(7)(8) "Public infrastructure improvement" includes, but is | 68 |
not limited to, public roads and highways; water and sewer lines; | 69 |
environmental remediation; land acquisition, including acquisition | 70 |
in aid of industry, commerce, distribution, or research; | 71 |
demolition, including demolition on private property when | 72 |
determined to be necessary for economic development purposes; | 73 |
stormwater and flood remediation projects, including such projects | 74 |
on private property when determined to be necessary for public | 75 |
health, safety, and welfare; the provision of gas, electric, and | 76 |
communications service facilities; and the enhancement of public | 77 |
waterways through improvements that allow for greater public | 78 |
access. | 79 |
(B) The legislative authority of a municipal corporation, by | 80 |
ordinance, may declare improvements to certain parcels of real | 81 |
property located in the municipal corporation to be a public | 82 |
purpose. Improvements with respect to a parcel that is used or to | 83 |
be used for residential purposes may be declared a public purpose | 84 |
under this division only if the parcel is located in a blighted | 85 |
area of an impacted city. For this purpose, "parcel that is used | 86 |
or to be used for residential purposes" means a parcel that, as | 87 |
improved, is used or to be used for purposes that would cause the | 88 |
tax commissioner to classify the parcel as residential property in | 89 |
accordance with rules adopted by the commissioner under section | 90 |
5713.041 of the Revised Code. Except with the approval under | 91 |
division (D) of this section of the board of education of each | 92 |
city, local, or exempted village school district within which the | 93 |
improvements are located, not more than seventy-five per cent of | 94 |
an improvement thus declared to be a public purpose may be | 95 |
exempted from real property taxation for a period of not more than | 96 |
ten years. The ordinance shall specify the percentage of the | 97 |
improvement to be exempted from taxation and the life of the | 98 |
exemption. | 99 |
(C)(1) The legislative authority of a municipal corporation | 110 |
may adopt an ordinance creating an incentive district and | 111 |
declaring improvements to parcels within the district to be a | 112 |
public purpose and, except as provided in division (F)(C)(2) of | 113 |
this section, exempt from taxation as provided in this section, | 114 |
but no legislative authority of a municipal corporation that has a | 115 |
population that exceeds twenty-five thousand, as shown by the most | 116 |
recent federal decennial census, shall adopt an ordinance that | 117 |
creates an incentive district if the sum of the taxable value of | 118 |
real property in the proposed district for the preceding tax year | 119 |
and the taxable value of all real property in the municipal | 120 |
corporation that would have been taxable in the preceding year | 121 |
were it not for the fact that the property was in an existing | 122 |
incentive district and therefore exempt from taxation exceeds | 123 |
twenty-five per cent of the taxable value of real property in the | 124 |
municipal corporation for the preceding tax year. The ordinance | 125 |
shall delineate the boundary of the proposed district and | 126 |
specifically identify each parcel within the district. A proposed | 127 |
district may not include any parcel that is or has been exempted | 128 |
from taxation under division (B) of this section or that is or has | 129 |
been within another district created under this division. An | 130 |
ordinance may create more than one such district, and more than | 131 |
one ordinance may be adopted under division (C)(1) of this | 132 |
section. | 133 |
(2)(a) Not later than thirty days prior to adopting an | 134 |
ordinance under division (C)(1) of this section, if the municipal | 135 |
corporation intends to apply for exemptions from taxation under | 136 |
section 5709.911 of the Revised Code on behalf of owners of real | 137 |
property located within the proposed incentive district, the | 138 |
legislative authority of athe municipal corporation shall conduct | 139 |
a public hearing on the proposed ordinance. Not later than thirty | 140 |
days prior to the public hearing, the legislative authority shall | 141 |
give notice of the public hearing and the proposed ordinance by | 142 |
first class mail to every real property owner whose property is | 143 |
located within the boundaries of the proposed incentive district | 144 |
that is the subject of the proposed ordinance.
The notice shall | 145 |
include a map of the proposed incentive district on which the | 146 |
legislative authority of the municipal corporation shall have | 147 |
delineated an overlay. The notice shall inform the property owner | 148 |
of the owner's right to exclude the owner's property from the | 149 |
incentive district if the owner's entire parcel of property will | 150 |
not be located within the overlay, by submitting a written | 151 |
response in accordance with division (C)(2)(b) of this section. | 152 |
The notice also shall include information detailing the required | 153 |
contents of the response, the address to which the response may be | 154 |
mailed, and the deadline for submitting the response. | 155 |
(b) Any owner of real property located within the boundaries | 156 |
of an incentive district proposed under division (C)(1) of this | 157 |
section whose entire parcel of property is not located within the | 158 |
overlay may exclude the property from the proposed incentive | 159 |
district by submitting a written response to the legislative | 160 |
authority of the municipal corporation not later than forty-five | 161 |
days after the postmark date on the notice required under division | 162 |
(C)(2)(a) of this section. The response shall be sent by first | 163 |
class mail or delivered in person at a public hearing held by the | 164 |
legislative authority under division (C)(2)(a) of this section. | 165 |
The response shall conform to any content requirements that may be | 166 |
established by the municipal corporation and included in the | 167 |
notice provided under division (C)(2)(a) of this section. In the | 168 |
response, property owners may identify a parcel by street address, | 169 |
by the manner in which it is identified in the ordinance, or by | 170 |
other means allowing the identity of the parcel to be ascertained. | 171 |
(c) Before adopting an ordinance under division (C)(1) of | 172 |
this section, the legislative authority of a municipal corporation | 173 |
shall amend the ordinance to exclude any parcel for which a | 174 |
written response has been submitted under division (C)(2)(b) of | 175 |
this section. A municipal corporation shall not apply for | 176 |
exemptions from taxation under section 5709.911 of the Revised | 177 |
Code for any parcel of property for which a written response has | 178 |
been submitted under division (C)(2)(b) of this section, and | 179 |
service payments may not be required from the owner of the parcel. | 180 |
Improvements to a parcel excluded from an incentive district under | 181 |
this division may be exempted from taxation under division (B) of | 182 |
this section pursuant to an ordinance adopted under that division | 183 |
or under any other section of the Revised Code under which the | 184 |
parcel qualifies. | 185 |
(3)(a) An ordinance adopted under division (C)(1) of this | 186 |
section shall specify the life of the incentive district and the | 187 |
percentage of the improvements to be exempted, shall designate the | 188 |
public infrastructure improvements made, to be made, or in the | 189 |
process of being made, that benefit or serve, or, once made, will | 190 |
benefit or serve parcels in the district. The ordinance also shall | 191 |
identify one or more specific projects being, or to be, undertaken | 192 |
in the district that place additional demand on the public | 193 |
infrastructure improvements designated in the ordinance. The | 194 |
project identified may, but need not be, the project under | 195 |
division (C)(3)(b) of this section that places real property in | 196 |
use for commercial or industrial purposes. Except as otherwise | 197 |
permitted under that division, the service payments provided for | 198 |
in section 5709.42 of the Revised Code shall be used to finance | 199 |
the designated public infrastructure improvements, for the purpose | 200 |
described in division (D)(1) or, (E), or (F) of this section, or | 201 |
as provided in section 5709.43 of the Revised Code. | 202 |
(b) An ordinance adopted under division (C)(1) of this | 209 |
section may authorize the use of service payments provided for in | 210 |
section 5709.42 of the Revised Code for the purpose of housing | 211 |
renovations within the incentive district, provided that the | 212 |
ordinance also designates public infrastructure improvements that | 213 |
benefit or serve the district, and that a project within the | 214 |
district places real property in use for commercial or industrial | 215 |
purposes. Service payments may be used to finance or support | 216 |
loans, deferred loans, and grants to persons for the purpose of | 217 |
housing renovations within the district. The ordinance shall | 218 |
designate the parcels within the district that are eligible for | 219 |
housing renovation. The ordinance shall state separately the | 220 |
amounts or the percentages of the expected aggregate service | 221 |
payments that are designated for each public infrastructure | 222 |
improvement and for the general purpose of housing renovations. | 223 |
(4) Except with the approval of the board of education of | 224 |
each city, local, or exempted village school district within the | 225 |
territory of which the incentive district is or will be located, | 226 |
and subject to division (E) of this section, the life of an | 227 |
incentive district shall not exceed ten years, and the percentage | 228 |
of improvements to be exempted shall not exceed seventy-five per | 229 |
cent. With approval of the board of education, the life of a | 230 |
district may be not more than thirty years, and the percentage of | 231 |
improvements to be exempted may be not more than one hundred per | 232 |
cent. The approval of a board of education shall be obtained in | 233 |
the manner provided in division (D) of this section. | 234 |
(D)(1) If the ordinance declaring improvements to a parcel to | 235 |
be a public purpose or creating an incentive district specifies | 236 |
that payments in lieu of taxes provided for in section 5709.42 of | 237 |
the Revised Code shall be paid to the city, local, or exempted | 238 |
village, and joint vocational school district in which the parcel | 239 |
or incentive district is located in the amount of the taxes that | 240 |
would have been payable to the school district if the improvements | 241 |
had not been exempted from taxation, the percentage of the | 242 |
improvement that may be exempted from taxation may exceed | 243 |
seventy-five per cent, and the exemption may be granted for up to | 244 |
thirty years, without the approval of the board of education as | 245 |
otherwise required under division (D)(2) of this section. | 246 |
(2) Improvements with respect to a parcel may be exempted | 247 |
from taxation under division (B) of this section, and improvements | 248 |
to parcels within an incentive district may be exempted from | 249 |
taxation under division (C) of this section, for up to ten years | 250 |
or, with the approval under this paragraph of the board of | 251 |
education of the city, local, or exempted village school district | 252 |
within which the parcel or district is located, for up to thirty | 253 |
years. The percentage of the improvement exempted from taxation | 254 |
may, with such approval, exceed seventy-five per cent, but shall | 255 |
not exceed one hundred per cent. Not later than forty-five | 256 |
business days prior to adopting an ordinance under this section | 257 |
declaring improvements to be a public purpose that is subject to | 258 |
approval by a board of education under this division, the | 259 |
legislative authority shall deliver to the board of education a | 260 |
notice stating its intent to adopt an ordinance making that | 261 |
declaration. The notice regarding improvements with respect to a | 262 |
parcel under division (B) of this section shall identify the | 263 |
parcels for which improvements are to be exempted from taxation, | 264 |
provide an estimate of the true value in money of the | 265 |
improvements, specify the period for which the improvements would | 266 |
be exempted from taxation and the percentage of the improvement | 267 |
that would be exempted, and indicate the date on which the | 268 |
legislative authority intends to adopt the ordinance. The notice | 269 |
regarding improvements to parcels within an incentive district | 270 |
under division (C) of this section shall delineate the boundaries | 271 |
of the district, specifically identify each parcel within the | 272 |
district, identify each anticipated improvement in the district, | 273 |
provide an estimate of the true value in money of each such | 274 |
improvement, specify the life of the district and the percentage | 275 |
of improvements that would be exempted, and indicate the date on | 276 |
which the legislative authority intends to adopt the ordinance. | 277 |
The board of education, by resolution adopted by a majority of the | 278 |
board, may approve the exemption for the period or for the | 279 |
exemption percentage specified in the notice; may disapprove the | 280 |
exemption for the number of years in excess of ten, may disapprove | 281 |
the exemption for the percentage of the improvement to be exempted | 282 |
in excess of seventy-five per cent, or both; or may approve the | 283 |
exemption on the condition that the legislative authority and the | 284 |
board negotiate an agreement providing for compensation to the | 285 |
school district equal in value to a percentage of the amount of | 286 |
taxes exempted in the eleventh and subsequent years of the | 287 |
exemption period or, in the case of exemption percentages in | 288 |
excess of seventy-five per cent, compensation equal in value to a | 289 |
percentage of the taxes that would be payable on the portion of | 290 |
the improvement in excess of seventy-five per cent were that | 291 |
portion to be subject to taxation, or other mutually agreeable | 292 |
compensation. If an agreement is negotiated between the | 293 |
legislative authority and the board to compensate the school | 294 |
district for all or part of the taxes exempted, including | 295 |
agreements for payments in lieu of taxes under section 5709.42 of | 296 |
the Revised Code, the legislative authority shall compensate the | 297 |
joint vocational school district within which the parcel or | 298 |
district is located at the same rate and under the same terms | 299 |
received by the city, local, or exempted village school district. | 300 |
(3) The board of education shall certify its resolution to | 301 |
the legislative authority not later than fourteen days prior to | 302 |
the date the legislative authority intends to adopt the ordinance | 303 |
as indicated in the notice. If the board of education and the | 304 |
legislative authority negotiate a mutually acceptable compensation | 305 |
agreement, the ordinance may declare the improvements a public | 306 |
purpose for the number of years specified in the ordinance or, in | 307 |
the case of exemption percentages in excess of seventy-five per | 308 |
cent, for the exemption percentage specified in the ordinance. In | 309 |
either case, if the board and the legislative authority fail to | 310 |
negotiate a mutually acceptable compensation agreement, the | 311 |
ordinance may declare the improvements a public purpose for not | 312 |
more than ten years, and shall not exempt more than seventy-five | 313 |
per cent of the improvements from taxation. If the board fails to | 314 |
certify a resolution to the legislative authority within the time | 315 |
prescribed by this division, the legislative authority thereupon | 316 |
may adopt the ordinance and may declare the improvements a public | 317 |
purpose for up to thirty years, or, in the case of exemption | 318 |
percentages proposed in excess of seventy-five per cent, for the | 319 |
exemption percentage specified in the ordinance. The legislative | 320 |
authority may adopt the ordinance at any time after the board of | 321 |
education certifies its resolution approving the exemption to the | 322 |
legislative authority, or, if the board approves the exemption on | 323 |
the condition that a mutually acceptable compensation agreement be | 324 |
negotiated, at any time after the compensation agreement is agreed | 325 |
to by the board and the legislative authority. | 326 |
(4) If a board of education has adopted a resolution waiving | 327 |
its right to approve exemptions from taxation under this section | 328 |
and the resolution remains in effect, approval of exemptions by | 329 |
the board is not required under division (D) of this section. If a | 330 |
board of education has adopted a resolution allowing a legislative | 331 |
authority to deliver the notice required under division (D) of | 332 |
this section fewer than forty-five business days prior to the | 333 |
legislative authority's adoption of the ordinance, the legislative | 334 |
authority shall deliver the notice to the board not later than the | 335 |
number of days prior to such adoption as prescribed by the board | 336 |
in its resolution. If a board of education adopts a resolution | 337 |
waiving its right to approve agreements or shortening the | 338 |
notification period, the board shall certify a copy of the | 339 |
resolution to the legislative authority. If the board of education | 340 |
rescinds such a resolution, it shall certify notice of the | 341 |
rescission to the legislative authority. | 342 |
(E)(1) If a proposed ordinance under division (C)(1) of this | 350 |
section exempts improvements with respect to a parcel within an | 351 |
incentive district for more than ten years, or the percentage of | 352 |
the improvement exempted from taxation exceeds seventy-five per | 353 |
cent, not later than forty-five business days prior to adopting | 354 |
the ordinance the legislative authority of the municipal | 355 |
corporation shall deliver to the board of county commissioners of | 356 |
the county within which the incentive district will be located a | 357 |
notice that states its intent to adopt an ordinance creating an | 358 |
incentive district. The notice shall include a copy of the | 359 |
proposed ordinance, identify the parcels for which improvements | 360 |
are to be exempted from taxation, provide an estimate of the true | 361 |
value in money of the improvements, specify the period of time for | 362 |
which the improvements would be exempted from taxation, specify | 363 |
the percentage of the improvements that would be exempted from | 364 |
taxation, and indicate the date on which the legislative authority | 365 |
intends to adopt the ordinance. | 366 |
(2) The board of county commissioners, by resolution adopted | 367 |
by a majority of the board, may object to the exemption for the | 368 |
number of years in excess of ten, may object to the exemption for | 369 |
the percentage of the improvement to be exempted in excess of | 370 |
seventy-five per cent, or both. If the board of county | 371 |
commissioners objects, the board may negotiate a mutually | 372 |
acceptable compensation agreement with the legislative authority. | 373 |
In no case shall the compensation provided to the board exceed the | 374 |
property taxes forgone due to the exemption. If the board of | 375 |
county commissioners objects, and the board and legislative | 376 |
authority fail to negotiate a mutually acceptable compensation | 377 |
agreement, the ordinance adopted under division (C)(1) of this | 378 |
section shall provide to the board compensation in the eleventh | 379 |
and subsequent years of the exemption period equal in value to not | 380 |
more than fifty per cent of the taxes that would be payable to the | 381 |
county or, if the board's objection includes an objection to an | 382 |
exemption percentage in excess of seventy-five per cent, | 383 |
compensation equal in value to not more than fifty per cent of the | 384 |
taxes that would be payable to the county, on the portion of the | 385 |
improvement in excess of seventy-five per cent, were that portion | 386 |
to be subject to taxation. The board of county commissioners shall | 387 |
certify its resolution to the legislative authority not later than | 388 |
thirty days after receipt of the notice. | 389 |
(3) If the board of county commissioners does not object or | 390 |
fails to certify its resolution objecting to an exemption within | 391 |
thirty days after receipt of the notice, the legislative authority | 392 |
may adopt the ordinance, and no compensation shall be provided to | 393 |
the board of county commissioners. If the board timely certifies | 394 |
its resolution objecting to the ordinance, the legislative | 395 |
authority may adopt the ordinance at any time after a mutually | 396 |
acceptable compensation agreement is agreed to by the board and | 397 |
the legislative authority, or, if no compensation agreement is | 398 |
negotiated, at any time after the legislative authority agrees in | 399 |
the proposed ordinance to provide compensation to the board of | 400 |
fifty per cent of the taxes that would be payable to the county in | 401 |
the eleventh and subsequent years of the exemption period or on | 402 |
the portion of the improvement in excess of seventy-five per cent, | 403 |
were that portion to be subject to taxation. | 404 |
(F) Service payments in lieu of taxes that are attributable | 405 |
to any amount by which the effective tax rate of either a renewal | 406 |
levy with an increase or a replacement levy exceeds the effective | 407 |
tax rate of the levy renewed or replaced, or that are attributable | 408 |
to an additional levy, for a levy authorized by the voters for any | 409 |
of the following purposes on or after January 1, 2006, and which | 410 |
are provided pursuant to an ordinance creating an incentive | 411 |
district under division (C)(1) of this section that is adopted on | 412 |
or after January 1, 2006, shall be distributed to the appropriate | 413 |
taxing authority as required under division (C) of section 5709.42 | 414 |
of the Revised Code in an amount equal to the amount of taxes from | 415 |
that additional levy or from the increase in the effective tax | 416 |
rate of such renewal or replacement levy that would have been | 417 |
payable to that taxing authority from the following levies were it | 418 |
not for the exemption authorized under division (C) of this | 419 |
section: | 420 |
(G) An exemption from taxation granted under this section | 457 |
commences with the tax year specified in the ordinance so long as | 458 |
the year specified in the ordinance commences after the effective | 459 |
date of the ordinance. If the ordinance specifies a year | 460 |
commencing before the effective date of the resolution or | 461 |
specifies no year whatsoever, the exemption commences with the tax | 462 |
year in which an exempted improvement first appears on the tax | 463 |
list and duplicate of real and public utility property and that | 464 |
commences after the effective date of the ordinance. In lieu of | 465 |
stating a specific year, the ordinance may provide that the | 466 |
exemption commences in the tax year in which the value of an | 467 |
improvement exceeds a specified amount or in which the | 468 |
construction of one or more improvements is completed, provided | 469 |
that such tax year commences after the effective date of the | 470 |
ordinance. With respect to the exemption of improvements to | 471 |
parcels under division (B) of this section, the ordinance may | 472 |
allow for the exemption to commence in different tax years on a | 473 |
parcel-by-parcel basis, with a separate exemption term specified | 474 |
for each parcel. | 475 |
Except as otherwise provided in this division, the exemption | 476 |
ends on the date specified in the ordinance as the date the | 477 |
improvement ceases to be a public purpose or the incentive | 478 |
district expires, or ends on the date on which the public | 479 |
infrastructure improvements and housing renovations are paid in | 480 |
full from the municipal public improvement tax increment | 481 |
equivalent fund established under division (A) of section 5709.43 | 482 |
of the Revised Code, whichever occurs first. The exemption of an | 483 |
improvement with respect to a parcel or within an incentive | 484 |
district may end on a later date, as specified in the ordinance, | 485 |
if the legislative authority and the board of education of the | 486 |
city, local, or exempted village school district within which the | 487 |
parcel or district is located have entered into a compensation | 488 |
agreement under section 5709.82 of the Revised Code with respect | 489 |
to the improvement, and the board of education has approved the | 490 |
term of the exemption under division (D)(2) of this section, but | 491 |
in no case shall the improvement be exempted from taxation for | 492 |
more than thirty years. Exemptions shall be claimed and allowed in | 493 |
the same manner as in the case of other real property exemptions. | 494 |
If an exemption status changes during a year, the procedure for | 495 |
the apportionment of the taxes for that year is the same as in the | 496 |
case of other changes in tax exemption status during the year. | 497 |
(I) The municipal corporation, not later than fifteen days | 508 |
after the adoption of an ordinance under this section, shall | 509 |
submit to the director of development services a copy of the | 510 |
ordinance. On or before the thirty-first day of March of each | 511 |
year, the municipal corporation shall submit a status report to | 512 |
the director of development services. The report shall indicate, | 513 |
in the manner prescribed by the director, the progress of the | 514 |
project during each year that an exemption remains in effect, | 515 |
including a summary of the receipts from service payments in lieu | 516 |
of taxes; expenditures of money from the funds created under | 517 |
section 5709.43 of the Revised Code; a description of the public | 518 |
infrastructure improvements and housing renovations financed with | 519 |
such expenditures; and a quantitative summary of changes in | 520 |
employment and private investment resulting from each project. | 521 |
(2) "Further improvements" or "improvements" means the | 536 |
increase in the assessed value of real property that would first | 537 |
appear on the tax list and duplicate of real and public utility | 538 |
property after the effective date of a resolution adopted under | 539 |
this section were it not for the exemption granted by that | 540 |
resolution. For purposes of division (B) of this section, | 541 |
"improvements" do not include any property used or to be used for | 542 |
residential purposes. For this purpose, "property that is used or | 543 |
to be used for residential purposes" means property that, as | 544 |
improved, is used or to be used for purposes that would cause the | 545 |
tax commissioner to classify the property as residential property | 546 |
in accordance with rules adopted by the commissioner under section | 547 |
5713.041 of the Revised Code. | 548 |
(B) A board of township trustees may, by unanimous vote, | 559 |
adopt a resolution that declares to be a public purpose any public | 560 |
infrastructure improvements made that are necessary for the | 561 |
development of certain parcels of land located in the | 562 |
unincorporated area of the township. Except with the approval | 563 |
under division (D) of this section of the board of education of | 564 |
each city, local, or exempted village school district within which | 565 |
the improvements are located, the resolution may exempt from real | 566 |
property taxation not more than seventy-five per cent of further | 567 |
improvements to a parcel of land that directly benefits from the | 568 |
public infrastructure improvements, for a period of not more than | 569 |
ten years. The resolution shall specify the percentage of the | 570 |
further improvements to be exempted and the life of the exemption. | 571 |
(C)(1) A board of township trustees may adopt, by unanimous | 572 |
vote, a resolution creating an incentive district and declaring | 573 |
improvements to parcels within the district to be a public purpose | 574 |
and, except as provided in division (F)(C)(2) of this section, | 575 |
exempt from taxation as provided in this section, but no board of | 576 |
township trustees of a township that has a population that exceeds | 577 |
twenty-five thousand, as shown by the most recent federal | 578 |
decennial census, shall adopt a resolution that creates an | 579 |
incentive district if the sum of the taxable value of real | 580 |
property in the proposed district for the preceding tax year and | 581 |
the taxable value of all real property in the township that would | 582 |
have been taxable in the preceding year were it not for the fact | 583 |
that the property was in an existing incentive district and | 584 |
therefore exempt from taxation exceeds twenty-five per cent of the | 585 |
taxable value of real property in the township for the preceding | 586 |
tax year. The district shall be located within the unincorporated | 587 |
area of the township and shall not include any territory that is | 588 |
included within a district created under division (B) of section | 589 |
5709.78 of the Revised Code. The resolution shall delineate the | 590 |
boundary of the proposed district and specifically identify each | 591 |
parcel within the district. A proposed district may not include | 592 |
any parcel that is or has been exempted from taxation under | 593 |
division (B) of this section or that is or has been within another | 594 |
district created under this division. A resolution may create more | 595 |
than one such district, and more than one resolution may be | 596 |
adopted under division (C)(1) of this section. | 597 |
(2)(a) Not later than thirty days prior to adopting a | 598 |
resolution under division (C)(1) of this section, if the township | 599 |
intends to apply for exemptions from taxation under section | 600 |
5709.911 of the Revised Code on behalf of owners of real property | 601 |
located within the proposed incentive district, the board shall | 602 |
conduct a public hearing on the proposed resolution. Not later | 603 |
than thirty days prior to the public hearing, the board shall give | 604 |
notice of the public hearing and the proposed resolution by first | 605 |
class mail to every real property owner whose property is located | 606 |
within the boundaries of the proposed incentive district that is | 607 |
the subject of the proposed resolution.
The notice shall include a | 608 |
map of the proposed incentive district on which the board of | 609 |
township trustees shall have delineated an overlay. The notice | 610 |
shall inform the property owner of the owner's right to exclude | 611 |
the owner's property from the incentive district if the owner's | 612 |
entire parcel of property will not be located within the overlay, | 613 |
by submitting a written response in accordance with division | 614 |
(C)(2)(b) of this section. The notice also shall include | 615 |
information detailing the required contents of the response, the | 616 |
address to which the response may be mailed, and the deadline for | 617 |
submitting the response. | 618 |
(b) Any owner of real property located within the boundaries | 619 |
of an incentive district proposed under division (C)(1) of this | 620 |
section whose entire parcel of property is not located within the | 621 |
overlay may exclude the property from the proposed incentive | 622 |
district by submitting a written response to the board not later | 623 |
than forty-five days after the postmark date on the notice | 624 |
required under division (C)(2)(a) of this section. The response | 625 |
shall be sent by first class mail or delivered in person at a | 626 |
public hearing held by the board under division (C)(2)(a) of this | 627 |
section. The response shall conform to any content requirements | 628 |
that may be established by the board and included in the notice | 629 |
provided under division (C)(2)(a) of this section. In the | 630 |
response, property owners may identify a parcel by street address, | 631 |
by the manner in which it is identified in the resolution, or by | 632 |
other means allowing the identity of the parcel to be ascertained. | 633 |
(3)(a) A resolution adopted under division (C)(1) of this | 647 |
section shall specify the life of the incentive district and the | 648 |
percentage of the improvements to be exempted, shall designate the | 649 |
public infrastructure improvements made, to be made, or in the | 650 |
process of being made, that benefit or serve, or, once made, will | 651 |
benefit or serve parcels in the district. The resolution also | 652 |
shall identify one or more specific projects being, or to be, | 653 |
undertaken in the district that place additional demand on the | 654 |
public infrastructure improvements designated in the resolution. | 655 |
The project identified may, but need not be, the project under | 656 |
division (C)(3)(b) of this section that places real property in | 657 |
use for commercial or industrial purposes. | 658 |
(b) A resolution adopted under division (C)(1) of this | 665 |
section may authorize the use of service payments provided for in | 666 |
section 5709.74 of the Revised Code for the purpose of housing | 667 |
renovations within the incentive district, provided that the | 668 |
resolution also designates public infrastructure improvements that | 669 |
benefit or serve the district, and that a project within the | 670 |
district places real property in use for commercial or industrial | 671 |
purposes. Service payments may be used to finance or support | 672 |
loans, deferred loans, and grants to persons for the purpose of | 673 |
housing renovations within the district. The resolution shall | 674 |
designate the parcels within the district that are eligible for | 675 |
housing renovations. The resolution shall state separately the | 676 |
amount or the percentages of the expected aggregate service | 677 |
payments that are designated for each public infrastructure | 678 |
improvement and for the purpose of housing renovations. | 679 |
(4) Except with the approval of the board of education of | 680 |
each city, local, or exempted village school district within the | 681 |
territory of which the incentive district is or will be located, | 682 |
and subject to division (E) of this section, the life of an | 683 |
incentive district shall not exceed ten years, and the percentage | 684 |
of improvements to be exempted shall not exceed seventy-five per | 685 |
cent. With approval of the board of education, the life of a | 686 |
district may be not more than thirty years, and the percentage of | 687 |
improvements to be exempted may be not more than one hundred per | 688 |
cent. The approval of a board of education shall be obtained in | 689 |
the manner provided in division (D) of this section. | 690 |
(D) Improvements with respect to a parcel may be exempted | 691 |
from taxation under division (B) of this section, and improvements | 692 |
to parcels within an incentive district may be exempted from | 693 |
taxation under division (C) of this section, for up to ten years | 694 |
or, with the approval of the board of education of the city, | 695 |
local, or exempted village school district within which the parcel | 696 |
or district is located, for up to thirty years. The percentage of | 697 |
the improvements exempted from taxation may, with such approval, | 698 |
exceed seventy-five per cent, but shall not exceed one hundred per | 699 |
cent. Not later than forty-five business days prior to adopting a | 700 |
resolution under this section declaring improvements to be a | 701 |
public purpose that is subject to approval by a board of education | 702 |
under this division, the board of township trustees shall deliver | 703 |
to the board of education a notice stating its intent to adopt a | 704 |
resolution making that declaration. The notice regarding | 705 |
improvements with respect to a parcel under division (B) of this | 706 |
section shall identify the parcels for which improvements are to | 707 |
be exempted from taxation, provide an estimate of the true value | 708 |
in money of the improvements, specify the period for which the | 709 |
improvements would be exempted from taxation and the percentage of | 710 |
the improvements that would be exempted, and indicate the date on | 711 |
which the board of township trustees intends to adopt the | 712 |
resolution. The notice regarding improvements made under division | 713 |
(C) of this section to parcels within an incentive district shall | 714 |
delineate the boundaries of the district, specifically identify | 715 |
each parcel within the district, identify each anticipated | 716 |
improvement in the district, provide an estimate of the true value | 717 |
in money of each such improvement, specify the life of the | 718 |
district and the percentage of improvements that would be | 719 |
exempted, and indicate the date on which the board of township | 720 |
trustees intends to adopt the resolution. The board of education, | 721 |
by resolution adopted by a majority of the board, may approve the | 722 |
exemption for the period or for the exemption percentage specified | 723 |
in the notice; may disapprove the exemption for the number of | 724 |
years in excess of ten, may disapprove the exemption for the | 725 |
percentage of the improvements to be exempted in excess of | 726 |
seventy-five per cent, or both; or may approve the exemption on | 727 |
the condition that the board of township trustees and the board of | 728 |
education negotiate an agreement providing for compensation to the | 729 |
school district equal in value to a percentage of the amount of | 730 |
taxes exempted in the eleventh and subsequent years of the | 731 |
exemption period or, in the case of exemption percentages in | 732 |
excess of seventy-five per cent, compensation equal in value to a | 733 |
percentage of the taxes that would be payable on the portion of | 734 |
the improvements in excess of seventy-five per cent were that | 735 |
portion to be subject to taxation, or other mutually agreeable | 736 |
compensation. | 737 |
The board of education shall certify its resolution to the | 738 |
board of township trustees not later than fourteen days prior to | 739 |
the date the board of township trustees intends to adopt the | 740 |
resolution as indicated in the notice. If the board of education | 741 |
and the board of township trustees negotiate a mutually acceptable | 742 |
compensation agreement, the resolution may declare the | 743 |
improvements a public purpose for the number of years specified in | 744 |
the resolution or, in the case of exemption percentages in excess | 745 |
of seventy-five per cent, for the exemption percentage specified | 746 |
in the resolution. In either case, if the board of education and | 747 |
the board of township trustees fail to negotiate a mutually | 748 |
acceptable compensation agreement, the resolution may declare the | 749 |
improvements a public purpose for not more than ten years, and | 750 |
shall not exempt more than seventy-five per cent of the | 751 |
improvements from taxation. If the board of education fails to | 752 |
certify a resolution to the board of township trustees within the | 753 |
time prescribed by this section, the board of township trustees | 754 |
thereupon may adopt the resolution and may declare the | 755 |
improvements a public purpose for up to thirty years or, in the | 756 |
case of exemption percentages proposed in excess of seventy-five | 757 |
per cent, for the exemption percentage specified in the | 758 |
resolution. The board of township trustees may adopt the | 759 |
resolution at any time after the board of education certifies its | 760 |
resolution approving the exemption to the board of township | 761 |
trustees, or, if the board of education approves the exemption on | 762 |
the condition that a mutually acceptable compensation agreement be | 763 |
negotiated, at any time after the compensation agreement is agreed | 764 |
to by the board of education and the board of township trustees. | 765 |
If a mutually acceptable compensation agreement is negotiated | 766 |
between the board of township trustees and the board of education, | 767 |
including agreements for payments in lieu of taxes under section | 768 |
5709.74 of the Revised Code, the board of township trustees shall | 769 |
compensate the joint vocational school district within which the | 770 |
parcel or district is located at the same rate and under the same | 771 |
terms received by the city, local, or exempted village school | 772 |
district. | 773 |
If a board of education has adopted a resolution waiving its | 774 |
right to approve exemptions from taxation under this section and | 775 |
the resolution remains in effect, approval of such exemptions by | 776 |
the board of education is not required under division (D) of this | 777 |
section. If a board of education has adopted a resolution allowing | 778 |
a board of township trustees to deliver the notice required under | 779 |
division (D) of this section fewer than forty-five business days | 780 |
prior to adoption of the resolution by the board of township | 781 |
trustees, the board of township trustees shall deliver the notice | 782 |
to the board of education not later than the number of days prior | 783 |
to the adoption as prescribed by the board of education in its | 784 |
resolution. If a board of education adopts a resolution waiving | 785 |
its right to approve exemptions or shortening the notification | 786 |
period, the board of education shall certify a copy of the | 787 |
resolution to the board of township trustees. If the board of | 788 |
education rescinds the resolution, it shall certify notice of the | 789 |
rescission to the board of township trustees. | 790 |
(E)(1) If a proposed resolution under division (C)(1) of this | 800 |
section exempts improvements with respect to a parcel within an | 801 |
incentive district for more than ten years, or the percentage of | 802 |
the improvement exempted from taxation exceeds seventy-five per | 803 |
cent, not later than forty-five business days prior to adopting | 804 |
the resolution the board of township trustees shall deliver to the | 805 |
board of county commissioners of the county within which the | 806 |
incentive district is or will be located a notice that states its | 807 |
intent to adopt a resolution creating an incentive district. The | 808 |
notice shall include a copy of the proposed resolution, identify | 809 |
the parcels for which improvements are to be exempted from | 810 |
taxation, provide an estimate of the true value in money of the | 811 |
improvements, specify the period of time for which the | 812 |
improvements would be exempted from taxation, specify the | 813 |
percentage of the improvements that would be exempted from | 814 |
taxation, and indicate the date on which the board of township | 815 |
trustees intends to adopt the resolution. | 816 |
(2) The board of county commissioners, by resolution adopted | 817 |
by a majority of the board, may object to the exemption for the | 818 |
number of years in excess of ten, may object to the exemption for | 819 |
the percentage of the improvement to be exempted in excess of | 820 |
seventy-five per cent, or both. If the board of county | 821 |
commissioners objects, the board may negotiate a mutually | 822 |
acceptable compensation agreement with the board of township | 823 |
trustees. In no case shall the compensation provided to the board | 824 |
of county commissioners exceed the property taxes foregone due to | 825 |
the exemption. If the board of county commissioners objects, and | 826 |
the board of county commissioners and board of township trustees | 827 |
fail to negotiate a mutually acceptable compensation agreement, | 828 |
the resolution adopted under division (C)(1) of this section shall | 829 |
provide to the board of county commissioners compensation in the | 830 |
eleventh and subsequent years of the exemption period equal in | 831 |
value to not more than fifty per cent of the taxes that would be | 832 |
payable to the county or, if the board of county commissioner's | 833 |
objection includes an objection to an exemption percentage in | 834 |
excess of seventy-five per cent, compensation equal in value to | 835 |
not more than fifty per cent of the taxes that would be payable to | 836 |
the county, on the portion of the improvement in excess of | 837 |
seventy-five per cent, were that portion to be subject to | 838 |
taxation. The board of county commissioners shall certify its | 839 |
resolution to the board of township trustees not later than thirty | 840 |
days after receipt of the notice. | 841 |
(3) If the board of county commissioners does not object or | 842 |
fails to certify its resolution objecting to an exemption within | 843 |
thirty days after receipt of the notice, the board of township | 844 |
trustees may adopt its resolution, and no compensation shall be | 845 |
provided to the board of county commissioners. If the board of | 846 |
county commissioners timely certifies its resolution objecting to | 847 |
the trustees' resolution, the board of township trustees may adopt | 848 |
its resolution at any time after a mutually acceptable | 849 |
compensation agreement is agreed to by the board of county | 850 |
commissioners and the board of township trustees, or, if no | 851 |
compensation agreement is negotiated, at any time after the board | 852 |
of township trustees agrees in the proposed resolution to provide | 853 |
compensation to the board of county commissioners of fifty per | 854 |
cent of the taxes that would be payable to the county in the | 855 |
eleventh and subsequent years of the exemption period or on the | 856 |
portion of the improvement in excess of seventy-five per cent, | 857 |
were that portion to be subject to taxation. | 858 |
(F) Service payments in lieu of taxes that are attributable | 859 |
to any amount by which the effective tax rate of either a renewal | 860 |
levy with an increase or a replacement levy exceeds the effective | 861 |
tax rate of the levy renewed or replaced, or that are attributable | 862 |
to an additional levy, for a levy authorized by the voters for any | 863 |
of the following purposes on or after January 1, 2006, and which | 864 |
are provided pursuant to a resolution creating an incentive | 865 |
district under division (C)(1) of this section that is adopted on | 866 |
or after January 1, 2006, shall be distributed to the appropriate | 867 |
taxing authority as required under division (C) of section 5709.74 | 868 |
of the Revised Code in an amount equal to the amount of taxes from | 869 |
that additional levy or from the increase in the effective tax | 870 |
rate of such renewal or replacement levy that would have been | 871 |
payable to that taxing authority from the following levies were it | 872 |
not for the exemption authorized under division (C) of this | 873 |
section: | 874 |
(G) An exemption from taxation granted under this section | 911 |
commences with the tax year specified in the resolution so long as | 912 |
the year specified in the resolution commences after the effective | 913 |
date of the resolution. If the resolution specifies a year | 914 |
commencing before the effective date of the resolution or | 915 |
specifies no year whatsoever, the exemption commences with the tax | 916 |
year in which an exempted improvement first appears on the tax | 917 |
list and duplicate of real and public utility property and that | 918 |
commences after the effective date of the resolution. In lieu of | 919 |
stating a specific year, the resolution may provide that the | 920 |
exemption commences in the tax year in which the value of an | 921 |
improvement exceeds a specified amount or in which the | 922 |
construction of one or more improvements is completed, provided | 923 |
that such tax year commences after the effective date of the | 924 |
resolution. With respect to the exemption of improvements to | 925 |
parcels under division (B) of this section, the resolution may | 926 |
allow for the exemption to commence in different tax years on a | 927 |
parcel-by-parcel basis, with a separate exemption term specified | 928 |
for each parcel. | 929 |
Except as otherwise provided in this division, the exemption | 930 |
ends on the date specified in the resolution as the date the | 931 |
improvement ceases to be a public purpose or the incentive | 932 |
district expires, or ends on the date on which the public | 933 |
infrastructure improvements and housing renovations are paid in | 934 |
full from the township public improvement tax increment equivalent | 935 |
fund established under section 5709.75 of the Revised Code, | 936 |
whichever occurs first. The exemption of an improvement with | 937 |
respect to a parcel or within an incentive district may end on a | 938 |
later date, as specified in the resolution, if the board of | 939 |
township trustees and the board of education of the city, local, | 940 |
or exempted village school district within which the parcel or | 941 |
district is located have entered into a compensation agreement | 942 |
under section 5709.82 of the Revised Code with respect to the | 943 |
improvement and the board of education has approved the term of | 944 |
the exemption under division (D) of this section, but in no case | 945 |
shall the improvement be exempted from taxation for more than | 946 |
thirty years. The board of township trustees may, by majority | 947 |
vote, adopt a resolution permitting the township to enter into | 948 |
such agreements as the board finds necessary or appropriate to | 949 |
provide for the construction or undertaking of public | 950 |
infrastructure improvements and housing renovations. Any exemption | 951 |
shall be claimed and allowed in the same or a similar manner as in | 952 |
the case of other real property exemptions. If an exemption status | 953 |
changes during a tax year, the procedure for the apportionment of | 954 |
the taxes for that year is the same as in the case of other | 955 |
changes in tax exemption status during the year. | 956 |
(H) The board of township trustees may issue the notes of the | 957 |
township to finance all costs pertaining to the construction or | 958 |
undertaking of public infrastructure improvements and housing | 959 |
renovations made pursuant to this section. The notes shall be | 960 |
signed by the board and attested by the signature of the township | 961 |
fiscal officer, shall bear interest not to exceed the rate | 962 |
provided in section 9.95 of the Revised Code, and are not subject | 963 |
to Chapter 133. of the Revised Code. The resolution authorizing | 964 |
the issuance of the notes shall pledge the funds of the township | 965 |
public improvement tax increment equivalent fund established | 966 |
pursuant to section 5709.75 of the Revised Code to pay the | 967 |
interest on and principal of the notes. The notes, which may | 968 |
contain a clause permitting prepayment at the option of the board, | 969 |
shall be offered for sale on the open market or given to the | 970 |
vendor or contractor if no sale is made. | 971 |
(I) The township, not later than fifteen days after the | 972 |
adoption of a resolution under this section, shall submit to the | 973 |
director of development services a copy of the resolution. On or | 974 |
before the thirty-first day of March of each year, the township | 975 |
shall submit a status report to the director of development | 976 |
services. The report shall indicate, in the manner prescribed by | 977 |
the director, the progress of the project during each year that | 978 |
the exemption remains in effect, including a summary of the | 979 |
receipts from service payments in lieu of taxes; expenditures of | 980 |
money from the fund created under section 5709.75 of the Revised | 981 |
Code; a description of the public infrastructure improvements and | 982 |
housing renovations financed with the expenditures; and a | 983 |
quantitative summary of changes in private investment resulting | 984 |
from each project. | 985 |
(K) A board of township trustees that adopted a resolution | 995 |
under this section prior to July 21, 1994, may amend that | 996 |
resolution to include any additional public infrastructure | 997 |
improvement. A board of township trustees that seeks by the | 998 |
amendment to utilize money from its township public improvement | 999 |
tax increment equivalent fund for land acquisition in aid of | 1000 |
industry, commerce, distribution, or research, demolition on | 1001 |
private property, or stormwater and flood remediation projects may | 1002 |
do so provided that the board currently is a party to a | 1003 |
hold-harmless agreement with the board of education of the city, | 1004 |
local, or exempted village school district within the territory of | 1005 |
which are located the parcels that are subject to an exemption. | 1006 |
For the purposes of this division, a "hold-harmless agreement" | 1007 |
means an agreement under which the board of township trustees | 1008 |
agrees to compensate the school district for one hundred per cent | 1009 |
of the tax revenue that the school district would have received | 1010 |
from further improvements to parcels designated in the resolution | 1011 |
were it not for the exemption granted by the resolution. | 1012 |
(D) "Improvement" means the increase in the assessed value of | 1023 |
real property that would first appear on the tax list and | 1024 |
duplicate of real and public utility property after the effective | 1025 |
date of a resolution adopted under section 5709.78 of the Revised | 1026 |
Code were it not for the exemption granted by that resolution. For | 1027 |
purposes of division (A) of section 5709.78 of the Revised Code, | 1028 |
"improvement" does not include any property used or to be used for | 1029 |
residential purposes. For this purpose, "property that is used or | 1030 |
to be used for residential purposes" means property that, as | 1031 |
improved, is used or to be used for purposes that would cause the | 1032 |
tax commissioner to classify the property as residential property | 1033 |
in accordance with rules adopted by the commissioner under section | 1034 |
5713.041 of the Revised Code. | 1035 |
Sec. 5709.78. (A) A board of county commissioners may, by | 1046 |
resolution, declare improvements to certain parcels of real | 1047 |
property located in the unincorporated territory of the county to | 1048 |
be a public purpose. Except with the approval under division (C) | 1049 |
of this section of the board of education of each city, local, or | 1050 |
exempted village school district within which the improvements are | 1051 |
located, not more than seventy-five per cent of an improvement | 1052 |
thus declared to be a public purpose may be exempted from real | 1053 |
property taxation, for a period of not more than ten years. The | 1054 |
resolution shall specify the percentage of the improvement to be | 1055 |
exempted and the life of the exemption. | 1056 |
(B)(1) A board of county commissioners may adopt a resolution | 1066 |
creating an incentive district and declaring improvements to | 1067 |
parcels within the district to be a public purpose and, except as | 1068 |
provided in division (E)(B)(2) of this section, exempt from | 1069 |
taxation as provided in this section, but no board of county | 1070 |
commissioners of a county that has a population that exceeds | 1071 |
twenty-five thousand, as shown by the most recent federal | 1072 |
decennial census, shall adopt a resolution that creates an | 1073 |
incentive district if the sum of the taxable value of real | 1074 |
property in the proposed district for the preceding tax year and | 1075 |
the taxable value of all real property in the county that would | 1076 |
have been taxable in the preceding year were it not for the fact | 1077 |
that the property was in an existing incentive district and | 1078 |
therefore exempt from taxation exceeds twenty-five per cent of the | 1079 |
taxable value of real property in the county for the preceding tax | 1080 |
year. The district shall be located within the unincorporated | 1081 |
territory of the county and shall not include any territory that | 1082 |
is included within a district created under division (C) of | 1083 |
section 5709.73 of the Revised Code. The resolution shall | 1084 |
delineate the boundary of the proposed district and specifically | 1085 |
identify each parcel within the district. A proposed district may | 1086 |
not include any parcel that is or has been exempted from taxation | 1087 |
under division (A) of this section or that is or has been within | 1088 |
another district created under this division. A resolution may | 1089 |
create more than one such district, and more than one resolution | 1090 |
may be adopted under division (B)(1) of this section. | 1091 |
(2)(a) Not later than thirty days prior to adopting a | 1092 |
resolution under division (B)(1) of this section, if the county | 1093 |
intends to apply for exemptions from taxation under section | 1094 |
5709.911 of the Revised Code on behalf of owners of real property | 1095 |
located within the proposed incentive district, the board of | 1096 |
county commissioners shall conduct a public hearing on the | 1097 |
proposed resolution. Not later than thirty days prior to the | 1098 |
public hearing, the board shall give notice of the public hearing | 1099 |
and the proposed resolution by first class mail to every real | 1100 |
property owner whose property is located within the boundaries of | 1101 |
the proposed incentive district that is the subject of the | 1102 |
proposed resolution. The board also shall provide the notice by | 1103 |
first class mail to the clerk of each township in which the | 1104 |
proposed incentive district will be located.
The notice shall | 1105 |
include a map of the proposed incentive district on which the | 1106 |
board of county commissioners shall have delineated an overlay. | 1107 |
The notice shall inform property owners of the owner's right to | 1108 |
exclude the owner's property from the incentive district if the | 1109 |
owner's entire parcel of property will not be located within the | 1110 |
overlay, by submitting a written response in accordance with | 1111 |
division (B)(2)(b) of this section. The notice also shall include | 1112 |
information detailing the required contents of the response, the | 1113 |
address to which the response may be mailed, and the deadline for | 1114 |
submitting the response. | 1115 |
(b) Any owner of real property located within the boundaries | 1116 |
of an incentive district proposed under division (B)(1) of this | 1117 |
section whose entire parcel of property is not located within the | 1118 |
overlay may exclude the property from the proposed incentive | 1119 |
district by submitting a written response to the board not later | 1120 |
than forty-five days after the postmark date on the notice | 1121 |
required under division (B)(2)(a) of this section. The response | 1122 |
shall be sent by first class mail or delivered in person at a | 1123 |
public hearing held by the board under division (B)(2)(a) of this | 1124 |
section. The response shall conform to any content requirements | 1125 |
that may be established by the board and included in the notice | 1126 |
provided under division (B)(2)(a) of this section. In the | 1127 |
response, property owners may identify a parcel by street address, | 1128 |
by the manner in which it is identified in the resolution, or by | 1129 |
other means allowing the identity of the parcel to be ascertained. | 1130 |
(3)(a) A resolution adopted under division (B)(1) of this | 1144 |
section shall specify the life of the incentive district and the | 1145 |
percentage of the improvements to be exempted, shall designate the | 1146 |
public infrastructure improvements made, to be made, or in the | 1147 |
process of being made, that benefit or serve, or, once made, will | 1148 |
benefit or serve parcels in the district. The resolution also | 1149 |
shall identify one or more specific projects being, or to be, | 1150 |
undertaken in the district that place additional demand on the | 1151 |
public infrastructure improvements designated in the resolution. | 1152 |
The project identified may, but need not be, the project under | 1153 |
division (B)(3)(b) of this section that places real property in | 1154 |
use for commercial or industrial purposes. | 1155 |
(b) A resolution adopted under division (B)(1) of this | 1162 |
section may authorize the use of service payments provided for in | 1163 |
section 5709.79 of the Revised Code for the purpose of housing | 1164 |
renovations within the incentive district, provided that the | 1165 |
resolution also designates public infrastructure improvements that | 1166 |
benefit or serve the district, and that a project within the | 1167 |
district places real property in use for commercial or industrial | 1168 |
purposes. Service payments may be used to finance or support | 1169 |
loans, deferred loans, and grants to persons for the purpose of | 1170 |
housing renovations within the district. The resolution shall | 1171 |
designate the parcels within the district that are eligible for | 1172 |
housing renovations. The resolution shall state separately the | 1173 |
amount or the percentages of the expected aggregate service | 1174 |
payments that are designated for each public infrastructure | 1175 |
improvement and for the purpose of housing renovations. | 1176 |
(4) Except with the approval of the board of education of | 1177 |
each city, local, or exempted village school district within the | 1178 |
territory of which the incentive district is or will be located, | 1179 |
and subject to division (D) of this section, the life of an | 1180 |
incentive district shall not exceed ten years, and the percentage | 1181 |
of improvements to be exempted shall not exceed seventy-five per | 1182 |
cent. With approval of the board of education, the life of a | 1183 |
district may be not more than thirty years, and the percentage of | 1184 |
improvements to be exempted may be not more than one hundred per | 1185 |
cent. The approval of a board of education shall be obtained in | 1186 |
the manner provided in division (C) of this section. | 1187 |
(C)(1) Improvements with respect to a parcel may be exempted | 1188 |
from taxation under division (A) of this section, and improvements | 1189 |
to parcels within an incentive district may be exempted from | 1190 |
taxation under division (B) of this section, for up to ten years | 1191 |
or, with the approval of the board of education of each city, | 1192 |
local, or exempted village school district within which the parcel | 1193 |
or district is located, for up to thirty years. The percentage of | 1194 |
the improvements exempted from taxation may, with such approval, | 1195 |
exceed seventy-five per cent, but shall not exceed one hundred per | 1196 |
cent. Not later than forty-five business days prior to adopting a | 1197 |
resolution under this section declaring improvements to be a | 1198 |
public purpose that is subject to the approval of a board of | 1199 |
education under this division, the board of county commissioners | 1200 |
shall deliver to the board of education a notice stating its | 1201 |
intent to adopt a resolution making that declaration. The notice | 1202 |
regarding improvements with respect to a parcel under division (A) | 1203 |
of this section shall identify the parcels for which improvements | 1204 |
are to be exempted from taxation, provide an estimate of the true | 1205 |
value in money of the improvements, specify the period for which | 1206 |
the improvements would be exempted from taxation and the | 1207 |
percentage of the improvements that would be exempted, and | 1208 |
indicate the date on which the board of county commissioners | 1209 |
intends to adopt the resolution. The notice regarding improvements | 1210 |
to parcels within an incentive district under division (B) of this | 1211 |
section shall delineate the boundaries of the district, | 1212 |
specifically identify each parcel within the district, identify | 1213 |
each anticipated improvement in the district, provide an estimate | 1214 |
of the true value in money of each such improvement, specify the | 1215 |
life of the district and the percentage of improvements that would | 1216 |
be exempted, and indicate the date on which the board of county | 1217 |
commissioners intends to adopt the resolution. The board of | 1218 |
education, by resolution adopted by a majority of the board, may | 1219 |
approve the exemption for the period or for the exemption | 1220 |
percentage specified in the notice; may disapprove the exemption | 1221 |
for the number of years in excess of ten, may disapprove the | 1222 |
exemption for the percentage of the improvements to be exempted in | 1223 |
excess of seventy-five per cent, or both; or may approve the | 1224 |
exemption on the condition that the board of county commissioners | 1225 |
and the board of education negotiate an agreement providing for | 1226 |
compensation to the school district equal in value to a percentage | 1227 |
of the amount of taxes exempted in the eleventh and subsequent | 1228 |
years of the exemption period or, in the case of exemption | 1229 |
percentages in excess of seventy-five per cent, compensation equal | 1230 |
in value to a percentage of the taxes that would be payable on the | 1231 |
portion of the improvements in excess of seventy-five per cent | 1232 |
were that portion to be subject to taxation, or other mutually | 1233 |
agreeable compensation. | 1234 |
(2) The board of education shall certify its resolution to | 1235 |
the board of county commissioners not later than fourteen days | 1236 |
prior to the date the board of county commissioners intends to | 1237 |
adopt its resolution as indicated in the notice. If the board of | 1238 |
education and the board of county commissioners negotiate a | 1239 |
mutually acceptable compensation agreement, the resolution of the | 1240 |
board of county commissioners may declare the improvements a | 1241 |
public purpose for the number of years specified in that | 1242 |
resolution or, in the case of exemption percentages in excess of | 1243 |
seventy-five per cent, for the exemption percentage specified in | 1244 |
the resolution. In either case, if the board of education and the | 1245 |
board of county commissioners fail to negotiate a mutually | 1246 |
acceptable compensation agreement, the resolution may declare the | 1247 |
improvements a public purpose for not more than ten years, and | 1248 |
shall not exempt more than seventy-five per cent of the | 1249 |
improvements from taxation. If the board of education fails to | 1250 |
certify a resolution to the board of county commissioners within | 1251 |
the time prescribed by this section, the board of county | 1252 |
commissioners thereupon may adopt the resolution and may declare | 1253 |
the improvements a public purpose for up to thirty years or, in | 1254 |
the case of exemption percentages proposed in excess of | 1255 |
seventy-five per cent, for the exemption percentage specified in | 1256 |
the resolution. The board of county commissioners may adopt the | 1257 |
resolution at any time after the board of education certifies its | 1258 |
resolution approving the exemption to the board of county | 1259 |
commissioners, or, if the board of education approves the | 1260 |
exemption on the condition that a mutually acceptable compensation | 1261 |
agreement be negotiated, at any time after the compensation | 1262 |
agreement is agreed to by the board of education and the board of | 1263 |
county commissioners. If a mutually acceptable compensation | 1264 |
agreement is negotiated between the board of county commissioners | 1265 |
and the board of education, including agreements for payments in | 1266 |
lieu of taxes under section 5709.79 of the Revised Code, the board | 1267 |
of county commissioners shall compensate the joint vocational | 1268 |
school district within which the parcel or district is located at | 1269 |
the same rate and under the same terms received by the city, | 1270 |
local, or exempted village school district. | 1271 |
(3) If a board of education has adopted a resolution waiving | 1272 |
its right to approve exemptions from taxation under this section | 1273 |
and the resolution remains in effect, approval of such exemptions | 1274 |
by the board of education is not required under division (C) of | 1275 |
this section. If a board of education has adopted a resolution | 1276 |
allowing a board of county commissioners to deliver the notice | 1277 |
required under division (C) of this section fewer than forty-five | 1278 |
business days prior to approval of the resolution by the board of | 1279 |
county commissioners, the board of county commissioners shall | 1280 |
deliver the notice to the board of education not later than the | 1281 |
number of days prior to such approval as prescribed by the board | 1282 |
of education in its resolution. If a board of education adopts a | 1283 |
resolution waiving its right to approve exemptions or shortening | 1284 |
the notification period, the board of education shall certify a | 1285 |
copy of the resolution to the board of county commissioners. If | 1286 |
the board of education rescinds such a resolution, it shall | 1287 |
certify notice of the rescission to the board of county | 1288 |
commissioners. | 1289 |
(D)(1) If a proposed resolution under division (B)(1) of this | 1290 |
section exempts improvements with respect to a parcel within an | 1291 |
incentive district for more than ten years, or the percentage of | 1292 |
the improvement exempted from taxation exceeds seventy-five per | 1293 |
cent, not later than forty-five business days prior to adopting | 1294 |
the resolution the board of county commissioners shall deliver to | 1295 |
the board of township trustees of any township within which the | 1296 |
incentive district is or will be located a notice that states its | 1297 |
intent to adopt a resolution creating an incentive district. The | 1298 |
notice shall include a copy of the proposed resolution, identify | 1299 |
the parcels for which improvements are to be exempted from | 1300 |
taxation, provide an estimate of the true value in money of the | 1301 |
improvements, specify the period of time for which the | 1302 |
improvements would be exempted from taxation, specify the | 1303 |
percentage of the improvements that would be exempted from | 1304 |
taxation, and indicate the date on which the board intends to | 1305 |
adopt the resolution. | 1306 |
(2) The board of township trustees, by resolution adopted by | 1307 |
a majority of the board, may object to the exemption for the | 1308 |
number of years in excess of ten, may object to the exemption for | 1309 |
the percentage of the improvement to be exempted in excess of | 1310 |
seventy-five per cent, or both. If the board of township trustees | 1311 |
objects, the board of township trustees may negotiate a mutually | 1312 |
acceptable compensation agreement with the board of county | 1313 |
commissioners. In no case shall the compensation provided to the | 1314 |
board of township trustees exceed the property taxes forgone due | 1315 |
to the exemption. If the board of township trustees objects, and | 1316 |
the board of township trustees and the board of county | 1317 |
commissioners fail to negotiate a mutually acceptable compensation | 1318 |
agreement, the resolution adopted under division (B)(1) of this | 1319 |
section shall provide to the board of township trustees | 1320 |
compensation in the eleventh and subsequent years of the exemption | 1321 |
period equal in value to not more than fifty per cent of the taxes | 1322 |
that would be payable to the township or, if the board of township | 1323 |
trustee's objection includes an objection to an exemption | 1324 |
percentage in excess of seventy-five per cent, compensation equal | 1325 |
in value to not more than fifty per cent of the taxes that would | 1326 |
be payable to the township on the portion of the improvement in | 1327 |
excess of seventy-five per cent, were that portion to be subject | 1328 |
to taxation. The board of township trustees shall certify its | 1329 |
resolution to the board of county commissioners not later than | 1330 |
thirty days after receipt of the notice. | 1331 |
(3) If the board of township trustees does not object or | 1332 |
fails to certify a resolution objecting to an exemption within | 1333 |
thirty days after receipt of the notice, the board of county | 1334 |
commissioners may adopt its resolution, and no compensation shall | 1335 |
be provided to the board of township trustees. If the board of | 1336 |
township trustees certifies its resolution objecting to the | 1337 |
commissioners' resolution, the board of county commissioners may | 1338 |
adopt its resolution at any time after a mutually acceptable | 1339 |
compensation agreement is agreed to by the board of county | 1340 |
commissioners and the board of township trustees. If the board of | 1341 |
township trustees certifies a resolution objecting to the | 1342 |
commissioners' resolution, the board of county commissioners may | 1343 |
adopt its resolution at any time after a mutually acceptable | 1344 |
compensation agreement is agreed to by the board of county | 1345 |
commissioners and the board of township trustees, or, if no | 1346 |
compensation agreement is negotiated, at any time after the board | 1347 |
of county commissioners in the proposed resolution to provide | 1348 |
compensation to the board of township trustees of fifty per cent | 1349 |
of the taxes that would be payable to the township in the eleventh | 1350 |
and subsequent years of the exemption period or on the portion of | 1351 |
the improvement in excess of seventy-five per cent, were that | 1352 |
portion to be subject to taxation. | 1353 |
(E) Service payments in lieu of taxes that are attributable | 1354 |
to any amount by which the effective tax rate of either a renewal | 1355 |
levy with an increase or a replacement levy exceeds the effective | 1356 |
tax rate of the levy renewed or replaced, or that are attributable | 1357 |
to an additional levy, for a levy authorized by the voters for any | 1358 |
of the following purposes on or after January 1, 2006, and which | 1359 |
are provided pursuant to a resolution creating an incentive | 1360 |
district under division (B)(1) of this section that is adopted on | 1361 |
or after January 1, 2006, shall be distributed to the appropriate | 1362 |
taxing authority as required under division (D) of section 5709.79 | 1363 |
of the Revised Code in an amount equal to the amount of taxes from | 1364 |
that additional levy or from the increase in the effective tax | 1365 |
rate of such renewal or replacement levy that would have been | 1366 |
payable to that taxing authority from the following levies were it | 1367 |
not for the exemption authorized under division (B) of this | 1368 |
section: | 1369 |
(F) An exemption from taxation granted under this section | 1406 |
commences with the tax year specified in the resolution so long as | 1407 |
the year specified in the resolution commences after the effective | 1408 |
date of the resolution. If the resolution specifies a year | 1409 |
commencing before the effective date of the resolution or | 1410 |
specifies no year whatsoever, the exemption commences with the tax | 1411 |
year in which an exempted improvement first appears on the tax | 1412 |
list and duplicate of real and public utility property and that | 1413 |
commences after the effective date of the resolution. In lieu of | 1414 |
stating a specific year, the resolution may provide that the | 1415 |
exemption commences in the tax year in which the value of an | 1416 |
improvement exceeds a specified amount or in which the | 1417 |
construction of one or more improvements is completed, provided | 1418 |
that such tax year commences after the effective date of the | 1419 |
resolution. With respect to the exemption of improvements to | 1420 |
parcels under division (A) of this section, the resolution may | 1421 |
allow for the exemption to commence in different tax years on a | 1422 |
parcel-by-parcel basis, with a separate exemption term specified | 1423 |
for each parcel. | 1424 |
Except as otherwise provided in this division, the exemption | 1425 |
ends on the date specified in the resolution as the date the | 1426 |
improvement ceases to be a public purpose or the incentive | 1427 |
district expires, or ends on the date on which the county can no | 1428 |
longer require annual service payments in lieu of taxes under | 1429 |
section 5709.79 of the Revised Code, whichever occurs first. The | 1430 |
exemption of an improvement with respect to a parcel or within an | 1431 |
incentive district may end on a later date, as specified in the | 1432 |
resolution, if the board of commissioners and the board of | 1433 |
education of the city, local, or exempted village school district | 1434 |
within which the parcel or district is located have entered into a | 1435 |
compensation agreement under section 5709.82 of the Revised Code | 1436 |
with respect to the improvement, and the board of education has | 1437 |
approved the term of the exemption under division (C)(1) of this | 1438 |
section, but in no case shall the improvement be exempted from | 1439 |
taxation for more than thirty years. Exemptions shall be claimed | 1440 |
and allowed in the same or a similar manner as in the case of | 1441 |
other real property exemptions. If an exemption status changes | 1442 |
during a tax year, the procedure for the apportionment of the | 1443 |
taxes for that year is the same as in the case of other changes in | 1444 |
tax exemption status during the year. | 1445 |
(H) The county, not later than fifteen days after the | 1455 |
adoption of a resolution under this section, shall submit to the | 1456 |
director of development services a copy of the resolution. On or | 1457 |
before the thirty-first day of March of each year, the county | 1458 |
shall submit a status report to the director of development | 1459 |
services. The report shall indicate, in the manner prescribed by | 1460 |
the director, the progress of the project during each year that an | 1461 |
exemption remains in effect, including a summary of the receipts | 1462 |
from service payments in lieu of taxes; expenditures of money from | 1463 |
the fund created under section 5709.80 of the Revised Code; a | 1464 |
description of the public infrastructure improvements and housing | 1465 |
renovations financed with such expenditures; and a quantitative | 1466 |
summary of changes in employment and private investment resulting | 1467 |
from each project. | 1468 |
Sec. 5709.911. (A)(1) A municipal corporation, township, or | 1478 |
county that has enacted an ordinance or resolution under section | 1479 |
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code or that | 1480 |
has entered into an agreement referred to in section 725.02 or | 1481 |
1728.07 of the Revised Code may file an application for exemption | 1482 |
under those sections in the same manner as other real property tax | 1483 |
exemptions, notwithstanding the indication in division (A) of | 1484 |
section 5715.27 of the Revised Code that the owner of the property | 1485 |
may file the application. An application for exemption may not be | 1486 |
filed by a municipal corporation, township, or county for an | 1487 |
exemption of a parcel under section 5709.40, 5709.73, or 5709.78 | 1488 |
of the Revised Code if the property owner excludes the property | 1489 |
from such exemption as provided in that section. | 1490 |
(B)(1) If the application for exemption under section 725.02, | 1509 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1510 |
is filed by the owner of the property or by a municipal | 1511 |
corporation, township, or county with the owner's written consent | 1512 |
attached to the application, and if more than one real property | 1513 |
tax exemption applies by law to the property or a portion of the | 1514 |
property, no other exemption shall be granted for the portion of | 1515 |
the property already exempt under section 725.02, 1728.10, | 1516 |
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code unless | 1517 |
the municipal corporation, township, or county that enacted the | 1518 |
authorizing ordinance or resolution for the earlier exemption | 1519 |
provides its duly authorized written consent to the subsequent | 1520 |
exemption by means of a duly enacted ordinance or resolution. | 1521 |
(2) If the application for exemption under section 725.02, | 1522 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1523 |
is filed by a municipal corporation, township, or county and | 1524 |
approved by the tax commissioner, if the owner of the property | 1525 |
subsequently provides written consent to the exemption and the | 1526 |
consent is filed with the tax commissioner, and if more than one | 1527 |
real property tax exemption applies by law to the property or a | 1528 |
portion of the property, no other exemption shall be granted for | 1529 |
the portion of the property already exempt under section 725.02, | 1530 |
1728.10, 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code | 1531 |
unless the municipal corporation, township, or county that enacted | 1532 |
the authorizing ordinance or resolution for the earlier exemption | 1533 |
provides its duly authorized written consent to the subsequent | 1534 |
exemption by means of a duly enacted ordinance or resolution. | 1535 |
(C)(1) After the tax commissioner has approved or partially | 1536 |
approved an application for exemption filed by or with the consent | 1537 |
of a property owner under the circumstances described in division | 1538 |
(B)(1) of this section, the municipal corporation, township, | 1539 |
county, or property owner shall file a notice with the county | 1540 |
recorder for the county in which the property is located that | 1541 |
clearly identifies the property and the owner of the property and | 1542 |
states that the property, regardless of future use or ownership, | 1543 |
remains liable for any service payments or service charges | 1544 |
required by the exemption until the terms of the exemption have | 1545 |
been satisfied, unless the municipal corporation, township, or | 1546 |
county consents to the subsequent exemption and relinquishes its | 1547 |
right to collect the service payments or service charges as | 1548 |
provided in division (B)(1) of this section. The county recorder's | 1549 |
office shall charge a fee of fourteen dollars to record the | 1550 |
notice, the proceeds of which shall be retained by the county. | 1551 |
(2) If a property owner subsequently provides written consent | 1552 |
to an exemption under the circumstances described in division | 1553 |
(B)(2) of this section, the municipal corporation, township, | 1554 |
county, or property owner shall file notice with the county | 1555 |
recorder for the county in which the property is located that | 1556 |
clearly identifies the property and the owner of the property and | 1557 |
states that the property, regardless of future use or ownership, | 1558 |
remains liable for any service payments or service charges | 1559 |
required by the exemption until the terms of the exemption have | 1560 |
been satisfied, unless the municipal corporation, township, or | 1561 |
county consents to the subsequent exemption and relinquishes its | 1562 |
right to collect the service payments or service charges as | 1563 |
provided in division (B)(2) of this section. The county recorder's | 1564 |
office shall charge a fee of fourteen dollars to record the | 1565 |
notice, the proceeds of which shall be retained by the county. | 1566 |
(D) Upon filing of the notice with the county recorder, the | 1567 |
provisions of division (B) of this section are binding on all | 1568 |
future owners of the property or portion of the property, | 1569 |
regardless of how the property is used. Failure to file the notice | 1570 |
with the county recorder relieves future owners of the property | 1571 |
from the obligation to make service payments in lieu of taxes | 1572 |
under section 725.04, 5709.42, 5709.74, or 5709.79 of the Revised | 1573 |
Code or service charges in lieu of taxes under section 1728.11 or | 1574 |
1728.111 of the Revised Code, if the property or a portion of the | 1575 |
property later qualifies for exemption under any other provision | 1576 |
of the Revised Code. Failure to file the notice does not, however, | 1577 |
relieve the owner of the property, at the time the application for | 1578 |
exemption is filed, from making those payments or charges. | 1579 |