution adopted under division (C)(1) of this section shall | 800 |
provide to the board of county commissioners compensation in the | 801 |
eleventh and subsequent years of the exemption period equal in | 802 |
value to not more than fifty per cent of the taxes that would be | 803 |
payable to the county or, if the board of county commissioner's | 804 |
objection includes an objection to an exemption percentage in | 805 |
excess of seventy-five per cent, compensation equal in value to | 806 |
not more than fifty per cent of the taxes that would be payable to | 807 |
the county, on the portion of the improvement in excess of | 808 |
seventy-five per cent, were that portion to be subject to | 809 |
taxation. The board of county commissioners shall certify its | 810 |
resolution to the board of township trustees not later than thirty | 811 |
days after receipt of the notice. | 812 |
(3) If the board of county commissioners does not object or | 813 |
fails to certify its resolution objecting to an exemption within | 814 |
thirty days after receipt of the notice, the board of township | 815 |
trustees may adopt its resolution, and no compensation shall be | 816 |
provided to the board of county commissioners. If the board of | 817 |
county commissioners timely certifies its resolution objecting to | 818 |
the trustees' resolution, the board of township trustees may adopt | 819 |
its resolution at any time after a mutually acceptable | 820 |
compensation agreement is agreed to by the board of county | 821 |
commissioners and the board of township trustees, or, if no | 822 |
compensation agreement is negotiated, at any time after the board | 823 |
of township trustees agrees in the proposed resolution to provide | 824 |
compensation to the board of county commissioners of fifty per | 825 |
cent of the taxes that would be payable to the county in the | 826 |
eleventh and subsequent years of the exemption period or on the | 827 |
portion of the improvement in excess of seventy-five per cent, | 828 |
were that portion to be subject to taxation. | 829 |
(F) Service payments in lieu of taxes that are attributable | 830 |
to any amount by which the effective tax rate of either a renewal | 831 |
levy with an increase or a replacement levy exceeds the effective | 832 |
tax rate of the levy renewed or replaced, or that are attributable | 833 |
to an additional levy, for a levy authorized by the voters for any | 834 |
of the following purposes on or after January 1, 2006, and which | 835 |
are provided pursuant to a resolution creating an incentive | 836 |
district under division (C)(1) of this section that is adopted on | 837 |
or after January 1, 2006, shall be distributed to the appropriate | 838 |
taxing authority as required under division (C) of section 5709.74 | 839 |
of the Revised Code in an amount equal to the amount of taxes from | 840 |
that additional levy or from the increase in the effective tax | 841 |
rate of such renewal or replacement levy that would have been | 842 |
payable to that taxing authority from the following levies were it | 843 |
not for the exemption authorized under division (C) of this | 844 |
section: | 845 |
(G) An exemption from taxation granted under this section | 882 |
commences with the tax year specified in the resolution so long as | 883 |
the year specified in the resolution commences after the effective | 884 |
date of the resolution. If the resolution specifies a year | 885 |
commencing before the effective date of the resolution or | 886 |
specifies no year whatsoever, the exemption commences with the tax | 887 |
year in which an exempted improvement first appears on the tax | 888 |
list and duplicate of real and public utility property and that | 889 |
commences after the effective date of the resolution. Except as | 890 |
otherwise provided in this division, the exemption ends on the | 891 |
date specified in the resolution as the date the improvement | 892 |
ceases to be a public purpose or the incentive district expires, | 893 |
or ends on the date on which the public infrastructure | 894 |
improvements and housing renovations are paid in full from the | 895 |
township public improvement tax increment equivalent fund | 896 |
established under section 5709.75 of the Revised Code, whichever | 897 |
occurs first. The exemption of an improvement with respect to a | 898 |
parcel or within an incentive district may end on a later date, as | 899 |
specified in the resolution, if the board of township trustees and | 900 |
the board of education of the city, local, or exempted village | 901 |
school district within which the parcel or district is located | 902 |
have entered into a compensation agreement under section 5709.82 | 903 |
of the Revised Code with respect to the improvement and the board | 904 |
of education has approved the term of the exemption under division | 905 |
(D) of this section, but in no case shall the improvement be | 906 |
exempted from taxation for more than thirty years. The board of | 907 |
township trustees may, by majority vote, adopt a resolution | 908 |
permitting the township to enter into such agreements as the board | 909 |
finds necessary or appropriate to provide for the construction or | 910 |
undertaking of public infrastructure improvements and housing | 911 |
renovations. Any exemption shall be claimed and allowed in the | 912 |
same or a similar manner as in the case of other real property | 913 |
exemptions. If an exemption status changes during a tax year, the | 914 |
procedure for the apportionment of the taxes for that year is the | 915 |
same as in the case of other changes in tax exemption status | 916 |
during the year. | 917 |
(H) The board of township trustees may issue the notes of the | 918 |
township to finance all costs pertaining to the construction or | 919 |
undertaking of public infrastructure improvements and housing | 920 |
renovations made pursuant to this section. The notes shall be | 921 |
signed by the board and attested by the signature of the township | 922 |
fiscal officer, shall bear interest not to exceed the rate | 923 |
provided in section 9.95 of the Revised Code, and are not subject | 924 |
to Chapter 133. of the Revised Code. The resolution authorizing | 925 |
the issuance of the notes shall pledge the funds of the township | 926 |
public improvement tax increment equivalent fund established | 927 |
pursuant to section 5709.75 of the Revised Code to pay the | 928 |
interest on and principal of the notes. The notes, which may | 929 |
contain a clause permitting prepayment at the option of the board, | 930 |
shall be offered for sale on the open market or given to the | 931 |
vendor or contractor if no sale is made. | 932 |
(I) The township, not later than fifteen days after the | 933 |
adoption of a resolution under this section, shall submit to the | 934 |
director of development a copy of the resolution. On or before the | 935 |
thirty-first day of March of each year, the township shall submit | 936 |
a status report to the director of development. The report shall | 937 |
indicate, in the manner prescribed by the director, the progress | 938 |
of the project during each year that the exemption remains in | 939 |
effect, including a summary of the receipts from service payments | 940 |
in lieu of taxes; expenditures of money from the fund created | 941 |
under section 5709.75 of the Revised Code; a description of the | 942 |
public infrastructure improvements and housing renovations | 943 |
financed with the expenditures; and a quantitative summary of | 944 |
changes in private investment resulting from each project. | 945 |
(K) A board of township trustees that adopted a resolution | 955 |
under this section prior to July 21, 1994, may amend that | 956 |
resolution to include any additional public infrastructure | 957 |
improvement. A board of township trustees that seeks by the | 958 |
amendment to utilize money from its township public improvement | 959 |
tax increment equivalent fund for land acquisition in aid of | 960 |
industry, commerce, distribution, or research, demolition on | 961 |
private property, or stormwater and flood remediation projects may | 962 |
do so provided that the board currently is a party to a | 963 |
hold-harmless agreement with the board of education of the city, | 964 |
local, or exempted village school district within the territory of | 965 |
which are located the parcels that are subject to an exemption. | 966 |
For the purposes of this division, a "hold-harmless agreement" | 967 |
means an agreement under which the board of township trustees | 968 |
agrees to compensate the school district for one hundred per cent | 969 |
of the tax revenue that the school district would have received | 970 |
from further improvements to parcels designated in the resolution | 971 |
were it not for the exemption granted by the resolution. | 972 |
Sec. 5709.78. (A) A board of county commissioners may, by | 973 |
resolution, declare improvements to certain parcels of real | 974 |
property located in the unincorporated territory of the county to | 975 |
be a public purpose. Except with the approval under division (C) | 976 |
of this section of the board of education of each city, local, or | 977 |
exempted village school district within which the improvements are | 978 |
located, not more than seventy-five per cent of an improvement | 979 |
thus declared to be a public purpose may be exempted from real | 980 |
property taxation, for a period of not more than ten years. The | 981 |
resolution shall specify the percentage of the improvement to be | 982 |
exempted and the life of the exemption. | 983 |
(B)(1) A board of county commissioners may adopt a resolution | 993 |
creating an incentive district and declaring improvements to | 994 |
parcels within the district to be a public purpose and, except as | 995 |
provided in division (E)(B)(2) of this section, exempt from | 996 |
taxation as provided in this section, but no board of county | 997 |
commissioners of a county that has a population that exceeds | 998 |
twenty-five thousand, as shown by the most recent federal | 999 |
decennial census, shall adopt a resolution that creates an | 1000 |
incentive district if the sum of the taxable value of real | 1001 |
property in the proposed district for the preceding tax year and | 1002 |
the taxable value of all real property in the county that would | 1003 |
have been taxable in the preceding year were it not for the fact | 1004 |
that the property was in an existing incentive district and | 1005 |
therefore exempt from taxation exceeds twenty-five per cent of the | 1006 |
taxable value of real property in the county for the preceding tax | 1007 |
year. The district shall be located within the unincorporated | 1008 |
territory of the county and shall not include any territory that | 1009 |
is included within a district created under division (C) of | 1010 |
section 5709.73 of the Revised Code. The resolution shall | 1011 |
delineate the boundary of the proposed district and specifically | 1012 |
identify each parcel within the district. A proposed district may | 1013 |
not include any parcel that is or has been exempted from taxation | 1014 |
under division (A) of this section or that is or has been within | 1015 |
another district created under this division. A resolution may | 1016 |
create more than one such district, and more than one resolution | 1017 |
may be adopted under division (B)(1) of this section. | 1018 |
(2)(a) Not later than thirty days prior to adopting a | 1019 |
resolution under division (B)(1) of this section, if the county | 1020 |
intends to apply for exemptions from taxation under section | 1021 |
5709.911 of the Revised Code on behalf of owners of real property | 1022 |
located within the proposed incentive district, the board of | 1023 |
county commissioners shall conduct a public hearing on the | 1024 |
proposed resolution. Not later than thirty days prior to the | 1025 |
public hearing, the board shall give notice of the public hearing | 1026 |
and the proposed resolution by first class mail to every real | 1027 |
property owner whose property is located within the boundaries of | 1028 |
the proposed incentive district that is the subject of the | 1029 |
proposed resolution. The board also shall provide the notice by | 1030 |
first class mail to the clerk of each township in which the | 1031 |
proposed incentive district will be located.
The notice shall | 1032 |
inform property owners of the owner's right to exclude the owner's | 1033 |
property from the incentive district by sending a written response | 1034 |
in accordance with division (B)(2)(b) of this section. The notice | 1035 |
also shall include information detailing the required contents of | 1036 |
the response, the address to which the response may be mailed, and | 1037 |
the deadline for submitting the response. | 1038 |
(b) Any owner of real property located within the boundaries | 1039 |
of an incentive district proposed under division (B)(1) of this | 1040 |
section may exclude the property from the proposed incentive | 1041 |
district by submitting a written response to the board not later | 1042 |
than forty-five days after the postmark date on the notice | 1043 |
required under division (B)(2)(a) of this section. The response | 1044 |
shall be sent by first class mail or delivered in person at a | 1045 |
public hearing held by the board under division (B)(2)(a) of this | 1046 |
section. The response shall conform to any content requirements | 1047 |
that may be established by the board and included in the notice | 1048 |
provided under this division. In the response, property owners may | 1049 |
identify a parcel by street address, by the manner in which it is | 1050 |
identified in the resolution, or by other means allowing the | 1051 |
identity of the parcel to be ascertained. | 1052 |
(3)(a) A resolution adopted under division (B)(1) of this | 1066 |
section shall specify the life of the incentive district and the | 1067 |
percentage of the improvements to be exempted, shall designate the | 1068 |
public infrastructure improvements made, to be made, or in the | 1069 |
process of being made, that benefit or serve, or, once made, will | 1070 |
benefit or serve parcels in the district. The resolution also | 1071 |
shall identify one or more specific projects being, or to be, | 1072 |
undertaken in the district that place additional demand on the | 1073 |
public infrastructure improvements designated in the resolution. | 1074 |
The project identified may, but need not be, the project under | 1075 |
division (B)(3)(b) of this section that places real property in | 1076 |
use for commercial or industrial purposes. | 1077 |
(b) A resolution adopted under division (B)(1) of this | 1084 |
section may authorize the use of service payments provided for in | 1085 |
section 5709.79 of the Revised Code for the purpose of housing | 1086 |
renovations within the incentive district, provided that the | 1087 |
resolution also designates public infrastructure improvements that | 1088 |
benefit or serve the district, and that a project within the | 1089 |
district places real property in use for commercial or industrial | 1090 |
purposes. Service payments may be used to finance or support | 1091 |
loans, deferred loans, and grants to persons for the purpose of | 1092 |
housing renovations within the district. The resolution shall | 1093 |
designate the parcels within the district that are eligible for | 1094 |
housing renovations. The resolution shall state separately the | 1095 |
amount or the percentages of the expected aggregate service | 1096 |
payments that are designated for each public infrastructure | 1097 |
improvement and for the purpose of housing renovations. | 1098 |
(4) Except with the approval of the board of education of | 1099 |
each city, local, or exempted village school district within the | 1100 |
territory of which the incentive district is or will be located, | 1101 |
and subject to division (D) of this section, the life of an | 1102 |
incentive district shall not exceed ten years, and the percentage | 1103 |
of improvements to be exempted shall not exceed seventy-five per | 1104 |
cent. With approval of the board of education, the life of a | 1105 |
district may be not more than thirty years, and the percentage of | 1106 |
improvements to be exempted may be not more than one hundred per | 1107 |
cent. The approval of a board of education shall be obtained in | 1108 |
the manner provided in division (C) of this section. | 1109 |
(C)(1) Improvements with respect to a parcel may be exempted | 1110 |
from taxation under division (A) of this section, and improvements | 1111 |
to parcels within an incentive district may be exempted from | 1112 |
taxation under division (B) of this section, for up to ten years | 1113 |
or, with the approval of the board of education of each city, | 1114 |
local, or exempted village school district within which the parcel | 1115 |
or district is located, for up to thirty years. The percentage of | 1116 |
the improvements exempted from taxation may, with such approval, | 1117 |
exceed seventy-five per cent, but shall not exceed one hundred per | 1118 |
cent. Not later than forty-five business days prior to adopting a | 1119 |
resolution under this section declaring improvements to be a | 1120 |
public purpose that is subject to the approval of a board of | 1121 |
education under this division, the board of county commissioners | 1122 |
shall deliver to the board of education a notice stating its | 1123 |
intent to adopt a resolution making that declaration. The notice | 1124 |
regarding improvements with respect to a parcel under division (A) | 1125 |
of this section shall identify the parcels for which improvements | 1126 |
are to be exempted from taxation, provide an estimate of the true | 1127 |
value in money of the improvements, specify the period for which | 1128 |
the improvements would be exempted from taxation and the | 1129 |
percentage of the improvements that would be exempted, and | 1130 |
indicate the date on which the board of county commissioners | 1131 |
intends to adopt the resolution. The notice regarding improvements | 1132 |
to parcels within an incentive district under division (B) of this | 1133 |
section shall delineate the boundaries of the district, | 1134 |
specifically identify each parcel within the district, identify | 1135 |
each anticipated improvement in the district, provide an estimate | 1136 |
of the true value in money of each such improvement, specify the | 1137 |
life of the district and the percentage of improvements that would | 1138 |
be exempted, and indicate the date on which the board of county | 1139 |
commissioners intends to adopt the resolution. The board of | 1140 |
education, by resolution adopted by a majority of the board, may | 1141 |
approve the exemption for the period or for the exemption | 1142 |
percentage specified in the notice; may disapprove the exemption | 1143 |
for the number of years in excess of ten, may disapprove the | 1144 |
exemption for the percentage of the improvements to be exempted in | 1145 |
excess of seventy-five per cent, or both; or may approve the | 1146 |
exemption on the condition that the board of county commissioners | 1147 |
and the board of education negotiate an agreement providing for | 1148 |
compensation to the school district equal in value to a percentage | 1149 |
of the amount of taxes exempted in the eleventh and subsequent | 1150 |
years of the exemption period or, in the case of exemption | 1151 |
percentages in excess of seventy-five per cent, compensation equal | 1152 |
in value to a percentage of the taxes that would be payable on the | 1153 |
portion of the improvements in excess of seventy-five per cent | 1154 |
were that portion to be subject to taxation, or other mutually | 1155 |
agreeable compensation. | 1156 |
(2) The board of education shall certify its resolution to | 1157 |
the board of county commissioners not later than fourteen days | 1158 |
prior to the date the board of county commissioners intends to | 1159 |
adopt its resolution as indicated in the notice. If the board of | 1160 |
education and the board of county commissioners negotiate a | 1161 |
mutually acceptable compensation agreement, the resolution of the | 1162 |
board of county commissioners may declare the improvements a | 1163 |
public purpose for the number of years specified in that | 1164 |
resolution or, in the case of exemption percentages in excess of | 1165 |
seventy-five per cent, for the exemption percentage specified in | 1166 |
the resolution. In either case, if the board of education and the | 1167 |
board of county commissioners fail to negotiate a mutually | 1168 |
acceptable compensation agreement, the resolution may declare the | 1169 |
improvements a public purpose for not more than ten years, and | 1170 |
shall not exempt more than seventy-five per cent of the | 1171 |
improvements from taxation. If the board of education fails to | 1172 |
certify a resolution to the board of county commissioners within | 1173 |
the time prescribed by this section, the board of county | 1174 |
commissioners thereupon may adopt the resolution and may declare | 1175 |
the improvements a public purpose for up to thirty years or, in | 1176 |
the case of exemption percentages proposed in excess of | 1177 |
seventy-five per cent, for the exemption percentage specified in | 1178 |
the resolution. The board of county commissioners may adopt the | 1179 |
resolution at any time after the board of education certifies its | 1180 |
resolution approving the exemption to the board of county | 1181 |
commissioners, or, if the board of education approves the | 1182 |
exemption on the condition that a mutually acceptable compensation | 1183 |
agreement be negotiated, at any time after the compensation | 1184 |
agreement is agreed to by the board of education and the board of | 1185 |
county commissioners. If a mutually acceptable compensation | 1186 |
agreement is negotiated between the board of county commissioners | 1187 |
and the board of education, including agreements for payments in | 1188 |
lieu of taxes under section 5709.79 of the Revised Code, the board | 1189 |
of county commissioners shall compensate the joint vocational | 1190 |
school district within which the parcel or district is located at | 1191 |
the same rate and under the same terms received by the city, | 1192 |
local, or exempted village school district. | 1193 |
(3) If a board of education has adopted a resolution waiving | 1194 |
its right to approve exemptions from taxation under this section | 1195 |
and the resolution remains in effect, approval of such exemptions | 1196 |
by the board of education is not required under division (C) of | 1197 |
this section. If a board of education has adopted a resolution | 1198 |
allowing a board of county commissioners to deliver the notice | 1199 |
required under division (C) of this section fewer than forty-five | 1200 |
business days prior to approval of the resolution by the board of | 1201 |
county commissioners, the board of county commissioners shall | 1202 |
deliver the notice to the board of education not later than the | 1203 |
number of days prior to such approval as prescribed by the board | 1204 |
of education in its resolution. If a board of education adopts a | 1205 |
resolution waiving its right to approve exemptions or shortening | 1206 |
the notification period, the board of education shall certify a | 1207 |
copy of the resolution to the board of county commissioners. If | 1208 |
the board of education rescinds such a resolution, it shall | 1209 |
certify notice of the rescission to the board of county | 1210 |
commissioners. | 1211 |
(D)(1) If a proposed resolution under division (B)(1) of this | 1212 |
section exempts improvements with respect to a parcel within an | 1213 |
incentive district for more than ten years, or the percentage of | 1214 |
the improvement exempted from taxation exceeds seventy-five per | 1215 |
cent, not later than forty-five business days prior to adopting | 1216 |
the resolution the board of county commissioners shall deliver to | 1217 |
the board of township trustees of any township within which the | 1218 |
incentive district is or will be located a notice that states its | 1219 |
intent to adopt a resolution creating an incentive district. The | 1220 |
notice shall include a copy of the proposed resolution, identify | 1221 |
the parcels for which improvements are to be exempted from | 1222 |
taxation, provide an estimate of the true value in money of the | 1223 |
improvements, specify the period of time for which the | 1224 |
improvements would be exempted from taxation, specify the | 1225 |
percentage of the improvements that would be exempted from | 1226 |
taxation, and indicate the date on which the board intends to | 1227 |
adopt the resolution. | 1228 |
(2) The board of township trustees, by resolution adopted by | 1229 |
a majority of the board, may object to the exemption for the | 1230 |
number of years in excess of ten, may object to the exemption for | 1231 |
the percentage of the improvement to be exempted in excess of | 1232 |
seventy-five per cent, or both. If the board of township trustees | 1233 |
objects, the board of township trustees may negotiate a mutually | 1234 |
acceptable compensation agreement with the board of county | 1235 |
commissioners. In no case shall the compensation provided to the | 1236 |
board of township trustees exceed the property taxes forgone due | 1237 |
to the exemption. If the board of township trustees objects, and | 1238 |
the board of township trustees and the board of county | 1239 |
commissioners fail to negotiate a mutually acceptable compensation | 1240 |
agreement, the resolution adopted under division (B)(1) of this | 1241 |
section shall provide to the board of township trustees | 1242 |
compensation in the eleventh and subsequent years of the exemption | 1243 |
period equal in value to not more than fifty per cent of the taxes | 1244 |
that would be payable to the township or, if the board of township | 1245 |
trustee's objection includes an objection to an exemption | 1246 |
percentage in excess of seventy-five per cent, compensation equal | 1247 |
in value to not more than fifty per cent of the taxes that would | 1248 |
be payable to the township on the portion of the improvement in | 1249 |
excess of seventy-five per cent, were that portion to be subject | 1250 |
to taxation. The board of township trustees shall certify its | 1251 |
resolution to the board of county commissioners not later than | 1252 |
thirty days after receipt of the notice. | 1253 |
(3) If the board of township trustees does not object or | 1254 |
fails to certify a resolution objecting to an exemption within | 1255 |
thirty days after receipt of the notice, the board of county | 1256 |
commissioners may adopt its resolution, and no compensation shall | 1257 |
be provided to the board of township trustees. If the board of | 1258 |
township trustees certifies its resolution objecting to the | 1259 |
commissioners' resolution, the board of county commissioners may | 1260 |
adopt its resolution at any time after a mutually acceptable | 1261 |
compensation agreement is agreed to by the board of county | 1262 |
commissioners and the board of township trustees. If the board of | 1263 |
township trustees certifies a resolution objecting to the | 1264 |
commissioners' resolution, the board of county commissioners may | 1265 |
adopt its resolution at any time after a mutually acceptable | 1266 |
compensation agreement is agreed to by the board of county | 1267 |
commissioners and the board of township trustees, or, if no | 1268 |
compensation agreement is negotiated, at any time after the board | 1269 |
of county commissioners in the proposed resolution to provide | 1270 |
compensation to the board of township trustees of fifty per cent | 1271 |
of the taxes that would be payable to the township in the eleventh | 1272 |
and subsequent years of the exemption period or on the portion of | 1273 |
the improvement in excess of seventy-five per cent, were that | 1274 |
portion to be subject to taxation. | 1275 |
(E) Service payments in lieu of taxes that are attributable | 1276 |
to any amount by which the effective tax rate of either a renewal | 1277 |
levy with an increase or a replacement levy exceeds the effective | 1278 |
tax rate of the levy renewed or replaced, or that are attributable | 1279 |
to an additional levy, for a levy authorized by the voters for any | 1280 |
of the following purposes on or after January 1, 2006, and which | 1281 |
are provided pursuant to a resolution creating an incentive | 1282 |
district under division (B)(1) of this section that is adopted on | 1283 |
or after January 1, 2006, shall be distributed to the appropriate | 1284 |
taxing authority as required under division (D) of section 5709.79 | 1285 |
of the Revised Code in an amount equal to the amount of taxes from | 1286 |
that additional levy or from the increase in the effective tax | 1287 |
rate of such renewal or replacement levy that would have been | 1288 |
payable to that taxing authority from the following levies were it | 1289 |
not for the exemption authorized under division (B) of this | 1290 |
section: | 1291 |
(F) An exemption from taxation granted under this section | 1328 |
commences with the tax year specified in the resolution so long as | 1329 |
the year specified in the resolution commences after the effective | 1330 |
date of the resolution. If the resolution specifies a year | 1331 |
commencing before the effective date of the resolution or | 1332 |
specifies no year whatsoever, the exemption commences with the tax | 1333 |
year in which an exempted improvement first appears on the tax | 1334 |
list and duplicate of real and public utility property and that | 1335 |
commences after the effective date of the resolution. Except as | 1336 |
otherwise provided in this division, the exemption ends on the | 1337 |
date specified in the resolution as the date the improvement | 1338 |
ceases to be a public purpose or the incentive district expires, | 1339 |
or ends on the date on which the county can no longer require | 1340 |
annual service payments in lieu of taxes under section 5709.79 of | 1341 |
the Revised Code, whichever occurs first. The exemption of an | 1342 |
improvement with respect to a parcel or within an incentive | 1343 |
district may end on a later date, as specified in the resolution, | 1344 |
if the board of commissioners and the board of education of the | 1345 |
city, local, or exempted village school district within which the | 1346 |
parcel or district is located have entered into a compensation | 1347 |
agreement under section 5709.82 of the Revised Code with respect | 1348 |
to the improvement, and the board of education has approved the | 1349 |
term of the exemption under division (C)(1) of this section, but | 1350 |
in no case shall the improvement be exempted from taxation for | 1351 |
more than thirty years. Exemptions shall be claimed and allowed in | 1352 |
the same or a similar manner as in the case of other real property | 1353 |
exemptions. If an exemption status changes during a tax year, the | 1354 |
procedure for the apportionment of the taxes for that year is the | 1355 |
same as in the case of other changes in tax exemption status | 1356 |
during the year. | 1357 |
(H) The county, not later than fifteen days after the | 1367 |
adoption of a resolution under this section, shall submit to the | 1368 |
director of development a copy of the resolution. On or before the | 1369 |
thirty-first day of March of each year, the county shall submit a | 1370 |
status report to the director of development. The report shall | 1371 |
indicate, in the manner prescribed by the director, the progress | 1372 |
of the project during each year that an exemption remains in | 1373 |
effect, including a summary of the receipts from service payments | 1374 |
in lieu of taxes; expenditures of money from the fund created | 1375 |
under section 5709.80 of the Revised Code; a description of the | 1376 |
public infrastructure improvements and housing renovations | 1377 |
financed with such expenditures; and a quantitative summary of | 1378 |
changes in employment and private investment resulting from each | 1379 |
project. | 1380 |
Sec. 5709.911. (A)(1) A municipal corporation, township, or | 1390 |
county that has enacted an ordinance or resolution under section | 1391 |
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code or that | 1392 |
has entered into an agreement referred to in section 725.02 or | 1393 |
1728.07 of the Revised Code may file an application for exemption | 1394 |
under those sections in the same manner as other real property tax | 1395 |
exemptions, notwithstanding the indication in division (A) of | 1396 |
section 5715.27 of the Revised Code that the owner of the property | 1397 |
may file the application. An application for exemption may not be | 1398 |
filed by a municipal corporation, township, or county for an | 1399 |
exemption of a parcel under section 5709.40, 5709.73, or 5709.78 | 1400 |
of the Revised Code if the property owner excludes the property | 1401 |
from such exemption as provided in that section. | 1402 |
(B)(1) If the application for exemption under section 725.02, | 1421 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1422 |
is filed by the owner of the property or by a municipal | 1423 |
corporation, township, or county with the owner's written consent | 1424 |
attached to the application, and if more than one real property | 1425 |
tax exemption applies by law to the property or a portion of the | 1426 |
property, no other exemption shall be granted for the portion of | 1427 |
the property already exempt under section 725.02, 1728.10, | 1428 |
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code unless | 1429 |
the municipal corporation, township, or county that enacted the | 1430 |
authorizing ordinance or resolution for the earlier exemption | 1431 |
provides its duly authorized written consent to the subsequent | 1432 |
exemption by means of a duly enacted ordinance or resolution. | 1433 |
(2) If the application for exemption under section 725.02, | 1434 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1435 |
is filed by a municipal corporation, township, or county and | 1436 |
approved by the tax commissioner, if the owner of the property | 1437 |
subsequently provides written consent to the exemption and the | 1438 |
consent is filed with the tax commissioner, and if more than one | 1439 |
real property tax exemption applies by law to the property or a | 1440 |
portion of the property, no other exemption shall be granted for | 1441 |
the portion of the property already exempt under section 725.02, | 1442 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1443 |
unless the municipal corporation, township, or county that enacted | 1444 |
the authorizing ordinance or resolution for the earlier exemption | 1445 |
provides its duly authorized written consent to the subsequent | 1446 |
exemption by means of a duly enacted ordinance or resolution. | 1447 |
(C)(1) After the tax commissioner has approved or partially | 1448 |
approved an application for exemption filed by or with the consent | 1449 |
of a property owner under the circumstances described in division | 1450 |
(B)(1) of this section, the municipal corporation, township, | 1451 |
county, or property owner shall file a notice with the county | 1452 |
recorder for the county in which the property is located that | 1453 |
clearly identifies the property and the owner of the property and | 1454 |
states that the property, regardless of future use or ownership, | 1455 |
remains liable for any service payments or service charges | 1456 |
required by the exemption until the terms of the exemption have | 1457 |
been satisfied, unless the municipal corporation, township, or | 1458 |
county consents to the subsequent exemption and relinquishes its | 1459 |
right to collect the service payments or service charges as | 1460 |
provided in division (B)(1) of this section. The county recorder's | 1461 |
office shall charge a fee of fourteen dollars to record the | 1462 |
notice, the proceeds of which shall be retained by the county. | 1463 |
(2) If a property owner subsequently provides written consent | 1464 |
to an exemption under the circumstances described in division | 1465 |
(B)(2) of this section, the municipal corporation, township, | 1466 |
county, or property owner shall file notice with the county | 1467 |
recorder for the county in which the property is located that | 1468 |
clearly identifies the property and the owner of the property and | 1469 |
states that the property, regardless of future use or ownership, | 1470 |
remains liable for any service payments or service charges | 1471 |
required by the exemption until the terms of the exemption have | 1472 |
been satisfied, unless the municipal corporation, township, or | 1473 |
county consents to the subsequent exemption and relinquishes its | 1474 |
right to collect the service payments or service charges as | 1475 |
provided in division (B)(2) of this section. The county recorder's | 1476 |
office shall charge a fee of fourteen dollars to record the | 1477 |
notice, the proceeds of which shall be retained by the county. | 1478 |
(D) Upon filing of the notice with the county recorder, the | 1479 |
provisions of division (B) of this section are binding on all | 1480 |
future owners of the property or portion of the property, | 1481 |
regardless of how the property is used. Failure to file the notice | 1482 |
with the county recorder relieves future owners of the property | 1483 |
from the obligation to make service payments in lieu of taxes | 1484 |
under section 725.04, 5709.42, 5709.74, or 5709.79 of the Revised | 1485 |
Code or service charges in lieu of taxes under section 1728.11 or | 1486 |
1728.111 of the Revised Code, if the property or a portion of the | 1487 |
property later qualifies for exemption under any other provision | 1488 |
of the Revised Code. Failure to file the notice does not, however, | 1489 |
relieve the owner of the property, at the time the application for | 1490 |
exemption is filed, from making those payments or charges. | 1491 |