As Re-reported by the House State and Local Government Committee

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 198

Representatives Butler, Burkley 

Cosponsors: Representatives Adams, J., Boose, Brenner, Ruhl, Perales, Henne 

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A BILL

To amend sections 5709.40, 5709.73, 5709.77, 5709.78,

1

and 5709.911 of the Revised Code to establish a

2

procedure by which political subdivisions

3

proposing a tax increment financing (TIF)

4

incentive district are required to provide notice

5

to the record owner of each parcel within the

6

proposed incentive district before creating the

7

district, and to permit such owners, under

8

specific conditions, to exclude their parcels from

9

the incentive district by submitting a written

10

response.

11

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 5709.40, 5709.73, 5709.77, 5709.78,	12
and 5709.911 of the Revised Code be amended to read as follows:	13

Sec. 5709.40.  (A) As used in this section:

14

(1) "Blighted area" and "impacted city" have the same	15
meanings as in section 1728.01 of the Revised Code.	16

(2) "Business day" means a day of the week excluding	17
Saturday, Sunday, and a legal holiday as defined under section	18
1.14 of the Revised Code.	19

(3) "Housing renovation" means a project carried out for	20
residential purposes.	21

(4) "Improvement" means the increase in the assessed value of	22
any real property that would first appear on the tax list and	23
duplicate of real and public utility property after the effective	24
date of an ordinance adopted under this section were it not for	25
the exemption granted by that ordinance.	26

(5) "Incentive district" means an area of not more than three	27
hundred acres in size enclosed by a continuous boundary in which a	28
project is being, or will be, undertaken and having one or more of	29
the following distress characteristics:	30

(a) At least fifty-one per cent of the residents of the	31
district have incomes of less than eighty per cent of the median	32
income of residents of the political subdivision in which the	33
district is located, as determined in the same manner specified	34
under section 119(b) of the "Housing and Community Development Act	35
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;	36

(b) The average rate of unemployment in the district during	37
the most recent twelve-month period for which data are available	38
is equal to at least one hundred fifty per cent of the average	39
rate of unemployment for this state for the same period.	40

(c) At least twenty per cent of the people residing in the	41
district live at or below the poverty level as defined in the	42
federal Housing and Community Development Act of 1974, 42 U.S.C.	43
5301, as amended, and regulations adopted pursuant to that act.	44

(d) The district is a blighted area.

45

(e) The district is in a situational distress area as	46
designated by the director of development services under division	47
(F) of section 122.23 of the Revised Code.	48

(f) As certified by the engineer for the political	49
subdivision, the public infrastructure serving the district is	50
inadequate to meet the development needs of the district as	51
evidenced by a written economic development plan or urban renewal	52
plan for the district that has been adopted by the legislative	53
authority of the subdivision.	54

(g) The district is comprised entirely of unimproved land	55
that is located in a distressed area as defined in section 122.23	56
of the Revised Code.	57

(6) "Overlay" means an area of not more than three hundred	58
acres that is a square, or that is a rectangle having two longer	59
sides that are not more than twice the length of the two shorter	60
sides, that the legislative authority of a municipal corporation	61
delineates on a map of a proposed incentive district.	62

(7) "Project" means development activities undertaken on one	63
or more parcels, including, but not limited to, construction,	64
expansion, and alteration of buildings or structures, demolition,	65
remediation, and site development, and any building or structure	66
that results from those activities.	67

(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

An ordinance adopted or amended under this division shall	100
designate the specific public infrastructure improvements made, to	101
be made, or in the process of being made by the municipal	102
corporation that directly benefit, or that once made will directly	103
benefit, the parcels for which improvements are declared to be a	104
public purpose. The service payments provided for in section	105
5709.42 of the Revised Code shall be used to finance the public	106
infrastructure improvements designated in the ordinance, for the	107
purpose described in division (D)(1) of this section or as	108
provided in section 5709.43 of the Revised Code.	109

(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

An ordinance adopted under division (C)(1) of this section on	203
or after March 30, 2006, shall not designate police or fire	204
equipment as public infrastructure improvements, and no service	205
payment provided for in section 5709.42 of the Revised Code and	206
received by the municipal corporation under the ordinance shall be	207
used for police or fire equipment.	208

(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

(5) If the legislative authority is not required by division	343
(D) of this section to notify the board of education of the	344
legislative authority's intent to declare improvements to be a	345
public purpose, the legislative authority shall comply with the	346
notice requirements imposed under section 5709.83 of the Revised	347
Code, unless the board has adopted a resolution under that section	348
waiving its right to receive such a notice.	349

(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

(1) A tax levied under division (L) of section 5705.19 or	421
section 5705.191 of the Revised Code for community mental	422
retardation and developmental disabilities programs and services	423
pursuant to Chapter 5126. of the Revised Code;	424

(2) A tax levied under division (Y) of section 5705.19 of the	425
Revised Code for providing or maintaining senior citizens services	426
or facilities;	427

(3) A tax levied under section 5705.22 of the Revised Code	428
for county hospitals;	429

(4) A tax levied by a joint-county district or by a county	430
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	431
for alcohol, drug addiction, and mental health services or	432
facilities;	433

(5) A tax levied under section 5705.23 of the Revised Code	434
for library purposes;	435

(6) A tax levied under section 5705.24 of the Revised Code	436
for the support of children services and the placement and care of	437
children;	438

(7) A tax levied under division (Z) of section 5705.19 of the	439
Revised Code for the provision and maintenance of zoological park	440
services and facilities under section 307.76 of the Revised Code;	441

(8) A tax levied under section 511.27 or division (H) of	442
section 5705.19 of the Revised Code for the support of township	443
park districts;	444

(9) A tax levied under division (A), (F), or (H) of section	445
5705.19 of the Revised Code for parks and recreational purposes of	446
a joint recreation district organized pursuant to division (B) of	447
section 755.14 of the Revised Code;	448

(10) A tax levied under section 1545.20 or 1545.21 of the	449
Revised Code for park district purposes;	450

(11) A tax levied under section 5705.191 of the Revised Code	451
for the purpose of making appropriations for public assistance;	452
human or social services; public relief; public welfare; public	453
health and hospitalization; and support of general hospitals;	454

(12) A tax levied under section 3709.29 of the Revised Code	455
for a general health district program.	456

(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

(H) Additional municipal financing of public infrastructure	498
improvements and housing renovations may be provided by any	499
methods that the municipal corporation may otherwise use for	500
financing such improvements or renovations. If the municipal	501
corporation issues bonds or notes to finance the public	502
infrastructure improvements and housing renovations and pledges	503
money from the municipal public improvement tax increment	504
equivalent fund to pay the interest on and principal of the bonds	505
or notes, the bonds or notes are not subject to Chapter 133. of	506
the Revised Code.	507

(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

(J) Nothing in this section shall be construed to prohibit a	522
legislative authority from declaring to be a public purpose	523
improvements with respect to more than one parcel.	524

(K) If a parcel is located in a new community district in	525
which the new community authority imposes a community development	526
charge on the basis of rentals received from leases of real	527
property as described in division (L)(2) of section 349.01 of the	528
Revised Code, the parcel may not be exempted from taxation under	529
this section.	530

Sec. 5709.73.  (A) As used in this section and section	531
5709.74 of the Revised Code:	532

(1) "Business day" means a day of the week excluding	533
Saturday, Sunday, and a legal holiday as defined in section 1.14	534
of the Revised Code.	535

(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

(3) "Housing renovation" means a project carried out for	549
residential purposes.	550

(4) "Incentive district" has the same meaning as in section	551
5709.40 of the Revised Code, except that a blighted area is in the	552
unincorporated area of a township.	553

(5) "Overlay" has the meaning defined in section 5709.40 of	554
the Revised Code, except that the overlay is delineated by the	555
board of township trustees.	556

(6) "Project" and "public infrastructure improvement" have	557
the same meanings as in section 5709.40 of the Revised Code.	558

(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

(c) Before adopting a resolution under division (C)(1) of	634
this section, the board shall amend the resolution to exclude any	635
parcel for which a written response has been submitted under	636
division (C)(2)(b) of this section. A township shall not apply for	637
exemptions from taxation under section 5709.911 of the Revised	638
Code for any property for which a written response has been	639
submitted under division (C)(2)(b) of this section, and service	640
payments may not be required from the owner of the parcel.	641
Improvements to a parcel excluded from an incentive district under	642
this division may be exempted from taxation under division (B) of	643
this section pursuant to an ordinance adopted under that division	644
or under any other section of the Revised Code under which the	645
parcel qualifies.	646

(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

A resolution adopted under division (C)(1) of this section on	659
or after March 30, 2006, shall not designate police or fire	660
equipment as public infrastructure improvements, and no service	661
payment provided for in section 5709.74 of the Revised Code and	662
received by the township under the resolution shall be used for	663
police or fire equipment.	664

(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

If the board of township trustees is not required by division	791
(D) of this section to notify the board of education of the board	792
of township trustees' intent to declare improvements to be a	793
public purpose, the board of township trustees shall comply with	794
the notice requirements imposed under section 5709.83 of the	795
Revised Code before taking formal action to adopt the resolution	796
making that declaration, unless the board of education has adopted	797
a resolution under that section waiving its right to receive the	798
notice.	799

(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

(1) A tax levied under division (L) of section 5705.19 or	875
section 5705.191 of the Revised Code for community mental	876
retardation and developmental disabilities programs and services	877
pursuant to Chapter 5126. of the Revised Code;	878

(2) A tax levied under division (Y) of section 5705.19 of the	879
Revised Code for providing or maintaining senior citizens services	880
or facilities;	881

(3) A tax levied under section 5705.22 of the Revised Code	882
for county hospitals;	883

(4) A tax levied by a joint-county district or by a county	884
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	885
for alcohol, drug addiction, and mental health services or	886
families;	887

(5) A tax levied under section 5705.23 of the Revised Code	888
for library purposes;	889

(6) A tax levied under section 5705.24 of the Revised Code	890
for the support of children services and the placement and care of	891
children;	892

(7) A tax levied under division (Z) of section 5705.19 of the	893
Revised Code for the provision and maintenance of zoological park	894
services and facilities under section 307.76 of the Revised Code;	895

(8) A tax levied under section 511.27 or division (H) of	896
section 5705.19 of the Revised Code for the support of township	897
park districts;	898

(9) A tax levied under division (A), (F), or (H) of section	899
5705.19 of the Revised Code for parks and recreational purposes of	900
a joint recreation district organized pursuant to division (B) of	901
section 755.14 of the Revised Code;	902

(10) A tax levied under section 1545.20 or 1545.21 of the	903
Revised Code for park district purposes;	904

(11) A tax levied under section 5705.191 of the Revised Code	905
for the purpose of making appropriations for public assistance;	906
human or social services; public relief; public welfare; public	907
health and hospitalization; and support of general hospitals;	908

(12) A tax levied under section 3709.29 of the Revised Code	909
for a general health district program.	910

(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

(J) Nothing in this section shall be construed to prohibit a	986
board of township trustees from declaring to be a public purpose	987
improvements with respect to more than one parcel.	988

If a parcel is located in a new community district in which	989
the new community authority imposes a community development charge	990
on the basis of rentals received from leases of real property as	991
described in division (L)(2) of section 349.01 of the Revised	992
Code, the parcel may not be exempted from taxation under this	993
section.	994

(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

Sec. 5709.77.  As used in sections 5709.77 to 5709.81 of the	1013
Revised Code:	1014

(A) "Business day" means a day of the week excluding	1015
Saturday, Sunday, and a legal holiday as defined in section 1.14	1016
of the Revised Code.	1017

(B) "Fund" means to provide for the payment of the debt	1018
service on and the expenses relating to an outstanding obligation	1019
of the county.	1020

(C) "Housing renovation" means a project carried out for	1021
residential purposes.	1022

(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

(E) "Incentive district" has the same meaning as in section	1036
5709.40 of the Revised Code, except that a blighted area is in the	1037
unincorporated territory of a county.	1038

(F) "Refund" means to fund and retire an outstanding	1039
obligation of the county.	1040

(G) "Overlay" has the meaning defined in section 5709.40 of	1041
the Revised Code, except that the overlay is delineated by the	1042
board of county commissioners.	1043

(H) "Project" and "public infrastructure improvement" have	1044
the same meanings as in section 5709.40 of the Revised Code.	1045

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

A resolution adopted under this division shall designate the	1057
specific public infrastructure improvements made, to be made, or	1058
in the process of being made by the county that directly benefit,	1059
or that once made will directly benefit, the parcels for which	1060
improvements are declared to be a public purpose. The service	1061
payments provided for in section 5709.79 of the Revised Code shall	1062
be used to finance the public infrastructure improvements	1063
designated in the resolution, or as provided in section 5709.80 of	1064
the Revised Code.	1065

(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

(c) Before adopting a resolution under division (B)(1) of	1131
this section, the board shall amend the resolution to exclude any	1132
parcel for which a written response has been submitted under	1133
division (B)(2)(b) of this section. A county shall not apply for	1134
exemptions from taxation under section 5709.911 of the Revised	1135
Code for any property for which a written response has been	1136
submitted under division (B)(2)(b) of this section, and service	1137
payments may not be required from the owner of the parcel.	1138
Improvements to a parcel excluded from an incentive district under	1139
this division may be exempted from taxation under division (A) of	1140
this section pursuant to an ordinance adopted under that division	1141
or under any other section of the Revised Code under which the	1142
parcel qualifies.	1143

(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

A resolution adopted under division (B)(1) of this section on	1156
or after March 30, 2006, shall not designate police or fire	1157
equipment as public infrastructure improvements, and no service	1158
payment provided for in section 5709.79 of the Revised Code and	1159
received by the county under the resolution shall be used for	1160
police or fire equipment.	1161

(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

(1) A tax levied under division (L) of section 5705.19 or	1370
section 5705.191 of the Revised Code for community mental	1371
retardation and developmental disabilities programs and services	1372
pursuant to Chapter 5126. of the Revised Code;	1373

(2) A tax levied under division (Y) of section 5705.19 of the	1374
Revised Code for providing or maintaining senior citizens services	1375
or facilities;	1376

(3) A tax levied under section 5705.22 of the Revised Code	1377
for county hospitals;	1378

(4) A tax levied by a joint-county district or by a county	1379
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	1380
for alcohol, drug addiction, and mental health services or	1381
facilities;	1382

(5) A tax levied under section 5705.23 of the Revised Code	1383
for library purposes;	1384

(6) A tax levied under section 5705.24 of the Revised Code	1385
for the support of children services and the placement and care of	1386
children;	1387

(7) A tax levied under division (Z) of section 5705.19 of the	1388
Revised Code for the provision and maintenance of zoological park	1389
services and facilities under section 307.76 of the Revised Code;	1390

(8) A tax levied under section 511.27 or division (H) of	1391
section 5705.19 of the Revised Code for the support of township	1392
park districts;	1393

(9) A tax levied under division (A), (F), or (H) of section	1394
5705.19 of the Revised Code for parks and recreational purposes of	1395
a joint recreation district organized pursuant to division (B) of	1396
section 755.14 of the Revised Code;	1397

(10) A tax levied under section 1545.20 or 1545.21 of the	1398
Revised Code for park district purposes;	1399

(11) A tax levied under section 5705.191 of the Revised Code	1400
for the purpose of making appropriations for public assistance;	1401
human or social services; public relief; public welfare; public	1402
health and hospitalization; and support of general hospitals;	1403

(12) A tax levied under section 3709.29 of the Revised Code	1404
for a general health district program.	1405

(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

(G) If the board of county commissioners is not required by	1446
this section to notify the board of education of the board of	1447
county commissioners' intent to declare improvements to be a	1448
public purpose, the board of county commissioners shall comply	1449
with the notice requirements imposed under section 5709.83 of the	1450
Revised Code before taking formal action to adopt the resolution	1451
making that declaration, unless the board of education has adopted	1452
a resolution under that section waiving its right to receive such	1453
a notice.	1454

(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

(I) Nothing in this section shall be construed to prohibit a	1469
board of county commissioners from declaring to be a public	1470
purpose improvements with respect to more than one parcel.	1471

(J) If a parcel is located in a new community district in	1472
which the new community authority imposes a community development	1473
charge on the basis of rentals received from leases of real	1474
property as described in division (L)(2) of section 349.01 of the	1475
Revised Code, the parcel may not be exempted from taxation under	1476
this section.	1477

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

(2) Except as provided in division (B) of this section, if	1491
the application for exemption under section 725.02, 1728.10,	1492
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code is filed	1493
by a municipal corporation, township, or county and more than one	1494
real property tax exemption applies by law to the property or a	1495
portion of the property, both of the following apply:	1496

(a) An exemption granted under section 725.02, 1728.10,	1497
5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code shall be	1498
subordinate to an exemption with respect to the property or	1499
portion of the property granted under any other provision of the	1500
Revised Code.	1501

(b) Neither service payments in lieu of taxes under section	1502
725.04, 5709.42, 5709.74, or 5709.79 of the Revised Code, nor	1503
service charges in lieu of taxes under section 1728.11 or 1728.111	1504
of the Revised Code, shall be required with respect to the	1505
property or portion of the property that is exempt from real	1506
property taxes under that other provision of the Revised Code	1507
during the effective period of the exemption.	1508

(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

Section 2.  That existing sections 5709.40, 5709.73, 5709.77,	1580
5709.78, and 5709.911 of the Revised Code are hereby repealed.	1581