As Introduced

130th General Assembly
Regular Session
2013-2014
H. B. No. 217


Representatives Butler, Burkley 

Cosponsors: Representatives Henne, Terhar 

A BILL
To amend sections 5709.40, 5709.73, and 5709.78 of 1
the Revised Code to require reimbursement of 2
police and fire levy revenue foregone because of 3
the creation of a tax increment financing 4
incentive district.5


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

       Section 1.  That sections 5709.40, 5709.73, and 5709.78 of 6
the Revised Code be amended to read as follows:7

       Sec. 5709.40.  (A) As used in this section:8

       (1) "Blighted area" and "impacted city" have the same 9
meanings as in section 1728.01 of the Revised Code.10

       (2) "Business day" means a day of the week excluding 11
Saturday, Sunday, and a legal holiday as defined under section 12
1.14 of the Revised Code.13

       (3) "Housing renovation" means a project carried out for 14
residential purposes.15

       (4) "Improvement" means the increase in the assessed value of 16
any real property that would first appear on the tax list and 17
duplicate of real and public utility property after the effective 18
date of an ordinance adopted under this section were it not for 19
the exemption granted by that ordinance. 20

       (5) "Incentive district" means an area not more than three 21
hundred acres in size enclosed by a continuous boundary in which a 22
project is being, or will be, undertaken and having one or more of 23
the following distress characteristics:24

       (a) At least fifty-one per cent of the residents of the 25
district have incomes of less than eighty per cent of the median 26
income of residents of the political subdivision in which the 27
district is located, as determined in the same manner specified 28
under section 119(b) of the "Housing and Community Development Act 29
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;30

       (b) The average rate of unemployment in the district during 31
the most recent twelve-month period for which data are available 32
is equal to at least one hundred fifty per cent of the average 33
rate of unemployment for this state for the same period.34

       (c) At least twenty per cent of the people residing in the 35
district live at or below the poverty level as defined in the 36
federal Housing and Community Development Act of 1974, 42 U.S.C. 37
5301, as amended, and regulations adopted pursuant to that act.38

       (d) The district is a blighted area.39

       (e) The district is in a situational distress area as 40
designated by the director of development under division (F) of 41
section 122.23 of the Revised Code.42

       (f) As certified by the engineer for the political 43
subdivision, the public infrastructure serving the district is 44
inadequate to meet the development needs of the district as 45
evidenced by a written economic development plan or urban renewal 46
plan for the district that has been adopted by the legislative 47
authority of the subdivision.48

       (g) The district is comprised entirely of unimproved land 49
that is located in a distressed area as defined in section 122.23 50
of the Revised Code.51

       (6) "Project" means development activities undertaken on one 52
or more parcels, including, but not limited to, construction, 53
expansion, and alteration of buildings or structures, demolition, 54
remediation, and site development, and any building or structure 55
that results from those activities.56

       (7) "Public infrastructure improvement" includes, but is not 57
limited to, public roads and highways; water and sewer lines; 58
environmental remediation; land acquisition, including acquisition 59
in aid of industry, commerce, distribution, or research; 60
demolition, including demolition on private property when 61
determined to be necessary for economic development purposes; 62
stormwater and flood remediation projects, including such projects 63
on private property when determined to be necessary for public 64
health, safety, and welfare; the provision of gas, electric, and 65
communications service facilities; and the enhancement of public 66
waterways through improvements that allow for greater public 67
access. 68

       (B) The legislative authority of a municipal corporation, by 69
ordinance, may declare improvements to certain parcels of real 70
property located in the municipal corporation to be a public 71
purpose. Improvements with respect to a parcel that is used or to 72
be used for residential purposes may be declared a public purpose 73
under this division only if the parcel is located in a blighted 74
area of an impacted city. For this purpose, "parcel that is used 75
or to be used for residential purposes" means a parcel that, as 76
improved, is used or to be used for purposes that would cause the 77
tax commissioner to classify the parcel as residential property in 78
accordance with rules adopted by the commissioner under section 79
5713.041 of the Revised Code. Except with the approval under 80
division (D) of this section of the board of education of each 81
city, local, or exempted village school district within which the 82
improvements are located, not more than seventy-five per cent of 83
an improvement thus declared to be a public purpose may be 84
exempted from real property taxation for a period of not more than 85
ten years. The ordinance shall specify the percentage of the 86
improvement to be exempted from taxation and the life of the 87
exemption.88

       An ordinance adopted or amended under this division shall 89
designate the specific public infrastructure improvements made, to 90
be made, or in the process of being made by the municipal 91
corporation that directly benefit, or that once made will directly 92
benefit, the parcels for which improvements are declared to be a 93
public purpose. The service payments provided for in section 94
5709.42 of the Revised Code shall be used to finance the public 95
infrastructure improvements designated in the ordinance, for the 96
purpose described in division (D)(1) of this section or as 97
provided in section 5709.43 of the Revised Code.98

       (C)(1) The legislative authority of a municipal corporation 99
may adopt an ordinance creating an incentive district and 100
declaring improvements to parcels within the district to be a 101
public purpose and, except as provided in division (F) of this 102
section, exempt from taxation as provided in this section, but no 103
legislative authority of a municipal corporation that has a 104
population that exceeds twenty-five thousand, as shown by the most 105
recent federal decennial census, shall adopt an ordinance that 106
creates an incentive district if the sum of the taxable value of 107
real property in the proposed district for the preceding tax year 108
and the taxable value of all real property in the municipal 109
corporation that would have been taxable in the preceding year 110
were it not for the fact that the property was in an existing 111
incentive district and therefore exempt from taxation exceeds 112
twenty-five per cent of the taxable value of real property in the 113
municipal corporation for the preceding tax year. The ordinance 114
shall delineate the boundary of the district and specifically 115
identify each parcel within the district. A district may not 116
include any parcel that is or has been exempted from taxation 117
under division (B) of this section or that is or has been within 118
another district created under this division. An ordinance may 119
create more than one such district, and more than one ordinance 120
may be adopted under division (C)(1) of this section.121

       (2) Not later than thirty days prior to adopting an ordinance 122
under division (C)(1) of this section, if the municipal 123
corporation intends to apply for exemptions from taxation under 124
section 5709.911 of the Revised Code on behalf of owners of real 125
property located within the proposed incentive district, the 126
legislative authority of a municipal corporation shall conduct a 127
public hearing on the proposed ordinance. Not later than thirty 128
days prior to the public hearing, the legislative authority shall 129
give notice of the public hearing and the proposed ordinance by 130
first class mail to every real property owner whose property is 131
located within the boundaries of the proposed incentive district 132
that is the subject of the proposed ordinance.133

       (3)(a) An ordinance adopted under division (C)(1) of this 134
section shall specify the life of the incentive district and the 135
percentage of the improvements to be exempted, shall designate the 136
public infrastructure improvements made, to be made, or in the 137
process of being made, that benefit or serve, or, once made, will 138
benefit or serve parcels in the district. The ordinance also shall 139
identify one or more specific projects being, or to be, undertaken 140
in the district that place additional demand on the public 141
infrastructure improvements designated in the ordinance. The 142
project identified may, but need not be, the project under 143
division (C)(3)(b) of this section that places real property in 144
use for commercial or industrial purposes. Except as otherwise 145
permitted under that division, the service payments provided for 146
in section 5709.42 of the Revised Code shall be used to finance 147
the designated public infrastructure improvements, for the purpose 148
described in division (D)(1) or, (E), or (F) of this section, or 149
as provided in section 5709.43 of the Revised Code.150

       An ordinance adopted under division (C)(1) of this section on 151
or after March 30, 2006, shall not designate police or fire 152
equipment as public infrastructure improvements, and no service 153
payment provided for in section 5709.42 of the Revised Code and 154
received by the municipal corporation under the ordinance shall be 155
used for police or fire equipment.156

       (b) An ordinance adopted under division (C)(1) of this 157
section may authorize the use of service payments provided for in 158
section 5709.42 of the Revised Code for the purpose of housing 159
renovations within the incentive district, provided that the 160
ordinance also designates public infrastructure improvements that 161
benefit or serve the district, and that a project within the 162
district places real property in use for commercial or industrial 163
purposes. Service payments may be used to finance or support 164
loans, deferred loans, and grants to persons for the purpose of 165
housing renovations within the district. The ordinance shall 166
designate the parcels within the district that are eligible for 167
housing renovation. The ordinance shall state separately the 168
amounts or the percentages of the expected aggregate service 169
payments that are designated for each public infrastructure 170
improvement and for the general purpose of housing renovations.171

       (4) Except with the approval of the board of education of 172
each city, local, or exempted village school district within the 173
territory of which the incentive district is or will be located, 174
and subject to division (E) of this section, the life of an 175
incentive district shall not exceed ten years, and the percentage 176
of improvements to be exempted shall not exceed seventy-five per 177
cent. With approval of the board of education, the life of a 178
district may be not more than thirty years, and the percentage of 179
improvements to be exempted may be not more than one hundred per 180
cent. The approval of a board of education shall be obtained in 181
the manner provided in division (D) of this section.182

       (D)(1) If the ordinance declaring improvements to a parcel to 183
be a public purpose or creating an incentive district specifies 184
that payments in lieu of taxes provided for in section 5709.42 of 185
the Revised Code shall be paid to the city, local, or exempted 186
village, and joint vocational school district in which the parcel 187
or incentive district is located in the amount of the taxes that 188
would have been payable to the school district if the improvements 189
had not been exempted from taxation, the percentage of the 190
improvement that may be exempted from taxation may exceed 191
seventy-five per cent, and the exemption may be granted for up to 192
thirty years, without the approval of the board of education as 193
otherwise required under division (D)(2) of this section.194

       (2) Improvements with respect to a parcel may be exempted 195
from taxation under division (B) of this section, and improvements 196
to parcels within an incentive district may be exempted from 197
taxation under division (C) of this section, for up to ten years 198
or, with the approval under this paragraph of the board of 199
education of the city, local, or exempted village school district 200
within which the parcel or district is located, for up to thirty 201
years. The percentage of the improvement exempted from taxation 202
may, with such approval, exceed seventy-five per cent, but shall 203
not exceed one hundred per cent. Not later than forty-five 204
business days prior to adopting an ordinance under this section 205
declaring improvements to be a public purpose that is subject to 206
approval by a board of education under this division, the 207
legislative authority shall deliver to the board of education a 208
notice stating its intent to adopt an ordinance making that 209
declaration. The notice regarding improvements with respect to a 210
parcel under division (B) of this section shall identify the 211
parcels for which improvements are to be exempted from taxation, 212
provide an estimate of the true value in money of the 213
improvements, specify the period for which the improvements would 214
be exempted from taxation and the percentage of the improvement 215
that would be exempted, and indicate the date on which the 216
legislative authority intends to adopt the ordinance. The notice 217
regarding improvements to parcels within an incentive district 218
under division (C) of this section shall delineate the boundaries 219
of the district, specifically identify each parcel within the 220
district, identify each anticipated improvement in the district, 221
provide an estimate of the true value in money of each such 222
improvement, specify the life of the district and the percentage 223
of improvements that would be exempted, and indicate the date on 224
which the legislative authority intends to adopt the ordinance. 225
The board of education, by resolution adopted by a majority of the 226
board, may approve the exemption for the period or for the 227
exemption percentage specified in the notice; may disapprove the 228
exemption for the number of years in excess of ten, may disapprove 229
the exemption for the percentage of the improvement to be exempted 230
in excess of seventy-five per cent, or both; or may approve the 231
exemption on the condition that the legislative authority and the 232
board negotiate an agreement providing for compensation to the 233
school district equal in value to a percentage of the amount of 234
taxes exempted in the eleventh and subsequent years of the 235
exemption period or, in the case of exemption percentages in 236
excess of seventy-five per cent, compensation equal in value to a 237
percentage of the taxes that would be payable on the portion of 238
the improvement in excess of seventy-five per cent were that 239
portion to be subject to taxation, or other mutually agreeable 240
compensation. If an agreement is negotiated between the 241
legislative authority and the board to compensate the school 242
district for all or part of the taxes exempted, including 243
agreements for payments in lieu of taxes under section 5709.42 of 244
the Revised Code, the legislative authority shall compensate the 245
joint vocational school district within which the parcel or 246
district is located at the same rate and under the same terms 247
received by the city, local, or exempted village school district.248

       (3) The board of education shall certify its resolution to 249
the legislative authority not later than fourteen days prior to 250
the date the legislative authority intends to adopt the ordinance 251
as indicated in the notice. If the board of education and the 252
legislative authority negotiate a mutually acceptable compensation 253
agreement, the ordinance may declare the improvements a public 254
purpose for the number of years specified in the ordinance or, in 255
the case of exemption percentages in excess of seventy-five per 256
cent, for the exemption percentage specified in the ordinance. In 257
either case, if the board and the legislative authority fail to 258
negotiate a mutually acceptable compensation agreement, the 259
ordinance may declare the improvements a public purpose for not 260
more than ten years, and shall not exempt more than seventy-five 261
per cent of the improvements from taxation. If the board fails to 262
certify a resolution to the legislative authority within the time 263
prescribed by this division, the legislative authority thereupon 264
may adopt the ordinance and may declare the improvements a public 265
purpose for up to thirty years, or, in the case of exemption 266
percentages proposed in excess of seventy-five per cent, for the 267
exemption percentage specified in the ordinance. The legislative 268
authority may adopt the ordinance at any time after the board of 269
education certifies its resolution approving the exemption to the 270
legislative authority, or, if the board approves the exemption on 271
the condition that a mutually acceptable compensation agreement be 272
negotiated, at any time after the compensation agreement is agreed 273
to by the board and the legislative authority.274

       (4) If a board of education has adopted a resolution waiving 275
its right to approve exemptions from taxation under this section 276
and the resolution remains in effect, approval of exemptions by 277
the board is not required under division (D) of this section. If a 278
board of education has adopted a resolution allowing a legislative 279
authority to deliver the notice required under division (D) of 280
this section fewer than forty-five business days prior to the 281
legislative authority's adoption of the ordinance, the legislative 282
authority shall deliver the notice to the board not later than the 283
number of days prior to such adoption as prescribed by the board 284
in its resolution. If a board of education adopts a resolution 285
waiving its right to approve agreements or shortening the 286
notification period, the board shall certify a copy of the 287
resolution to the legislative authority. If the board of education 288
rescinds such a resolution, it shall certify notice of the 289
rescission to the legislative authority.290

       (5) If the legislative authority is not required by division 291
(D) of this section to notify the board of education of the 292
legislative authority's intent to declare improvements to be a 293
public purpose, the legislative authority shall comply with the 294
notice requirements imposed under section 5709.83 of the Revised 295
Code, unless the board has adopted a resolution under that section 296
waiving its right to receive such a notice.297

       (E)(1) If a proposed ordinance under division (C)(1) of this 298
section exempts improvements with respect to a parcel within an 299
incentive district for more than ten years, or the percentage of 300
the improvement exempted from taxation exceeds seventy-five per 301
cent, not later than forty-five business days prior to adopting 302
the ordinance the legislative authority of the municipal 303
corporation shall deliver to the board of county commissioners of 304
the county within which the incentive district will be located a 305
notice that states its intent to adopt an ordinance creating an 306
incentive district. The notice shall include a copy of the 307
proposed ordinance, identify the parcels for which improvements 308
are to be exempted from taxation, provide an estimate of the true 309
value in money of the improvements, specify the period of time for 310
which the improvements would be exempted from taxation, specify 311
the percentage of the improvements that would be exempted from 312
taxation, and indicate the date on which the legislative authority 313
intends to adopt the ordinance.314

       (2) The board of county commissioners, by resolution adopted 315
by a majority of the board, may object to the exemption for the 316
number of years in excess of ten, may object to the exemption for 317
the percentage of the improvement to be exempted in excess of 318
seventy-five per cent, or both. If the board of county 319
commissioners objects, the board may negotiate a mutually 320
acceptable compensation agreement with the legislative authority. 321
In no case shall the compensation provided to the board exceed the 322
property taxes forgone due to the exemption. If the board of 323
county commissioners objects, and the board and legislative 324
authority fail to negotiate a mutually acceptable compensation 325
agreement, the ordinance adopted under division (C)(1) of this 326
section shall provide to the board compensation in the eleventh 327
and subsequent years of the exemption period equal in value to not 328
more than fifty per cent of the taxes that would be payable to the 329
county or, if the board's objection includes an objection to an 330
exemption percentage in excess of seventy-five per cent, 331
compensation equal in value to not more than fifty per cent of the 332
taxes that would be payable to the county, on the portion of the 333
improvement in excess of seventy-five per cent, were that portion 334
to be subject to taxation. The board of county commissioners shall 335
certify its resolution to the legislative authority not later than 336
thirty days after receipt of the notice.337

       (3) If the board of county commissioners does not object or 338
fails to certify its resolution objecting to an exemption within 339
thirty days after receipt of the notice, the legislative authority 340
may adopt the ordinance, and no compensation shall be provided to 341
the board of county commissioners. If the board timely certifies 342
its resolution objecting to the ordinance, the legislative 343
authority may adopt the ordinance at any time after a mutually 344
acceptable compensation agreement is agreed to by the board and 345
the legislative authority, or, if no compensation agreement is 346
negotiated, at any time after the legislative authority agrees in 347
the proposed ordinance to provide compensation to the board of 348
fifty per cent of the taxes that would be payable to the county in 349
the eleventh and subsequent years of the exemption period or on 350
the portion of the improvement in excess of seventy-five per cent, 351
were that portion to be subject to taxation.352

       (F) Service payments in lieu of taxes that are attributable 353
to any amount by which the effective tax rate of either a renewal 354
levy with an increase or a replacement levy exceeds the effective 355
tax rate of the levy renewed or replaced, or that are attributable 356
to an additional levy, for a levy authorized by the voters for any 357
of the following purposes on or after January 1, 2006, and which 358
are provided pursuant to an ordinance creating an incentive 359
district under division (C)(1) of this section that is adopted on 360
or after January 1, 2006, shall be distributed to the appropriate 361
taxing authority as required under division (C) of section 5709.42 362
of the Revised Code in an amount equal to the amount of taxes from 363
that additional levy or from the increase in the effective tax 364
rate of such renewal or replacement levy that would have been 365
payable to that taxing authority from the following levies were it 366
not for the exemption authorized under division (C) of this 367
section:368

       (1) A tax levied under division (L) of section 5705.19 or 369
section 5705.191 of the Revised Code for community mental 370
retardation and developmental disabilities programs and services 371
pursuant to Chapter 5126. of the Revised Code;372

       (2) A tax levied under division (Y) of section 5705.19 of the 373
Revised Code for providing or maintaining senior citizens services 374
or facilities;375

       (3) A tax levied under section 5705.22 of the Revised Code 376
for county hospitals;377

       (4) A tax levied by a joint-county district or by a county 378
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 379
for alcohol, drug addiction, and mental health services or 380
facilities;381

       (5) A tax levied under section 5705.23 of the Revised Code 382
for library purposes;383

       (6) A tax levied under section 5705.24 of the Revised Code 384
for the support of children services and the placement and care of 385
children;386

       (7) A tax levied under division (Z) of section 5705.19 of the 387
Revised Code for the provision and maintenance of zoological park 388
services and facilities under section 307.76 of the Revised Code;389

        (8) A tax levied under section 511.27 or division (H) of 390
section 5705.19 of the Revised Code for the support of township 391
park districts;392

        (9) A tax levied under division (A), (F), or (H) of section 393
5705.19 of the Revised Code for parks and recreational purposes of 394
a joint recreation district organized pursuant to division (B) of 395
section 755.14 of the Revised Code;396

        (10) A tax levied under section 1545.20 or 1545.21 of the 397
Revised Code for park district purposes;398

        (11) A tax levied under section 5705.191 of the Revised Code 399
for the purpose of making appropriations for public assistance; 400
human or social services; public relief; public welfare; public 401
health and hospitalization; and support of general hospitals;402

        (12) A tax levied under section 3709.29 of the Revised Code 403
for a general health district program;404

       (13) A tax levied under section 505.39 or division (I) of 405
section 5705.19 of the Revised Code for the purpose of funding 406
fire, emergency medical, and ambulance services as described in 407
that section and division;408

        (14) A tax levied under division (J) of section 5705.19 of 409
the Revised Code for the purpose of police protection, emergency 410
medical, and ambulance services as described in that division.411

        (G) An exemption from taxation granted under this section 412
commences with the tax year specified in the ordinance so long as 413
the year specified in the ordinance commences after the effective 414
date of the ordinance. If the ordinance specifies a year 415
commencing before the effective date of the resolution or 416
specifies no year whatsoever, the exemption commences with the tax 417
year in which an exempted improvement first appears on the tax 418
list and duplicate of real and public utility property and that 419
commences after the effective date of the ordinance. Except as 420
otherwise provided in this division, the exemption ends on the 421
date specified in the ordinance as the date the improvement ceases 422
to be a public purpose or the incentive district expires, or ends 423
on the date on which the public infrastructure improvements and 424
housing renovations are paid in full from the municipal public 425
improvement tax increment equivalent fund established under 426
division (A) of section 5709.43 of the Revised Code, whichever 427
occurs first. The exemption of an improvement with respect to a 428
parcel or within an incentive district may end on a later date, as 429
specified in the ordinance, if the legislative authority and the 430
board of education of the city, local, or exempted village school 431
district within which the parcel or district is located have 432
entered into a compensation agreement under section 5709.82 of the 433
Revised Code with respect to the improvement, and the board of 434
education has approved the term of the exemption under division 435
(D)(2) of this section, but in no case shall the improvement be 436
exempted from taxation for more than thirty years. Exemptions 437
shall be claimed and allowed in the same manner as in the case of 438
other real property exemptions. If an exemption status changes 439
during a year, the procedure for the apportionment of the taxes 440
for that year is the same as in the case of other changes in tax 441
exemption status during the year.442

       (H) Additional municipal financing of public infrastructure 443
improvements and housing renovations may be provided by any 444
methods that the municipal corporation may otherwise use for 445
financing such improvements or renovations. If the municipal 446
corporation issues bonds or notes to finance the public 447
infrastructure improvements and housing renovations and pledges 448
money from the municipal public improvement tax increment 449
equivalent fund to pay the interest on and principal of the bonds 450
or notes, the bonds or notes are not subject to Chapter 133. of 451
the Revised Code.452

       (I) The municipal corporation, not later than fifteen days 453
after the adoption of an ordinance under this section, shall 454
submit to the director of development a copy of the ordinance. On 455
or before the thirty-first day of March of each year, the 456
municipal corporation shall submit a status report to the director 457
of development. The report shall indicate, in the manner 458
prescribed by the director, the progress of the project during 459
each year that an exemption remains in effect, including a summary 460
of the receipts from service payments in lieu of taxes; 461
expenditures of money from the funds created under section 5709.43 462
of the Revised Code; a description of the public infrastructure 463
improvements and housing renovations financed with such 464
expenditures; and a quantitative summary of changes in employment 465
and private investment resulting from each project.466

       (J) Nothing in this section shall be construed to prohibit a 467
legislative authority from declaring to be a public purpose 468
improvements with respect to more than one parcel.469

       (K) If a parcel is located in a new community district in 470
which the new community authority imposes a community development 471
charge on the basis of rentals received from leases of real 472
property as described in division (L)(2) of section 349.01 of the 473
Revised Code, the parcel may not be exempted from taxation under 474
this section.475

       Sec. 5709.73.  (A) As used in this section and section 476
5709.74 of the Revised Code:477

       (1) "Business day" means a day of the week excluding 478
Saturday, Sunday, and a legal holiday as defined in section 1.14 479
of the Revised Code.480

       (2) "Further improvements" or "improvements" means the 481
increase in the assessed value of real property that would first 482
appear on the tax list and duplicate of real and public utility 483
property after the effective date of a resolution adopted under 484
this section were it not for the exemption granted by that 485
resolution. For purposes of division (B) of this section, 486
"improvements" do not include any property used or to be used for 487
residential purposes. For this purpose, "property that is used or 488
to be used for residential purposes" means property that, as 489
improved, is used or to be used for purposes that would cause the 490
tax commissioner to classify the property as residential property 491
in accordance with rules adopted by the commissioner under section 492
5713.041 of the Revised Code.493

       (3) "Housing renovation" means a project carried out for 494
residential purposes.495

       (4) "Incentive district" has the same meaning as in section 496
5709.40 of the Revised Code, except that a blighted area is in the 497
unincorporated area of a township.498

       (5) "Project" and "public infrastructure improvement" have 499
the same meanings as in section 5709.40 of the Revised Code.500

       (B) A board of township trustees may, by unanimous vote, 501
adopt a resolution that declares to be a public purpose any public 502
infrastructure improvements made that are necessary for the 503
development of certain parcels of land located in the 504
unincorporated area of the township. Except with the approval 505
under division (D) of this section of the board of education of 506
each city, local, or exempted village school district within which 507
the improvements are located, the resolution may exempt from real 508
property taxation not more than seventy-five per cent of further 509
improvements to a parcel of land that directly benefits from the 510
public infrastructure improvements, for a period of not more than 511
ten years. The resolution shall specify the percentage of the 512
further improvements to be exempted and the life of the exemption.513

       (C)(1) A board of township trustees may adopt, by unanimous 514
vote, a resolution creating an incentive district and declaring 515
improvements to parcels within the district to be a public purpose 516
and, except as provided in division (F) of this section, exempt 517
from taxation as provided in this section, but no board of 518
township trustees of a township that has a population that exceeds 519
twenty-five thousand, as shown by the most recent federal 520
decennial census, shall adopt a resolution that creates an 521
incentive district if the sum of the taxable value of real 522
property in the proposed district for the preceding tax year and 523
the taxable value of all real property in the township that would 524
have been taxable in the preceding year were it not for the fact 525
that the property was in an existing incentive district and 526
therefore exempt from taxation exceeds twenty-five per cent of the 527
taxable value of real property in the township for the preceding 528
tax year. The district shall be located within the unincorporated 529
area of the township and shall not include any territory that is 530
included within a district created under division (B) of section 531
5709.78 of the Revised Code. The resolution shall delineate the 532
boundary of the district and specifically identify each parcel 533
within the district. A district may not include any parcel that is 534
or has been exempted from taxation under division (B) of this 535
section or that is or has been within another district created 536
under this division. A resolution may create more than one 537
district, and more than one resolution may be adopted under 538
division (C)(1) of this section.539

       (2) Not later than thirty days prior to adopting a resolution 540
under division (C)(1) of this section, if the township intends to 541
apply for exemptions from taxation under section 5709.911 of the 542
Revised Code on behalf of owners of real property located within 543
the proposed incentive district, the board shall conduct a public 544
hearing on the proposed resolution. Not later than thirty days 545
prior to the public hearing, the board shall give notice of the 546
public hearing and the proposed resolution by first class mail to 547
every real property owner whose property is located within the 548
boundaries of the proposed incentive district that is the subject 549
of the proposed resolution.550

       (3)(a) A resolution adopted under division (C)(1) of this 551
section shall specify the life of the incentive district and the 552
percentage of the improvements to be exempted, shall designate the 553
public infrastructure improvements made, to be made, or in the 554
process of being made, that benefit or serve, or, once made, will 555
benefit or serve parcels in the district. The resolution also 556
shall identify one or more specific projects being, or to be, 557
undertaken in the district that place additional demand on the 558
public infrastructure improvements designated in the resolution. 559
The project identified may, but need not be, the project under 560
division (C)(3)(b) of this section that places real property in 561
use for commercial or industrial purposes.562

       A resolution adopted under division (C)(1) of this section on 563
or after March 30, 2006, shall not designate police or fire 564
equipment as public infrastructure improvements, and no service 565
payment provided for in section 5709.74 of the Revised Code and 566
received by the township under the resolution shall be used for 567
police or fire equipment.568

       (b) A resolution adopted under division (C)(1) of this 569
section may authorize the use of service payments provided for in 570
section 5709.74 of the Revised Code for the purpose of housing 571
renovations within the incentive district, provided that the 572
resolution also designates public infrastructure improvements that 573
benefit or serve the district, and that a project within the 574
district places real property in use for commercial or industrial 575
purposes. Service payments may be used to finance or support 576
loans, deferred loans, and grants to persons for the purpose of 577
housing renovations within the district. The resolution shall 578
designate the parcels within the district that are eligible for 579
housing renovations. The resolution shall state separately the 580
amount or the percentages of the expected aggregate service 581
payments that are designated for each public infrastructure 582
improvement and for the purpose of housing renovations.583

       (4) Except with the approval of the board of education of 584
each city, local, or exempted village school district within the 585
territory of which the incentive district is or will be located, 586
and subject to division (E) of this section, the life of an 587
incentive district shall not exceed ten years, and the percentage 588
of improvements to be exempted shall not exceed seventy-five per 589
cent. With approval of the board of education, the life of a 590
district may be not more than thirty years, and the percentage of 591
improvements to be exempted may be not more than one hundred per 592
cent. The approval of a board of education shall be obtained in 593
the manner provided in division (D) of this section.594

       (D) Improvements with respect to a parcel may be exempted 595
from taxation under division (B) of this section, and improvements 596
to parcels within an incentive district may be exempted from 597
taxation under division (C) of this section, for up to ten years 598
or, with the approval of the board of education of the city, 599
local, or exempted village school district within which the parcel 600
or district is located, for up to thirty years. The percentage of 601
the improvements exempted from taxation may, with such approval, 602
exceed seventy-five per cent, but shall not exceed one hundred per 603
cent. Not later than forty-five business days prior to adopting a 604
resolution under this section declaring improvements to be a 605
public purpose that is subject to approval by a board of education 606
under this division, the board of township trustees shall deliver 607
to the board of education a notice stating its intent to adopt a 608
resolution making that declaration. The notice regarding 609
improvements with respect to a parcel under division (B) of this 610
section shall identify the parcels for which improvements are to 611
be exempted from taxation, provide an estimate of the true value 612
in money of the improvements, specify the period for which the 613
improvements would be exempted from taxation and the percentage of 614
the improvements that would be exempted, and indicate the date on 615
which the board of township trustees intends to adopt the 616
resolution. The notice regarding improvements made under division 617
(C) of this section to parcels within an incentive district shall 618
delineate the boundaries of the district, specifically identify 619
each parcel within the district, identify each anticipated 620
improvement in the district, provide an estimate of the true value 621
in money of each such improvement, specify the life of the 622
district and the percentage of improvements that would be 623
exempted, and indicate the date on which the board of township 624
trustees intends to adopt the resolution. The board of education, 625
by resolution adopted by a majority of the board, may approve the 626
exemption for the period or for the exemption percentage specified 627
in the notice; may disapprove the exemption for the number of 628
years in excess of ten, may disapprove the exemption for the 629
percentage of the improvements to be exempted in excess of 630
seventy-five per cent, or both; or may approve the exemption on 631
the condition that the board of township trustees and the board of 632
education negotiate an agreement providing for compensation to the 633
school district equal in value to a percentage of the amount of 634
taxes exempted in the eleventh and subsequent years of the 635
exemption period or, in the case of exemption percentages in 636
excess of seventy-five per cent, compensation equal in value to a 637
percentage of the taxes that would be payable on the portion of 638
the improvements in excess of seventy-five per cent were that 639
portion to be subject to taxation, or other mutually agreeable 640
compensation.641

       The board of education shall certify its resolution to the 642
board of township trustees not later than fourteen days prior to 643
the date the board of township trustees intends to adopt the 644
resolution as indicated in the notice. If the board of education 645
and the board of township trustees negotiate a mutually acceptable 646
compensation agreement, the resolution may declare the 647
improvements a public purpose for the number of years specified in 648
the resolution or, in the case of exemption percentages in excess 649
of seventy-five per cent, for the exemption percentage specified 650
in the resolution. In either case, if the board of education and 651
the board of township trustees fail to negotiate a mutually 652
acceptable compensation agreement, the resolution may declare the 653
improvements a public purpose for not more than ten years, and 654
shall not exempt more than seventy-five per cent of the 655
improvements from taxation. If the board of education fails to 656
certify a resolution to the board of township trustees within the 657
time prescribed by this section, the board of township trustees 658
thereupon may adopt the resolution and may declare the 659
improvements a public purpose for up to thirty years or, in the 660
case of exemption percentages proposed in excess of seventy-five 661
per cent, for the exemption percentage specified in the 662
resolution. The board of township trustees may adopt the 663
resolution at any time after the board of education certifies its 664
resolution approving the exemption to the board of township 665
trustees, or, if the board of education approves the exemption on 666
the condition that a mutually acceptable compensation agreement be 667
negotiated, at any time after the compensation agreement is agreed 668
to by the board of education and the board of township trustees. 669
If a mutually acceptable compensation agreement is negotiated 670
between the board of township trustees and the board of education, 671
including agreements for payments in lieu of taxes under section 672
5709.74 of the Revised Code, the board of township trustees shall 673
compensate the joint vocational school district within which the 674
parcel or district is located at the same rate and under the same 675
terms received by the city, local, or exempted village school 676
district.677

        If a board of education has adopted a resolution waiving its 678
right to approve exemptions from taxation under this section and 679
the resolution remains in effect, approval of such exemptions by 680
the board of education is not required under division (D) of this 681
section. If a board of education has adopted a resolution allowing 682
a board of township trustees to deliver the notice required under 683
division (D) of this section fewer than forty-five business days 684
prior to adoption of the resolution by the board of township 685
trustees, the board of township trustees shall deliver the notice 686
to the board of education not later than the number of days prior 687
to the adoption as prescribed by the board of education in its 688
resolution. If a board of education adopts a resolution waiving 689
its right to approve exemptions or shortening the notification 690
period, the board of education shall certify a copy of the 691
resolution to the board of township trustees. If the board of 692
education rescinds the resolution, it shall certify notice of the 693
rescission to the board of township trustees.694

       If the board of township trustees is not required by division 695
(D) of this section to notify the board of education of the board 696
of township trustees' intent to declare improvements to be a 697
public purpose, the board of township trustees shall comply with 698
the notice requirements imposed under section 5709.83 of the 699
Revised Code before taking formal action to adopt the resolution 700
making that declaration, unless the board of education has adopted 701
a resolution under that section waiving its right to receive the 702
notice.703

       (E)(1) If a proposed resolution under division (C)(1) of this 704
section exempts improvements with respect to a parcel within an 705
incentive district for more than ten years, or the percentage of 706
the improvement exempted from taxation exceeds seventy-five per 707
cent, not later than forty-five business days prior to adopting 708
the resolution the board of township trustees shall deliver to the 709
board of county commissioners of the county within which the 710
incentive district is or will be located a notice that states its 711
intent to adopt a resolution creating an incentive district. The 712
notice shall include a copy of the proposed resolution, identify 713
the parcels for which improvements are to be exempted from 714
taxation, provide an estimate of the true value in money of the 715
improvements, specify the period of time for which the 716
improvements would be exempted from taxation, specify the 717
percentage of the improvements that would be exempted from 718
taxation, and indicate the date on which the board of township 719
trustees intends to adopt the resolution.720

       (2) The board of county commissioners, by resolution adopted 721
by a majority of the board, may object to the exemption for the 722
number of years in excess of ten, may object to the exemption for 723
the percentage of the improvement to be exempted in excess of 724
seventy-five per cent, or both. If the board of county 725
commissioners objects, the board may negotiate a mutually 726
acceptable compensation agreement with the board of township 727
trustees. In no case shall the compensation provided to the board 728
of county commissioners exceed the property taxes foregone due to 729
the exemption. If the board of county commissioners objects, and 730
the board of county commissioners and board of township trustees 731
fail to negotiate a mutually acceptable compensation agreement, 732
the resolution adopted under division (C)(1) of this section shall 733
provide to the board of county commissioners compensation in the 734
eleventh and subsequent years of the exemption period equal in 735
value to not more than fifty per cent of the taxes that would be 736
payable to the county or, if the board of county commissioner's 737
objection includes an objection to an exemption percentage in 738
excess of seventy-five per cent, compensation equal in value to 739
not more than fifty per cent of the taxes that would be payable to 740
the county, on the portion of the improvement in excess of 741
seventy-five per cent, were that portion to be subject to 742
taxation. The board of county commissioners shall certify its 743
resolution to the board of township trustees not later than thirty 744
days after receipt of the notice.745

       (3) If the board of county commissioners does not object or 746
fails to certify its resolution objecting to an exemption within 747
thirty days after receipt of the notice, the board of township 748
trustees may adopt its resolution, and no compensation shall be 749
provided to the board of county commissioners. If the board of 750
county commissioners timely certifies its resolution objecting to 751
the trustees' resolution, the board of township trustees may adopt 752
its resolution at any time after a mutually acceptable 753
compensation agreement is agreed to by the board of county 754
commissioners and the board of township trustees, or, if no 755
compensation agreement is negotiated, at any time after the board 756
of township trustees agrees in the proposed resolution to provide 757
compensation to the board of county commissioners of fifty per 758
cent of the taxes that would be payable to the county in the 759
eleventh and subsequent years of the exemption period or on the 760
portion of the improvement in excess of seventy-five per cent, 761
were that portion to be subject to taxation.762

       (F) Service payments in lieu of taxes that are attributable 763
to any amount by which the effective tax rate of either a renewal 764
levy with an increase or a replacement levy exceeds the effective 765
tax rate of the levy renewed or replaced, or that are attributable 766
to an additional levy, for a levy authorized by the voters for any 767
of the following purposes on or after January 1, 2006, and which 768
are provided pursuant to a resolution creating an incentive 769
district under division (C)(1) of this section that is adopted on 770
or after January 1, 2006, shall be distributed to the appropriate 771
taxing authority as required under division (C) of section 5709.74 772
of the Revised Code in an amount equal to the amount of taxes from 773
that additional levy or from the increase in the effective tax 774
rate of such renewal or replacement levy that would have been 775
payable to that taxing authority from the following levies were it 776
not for the exemption authorized under division (C) of this 777
section:778

       (1) A tax levied under division (L) of section 5705.19 or 779
section 5705.191 of the Revised Code for community mental 780
retardation and developmental disabilities programs and services 781
pursuant to Chapter 5126. of the Revised Code;782

       (2) A tax levied under division (Y) of section 5705.19 of the 783
Revised Code for providing or maintaining senior citizens services 784
or facilities;785

       (3) A tax levied under section 5705.22 of the Revised Code 786
for county hospitals;787

       (4) A tax levied by a joint-county district or by a county 788
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 789
for alcohol, drug addiction, and mental health services or 790
families;791

       (5) A tax levied under section 5705.23 of the Revised Code 792
for library purposes;793

       (6) A tax levied under section 5705.24 of the Revised Code 794
for the support of children services and the placement and care of 795
children;796

       (7) A tax levied under division (Z) of section 5705.19 of the 797
Revised Code for the provision and maintenance of zoological park 798
services and facilities under section 307.76 of the Revised Code;799

        (8) A tax levied under section 511.27 or division (H) of 800
section 5705.19 of the Revised Code for the support of township 801
park districts;802

        (9) A tax levied under division (A), (F), or (H) of section 803
5705.19 of the Revised Code for parks and recreational purposes of 804
a joint recreation district organized pursuant to division (B) of 805
section 755.14 of the Revised Code;806

        (10) A tax levied under section 1545.20 or 1545.21 of the 807
Revised Code for park district purposes;808

        (11) A tax levied under section 5705.191 of the Revised Code 809
for the purpose of making appropriations for public assistance; 810
human or social services; public relief; public welfare; public 811
health and hospitalization; and support of general hospitals;812

        (12) A tax levied under section 3709.29 of the Revised Code 813
for a general health district program;814

       (13) A tax levied under section 505.39 or division (I) of 815
section 5705.19 of the Revised Code for the purpose of funding 816
fire, emergency medical, and ambulance services as described in 817
that section and division;818

        (14) A tax levied under division (J) of section 5705.19 of 819
the Revised Code for the purpose of police protection, emergency 820
medical, and ambulance services as described in that division.821

       (G) An exemption from taxation granted under this section 822
commences with the tax year specified in the resolution so long as 823
the year specified in the resolution commences after the effective 824
date of the resolution. If the resolution specifies a year 825
commencing before the effective date of the resolution or 826
specifies no year whatsoever, the exemption commences with the tax 827
year in which an exempted improvement first appears on the tax 828
list and duplicate of real and public utility property and that 829
commences after the effective date of the resolution. Except as 830
otherwise provided in this division, the exemption ends on the 831
date specified in the resolution as the date the improvement 832
ceases to be a public purpose or the incentive district expires, 833
or ends on the date on which the public infrastructure 834
improvements and housing renovations are paid in full from the 835
township public improvement tax increment equivalent fund 836
established under section 5709.75 of the Revised Code, whichever 837
occurs first. The exemption of an improvement with respect to a 838
parcel or within an incentive district may end on a later date, as 839
specified in the resolution, if the board of township trustees and 840
the board of education of the city, local, or exempted village 841
school district within which the parcel or district is located 842
have entered into a compensation agreement under section 5709.82 843
of the Revised Code with respect to the improvement and the board 844
of education has approved the term of the exemption under division 845
(D) of this section, but in no case shall the improvement be 846
exempted from taxation for more than thirty years. The board of 847
township trustees may, by majority vote, adopt a resolution 848
permitting the township to enter into such agreements as the board 849
finds necessary or appropriate to provide for the construction or 850
undertaking of public infrastructure improvements and housing 851
renovations. Any exemption shall be claimed and allowed in the 852
same or a similar manner as in the case of other real property 853
exemptions. If an exemption status changes during a tax year, the 854
procedure for the apportionment of the taxes for that year is the 855
same as in the case of other changes in tax exemption status 856
during the year.857

       (H) The board of township trustees may issue the notes of the 858
township to finance all costs pertaining to the construction or 859
undertaking of public infrastructure improvements and housing 860
renovations made pursuant to this section. The notes shall be 861
signed by the board and attested by the signature of the township 862
fiscal officer, shall bear interest not to exceed the rate 863
provided in section 9.95 of the Revised Code, and are not subject 864
to Chapter 133. of the Revised Code. The resolution authorizing 865
the issuance of the notes shall pledge the funds of the township 866
public improvement tax increment equivalent fund established 867
pursuant to section 5709.75 of the Revised Code to pay the 868
interest on and principal of the notes. The notes, which may 869
contain a clause permitting prepayment at the option of the board, 870
shall be offered for sale on the open market or given to the 871
vendor or contractor if no sale is made.872

       (I) The township, not later than fifteen days after the 873
adoption of a resolution under this section, shall submit to the 874
director of development a copy of the resolution. On or before the 875
thirty-first day of March of each year, the township shall submit 876
a status report to the director of development. The report shall 877
indicate, in the manner prescribed by the director, the progress 878
of the project during each year that the exemption remains in 879
effect, including a summary of the receipts from service payments 880
in lieu of taxes; expenditures of money from the fund created 881
under section 5709.75 of the Revised Code; a description of the 882
public infrastructure improvements and housing renovations 883
financed with the expenditures; and a quantitative summary of 884
changes in private investment resulting from each project.885

       (J) Nothing in this section shall be construed to prohibit a 886
board of township trustees from declaring to be a public purpose 887
improvements with respect to more than one parcel.888

       If a parcel is located in a new community district in which 889
the new community authority imposes a community development charge 890
on the basis of rentals received from leases of real property as 891
described in division (L)(2) of section 349.01 of the Revised 892
Code, the parcel may not be exempted from taxation under this 893
section.894

       (K) A board of township trustees that adopted a resolution 895
under this section prior to July 21, 1994, may amend that 896
resolution to include any additional public infrastructure 897
improvement. A board of township trustees that seeks by the 898
amendment to utilize money from its township public improvement 899
tax increment equivalent fund for land acquisition in aid of 900
industry, commerce, distribution, or research, demolition on 901
private property, or stormwater and flood remediation projects may 902
do so provided that the board currently is a party to a 903
hold-harmless agreement with the board of education of the city, 904
local, or exempted village school district within the territory of 905
which are located the parcels that are subject to an exemption. 906
For the purposes of this division, a "hold-harmless agreement" 907
means an agreement under which the board of township trustees 908
agrees to compensate the school district for one hundred per cent 909
of the tax revenue that the school district would have received 910
from further improvements to parcels designated in the resolution 911
were it not for the exemption granted by the resolution.912

       Sec. 5709.78.  (A) A board of county commissioners may, by 913
resolution, declare improvements to certain parcels of real 914
property located in the unincorporated territory of the county to 915
be a public purpose. Except with the approval under division (C) 916
of this section of the board of education of each city, local, or 917
exempted village school district within which the improvements are 918
located, not more than seventy-five per cent of an improvement 919
thus declared to be a public purpose may be exempted from real 920
property taxation, for a period of not more than ten years. The 921
resolution shall specify the percentage of the improvement to be 922
exempted and the life of the exemption.923

       A resolution adopted under this division shall designate the 924
specific public infrastructure improvements made, to be made, or 925
in the process of being made by the county that directly benefit, 926
or that once made will directly benefit, the parcels for which 927
improvements are declared to be a public purpose. The service 928
payments provided for in section 5709.79 of the Revised Code shall 929
be used to finance the public infrastructure improvements 930
designated in the resolution, or as provided in section 5709.80 of 931
the Revised Code.932

       (B)(1) A board of county commissioners may adopt a resolution 933
creating an incentive district and declaring improvements to 934
parcels within the district to be a public purpose and, except as 935
provided in division (E) of this section, exempt from taxation as 936
provided in this section, but no board of county commissioners of 937
a county that has a population that exceeds twenty-five thousand, 938
as shown by the most recent federal decennial census, shall adopt 939
a resolution that creates an incentive district if the sum of the 940
taxable value of real property in the proposed district for the 941
preceding tax year and the taxable value of all real property in 942
the county that would have been taxable in the preceding year were 943
it not for the fact that the property was in an existing incentive 944
district and therefore exempt from taxation exceeds twenty-five 945
per cent of the taxable value of real property in the county for 946
the preceding tax year. The district shall be located within the 947
unincorporated territory of the county and shall not include any 948
territory that is included within a district created under 949
division (C) of section 5709.73 of the Revised Code. The 950
resolution shall delineate the boundary of the district and 951
specifically identify each parcel within the district. A district 952
may not include any parcel that is or has been exempted from 953
taxation under division (A) of this section or that is or has been 954
within another district created under this division. A resolution 955
may create more than one such district, and more than one 956
resolution may be adopted under division (B)(1) of this section.957

       (2) Not later than thirty days prior to adopting a resolution 958
under division (B)(1) of this section, if the county intends to 959
apply for exemptions from taxation under section 5709.911 of the 960
Revised Code on behalf of owners of real property located within 961
the proposed incentive district, the board of county commissioners 962
shall conduct a public hearing on the proposed resolution. Not 963
later than thirty days prior to the public hearing, the board 964
shall give notice of the public hearing and the proposed 965
resolution by first class mail to every real property owner whose 966
property is located within the boundaries of the proposed 967
incentive district that is the subject of the proposed resolution. 968
The board also shall provide the notice by first class mail to the 969
clerk of each township in which the proposed incentive district 970
will be located.971

       (3)(a) A resolution adopted under division (B)(1) of this 972
section shall specify the life of the incentive district and the 973
percentage of the improvements to be exempted, shall designate the 974
public infrastructure improvements made, to be made, or in the 975
process of being made, that benefit or serve, or, once made, will 976
benefit or serve parcels in the district. The resolution also 977
shall identify one or more specific projects being, or to be, 978
undertaken in the district that place additional demand on the 979
public infrastructure improvements designated in the resolution. 980
The project identified may, but need not be, the project under 981
division (B)(3)(b) of this section that places real property in 982
use for commercial or industrial purposes.983

       A resolution adopted under division (B)(1) of this section on 984
or after March 30, 2006, shall not designate police or fire 985
equipment as public infrastructure improvements, and no service 986
payment provided for in section 5709.79 of the Revised Code and 987
received by the county under the resolution shall be used for 988
police or fire equipment.989

       (b) A resolution adopted under division (B)(1) of this 990
section may authorize the use of service payments provided for in 991
section 5709.79 of the Revised Code for the purpose of housing 992
renovations within the incentive district, provided that the 993
resolution also designates public infrastructure improvements that 994
benefit or serve the district, and that a project within the 995
district places real property in use for commercial or industrial 996
purposes. Service payments may be used to finance or support 997
loans, deferred loans, and grants to persons for the purpose of 998
housing renovations within the district. The resolution shall 999
designate the parcels within the district that are eligible for 1000
housing renovations. The resolution shall state separately the 1001
amount or the percentages of the expected aggregate service 1002
payments that are designated for each public infrastructure 1003
improvement and for the purpose of housing renovations.1004

       (4) Except with the approval of the board of education of 1005
each city, local, or exempted village school district within the 1006
territory of which the incentive district is or will be located, 1007
and subject to division (D) of this section, the life of an 1008
incentive district shall not exceed ten years, and the percentage 1009
of improvements to be exempted shall not exceed seventy-five per 1010
cent. With approval of the board of education, the life of a 1011
district may be not more than thirty years, and the percentage of 1012
improvements to be exempted may be not more than one hundred per 1013
cent. The approval of a board of education shall be obtained in 1014
the manner provided in division (C) of this section.1015

       (C)(1) Improvements with respect to a parcel may be exempted 1016
from taxation under division (A) of this section, and improvements 1017
to parcels within an incentive district may be exempted from 1018
taxation under division (B) of this section, for up to ten years 1019
or, with the approval of the board of education of each city, 1020
local, or exempted village school district within which the parcel 1021
or district is located, for up to thirty years. The percentage of 1022
the improvements exempted from taxation may, with such approval, 1023
exceed seventy-five per cent, but shall not exceed one hundred per 1024
cent. Not later than forty-five business days prior to adopting a 1025
resolution under this section declaring improvements to be a 1026
public purpose that is subject to the approval of a board of 1027
education under this division, the board of county commissioners 1028
shall deliver to the board of education a notice stating its 1029
intent to adopt a resolution making that declaration. The notice 1030
regarding improvements with respect to a parcel under division (A) 1031
of this section shall identify the parcels for which improvements 1032
are to be exempted from taxation, provide an estimate of the true 1033
value in money of the improvements, specify the period for which 1034
the improvements would be exempted from taxation and the 1035
percentage of the improvements that would be exempted, and 1036
indicate the date on which the board of county commissioners 1037
intends to adopt the resolution. The notice regarding improvements 1038
to parcels within an incentive district under division (B) of this 1039
section shall delineate the boundaries of the district, 1040
specifically identify each parcel within the district, identify 1041
each anticipated improvement in the district, provide an estimate 1042
of the true value in money of each such improvement, specify the 1043
life of the district and the percentage of improvements that would 1044
be exempted, and indicate the date on which the board of county 1045
commissioners intends to adopt the resolution. The board of 1046
education, by resolution adopted by a majority of the board, may 1047
approve the exemption for the period or for the exemption 1048
percentage specified in the notice; may disapprove the exemption 1049
for the number of years in excess of ten, may disapprove the 1050
exemption for the percentage of the improvements to be exempted in 1051
excess of seventy-five per cent, or both; or may approve the 1052
exemption on the condition that the board of county commissioners 1053
and the board of education negotiate an agreement providing for 1054
compensation to the school district equal in value to a percentage 1055
of the amount of taxes exempted in the eleventh and subsequent 1056
years of the exemption period or, in the case of exemption 1057
percentages in excess of seventy-five per cent, compensation equal 1058
in value to a percentage of the taxes that would be payable on the 1059
portion of the improvements in excess of seventy-five per cent 1060
were that portion to be subject to taxation, or other mutually 1061
agreeable compensation.1062

       (2) The board of education shall certify its resolution to 1063
the board of county commissioners not later than fourteen days 1064
prior to the date the board of county commissioners intends to 1065
adopt its resolution as indicated in the notice. If the board of 1066
education and the board of county commissioners negotiate a 1067
mutually acceptable compensation agreement, the resolution of the 1068
board of county commissioners may declare the improvements a 1069
public purpose for the number of years specified in that 1070
resolution or, in the case of exemption percentages in excess of 1071
seventy-five per cent, for the exemption percentage specified in 1072
the resolution. In either case, if the board of education and the 1073
board of county commissioners fail to negotiate a mutually 1074
acceptable compensation agreement, the resolution may declare the 1075
improvements a public purpose for not more than ten years, and 1076
shall not exempt more than seventy-five per cent of the 1077
improvements from taxation. If the board of education fails to 1078
certify a resolution to the board of county commissioners within 1079
the time prescribed by this section, the board of county 1080
commissioners thereupon may adopt the resolution and may declare 1081
the improvements a public purpose for up to thirty years or, in 1082
the case of exemption percentages proposed in excess of 1083
seventy-five per cent, for the exemption percentage specified in 1084
the resolution. The board of county commissioners may adopt the 1085
resolution at any time after the board of education certifies its 1086
resolution approving the exemption to the board of county 1087
commissioners, or, if the board of education approves the 1088
exemption on the condition that a mutually acceptable compensation 1089
agreement be negotiated, at any time after the compensation 1090
agreement is agreed to by the board of education and the board of 1091
county commissioners. If a mutually acceptable compensation 1092
agreement is negotiated between the board of county commissioners 1093
and the board of education, including agreements for payments in 1094
lieu of taxes under section 5709.79 of the Revised Code, the board 1095
of county commissioners shall compensate the joint vocational 1096
school district within which the parcel or district is located at 1097
the same rate and under the same terms received by the city, 1098
local, or exempted village school district.1099

       (3) If a board of education has adopted a resolution waiving 1100
its right to approve exemptions from taxation under this section 1101
and the resolution remains in effect, approval of such exemptions 1102
by the board of education is not required under division (C) of 1103
this section. If a board of education has adopted a resolution 1104
allowing a board of county commissioners to deliver the notice 1105
required under division (C) of this section fewer than forty-five 1106
business days prior to approval of the resolution by the board of 1107
county commissioners, the board of county commissioners shall 1108
deliver the notice to the board of education not later than the 1109
number of days prior to such approval as prescribed by the board 1110
of education in its resolution. If a board of education adopts a 1111
resolution waiving its right to approve exemptions or shortening 1112
the notification period, the board of education shall certify a 1113
copy of the resolution to the board of county commissioners. If 1114
the board of education rescinds such a resolution, it shall 1115
certify notice of the rescission to the board of county 1116
commissioners.1117

       (D)(1) If a proposed resolution under division (B)(1) of this 1118
section exempts improvements with respect to a parcel within an 1119
incentive district for more than ten years, or the percentage of 1120
the improvement exempted from taxation exceeds seventy-five per 1121
cent, not later than forty-five business days prior to adopting 1122
the resolution the board of county commissioners shall deliver to 1123
the board of township trustees of any township within which the 1124
incentive district is or will be located a notice that states its 1125
intent to adopt a resolution creating an incentive district. The 1126
notice shall include a copy of the proposed resolution, identify 1127
the parcels for which improvements are to be exempted from 1128
taxation, provide an estimate of the true value in money of the 1129
improvements, specify the period of time for which the 1130
improvements would be exempted from taxation, specify the 1131
percentage of the improvements that would be exempted from 1132
taxation, and indicate the date on which the board intends to 1133
adopt the resolution.1134

       (2) The board of township trustees, by resolution adopted by 1135
a majority of the board, may object to the exemption for the 1136
number of years in excess of ten, may object to the exemption for 1137
the percentage of the improvement to be exempted in excess of 1138
seventy-five per cent, or both. If the board of township trustees 1139
objects, the board of township trustees may negotiate a mutually 1140
acceptable compensation agreement with the board of county 1141
commissioners. In no case shall the compensation provided to the 1142
board of township trustees exceed the property taxes forgone due 1143
to the exemption. If the board of township trustees objects, and 1144
the board of township trustees and the board of county 1145
commissioners fail to negotiate a mutually acceptable compensation 1146
agreement, the resolution adopted under division (B)(1) of this 1147
section shall provide to the board of township trustees 1148
compensation in the eleventh and subsequent years of the exemption 1149
period equal in value to not more than fifty per cent of the taxes 1150
that would be payable to the township or, if the board of township 1151
trustee's objection includes an objection to an exemption 1152
percentage in excess of seventy-five per cent, compensation equal 1153
in value to not more than fifty per cent of the taxes that would 1154
be payable to the township on the portion of the improvement in 1155
excess of seventy-five per cent, were that portion to be subject 1156
to taxation. The board of township trustees shall certify its 1157
resolution to the board of county commissioners not later than 1158
thirty days after receipt of the notice.1159

       (3) If the board of township trustees does not object or 1160
fails to certify a resolution objecting to an exemption within 1161
thirty days after receipt of the notice, the board of county 1162
commissioners may adopt its resolution, and no compensation shall 1163
be provided to the board of township trustees. If the board of 1164
township trustees certifies its resolution objecting to the 1165
commissioners' resolution, the board of county commissioners may 1166
adopt its resolution at any time after a mutually acceptable 1167
compensation agreement is agreed to by the board of county 1168
commissioners and the board of township trustees. If the board of 1169
township trustees certifies a resolution objecting to the 1170
commissioners' resolution, the board of county commissioners may 1171
adopt its resolution at any time after a mutually acceptable 1172
compensation agreement is agreed to by the board of county 1173
commissioners and the board of township trustees, or, if no 1174
compensation agreement is negotiated, at any time after the board 1175
of county commissioners in the proposed resolution to provide 1176
compensation to the board of township trustees of fifty per cent 1177
of the taxes that would be payable to the township in the eleventh 1178
and subsequent years of the exemption period or on the portion of 1179
the improvement in excess of seventy-five per cent, were that 1180
portion to be subject to taxation.1181

       (E) Service payments in lieu of taxes that are attributable 1182
to any amount by which the effective tax rate of either a renewal 1183
levy with an increase or a replacement levy exceeds the effective 1184
tax rate of the levy renewed or replaced, or that are attributable 1185
to an additional levy, for a levy authorized by the voters for any 1186
of the following purposes on or after January 1, 2006, and which 1187
are provided pursuant to a resolution creating an incentive 1188
district under division (B)(1) of this section that is adopted on 1189
or after January 1, 2006, shall be distributed to the appropriate 1190
taxing authority as required under division (D) of section 5709.79 1191
of the Revised Code in an amount equal to the amount of taxes from 1192
that additional levy or from the increase in the effective tax 1193
rate of such renewal or replacement levy that would have been 1194
payable to that taxing authority from the following levies were it 1195
not for the exemption authorized under division (B) of this 1196
section:1197

       (1) A tax levied under division (L) of section 5705.19 or 1198
section 5705.191 of the Revised Code for community mental 1199
retardation and developmental disabilities programs and services 1200
pursuant to Chapter 5126. of the Revised Code;1201

       (2) A tax levied under division (Y) of section 5705.19 of the 1202
Revised Code for providing or maintaining senior citizens services 1203
or facilities;1204

       (3) A tax levied under section 5705.22 of the Revised Code 1205
for county hospitals;1206

       (4) A tax levied by a joint-county district or by a county 1207
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 1208
for alcohol, drug addiction, and mental health services or 1209
facilities;1210

       (5) A tax levied under section 5705.23 of the Revised Code 1211
for library purposes;1212

       (6) A tax levied under section 5705.24 of the Revised Code 1213
for the support of children services and the placement and care of 1214
children;1215

       (7) A tax levied under division (Z) of section 5705.19 of the 1216
Revised Code for the provision and maintenance of zoological park 1217
services and facilities under section 307.76 of the Revised Code;1218

        (8) A tax levied under section 511.27 or division (H) of 1219
section 5705.19 of the Revised Code for the support of township 1220
park districts;1221

        (9) A tax levied under division (A), (F), or (H) of section 1222
5705.19 of the Revised Code for parks and recreational purposes of 1223
a joint recreation district organized pursuant to division (B) of 1224
section 755.14 of the Revised Code;1225

        (10) A tax levied under section 1545.20 or 1545.21 of the 1226
Revised Code for park district purposes;1227

        (11) A tax levied under section 5705.191 of the Revised Code 1228
for the purpose of making appropriations for public assistance; 1229
human or social services; public relief; public welfare; public 1230
health and hospitalization; and support of general hospitals;1231

        (12) A tax levied under section 3709.29 of the Revised Code 1232
for a general health district program;1233

       (13) A tax levied under section 505.39 or division (I) of 1234
section 5705.19 of the Revised Code for the purpose of funding 1235
fire, emergency medical, and ambulance services as described in 1236
that section and division;1237

        (14) A tax levied under division (J) of section 5705.19 of 1238
the Revised Code for the purpose of police protection, emergency 1239
medical, and ambulance services as described in that division.1240

       (F) An exemption from taxation granted under this section 1241
commences with the tax year specified in the resolution so long as 1242
the year specified in the resolution commences after the effective 1243
date of the resolution. If the resolution specifies a year 1244
commencing before the effective date of the resolution or 1245
specifies no year whatsoever, the exemption commences with the tax 1246
year in which an exempted improvement first appears on the tax 1247
list and duplicate of real and public utility property and that 1248
commences after the effective date of the resolution. Except as 1249
otherwise provided in this division, the exemption ends on the 1250
date specified in the resolution as the date the improvement 1251
ceases to be a public purpose or the incentive district expires, 1252
or ends on the date on which the county can no longer require 1253
annual service payments in lieu of taxes under section 5709.79 of 1254
the Revised Code, whichever occurs first. The exemption of an 1255
improvement with respect to a parcel or within an incentive 1256
district may end on a later date, as specified in the resolution, 1257
if the board of commissioners and the board of education of the 1258
city, local, or exempted village school district within which the 1259
parcel or district is located have entered into a compensation 1260
agreement under section 5709.82 of the Revised Code with respect 1261
to the improvement, and the board of education has approved the 1262
term of the exemption under division (C)(1) of this section, but 1263
in no case shall the improvement be exempted from taxation for 1264
more than thirty years. Exemptions shall be claimed and allowed in 1265
the same or a similar manner as in the case of other real property 1266
exemptions. If an exemption status changes during a tax year, the 1267
procedure for the apportionment of the taxes for that year is the 1268
same as in the case of other changes in tax exemption status 1269
during the year.1270

       (G) If the board of county commissioners is not required by 1271
this section to notify the board of education of the board of 1272
county commissioners' intent to declare improvements to be a 1273
public purpose, the board of county commissioners shall comply 1274
with the notice requirements imposed under section 5709.83 of the 1275
Revised Code before taking formal action to adopt the resolution 1276
making that declaration, unless the board of education has adopted 1277
a resolution under that section waiving its right to receive such 1278
a notice.1279

       (H) The county, not later than fifteen days after the 1280
adoption of a resolution under this section, shall submit to the 1281
director of development a copy of the resolution. On or before the 1282
thirty-first day of March of each year, the county shall submit a 1283
status report to the director of development. The report shall 1284
indicate, in the manner prescribed by the director, the progress 1285
of the project during each year that an exemption remains in 1286
effect, including a summary of the receipts from service payments 1287
in lieu of taxes; expenditures of money from the fund created 1288
under section 5709.80 of the Revised Code; a description of the 1289
public infrastructure improvements and housing renovations 1290
financed with such expenditures; and a quantitative summary of 1291
changes in employment and private investment resulting from each 1292
project.1293

       (I) Nothing in this section shall be construed to prohibit a 1294
board of county commissioners from declaring to be a public 1295
purpose improvements with respect to more than one parcel.1296

       (J) If a parcel is located in a new community district in 1297
which the new community authority imposes a community development 1298
charge on the basis of rentals received from leases of real 1299
property as described in division (L)(2) of section 349.01 of the 1300
Revised Code, the parcel may not be exempted from taxation under 1301
this section.1302

       Section 2.  That existing sections 5709.40, 5709.73, and 1303
5709.78 of the Revised Code are hereby repealed.1304

       Section 3.  The amendment by this act of sections 5709.40, 1305
5709.73, and 5709.78 of the Revised Code applies to service 1306
payments in lieu of taxes charged and payable for tax year 2013 1307
and thereafter.1308

       Section 4.  Sections 5709.40 and 5709.73 of the Revised Code 1309
are presented in this act as composites of the sections as amended 1310
by both Am. Sub. H.B. 508 and Am. Sub. H.B. 509 of the 129th 1311
General Assembly. The General Assembly, applying the principle 1312
stated in division (B) of section 1.52 of the Revised Code that 1313
amendments are to be harmonized if reasonably capable of 1314
simultaneous operation, finds that the composites are the 1315
resulting versions of those sections in effect prior to the 1316
effective date of the sections as presented in this act.1317