As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 665

Representative Schuring 

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A BILL

To amend sections 133.04, 133.06, 709.024, 709.19,

1

3317.021, 5501.311, 5709.12, 5709.82, 5709.83,

2

5709.831, 5709.832, 5709.85, 5709.91, 5709.911,

3

5709.913, and 5715.27 and to enact sections

4

1710.14, 1724.12, 5709.45, 5709.46, and 5709.47 of

5

the Revised Code to authorize municipal

6

corporations to create downtown redevelopment

7

districts for the purpose of promoting the

8

rehabilitation of historic buildings, creating

9

jobs, and encouraging economic development in

10

commercial and mixed-use commercial and

11

residential areas.

12

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

Section 1. That sections 133.04, 133.06, 709.024, 709.19,	13
3317.021, 5501.311, 5709.12, 5709.82, 5709.83, 5709.831, 5709.832,	14
5709.85, 5709.91, 5709.911, 5709.913, and 5715.27 be amended and	15
sections 1710.14, 1724.12, 5709.45, 5709.46, and 5709.47 of the	16
Revised Code be enacted to read as follows:	17

Sec. 133.04.  (A) As used in this chapter, "net indebtedness"	18
means, as determined pursuant to this section, the principal	19
amount of the outstanding securities of a subdivision less the	20
amount held in a bond retirement fund to the extent such amount is	21
not taken into account in determining the principal amount	22
outstanding under division (AA) of section 133.01 of the Revised	23
Code. For purposes of this definition, the principal amount of	24
outstanding securities includes the principal amount of	25
outstanding securities of another subdivision apportioned to the	26
subdivision as a result of acquisition of territory, and excludes	27
the principal amount of outstanding securities of the subdivision	28
apportioned to another subdivision as a result of loss of	29
territory and the payment or reimbursement obligations of the	30
subdivision under credit enhancement facilities relating to	31
outstanding securities.	32

(B) In calculating the net indebtedness of a subdivision,	33
none of the following securities, including anticipatory	34
securities issued in anticipation of their issuance, shall be	35
considered:	36

(1) Securities issued in anticipation of the levy or	37
collection of special assessments, either in original or refunded	38
form;	39

(2) Securities issued in anticipation of the collection of	40
current revenues for the fiscal year or other period not to exceed	41
twelve consecutive months, or securities issued in anticipation of	42
the collection of the proceeds from a specifically identified	43
voter-approved tax levy;	44

(3) Securities issued for purposes described in section	45
133.12 of the Revised Code;	46

(4) Securities issued under Chapter 122., 140., 165., 725.,	47
or 761. or section 131.23 of the Revised Code;	48

(5) Securities issued to pay final judgments or	49
court-approved settlements under authorizing laws and securities	50
issued under section 2744.081 of the Revised Code;	51

(6) Securities issued to pay costs of permanent improvements	52
to the extent they are issued in anticipation of the receipt of,	53
and are payable as to principal from, federal or state grants or	54
distributions for, or legally available for, that principal or for	55
the costs of those permanent improvements;	56

(7) Securities issued to evidence loans from the state	57
capital improvements fund pursuant to Chapter 164. of the Revised	58
Code or from the state infrastructure bank pursuant to section	59
5531.09 of the Revised Code;	60

(8) That percentage of the principal amount of general	61
obligation securities issued by a county, township, or municipal	62
corporation to pay the costs of permanent improvements equal to	63
the percentage of the debt charges on those securities payable	64
during the current fiscal year that the fiscal officer estimates	65
can be paid during the current fiscal year from payments in lieu	66
of taxes under section 1728.11, 1728.111, 5709.42, 5709.46,	67
5709.74, or 5709.79 of the Revised Code, and that the legislation	68
authorizing the issuance of the securities pledges or covenants	69
will be used for the payment of those debt charges; provided that	70
the amount excluded from consideration under division (B)(8) of	71
this section shall not exceed the lesser of thirty million dollars	72
or one-half per cent of the subdivision's tax valuation in the	73
case of a county or township, or one and one-tenth per cent of the	74
subdivision's tax valuation in the case of a municipal	75
corporation;	76

(9) Securities issued in an amount equal to the property tax	77
replacement payments received under section 5727.85 or 5727.86 of	78
the Revised Code;	79

(10) Securities issued in an amount equal to the property tax	80
replacement payments received under section 5751.21 or 5751.22 of	81
the Revised Code;	82

(11) Other securities, including self-supporting securities,	83
excepted by law from the calculation of net indebtedness or from	84
the application of this chapter;	85

(12) Any other securities outstanding on October 30, 1989,	86
and then excepted from the calculation of net indebtedness or from	87
the application of this chapter, and securities issued at any time	88
to fund or refund those securities.	89

Sec. 133.06.  (A) A school district shall not incur, without	90
a vote of the electors, net indebtedness that exceeds an amount	91
equal to one-tenth of one per cent of its tax valuation, except as	92
provided in divisions (G) and (H) of this section and in division	93
(D) of section 3313.372 of the Revised Code, or as prescribed in	94
section 3318.052 or 3318.44 of the Revised Code, or as provided in	95
division (J) of this section.	96

(B) Except as provided in divisions (E), (F), and (I) of this	97
section, a school district shall not incur net indebtedness that	98
exceeds an amount equal to nine per cent of its tax valuation.	99

(C) A school district shall not submit to a vote of the	100
electors the question of the issuance of securities in an amount	101
that will make the district's net indebtedness after the issuance	102
of the securities exceed an amount equal to four per cent of its	103
tax valuation, unless the superintendent of public instruction,	104
acting under policies adopted by the state board of education, and	105
the tax commissioner, acting under written policies of the	106
commissioner, consent to the submission. A request for the	107
consents shall be made at least one hundred twenty days prior to	108
the election at which the question is to be submitted.	109

The superintendent of public instruction shall certify to the	110
district the superintendent's and the tax commissioner's decisions	111
within thirty days after receipt of the request for consents.	112

If the electors do not approve the issuance of securities at	113
the election for which the superintendent of public instruction	114
and tax commissioner consented to the submission of the question,	115
the school district may submit the same question to the electors	116
on the date that the next special election may be held under	117
section 3501.01 of the Revised Code without submitting a new	118
request for consent. If the school district seeks to submit the	119
same question at any other subsequent election, the district shall	120
first submit a new request for consent in accordance with this	121
division.	122

(D) In calculating the net indebtedness of a school district,	123
none of the following shall be considered:	124

(1) Securities issued to acquire school buses and other	125
equipment used in transporting pupils or issued pursuant to	126
division (D) of section 133.10 of the Revised Code;	127

(2) Securities issued under division (F) of this section,	128
under section 133.301 of the Revised Code, and, to the extent in	129
excess of the limitation stated in division (B) of this section,	130
under division (E) of this section;	131

(3) Indebtedness resulting from the dissolution of a joint	132
vocational school district under section 3311.217 of the Revised	133
Code, evidenced by outstanding securities of that joint vocational	134
school district;	135

(4) Loans, evidenced by any securities, received under	136
sections 3313.483, 3317.0210, and 3317.0211 of the Revised Code;	137

(5) Debt incurred under section 3313.374 of the Revised Code;

138

(6) Debt incurred pursuant to division (B)(5) of section	139
3313.37 of the Revised Code to acquire computers and related	140
hardware;	141

(7) Debt incurred under section 3318.042 of the Revised Code.

142

(E) A school district may become a special needs district as	143
to certain securities as provided in division (E) of this section.	144

(1) A board of education, by resolution, may declare its	145
school district to be a special needs district by determining both	146
of the following:	147

(a) The student population is not being adequately serviced	148
by the existing permanent improvements of the district.	149

(b) The district cannot obtain sufficient funds by the	150
issuance of securities within the limitation of division (B) of	151
this section to provide additional or improved needed permanent	152
improvements in time to meet the needs.	153

(2) The board of education shall certify a copy of that	154
resolution to the superintendent of public instruction with a	155
statistical report showing all of the following:	156

(a) The history of and a projection of the growth of the tax	157
valuation;	158

(b) The projected needs;

159

(c) The estimated cost of permanent improvements proposed to	160
meet such projected needs.	161

(3) The superintendent of public instruction shall certify	162
the district as an approved special needs district if the	163
superintendent finds both of the following:	164

(a) The district does not have available sufficient	165
additional funds from state or federal sources to meet the	166
projected needs.	167

(b) The projection of the potential average growth of tax	168
valuation during the next five years, according to the information	169
certified to the superintendent and any other information the	170
superintendent obtains, indicates a likelihood of potential	171
average growth of tax valuation of the district during the next	172
five years of an average of not less than one and one-half per	173
cent per year. The findings and certification of the	174
superintendent shall be conclusive.	175

(4) An approved special needs district may incur net	176
indebtedness by the issuance of securities in accordance with the	177
provisions of this chapter in an amount that does not exceed an	178
amount equal to the greater of the following:	179

(a) Twelve per cent of the sum of its tax valuation plus an	180
amount that is the product of multiplying that tax valuation by	181
the percentage by which the tax valuation has increased over the	182
tax valuation on the first day of the sixtieth month preceding the	183
month in which its board determines to submit to the electors the	184
question of issuing the proposed securities;	185

(b) Twelve per cent of the sum of its tax valuation plus an	186
amount that is the product of multiplying that tax valuation by	187
the percentage, determined by the superintendent of public	188
instruction, by which that tax valuation is projected to increase	189
during the next ten years.	190

(F) A school district may issue securities for emergency	191
purposes, in a principal amount that does not exceed an amount	192
equal to three per cent of its tax valuation, as provided in this	193
division.	194

(1) A board of education, by resolution, may declare an	195
emergency if it determines both of the following:	196

(a) School buildings or other necessary school facilities in	197
the district have been wholly or partially destroyed, or condemned	198
by a constituted public authority, or that such buildings or	199
facilities are partially constructed, or so constructed or planned	200
as to require additions and improvements to them before the	201
buildings or facilities are usable for their intended purpose, or	202
that corrections to permanent improvements are necessary to remove	203
or prevent health or safety hazards.	204

(b) Existing fiscal and net indebtedness limitations make	205
adequate replacement, additions, or improvements impossible.	206

(2) Upon the declaration of an emergency, the board of	207
education may, by resolution, submit to the electors of the	208
district pursuant to section 133.18 of the Revised Code the	209
question of issuing securities for the purpose of paying the cost,	210
in excess of any insurance or condemnation proceeds received by	211
the district, of permanent improvements to respond to the	212
emergency need.	213

(3) The procedures for the election shall be as provided in	214
section 133.18 of the Revised Code, except that:	215

(a) The form of the ballot shall describe the emergency	216
existing, refer to this division as the authority under which the	217
emergency is declared, and state that the amount of the proposed	218
securities exceeds the limitations prescribed by division (B) of	219
this section;	220

(b) The resolution required by division (B) of section 133.18	221
of the Revised Code shall be certified to the county auditor and	222
the board of elections at least one hundred days prior to the	223
election;	224

(c) The county auditor shall advise and, not later than	225
ninety-five days before the election, confirm that advice by	226
certification to, the board of education of the information	227
required by division (C) of section 133.18 of the Revised Code;	228

(d) The board of education shall then certify its resolution	229
and the information required by division (D) of section 133.18 of	230
the Revised Code to the board of elections not less than ninety	231
days prior to the election.	232

(4) Notwithstanding division (B) of section 133.21 of the	233
Revised Code, the first principal payment of securities issued	234
under this division may be set at any date not later than sixty	235
months after the earliest possible principal payment otherwise	236
provided for in that division.	237

(G)(1) The board of education may contract with an architect,	238
professional engineer, or other person experienced in the design	239
and implementation of energy conservation measures for an analysis	240
and recommendations pertaining to installations, modifications of	241
installations, or remodeling that would significantly reduce	242
energy consumption in buildings owned by the district. The report	243
shall include estimates of all costs of such installations,	244
modifications, or remodeling, including costs of design,	245
engineering, installation, maintenance, repairs, measurement and	246
verification of energy savings, and debt service, forgone residual	247
value of materials or equipment replaced by the energy	248
conservation measure, as defined by the Ohio school facilities	249
commission, a baseline analysis of actual energy consumption data	250
for the preceding three years with the utility baseline based on	251
only the actual energy consumption data for the preceding twelve	252
months, and estimates of the amounts by which energy consumption	253
and resultant operational and maintenance costs, as defined by the	254
commission, would be reduced.	255

If the board finds after receiving the report that the amount	256
of money the district would spend on such installations,	257
modifications, or remodeling is not likely to exceed the amount of	258
money it would save in energy and resultant operational and	259
maintenance costs over the ensuing fifteen years, the board may	260
submit to the commission a copy of its findings and a request for	261
approval to incur indebtedness to finance the making or	262
modification of installations or the remodeling of buildings for	263
the purpose of significantly reducing energy consumption.	264

The school facilities commission, in consultation with the	265
auditor of state, may deny a request under this division by the	266
board of education of any school district that is in a state of	267
fiscal watch pursuant to division (A) of section 3316.03 of the	268
Revised Code, if it determines that the expenditure of funds is	269
not in the best interest of the school district.	270

No district board of education of a school district that is	271
in a state of fiscal emergency pursuant to division (B) of section	272
3316.03 of the Revised Code shall submit a request without	273
submitting evidence that the installations, modifications, or	274
remodeling have been approved by the district's financial planning	275
and supervision commission established under section 3316.05 of	276
the Revised Code.	277

No board of education of a school district that, for three or	278
more consecutive years, has been declared to be in a state of	279
academic emergency under section 3302.03 of the Revised Code, as	280
that section existed prior to March 22, 2013, and has failed to	281
meet adequate yearly progress, or has met any condition set forth	282
in division (A)(2) or (3) of section 3302.10 of the Revised Code	283
shall submit a request without first receiving approval to incur	284
indebtedness from the district's academic distress commission	285
established under that section, for so long as such commission	286
continues to be required for the district.	287

(2) The school facilities commission shall approve the	288
board's request provided that the following conditions are	289
satisfied:	290

(a) The commission determines that the board's findings are	291
reasonable.	292

(b) The request for approval is complete.

293

(c) The installations, modifications, or remodeling are	294
consistent with any project to construct or acquire classroom	295
facilities, or to reconstruct or make additions to existing	296
classroom facilities under sections 3318.01 to 3318.20 or sections	297
3318.40 to 3318.45 of the Revised Code.	298

Upon receipt of the commission's approval, the district may	299
issue securities without a vote of the electors in a principal	300
amount not to exceed nine-tenths of one per cent of its tax	301
valuation for the purpose of making such installations,	302
modifications, or remodeling, but the total net indebtedness of	303
the district without a vote of the electors incurred under this	304
and all other sections of the Revised Code, except section	305
3318.052 of the Revised Code, shall not exceed one per cent of the	306
district's tax valuation.	307

(3) So long as any securities issued under this division	308
remain outstanding, the board of education shall monitor the	309
energy consumption and resultant operational and maintenance costs	310
of buildings in which installations or modifications have been	311
made or remodeling has been done pursuant to this division. Except	312
as provided in division (G)(4) of this section, the board shall	313
maintain and annually update a report in a form and manner	314
prescribed by the school facilities commission documenting the	315
reductions in energy consumption and resultant operational and	316
maintenance cost savings attributable to such installations,	317
modifications, or remodeling. The resultant operational and	318
maintenance cost savings shall be certified by the school district	319
treasurer. The report shall be submitted annually to the	320
commission.	321

(4) If the school facilities commission verifies that the	322
certified annual reports submitted to the commission by a board of	323
education under division (G)(3) of this section fulfill the	324
guarantee required under division (B) of section 3313.372 of the	325
Revised Code for three consecutive years, the board of education	326
shall no longer be subject to the annual reporting requirements of	327
division (G)(3) of this section.	328

(H) With the consent of the superintendent of public	329
instruction, a school district may incur without a vote of the	330
electors net indebtedness that exceeds the amounts stated in	331
divisions (A) and (G) of this section for the purpose of paying	332
costs of permanent improvements, if and to the extent that both of	333
the following conditions are satisfied:	334

(1) The fiscal officer of the school district estimates that	335
receipts of the school district from payments made under or	336
pursuant to agreements entered into pursuant to section 725.02,	337
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.45,	338
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the	339
Revised Code, or distributions under division (C) of section	340
5709.43 or division (B) of section 5709.47 of the Revised Code, or	341
any combination thereof, are, after accounting for any appropriate	342
coverage requirements, sufficient in time and amount, and are	343
committed by the proceedings, to pay the debt charges on the	344
securities issued to evidence that indebtedness and payable from	345
those receipts, and the taxing authority of the district confirms	346
the fiscal officer's estimate, which confirmation is approved by	347
the superintendent of public instruction;	348

(2) The fiscal officer of the school district certifies, and	349
the taxing authority of the district confirms, that the district,	350
at the time of the certification and confirmation, reasonably	351
expects to have sufficient revenue available for the purpose of	352
operating such permanent improvements for their intended purpose	353
upon acquisition or completion thereof, and the superintendent of	354
public instruction approves the taxing authority's confirmation.	355

The maximum maturity of securities issued under division (H)	356
of this section shall be the lesser of twenty years or the maximum	357
maturity calculated under section 133.20 of the Revised Code.	358

(I) A school district may incur net indebtedness by the	359
issuance of securities in accordance with the provisions of this	360
chapter in excess of the limit specified in division (B) or (C) of	361
this section when necessary to raise the school district portion	362
of the basic project cost and any additional funds necessary to	363
participate in a project under Chapter 3318. of the Revised Code,	364
including the cost of items designated by the school facilities	365
commission as required locally funded initiatives, the cost of	366
other locally funded initiatives in an amount that does not exceed	367
fifty per cent of the district's portion of the basic project	368
cost, and the cost for site acquisition. The commission shall	369
notify the superintendent of public instruction whenever a school	370
district will exceed either limit pursuant to this division.	371

(J) A school district whose portion of the basic project cost	372
of its classroom facilities project under sections 3318.01 to	373
3318.20 of the Revised Code is greater than or equal to one	374
hundred million dollars may incur without a vote of the electors	375
net indebtedness in an amount up to two per cent of its tax	376
valuation through the issuance of general obligation securities in	377
order to generate all or part of the amount of its portion of the	378
basic project cost if the controlling board has approved the	379
school facilities commission's conditional approval of the project	380
under section 3318.04 of the Revised Code. The school district	381
board and the Ohio school facilities commission shall include the	382
dedication of the proceeds of such securities in the agreement	383
entered into under section 3318.08 of the Revised Code. No state	384
moneys shall be released for a project to which this section	385
applies until the proceeds of any bonds issued under this section	386
that are dedicated for the payment of the school district portion	387
of the project are first deposited into the school district's	388
project construction fund.	389

Sec. 709.024. (A) A petition filed under section 709.021 of	390
the Revised Code that requests to follow this section is for the	391
special procedure of annexing land into a municipal corporation	392
for the purpose of undertaking a significant economic development	393
project. As used in this section, "significant economic	394
development project" means one or more economic development	395
projects that can be classified as industrial, distribution, high	396
technology, research and development, or commercial, which	397
projects may include ancillary residential and retail uses and	398
which projects shall satisfy all of the following:	399

(1) Total private real and personal property investment in a	400
project shall be in excess of ten million dollars through land and	401
infrastructure, new construction, reconstruction, installation of	402
fixtures and equipment, or the addition of inventory, excluding	403
investment solely related to the ancillary residential and retail	404
elements, if any, of the project. As used in this division,	405
"private real and personal property investment" does not include	406
payments in lieu of taxes, however characterized, under Chapter	407
725. or 1728. or sections 5709.40 to 5709.43, 5709.45 to 5709.47,	408
5709.73 to 5709.75, or 5709.78 to 5709.81 of the Revised Code.	409

(2) There shall be created by the project an additional	410
annual payroll in excess of one million dollars, excluding payroll	411
arising solely out of the retail elements, if any, of the project.	412

(3) The project has been certified by the state director of	413
development as meeting the requirements of divisions (A)(1) and	414
(2) of this section.	415

(B) Upon the filing of the petition under section 709.021 of	416
the Revised Code in the office of the clerk of the board of county	417
commissioners, the clerk shall cause the petition to be entered	418
upon the journal of the board at its next regular session. This	419
entry shall be the first official act of the board on the	420
petition. Within five days after the filing of the petition, the	421
agent for the petitioners shall notify in the manner and form	422
specified in this division the clerk of the legislative authority	423
of the municipal corporation to which annexation is proposed, the	424
fiscal officer of each township any portion of which is included	425
within the territory proposed for annexation, the clerk of the	426
board of county commissioners of each county in which the	427
territory proposed for annexation is located other than the county	428
in which the petition is filed, and the owners of property	429
adjacent to the territory proposed for annexation or adjacent to a	430
road that is adjacent to that territory and located directly	431
across that road from that territory. The notice shall refer to	432
the time and date when the petition was filed and the county in	433
which it was filed and shall have attached or shall be accompanied	434
by a copy of the petition and any attachments or documents	435
accompanying the petition as filed.	436

Notice to a property owner is sufficient if sent by regular	437
United States mail to the tax mailing address listed on the county	438
auditor's records. Notice to the appropriate government officer	439
shall be given by certified mail, return receipt requested, or by	440
causing the notice to be personally served on the officer, with	441
proof of service by affidavit of the person who delivered the	442
notice. Proof of service of the notice on each appropriate	443
government officer shall be filed with the board of county	444
commissioners with which the petition was filed.	445

(C)(1) Within thirty days after the petition is filed, the	446
legislative authority of the municipal corporation to which	447
annexation is proposed and each township any portion of which is	448
included within the territory proposed for annexation may adopt	449
and file with the board of county commissioners an ordinance or	450
resolution consenting or objecting to the proposed annexation. An	451
objection to the proposed annexation shall be based solely upon	452
the petition's failure to meet the conditions specified in	453
division (F) of this section. Failure of the municipal corporation	454
or any of those townships to timely file an ordinance or	455
resolution consenting or objecting to the proposed annexation	456
shall be deemed to constitute consent by that municipal	457
corporation or township to the proposed annexation.	458

(2) Within twenty days after receiving the notice required by	459
division (B) of this section, the legislative authority of the	460
municipal corporation shall adopt, by ordinance or resolution, a	461
statement indicating what services the municipal corporation will	462
provide or cause to be provided, and an approximate date by which	463
it will provide or cause them to be provided, to the territory	464
proposed for annexation, upon annexation. If a hearing is to be	465
conducted under division (E) of this section, the legislative	466
authority shall file the statement with the clerk of the board of	467
county commissioners at least twenty days before the date of the	468
hearing.	469

(D) If all parties to the annexation proceedings consent to	470
the proposed annexation, a hearing shall not be held, and the	471
board, at its next regular session, shall enter upon its journal a	472
resolution granting the annexation. There is no appeal in law or	473
in equity from the board's entry of a resolution under this	474
division. The clerk of the board shall proceed as provided in	475
division (C)(1) of section 709.033 of the Revised Code.	476

(E) Unless the petition is granted under division (D) of this	477
section, a hearing shall be held on the petition. The board of	478
county commissioners shall hear the petition at its next regular	479
session and shall notify the agent for the petitioners of the	480
hearing's date, time, and place. The agent for the petitioners	481
shall give, within five days after receipt of the notice of the	482
hearing from the board, to the parties and property owners	483
entitled to notice under division (B) of this section, notice of	484
the date, time, and place of the hearing. Notice to a property	485
owner is sufficient if sent by regular United States mail to the	486
tax mailing address listed on the county auditor's records. At the	487
hearing, the parties and any owner of real estate within the	488
territory proposed to be annexed are entitled to appear for the	489
purposes described in division (C) of section 709.032 of the	490
Revised Code.	491

(F) Within thirty days after a hearing under division (E) of	492
this section, the board of county commissioners shall enter upon	493
its journal a resolution granting or denying the proposed	494
annexation. The resolution shall include specific findings of fact	495
as to whether or not each of the conditions listed in this	496
division has been met. If the board grants the annexation, the	497
clerk of the board shall proceed as provided in division (C)(1) of	498
section 709.033 of the Revised Code.	499

The board shall enter a resolution granting the annexation if	500
it finds, based upon a preponderance of the substantial, reliable,	501
and probative evidence on the whole record, that each of the	502
following conditions has been met:	503

(1) The petition meets all the requirements set forth in, and	504
was filed in the manner provided in, section 709.021 of the	505
Revised Code.	506

(2) The persons who signed the petition are owners of real	507
estate located in the territory proposed to be annexed in the	508
petition and constitute all of the owners of real estate in that	509
territory.	510

(3) No street or highway will be divided or segmented by the	511
boundary line between a township and the municipal corporation as	512
to create a road maintenance problem, or if the street or highway	513
will be so divided or segmented, the municipal corporation has	514
agreed, as a condition of the annexation, that it will assume the	515
maintenance of that street or highway. For the purposes of this	516
division, "street" or "highway" has the same meaning as in section	517
4511.01 of the Revised Code.	518

(4) The municipal corporation to which the territory is	519
proposed to be annexed has adopted an ordinance or resolution as	520
required by division (C)(2) of this section.	521

(5) The state director of development has certified that the	522
project meets the requirements of divisions (A)(1) and (2) of this	523
section and thereby qualifies as a significant economic	524
development project. The director's certification is binding on	525
the board of county commissioners.	526

(G) An owner who signed the petition may appeal a decision of	527
the board of county commissioners denying the proposed annexation	528
under section 709.07 of the Revised Code. No other person has	529
standing to appeal the board's decision in law or in equity. If	530
the board grants the annexation, there shall be no appeal in law	531
or in equity.	532

(H) Notwithstanding anything to the contrary in section	533
503.07 of the Revised Code, unless otherwise provided in an	534
annexation agreement entered into pursuant to section 709.192 of	535
the Revised Code or in a cooperative economic development	536
agreement entered into pursuant to section 701.07 of the Revised	537
Code, territory annexed into a municipal corporation pursuant to	538
this section shall not at any time be excluded from the township	539
under section 503.07 of the Revised Code and, thus, remains	540
subject to the township's real property taxes.	541

(I) A municipal corporation to which annexation is proposed	542
is entitled in its sole discretion to provide to the territory	543
proposed for annexation, upon annexation, services in addition to	544
the services described in the ordinance or resolution adopted by	545
the legislative authority of the municipal corporation under	546
division (C)(2) of this section.	547

Sec. 709.19.  (A) As used in this section:

548

(1) "International airport" means any airport that is:

549

(a) Designated as an international airport or a landing	550
rights airport by the United States secretary of the treasury;	551

(b) Owned and operated by a municipal corporation;

552

(c) An unincorporated area not contiguous to the municipal	553
corporation that owns it.	554

(2) "Commercial," "industrial," "residential," and "retail,"	555
in relation to property, mean property classified as such by the	556
tax commissioner for the purposes of valuing property for	557
taxation, except that "commercial," in relation to property, does	558
not include any property classified as "retail."	559

(B) If unincorporated territory is annexed to a municipal	560
corporation and excluded from a township under section 503.07 of	561
the Revised Code, upon exclusion of that territory, the municipal	562
corporation that annexed the territory shall make payments to the	563
township from which the territory was annexed only as provided in	564
this section, except that, if the legislative authority of the	565
municipal corporation enters into an agreement under section	566
701.07, 709.191, or 709.192 of the Revised Code with the township	567
from which the territory was annexed that makes alternate	568
provisions regarding payments by the municipal corporation, then	569
the payment provisions in that agreement shall apply in lieu of	570
the provisions of this section.	571

(C)(1) Except as provided in division (C)(2) of this section,	572
the municipal corporation that annexed the territory shall make	573
the following payments to the township from which the territory	574
was annexed with respect to commercial and industrial real,	575
personal, and public utility property taxes using the property	576
valuation for the year that the payment is due:	577

(a) In the first through third years following the annexation	578
and exclusion of the territory from the township, eighty per cent	579
of the township taxes in the annexed territory that would have	580
been due the township for commercial and industrial real,	581
personal, and public utility property taxes if no annexation had	582
occurred;	583

(b) In the fourth and fifth years following the annexation	584
and the exclusion of the territory from the township, sixty-seven	585
and one-half per cent of the township taxes in the annexed	586
territory that would have been due the township for commercial and	587
industrial real, personal, and public utility property taxes if no	588
annexation had occurred;	589

(c) In the sixth and seventh years following the annexation	590
and exclusion of the territory from the township, sixty-two and	591
one-half per cent of the township taxes in the annexed territory	592
that would have been due the township for commercial and	593
industrial real, personal, and public utility property taxes if no	594
annexation had occurred;	595

(d) In the eighth and ninth years following the annexation	596
and exclusion of the territory from the township, fifty-seven and	597
one-half per cent of the township taxes in the annexed territory	598
that would have been due the township for commercial and	599
industrial real, personal, and public utility property taxes if no	600
annexation had occurred;	601

(e) In the tenth through twelfth years following the	602
annexation and exclusion of the territory from the township,	603
forty-two and one-half per cent of the township taxes in the	604
annexed territory that would have been due the township for	605
commercial and industrial real, personal, and public utility	606
property taxes if no annexation had occurred.	607

(2) If there has been an exemption by the municipal	608
corporation of commercial and industrial real, personal, or public	609
utility property taxes pursuant to section 725.02, 1728.10,	610
3735.67, 5709.40, 5709.41, 5709.45, 5709.62, or 5709.88 of the	611
Revised Code, there shall be no reduction in the payments owed to	612
the township due to that exemption. The municipal corporation	613
shall make payments to the township under division (C)(1) of this	614
section, calculated as if the exemption had not occurred.	615

(D) The municipal corporation that annexed the territory	616
shall make the following payments to the township from which the	617
territory was annexed with respect to residential and retail real	618
property taxes using the property valuation for the year that the	619
payment is due:	620

(1) In the first through third years following the annexation	621
and exclusion of the territory from the township, eighty per cent	622
of the township taxes in the annexed territory that would have	623
been due the township for residential and retail real property	624
taxes if no annexation had occurred;	625

(2) In the fourth and fifth years following the annexation	626
and exclusion of the territory from the township, fifty-two and	627
one-half per cent of the township taxes in the annexed territory	628
that would have been due the township for residential and retail	629
real property taxes if no annexation had occurred;	630

(3) In the sixth through tenth years following the annexation	631
and exclusion of the territory from the township, forty per cent	632
of the township taxes in the annexed territory that would have	633
been due the township for residential and retail real property	634
taxes if no annexation had occurred;	635

(4) In the eleventh and twelfth years following the	636
annexation and exclusion of the territory from the township,	637
twenty-seven and one-half per cent of the township taxes in the	638
annexed territory that would have been due the township for	639
residential and retail real property taxes if no annexation had	640
occurred.	641

(E) If, pursuant to division (F) of this section, a municipal	642
corporation annexes an international airport that it owns, the	643
municipal corporation shall pay the township one hundred per cent	644
of the township taxes in the annexed territory that would have	645
been due the township if no annexation had occurred for each of	646
the twenty-five years following the annexation.	647

(F)(1) Notwithstanding any other provision of this chapter, a	648
board of county commissioners may authorize a municipal	649
corporation to annex an international airport that the municipal	650
corporation owns. Unless a contract is entered into pursuant to	651
division (F)(2) of this section, any municipal corporation that	652
annexes an international airport under this division shall make	653
payments to the township from which the international airport is	654
annexed, in the manner provided in division (E) of this section.	655
No territory annexed pursuant to this division shall be considered	656
part of the municipal corporation for the purposes of subsequent	657
annexation, except that the board of county commissioners may	658
authorize subsequent annexation under this division if the board	659
determines that subsequent annexation is necessary to the	660
continued operation of the international airport.	661

(2) The chief executive of a municipal corporation that	662
annexes territory pursuant to this division may enter into a	663
contract with the board of township trustees of the township that	664
loses the territory whereby the township agrees to provide the	665
annexed territory with police, fire, or other services it is	666
authorized to provide in exchange for specified consideration as	667
agreed upon by the board of township trustees and the chief	668
executive. In no instance shall the consideration received by the	669
township be less than the payments that would be required under	670
division (F)(1) of this section if no contract were entered into.	671

Sec. 1710.14.  The board of directors of a special	672
improvement district in which all or part of a downtown	673
redevelopment district is located may accept contributions from	674
the municipal corporation that created the downtown redevelopment	675
district pursuant to division (D)(2) of section 5709.45 of the	676
Revised Code. The board shall use all such contributions to	677
promote the downtown redevelopment district to potential business	678
patrons, to recruit businesses to relocate or expand to the	679
downtown redevelopment district, and to attract and promote events	680
and activities that generate revenue or enhance public welfare	681
within the downtown redevelopment district. The board shall	682
periodically report to the legislative authority of the municipal	683
corporation on the expenditure of the contributions and plans for	684
the utilization of future contributions. If any contributions	685
received by a special improvement district under this section	686
remain after the dissolution or expiration of the downtown	687
redevelopment district, the board shall pay the remaining amount	688
to the contributing municipal corporation, which shall credit the	689
money to its general fund.	690

Sec. 1724.12.  The board of directors of a community	691
improvement corporation in which all or a part of a downtown	692
redevelopment district is located may accept contributions from	693
the municipal corporation that created the district pursuant to	694
division (D)(2) of section 5709.45 of the Revised Code. The board	695
shall use all such contributions to promote the downtown	696
redevelopment district to potential business patrons, to recruit	697
businesses to relocate or expand to the downtown redevelopment	698
district, and to attract and promote events and activities that	699
generate revenue or enhance public welfare within the downtown	700
redevelopment district. The board shall periodically report to the	701
legislative authority of the municipal corporation on the	702
expenditure of the contributions and plans for the utilization of	703
future contributions. If any contributions received by a community	704
improvement corporation under this section remain after the	705
dissolution or expiration of the downtown redevelopment district,	706
the board shall pay the remaining amount to the contributing	707
municipal corporation, which shall credit the money to its general	708
fund.	709

Sec. 3317.021.  (A) On or before the first day of June of	710
each year, the tax commissioner shall certify to the department of	711
education and the office of budget and management the information	712
described in divisions (A)(1) to (5) of this section for each	713
city, exempted village, and local school district, and the	714
information required by divisions (A)(1) and (2) of this section	715
for each joint vocational school district, and it shall be used,	716
along with the information certified under division (B) of this	717
section, in making the computations for the district under this	718
chapter.	719

(1) The taxable value of real and public utility real	720
property in the school district subject to taxation in the	721
preceding tax year, by class and by county of location.	722

(2) The taxable value of tangible personal property,	723
including public utility personal property, subject to taxation by	724
the district for the preceding tax year.	725

(3)(a) The total property tax rate and total taxes charged	726
and payable for the current expenses for the preceding tax year	727
and the total property tax rate and the total taxes charged and	728
payable to a joint vocational district for the preceding tax year	729
that are limited to or to the extent apportioned to current	730
expenses.	731

(b) The portion of the amount of taxes charged and payable	732
reported for each city, local, and exempted village school	733
district under division (A)(3)(a) of this section attributable to	734
a joint vocational school district.	735

(4) The value of all real and public utility real property in	736
the school district exempted from taxation minus both of the	737
following:	738

(a) The value of real and public utility real property in the	739
district owned by the United States government and used	740
exclusively for a public purpose;	741

(b) The value of real and public utility real property in the	742
district exempted from taxation under Chapter 725. or 1728. or	743
section 3735.67, 5709.40, 5709.41, 5709.45, 5709.62, 5709.63,	744
5709.632, 5709.73, or 5709.78 of the Revised Code.	745

(5) The total federal adjusted gross income of the residents	746
of the school district, based on tax returns filed by the	747
residents of the district, for the most recent year for which this	748
information is available, and the median Ohio adjusted gross	749
income of the residents of the school district determined on the	750
basis of tax returns filed for the second preceding tax year by	751
the residents of the district.	752

(B) On or before the first day of May each year, the tax	753
commissioner shall certify to the department of education and the	754
office of budget and management the total taxable real property	755
value of railroads and, separately, the total taxable tangible	756
personal property value of all public utilities for the preceding	757
tax year, by school district and by county of location.	758

(C) If a public utility has properly and timely filed a	759
petition for reassessment under section 5727.47 of the Revised	760
Code with respect to an assessment issued under section 5727.23 of	761
the Revised Code affecting taxable property apportioned by the tax	762
commissioner to a school district, the taxable value of public	763
utility tangible personal property included in the certification	764
under divisions (A)(2) and (B) of this section for the school	765
district shall include only the amount of taxable value on the	766
basis of which the public utility paid tax for the preceding year	767
as provided in division (B)(1) or (2) of section 5727.47 of the	768
Revised Code.	769

(D) If on the basis of the information certified under	770
division (A) of this section, the department determines that any	771
district fails in any year to meet the qualification requirement	772
specified in division (A) of section 3317.01 of the Revised Code,	773
the department shall immediately request the tax commissioner to	774
determine the extent to which any school district income tax	775
levied by the district under Chapter 5748. of the Revised Code	776
shall be included in meeting that requirement. Within five days of	777
receiving such a request from the department, the tax commissioner	778
shall make the determination required by this division and report	779
the quotient obtained under division (D)(3) of this section to the	780
department and the office of budget and management. This quotient	781
represents the number of mills that the department shall include	782
in determining whether the district meets the qualification	783
requirement of division (A) of section 3317.01 of the Revised	784
Code.	785

The tax commissioner shall make the determination required by	786
this division as follows:	787

(1) Multiply one mill times the total taxable value of the	788
district as determined in divisions (A)(1) and (2) of this	789
section;	790

(2) Estimate the total amount of tax liability for the	791
current tax year under taxes levied by Chapter 5748. of the	792
Revised Code that are apportioned to current operating expenses of	793
the district, excluding any income tax receipts allocated for the	794
project cost, debt service, or maintenance set-aside associated	795
with a state-assisted classroom facilities project as authorized	796
by section 3318.052 of the Revised Code;	797

(3) Divide the amount estimated under division (D)(2) of this	798
section by the product obtained under division (D)(1) of this	799
section.	800

Sec. 5501.311.  (A) Notwithstanding sections 123.01 and	801
127.16 of the Revised Code the director of transportation may	802
lease or lease-purchase all or any part of a transportation	803
facility to or from one or more persons, one or more governmental	804
agencies, a transportation improvement district, or any	805
combination thereof, and may grant leases, easements, or licenses	806
for lands under the control of the department of transportation.	807
The director may adopt rules necessary to give effect to this	808
section.	809

(B) Plans and specifications for the construction of a	810
transportation facility under a lease or lease-purchase agreement	811
are subject to approval of the director and must meet or exceed	812
all applicable standards of the department.	813

(C) Any lease or lease-purchase agreement under which the	814
department is the lessee shall be for a period not exceeding the	815
then current two-year period for which appropriations have been	816
made by the general assembly to the department, and such agreement	817
may contain such other terms as the department and the other	818
parties thereto agree, notwithstanding any other provision of law,	819
including provisions that rental payments in amounts sufficient to	820
pay bond service charges payable during the current two-year lease	821
term shall be an absolute and unconditional obligation of the	822
department independent of all other duties under the agreement	823
without set-off or deduction or any other similar rights or	824
defenses. Any such agreement may provide for renewal of the	825
agreement at the end of each term for another term, not exceeding	826
two years, provided that no renewal shall be effective until the	827
effective date of an appropriation enacted by the general assembly	828
from which the department may lawfully pay rentals under such	829
agreement. Any such agreement may include, without limitation, any	830
agreement by the department with respect to any costs of	831
transportation facilities to be included prior to acquisition and	832
construction of such transportation facilities. Any such agreement	833
shall not constitute a debt or pledge of the faith and credit of	834
the state, or of any political subdivision of the state, and the	835
lessor shall have no right to have taxes or excises levied by the	836
general assembly, or the taxing authority of any political	837
subdivision of the state, for the payment of rentals thereunder.	838
Any such agreement shall contain a statement to that effect.	839

(D) A municipal corporation, township, or county may use	840
service payments in lieu of taxes credited to special funds or	841
accounts pursuant to sections 5709.43, 5709.47, 5709.75, and	842
5709.80 of the Revised Code to provide its contribution to the	843
cost of a transportation facility, provided such facility was	844
among the purposes for which such service payments were	845
authorized. The contribution may be in the form of a lump sum or	846
periodic payments.	847

(E) Pursuant to the "Telecommunications Act of 1996," 110	848
Stat. 152, 47 U.S.C. 332 note, the director may grant a lease,	849
easement, or license in a transportation facility to a	850
telecommunications service provider for construction, placement,	851
or operation of a telecommunications facility. An interest granted	852
under this division is subject to all of the following conditions:	853

(1) The transportation facility is owned in fee simple or	854
easement by this state at the time the lease, easement, or license	855
is granted to the telecommunications provider.	856

(2) The lease, easement, or license shall be granted on a	857
competitive basis in accordance with policies and procedures to be	858
determined by the director. The policies and procedures may	859
include provisions for master leases for multiple sites.	860

(3) The telecommunications facility shall be designed to	861
accommodate the state's multi-agency radio communication system,	862
the intelligent transportation system, and the department's	863
communication system as the director may determine is necessary	864
for highway or other departmental purposes.	865

(4) The telecommunications facility shall be designed to	866
accommodate such additional telecommunications equipment as may	867
feasibly be co-located thereon as determined in the discretion of	868
the director.	869

(5) The telecommunications service providers awarded the	870
lease, easement, or license, agree to permit other	871
telecommunications service providers to co-locate on the	872
telecommunications facility, and agree to the terms and conditions	873
of the co-location as determined in the discretion of the	874
director.	875

(6) The director shall require indemnity agreements in favor	876
of the department as a condition of any lease, easement, or	877
license granted under this division. Each indemnity agreement	878
shall secure this state and its agents from liability for damages	879
arising out of safety hazards, zoning, and any other matter of	880
public interest the director considers necessary.	881

(7) The telecommunications service provider fully complies	882
with any permit issued under section 5515.01 of the Revised Code	883
pertaining to land that is the subject of the lease, easement, or	884
license.	885

(8) All plans and specifications shall meet with the	886
director's approval.	887

(9) Any other conditions the director determines necessary.

888

(F) In accordance with section 5501.031 of the Revised Code,	889
to further efforts to promote energy conservation and energy	890
efficiency, the director may grant a lease, easement, or license	891
in a transportation facility to a utility service provider that	892
has received its certificate from the Ohio power siting board or	893
appropriate local entity for construction, placement, or operation	894
of an alternative energy generating facility service provider as	895
defined in section 4928.64 of the Revised Code. An interest	896
granted under this division is subject to all of the following	897
conditions:	898

(1) The transportation facility is owned in fee simple or in	899
easement by this state at the time the lease, easement, or license	900
is granted to the utility service provider.	901

(2) The lease, easement, or license shall be granted on a	902
competitive basis in accordance with policies and procedures to be	903
determined by the director. The policies and procedures may	904
include provisions for master leases for multiple sites.	905

(3) The alternative energy generating facility shall be	906
designed to provide energy for the department's transportation	907
facilities with the potential for selling excess power on the	908
power grid, as the director may determine is necessary for highway	909
or other departmental purposes.	910

(4) The director shall require indemnity agreements in favor	911
of the department as a condition of any lease, easement, or	912
license granted under this division. Each indemnity agreement	913
shall secure this state from liability for damages arising out of	914
safety hazards, zoning, and any other matter of public interest	915
the director considers necessary.	916

(5) The alternative energy service provider fully complies	917
with any permit issued by the Ohio power siting board under	918
Chapter 4906. of the Revised Code and complies with section	919
5515.01 of the Revised Code pertaining to land that is the subject	920
of the lease, easement, or license.	921

(6) All plans and specifications shall meet with the	922
director's approval.	923

(7) Any other conditions the director determines necessary.

924

(G) Money the department receives under this section shall be	925
deposited into the state treasury to the credit of the highway	926
operating fund.	927

(H) A lease, easement, or license granted under division (E)	928
or (F) of this section, and any telecommunications facility or	929
alternative energy generating facility relating to such interest	930
in a transportation facility, is hereby deemed to further the	931
essential highway purpose of building and maintaining a safe,	932
energy-efficient, and accessible transportation system.	933

Sec. 5709.12.  (A) As used in this section, "independent	934
living facilities" means any residential housing facilities and	935
related property that are not a nursing home, residential care	936
facility, or residential facility as defined in division (A) of	937
section 5701.13 of the Revised Code.	938

(B) Lands, houses, and other buildings belonging to a county,	939
township, or municipal corporation and used exclusively for the	940
accommodation or support of the poor, or leased to the state or	941
any political subdivision for public purposes shall be exempt from	942
taxation. Real and tangible personal property belonging to	943
institutions that is used exclusively for charitable purposes	944
shall be exempt from taxation, including real property belonging	945
to an institution that is a nonprofit corporation that receives a	946
grant under the Thomas Alva Edison grant program authorized by	947
division (C) of section 122.33 of the Revised Code at any time	948
during the tax year and being held for leasing or resale to	949
others. If, at any time during a tax year for which such property	950
is exempted from taxation, the corporation ceases to qualify for	951
such a grant, the director of development shall notify the tax	952
commissioner, and the tax commissioner shall cause the property to	953
be restored to the tax list beginning with the following tax year.	954
All property owned and used by a nonprofit organization	955
exclusively for a home for the aged, as defined in section 5701.13	956
of the Revised Code, also shall be exempt from taxation.	957

(C)(1) If a home for the aged described in division (B)(1) of	958
section 5701.13 of the Revised Code is operated in conjunction	959
with or at the same site as independent living facilities, the	960
exemption granted in division (B) of this section shall include	961
kitchen, dining room, clinic, entry ways, maintenance and storage	962
areas, and land necessary for access commonly used by both	963
residents of the home for the aged and residents of the	964
independent living facilities. Other facilities commonly used by	965
both residents of the home for the aged and residents of	966
independent living units shall be exempt from taxation only if the	967
other facilities are used primarily by the residents of the home	968
for the aged. Vacant land currently unused by the home, and	969
independent living facilities and the lands connected with them	970
are not exempt from taxation. Except as provided in division	971
(A)(1) of section 5709.121 of the Revised Code, property of a home	972
leased for nonresidential purposes is not exempt from taxation.	973

(2) Independent living facilities are exempt from taxation if	974
they are operated in conjunction with or at the same site as a	975
home for the aged described in division (B)(2) of section 5701.13	976
of the Revised Code; operated by a corporation, association, or	977
trust described in division (B)(1)(b) of that section; operated	978
exclusively for the benefit of members of the corporation,	979
association, or trust who are retired, aged, or infirm; and	980
provided to those members without charge in consideration of their	981
service, without compensation, to a charitable, religious,	982
fraternal, or educational institution. For the purposes of	983
division (C)(2) of this section, "compensation" does not include	984
furnishing room and board, clothing, health care, or other	985
necessities, or stipends or other de minimis payments to defray	986
the cost thereof.	987

(D)(1) A private corporation established under federal law,	988
as defined in 36 U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629,	989
as amended, the objects of which include encouraging the	990
advancement of science generally, or of a particular branch of	991
science, the promotion of scientific research, the improvement of	992
the qualifications and usefulness of scientists, or the increase	993
and diffusion of scientific knowledge is conclusively presumed to	994
be a charitable or educational institution. A private corporation	995
established as a nonprofit corporation under the laws of a state	996
that is exempt from federal income taxation under section	997
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 26	998
U.S.C.A. 1, as amended, and that has as its principal purpose one	999
or more of the foregoing objects also is conclusively presumed to	1000
be a charitable or educational institution.	1001

The fact that an organization described in this division	1002
operates in a manner that results in an excess of revenues over	1003
expenses shall not be used to deny the exemption granted by this	1004
section, provided such excess is used, or is held for use, for	1005
exempt purposes or to establish a reserve against future	1006
contingencies; and, provided further, that such excess may not be	1007
distributed to individual persons or to entities that would not be	1008
entitled to the tax exemptions provided by this chapter. Nor shall	1009
the fact that any scientific information diffused by the	1010
organization is of particular interest or benefit to any of its	1011
individual members be used to deny the exemption granted by this	1012
section, provided that such scientific information is available to	1013
the public for purchase or otherwise.	1014

(2) Division (D)(2) of this section does not apply to real	1015
property exempted from taxation under this section and division	1016
(A)(3) of section 5709.121 of the Revised Code and belonging to a	1017
nonprofit corporation described in division (D)(1) of this section	1018
that has received a grant under the Thomas Alva Edison grant	1019
program authorized by division (C) of section 122.33 of the	1020
Revised Code during any of the tax years the property was exempted	1021
from taxation.	1022

When a private corporation described in division (D)(1) of	1023
this section sells all or any portion of a tract, lot, or parcel	1024
of real estate that has been exempt from taxation under this	1025
section and section 5709.121 of the Revised Code, the portion sold	1026
shall be restored to the tax list for the year following the year	1027
of the sale and, except in connection with a sale and transfer of	1028
such a tract, lot, or parcel to a county land reutilization	1029
corporation organized under Chapter 1724. of the Revised Code, a	1030
charge shall be levied against the sold property in an amount	1031
equal to the tax savings on such property during the four tax	1032
years preceding the year the property is placed on the tax list.	1033
The tax savings equals the amount of the additional taxes that	1034
would have been levied if such property had not been exempt from	1035
taxation.	1036

The charge constitutes a lien of the state upon such property	1037
as of the first day of January of the tax year in which the charge	1038
is levied and continues until discharged as provided by law. The	1039
charge may also be remitted for all or any portion of such	1040
property that the tax commissioner determines is entitled to	1041
exemption from real property taxation for the year such property	1042
is restored to the tax list under any provision of the Revised	1043
Code, other than sections 725.02, 1728.10, 3735.67, 5709.40,	1044
5709.41, 5709.45, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, and	1045
5709.84, upon an application for exemption covering the year such	1046
property is restored to the tax list filed under section 5715.27	1047
of the Revised Code.	1048

(E) Real property held by an organization organized and	1049
operated exclusively for charitable purposes as described under	1050
section 501(c)(3) of the Internal Revenue Code and exempt from	1051
federal taxation under section 501(a) of the Internal Revenue	1052
Code, 26 U.S.C.A. 501(a) and (c)(3), as amended, for the purpose	1053
of constructing or rehabilitating residences for eventual transfer	1054
to qualified low-income families through sale, lease, or land	1055
installment contract, shall be exempt from taxation.	1056

The exemption shall commence on the day title to the property	1057
is transferred to the organization and shall continue to the end	1058
of the tax year in which the organization transfers title to the	1059
property to a qualified low-income family. In no case shall the	1060
exemption extend beyond the second succeeding tax year following	1061
the year in which the title was transferred to the organization.	1062
If the title is transferred to the organization and from the	1063
organization to a qualified low-income family in the same tax	1064
year, the exemption shall continue to the end of that tax year.	1065
The proportionate amount of taxes that are a lien but not yet	1066
determined, assessed, and levied for the tax year in which title	1067
is transferred to the organization shall be remitted by the county	1068
auditor for each day of the year that title is held by the	1069
organization.	1070

Upon transferring the title to another person, the	1071
organization shall file with the county auditor an affidavit	1072
affirming that the title was transferred to a qualified low-income	1073
family or that the title was not transferred to a qualified	1074
low-income family, as the case may be; if the title was	1075
transferred to a qualified low-income family, the affidavit shall	1076
identify the transferee by name. If the organization transfers	1077
title to the property to anyone other than a qualified low-income	1078
family, the exemption, if it has not previously expired, shall	1079
terminate, and the property shall be restored to the tax list for	1080
the year following the year of the transfer and a charge shall be	1081
levied against the property in an amount equal to the amount of	1082
additional taxes that would have been levied if such property had	1083
not been exempt from taxation. The charge constitutes a lien of	1084
the state upon such property as of the first day of January of the	1085
tax year in which the charge is levied and continues until	1086
discharged as provided by law.	1087

The application for exemption shall be filed as otherwise	1088
required under section 5715.27 of the Revised Code, except that	1089
the organization holding the property shall file with its	1090
application documentation substantiating its status as an	1091
organization organized and operated exclusively for charitable	1092
purposes under section 501(c)(3) of the Internal Revenue Code and	1093
its qualification for exemption from federal taxation under	1094
section 501(a) of the Internal Revenue Code, and affirming its	1095
intention to construct or rehabilitate the property for the	1096
eventual transfer to qualified low-income families.	1097

As used in this division, "qualified low-income family" means	1098
a family whose income does not exceed two hundred per cent of the	1099
official federal poverty guidelines as revised annually in	1100
accordance with section 673(2) of the "Omnibus Budget	1101
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C.A. 9902, as	1102
amended, for a family size equal to the size of the family whose	1103
income is being determined.	1104

(F)(1)(a) Real property held by a county land reutilization	1105
corporation organized under Chapter 1724. of the Revised Code	1106
shall be exempt from taxation. Notwithstanding section 5715.27 of	1107
the Revised Code, a county land reutilization corporation is not	1108
required to apply to any county or state agency in order to	1109
qualify for the exemption.	1110

(b) Real property acquired or held by an electing subdivision	1111
other than a county land reutilization corporation on or after	1112
April 9, 2009, for the purpose of implementing an effective land	1113
reutilization program or for a related public purpose shall be	1114
exempt from taxation until sold or transferred by the electing	1115
subdivision. Notwithstanding section 5715.27 of the Revised Code,	1116
an electing subdivision is not required to apply to any county or	1117
state agency in order to qualify for an exemption with respect to	1118
property acquired or held for such purposes on or after such date,	1119
regardless of how the electing subdivision acquires the property.	1120

As used in this section, "electing subdivision" and "land	1121
reutilization program" have the same meanings as in section	1122
5722.01 of the Revised Code, and "county land reutilization	1123
corporation" means a county land reutilization corporation	1124
organized under Chapter 1724. of the Revised Code and any	1125
subsidiary wholly owned by such a county land reutilization	1126
corporation that is identified as "a wholly owned subsidiary of a	1127
county land reutilization corporation" in the deed of conveyance	1128
transferring title to the subsidiary.	1129

(2) An exemption authorized under division (F)(1) of this	1130
section shall commence on the day title to the property is	1131
transferred to the corporation or electing subdivision and shall	1132
continue to the end of the tax year in which the instrument	1133
transferring title from the corporation or subdivision to another	1134
owner is recorded, if the use to which the other owner puts the	1135
property does not qualify for an exemption under this section or	1136
any other section of the Revised Code. If the title to the	1137
property is transferred to the corporation and from the	1138
corporation, or to the subdivision and from the subdivision, in	1139
the same tax year, the exemption shall continue to the end of that	1140
tax year. The proportionate amount of taxes that are a lien but	1141
not yet determined, assessed, and levied for the tax year in which	1142
title is transferred to the corporation or subdivision shall be	1143
remitted by the county auditor for each day of the year that title	1144
is held by the corporation or subdivision.	1145

Upon transferring the title to another person, the	1146
corporation or electing subdivision shall file with the county	1147
auditor an affidavit or conveyance form affirming that the title	1148
was transferred to such other person and shall identify the	1149
transferee by name. If the corporation or subdivision transfers	1150
title to the property to anyone that does not qualify or the use	1151
to which the property is put does not qualify the property for an	1152
exemption under this section or any other section of the Revised	1153
Code, the exemption, if it has not previously expired, shall	1154
terminate, and the property shall be restored to the tax list for	1155
the year following the year of the transfer. A charge shall be	1156
levied against the property in an amount equal to the amount of	1157
additional taxes that would have been levied if such property had	1158
not been exempt from taxation. The charge constitutes a lien of	1159
the state upon such property as of the first day of January of the	1160
tax year in which the charge is levied and continues until	1161
discharged as provided by law.	1162

In lieu of the application for exemption otherwise required	1163
to be filed as required under section 5715.27 of the Revised Code,	1164
a county land reutilization corporation holding the property	1165
shall, upon the request of any county or state agency, submit its	1166
articles of incorporation substantiating its status as a county	1167
land reutilization corporation.	1168

(G) Real property that is owned by an organization described	1169
under section 501(c)(3) of the Internal Revenue Code and exempt	1170
from federal income taxation under section 501(a) of the Internal	1171
Revenue Code and that is used by that organization exclusively for	1172
receiving, processing, or distributing human blood, tissues, eyes,	1173
or organs or for research and development thereof shall be exempt	1174
from taxation.	1175

Sec. 5709.45.  (A) As used in sections 5709.45 to 5709.47 of	1176
the Revised Code:	1177

(1) "Downtown redevelopment district" or "district" means an	1178
area not more than ten acres enclosed by a continuous boundary in	1179
which at least one historic building is being, or will be,	1180
rehabilitated.	1181

(2) "Historic building" and "rehabilitation" have the same	1182
meanings as in section 149.311 of the Revised Code.	1183

(3) "Public infrastructure improvement" has the same meaning	1184
as in section 5709.40 of the Revised Code.	1185

(4) "Improvement" means the increase in the assessed value of	1186
real property that would first appear on the tax list after the	1187
effective date of an ordinance adopted under this section were it	1188
not for the exemption granted by the ordinance.	1189

(B) For the purposes of promoting rehabilitation of historic	1190
buildings, creating jobs, and encouraging economic development in	1191
commercial and mixed-use commercial and residential areas, the	1192
legislative authority of a municipal corporation may adopt an	1193
ordinance creating a downtown redevelopment district and declaring	1194
improvements to parcels within the district to be a public purpose	1195
and exempt from taxation. Downtown redevelopment districts shall	1196
not be created in areas used exclusively for residential purposes	1197
and shall not be utilized for development or redevelopment of	1198
residential areas.	1199

The ordinance shall specify all of the following:

1200

(1) The boundary of the district;

1201

(2) The county treasurer's permanent parcel number associated	1202
with each parcel included in the district;	1203

(3) The parcel or parcels within the district that include a	1204
historic building that is being or will be rehabilitated;	1205

(4) The proposed life of the district;

1206

(5) The percentage of improvements to be exempted from	1207
taxation;	1208

(6) An economic development plan for the district that	1209
includes all of the following:	1210

(a) A statement describing the principal purposes and goals	1211
to be served by creating the district;	1212

(b) An explanation of how the municipal corporation will	1213
collaborate with businesses and property owners within the	1214
district to develop strategies for achieving such purposes and	1215
goals;	1216

(c) An estimate of the annual amount of service payments	1217
provided for in section 5709.46 of the Revised Code that will be	1218
collected from owners of real property in the district;	1219

(d) A plan for using such service payments to promote	1220
economic development and job creation within the district.	1221

Not more than seventy per cent of improvements to parcels	1222
within a downtown redevelopment district may be exempted from	1223
taxation under this section. A district may not include a parcel	1224
that is or has been exempted from taxation under this section or	1225
section 5709.40 or 5709.41 of the Revised Code. Except as provided	1226
in division (E) of this section, the life of a downtown	1227
redevelopment district shall not exceed ten years.	1228

A municipal corporation may adopt more than one ordinance	1229
under division (B) of this section. A single such ordinance may	1230
create more than one downtown redevelopment district.	1231

(C) At least thirty days before adopting an ordinance under	1232
division (B) of this section, the legislative authority of the	1233
municipal corporation shall conduct a public hearing on the	1234
proposed ordinance and the accompanying economic development plan.	1235
At least thirty days before the public hearing, the legislative	1236
authority shall give notice of the public hearing and the proposed	1237
ordinance by first class mail to every real property owner whose	1238
property is located within the boundaries of the proposed district	1239
that is the subject of the proposed ordinance.	1240

(D) Revenue derived from downtown redevelopment district	1241
service payments may be used by the municipal corporation for any	1242
of the following purposes:	1243

(1) To finance or support loans, deferred loans, or grants to	1244
owners of historic buildings within the downtown redevelopment	1245
district. Such loans or grants shall be awarded upon the condition	1246
that the loan or grant amount may be used by the owner only to	1247
rehabilitate the historic building. A municipal corporation that	1248
awards a loan or grant under this division shall develop a plan	1249
for tracking the loan or grant recipient's use of the loan or	1250
grant and monitoring the progress of the recipient's	1251
rehabilitation project.	1252

(2) To make contributions to a special improvement district	1253
for use under section 1710.14 of the Revised Code, to a community	1254
improvement corporation for use under section 1724.12 of the	1255
Revised Code, or to a nonprofit corporation, as defined in section	1256
1702.01 of the Revised Code, the primary purpose of which is	1257
redeveloping historic buildings and historic districts for use by	1258
the corporation to rehabilitate a historic building within the	1259
downtown redevelopment district or to otherwise promote or enhance	1260
the district. Amounts contributed under division (D)(2) of this	1261
section shall not exceed the property tax revenue that would have	1262
been generated by twenty per cent of the assessed value of the	1263
exempted improvements within the downtown redevelopment district.	1264

(3) If the service payments collected from owners of real	1265
property within the district in the preceding year exceed the	1266
estimate specified in the district's economic development plan	1267
under division (B)(6)(c) of this section, an amount equal to the	1268
excess collections may be used for the following purposes:	1269

(a) To finance or support loans to owners of one or more	1270
buildings located within the district that do not qualify as	1271
historic buildings. Such loans shall be awarded upon the condition	1272
that the loan amount may be used by the owner only to make repairs	1273
and improvements to the building or buildings. A municipal	1274
corporation that awards a loan under this division shall develop a	1275
plan for tracking the loan recipient's use of the loan and	1276
monitoring the progress of the recipient's repairs or	1277
improvements.	1278

(b) To finance public infrastructure improvements within the	1279
downtown redevelopment district. If revenue generated by the	1280
downtown redevelopment district will be used to finance public	1281
infrastructure improvements, the economic development plan	1282
described by division (B)(6) of this section shall identify	1283
specific projects that are being or will be undertaken within the	1284
district and describe how such infrastructure improvements will	1285
accommodate additional demands on the existing infrastructure	1286
within the district. A municipal corporation shall not use service	1287
payments derived from a downtown redevelopment district to repair	1288
or replace police or fire equipment.	1289

(E) Notwithstanding division (B) of this section,	1290
improvements to parcels located within a downtown redevelopment	1291
district may be exempted from taxation under this section for up	1292
to thirty years if any of the following apply:	1293

(1) The ordinance creating the redevelopment district	1294
specifies that payments in lieu of taxes shall be paid to the	1295
city, local, or exempted village, and joint vocational school	1296
district or districts in which the redevelopment district is	1297
located in the amount of the taxes that would have been payable to	1298
the school district or districts if the improvements had not been	1299
exempted from taxation.	1300

(2) The municipal corporation creating the district obtains	1301
the approval under division (F) of this section of the board of	1302
education of each city, local, and exempted village school	1303
district within which the district will be located.	1304

(F)(1) The legislative authority of a municipal corporation	1305
seeking the approval of a school district for the purpose of	1306
division (F)(2) of this section shall send notice of the proposed	1307
ordinance to the school district not later than forty-five	1308
business days before it intends to adopt the ordinance. The notice	1309
shall include a copy of the proposed ordinance and shall indicate	1310
the date on which the legislative authority intends to adopt the	1311
ordinance. The board of education of the school district, by	1312
resolution adopted by a majority of the board, may do any of the	1313
following:	1314

(a) Approve the exemption for the number of years specified	1315
in the proposed ordinance;	1316

(b) Disapprove the exemption for the number of years in	1317
excess of ten;	1318

(c) Approve the exemption on the condition that the	1319
legislative authority and the board negotiate an agreement	1320
providing for compensation to the school district equal in value	1321
to a percentage of the amount of taxes exempted in the eleventh	1322
and subsequent years of the exemption period or other mutually	1323
agreeable compensation. If an agreement is negotiated under this	1324
division, the legislative authority shall compensate all joint	1325
vocational school districts within which the downtown	1326
redevelopment district is located at the same rate and under the	1327
same terms received by the city, local, or exempted village school	1328
district.	1329

(2) The board of education shall certify a resolution adopted	1330
under division (F)(1) of this section to the legislative authority	1331
of the municipal corporation not later than fourteen days before	1332
the date the legislative authority intends to adopt the ordinance	1333
as indicated in the notice. If the board of education approves the	1334
ordinance or negotiates a mutually acceptable compensation	1335
agreement with the legislative authority, the legislative	1336
authority may enact the ordinance in its current form. If the	1337
board disapproves of the ordinance and fails to negotiate a	1338
mutually acceptable compensation agreement with the legislative	1339
authority, the legislative authority may exempt improvements to	1340
parcels within the downtown redevelopment district for not more	1341
than ten years. If the board fails to certify a resolution to the	1342
legislative authority within the time prescribed by this division,	1343
the legislative authority may adopt the ordinance and may exempt	1344
improvements to parcels within the downtown redevelopment district	1345
for the period of time specified in the notice delivered to the	1346
board of education. The legislative authority may adopt the	1347
ordinance at any time after the board of education certifies its	1348
resolution approving the exemption to the legislative authority,	1349
or, if the board approves the exemption on the condition that a	1350
mutually acceptable compensation agreement be negotiated, at any	1351
time after the compensation agreement is agreed to by the board	1352
and the legislative authority.	1353

(3) If a board of education has adopted a resolution waiving	1354
its right to approve exemptions from taxation under this section	1355
and the resolution remains in effect, approval of exemptions by	1356
the board is not required under division (F) of this section. If a	1357
board of education has adopted a resolution allowing a legislative	1358
authority to deliver the notice required under division (F)(1) of	1359
this section fewer than forty-five business days before the	1360
legislative authority's adoption of the ordinance, the legislative	1361
authority shall deliver the notice to the board not later than the	1362
number of days before such adoption as prescribed by the board in	1363
its resolution. If a board of education adopts a resolution	1364
waiving its right to approve agreements or shortening the	1365
notification period, the board shall certify a copy of the	1366
resolution to the legislative authority. If the board of education	1367
rescinds such a resolution, it shall certify notice of the	1368
rescission to the legislative authority.	1369

(4) If the legislative authority is not required by division	1370
(F) of this section to notify the board of education of the	1371
legislative authority's intent to create a downtown redevelopment	1372
district, the legislative authority shall comply with the notice	1373
requirements imposed under section 5709.83 of the Revised Code,	1374
unless the board has adopted a resolution under that section	1375
waiving its right to receive such a notice.	1376

(G) Service payments in lieu of taxes that are attributable	1377
to any amount by which the effective tax rate of either a renewal	1378
levy with an increase or a replacement levy exceeds the effective	1379
tax rate of the levy renewed or replaced, or that are attributable	1380
to an additional levy, for a levy authorized by the voters for any	1381
of the following purposes on or after January 1, 2006, and which	1382
are provided pursuant to an ordinance creating a downtown	1383
redevelopment district under division (B) of this section shall be	1384
distributed to the appropriate taxing authority as required under	1385
division (C) of section 5709.46 of the Revised Code in an amount	1386
equal to the amount of taxes from that additional levy or from the	1387
increase in the effective tax rate of such renewal or replacement	1388
levy that would have been payable to that taxing authority from	1389
the following levies were it not for the exemption authorized	1390
under division (B) of this section:	1391

(1) A tax levied under division (L) of section 5705.19 or	1392
section 5705.191 of the Revised Code for community mental	1393
retardation and developmental disabilities programs and services	1394
pursuant to Chapter 5126. of the Revised Code;	1395

(2) A tax levied under division (Y) of section 5705.19 of the	1396
Revised Code for providing or maintaining senior citizens services	1397
or facilities;	1398

(3) A tax levied under section 5705.22 of the Revised Code	1399
for county hospitals;	1400

(4) A tax levied by a joint-county district or by a county	1401
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	1402
for alcohol, drug addiction, and mental health services or	1403
facilities;	1404

(5) A tax levied under section 5705.23 of the Revised Code	1405
for library purposes;	1406

(6) A tax levied under section 5705.24 of the Revised Code	1407
for the support of children services and the placement and care of	1408
children;	1409

(7) A tax levied under division (Z) of section 5705.19 of the	1410
Revised Code for the provision and maintenance of zoological park	1411
services and facilities under section 307.76 of the Revised Code;	1412

(8) A tax levied under section 511.27 or division (H) of	1413
section 5705.19 of the Revised Code for the support of township	1414
park districts;	1415

(9) A tax levied under division (A), (F), or (H) of section	1416
5705.19 of the Revised Code for parks and recreational purposes of	1417
a joint recreation district organized pursuant to division (B) of	1418
section 755.14 of the Revised Code;	1419

(10) A tax levied under section 1545.20 or 1545.21 of the	1420
Revised Code for park district purposes;	1421

(11) A tax levied under section 5705.191 of the Revised Code	1422
for the purpose of making appropriations for public assistance;	1423
human or social services; public relief; public welfare; public	1424
health and hospitalization; and support of general hospitals;	1425

(12) A tax levied under section 3709.29 of the Revised Code	1426
for a general health district program.	1427

(H) An exemption from taxation granted under this section	1428
commences with the tax year specified in the ordinance so long as	1429
the year specified in the ordinance commences after the effective	1430
date of the ordinance. If the ordinance specifies a year	1431
commencing before the effective date of the ordinance or specifies	1432
no year whatsoever, the exemption commences with the tax year in	1433
which an exempted improvement first appears on the tax list and	1434
that commences after the effective date of the ordinance. In lieu	1435
of stating a specific year, the ordinance may provide that the	1436
exemption commences in the tax year in which the value of an	1437
improvement exceeds a specified amount or in which the	1438
construction of one or more improvements is completed, provided	1439
that such tax year commences after the effective date of the	1440
ordinance.	1441

Except as otherwise provided in this division, the exemption	1442
ends on the date specified in the ordinance as the date the	1443
improvement ceases to be a public purpose or the downtown	1444
redevelopment district expires, whichever occurs first. The	1445
exemption of an improvement within a downtown redevelopment	1446
district may end on a later date, as specified in the ordinance,	1447
if the legislative authority and the board of education of the	1448
city, local, or exempted village school district within which the	1449
parcel or district is located have entered into a compensation	1450
agreement under section 5709.82 of the Revised Code with respect	1451
to the improvement, and the board of education has approved the	1452
term of the exemption under division (F) of this section, but in	1453
no case shall the improvement be exempted from taxation for more	1454
than thirty years. Exemptions shall be claimed and allowed in the	1455
same manner as in the case of other real property exemptions. If	1456
an exemption status changes during a year, the procedure for the	1457
apportionment of the taxes for that year is the same as in the	1458
case of other changes in tax exemption status during the year.	1459

(I) Additional municipal financing of the projects and	1460
services described in division (D) of this section may be provided	1461
by any methods that the municipal corporation may otherwise use	1462
for financing such projects and services. If the municipal	1463
corporation issues bonds or notes to finance such projects and	1464
services and pledges money from the municipal downtown	1465
redevelopment district fund to pay the interest on and principal	1466
of the bonds or notes, the bonds or notes are not subject to	1467
Chapter 133. of the Revised Code.	1468

(J) The municipal corporation, not later than fifteen days	1469
after the adoption of an ordinance under this section, shall	1470
submit to the director of development services a copy of the	1471
ordinance. On or before the thirty-first day of March of each	1472
year, the municipal corporation shall submit a status report to	1473
the director of development services. The report shall indicate,	1474
in the manner prescribed by the director, the progress of the	1475
projects and services during each year that an exemption remains	1476
in effect, including a summary of the receipts from service	1477
payments in lieu of taxes; expenditures of money from the funds	1478
created under section 5709.47 of the Revised Code; a description	1479
of the projects and services financed with such expenditures; and	1480
a quantitative summary of changes in employment and private	1481
investment resulting from each project and service.	1482

(K) Nothing in this section shall be construed to prohibit a	1483
legislative authority from declaring to be a public purpose	1484
improvements with respect to more than one parcel.	1485

(L)(1) The owner of real property located in a downtown	1486
redevelopment district may enter into an agreement with the	1487
municipal corporation that created the district to impose a	1488
redevelopment charge on the property. The agreement shall include	1489
the following:	1490

(a) The amount of the redevelopment charge. The redevelopment	1491
charge may be a fixed dollar amount or an amount determined on the	1492
basis of the assessed valuation of the property or all or part of	1493
the profits, gross receipts, or other revenues of a business	1494
operating on the property, including rentals received from leases	1495
of the property.	1496

(b) The termination date of the redevelopment charge. The	1497
redevelopment charge shall not be charged after the expiration or	1498
termination of the downtown redevelopment district.	1499

(c) The terms by which the municipal corporation shall	1500
collect the redevelopment charge.	1501

(d) The purposes for which the redevelopment charge may be	1502
used by the municipal corporation. The redevelopment charge shall	1503
be used only for those purposes described by division (D) of this	1504
section. The agreement may specify any or all of such purposes.	1505

(2) Redevelopment charges collected by a municipal	1506
corporation under division (L) of this section shall be deposited	1507
to the municipal downtown redevelopment district fund created	1508
under section 5709.47 of the Revised Code.	1509

(3) An agreement by a property owner under division (L) of	1510
this section is hereby deemed to be a covenant running with the	1511
land. The covenant is fully binding on behalf of and enforceable	1512
by the municipal corporation against any person acquiring an	1513
interest in the land and all of that person's successors and	1514
assigns.	1515

(4) No purchase agreement for real estate or any interest in	1516
real estate upon which a redevelopment charge is levied shall be	1517
enforceable by the seller or binding upon the purchaser unless the	1518
purchase agreement specifically refers to the redevelopment	1519
charge. If a conveyance of such real estate or interest in such	1520
real estate is made pursuant to a purchase agreement that does not	1521
make such reference, the redevelopment charge shall continue to be	1522
a covenant running with the land fully binding on behalf of and	1523
enforceable by the municipal corporation against the person	1524
accepting the conveyance pursuant to the purchase agreement.	1525

(5) If a redevelopment charge is not paid when due, the	1526
overdue amount shall be collected according to the terms of the	1527
agreement. If the agreement does not specify a procedure for	1528
collecting overdue redevelopment charges, the municipal	1529
corporation may certify the charge to the county auditor. The	1530
county auditor shall enter the unpaid charge on the tax list and	1531
duplicate of real property opposite the parcel against which it is	1532
charged and certify the charge to the county treasurer. The unpaid	1533
redevelopment charge is a lien on property against which it is	1534
charged from the date the charge is entered on the tax list, and	1535
shall be collected in the manner provided for the collection of	1536
real property taxes. Once the charge is collected, it shall be	1537
paid immediately to the municipal corporation.	1538

Sec. 5709.46. (A) A municipal corporation that has declared	1539
an improvement to be a public purpose under section 5709.45 of the	1540
Revised Code may require the owner of any structure located on the	1541
parcel to make annual service payments in lieu of taxes to the	1542
county treasurer on or before the final dates for payment of real	1543
property taxes. Each such payment shall be charged and collected	1544
in the same manner and in the same amount as the real property	1545
taxes that would have been charged and payable against the	1546
improvement if it were not exempt from taxation. If any reduction	1547
in the levies otherwise applicable to such exempt property is made	1548
by the county budget commission under section 5705.31 of the	1549
Revised Code, the amount of the service payment in lieu of taxes	1550
shall be calculated as if such reduction in levies had not been	1551
made.	1552

(B) Moneys collected as service payments in lieu of taxes	1553
shall be distributed at the same time and in the same manner as	1554
real property tax payments. However, subject to division (C) of	1555
this section or section 5709.913 of the Revised Code, the entire	1556
amount so collected shall be distributed to the municipal	1557
corporation in which the improvement is located. If an ordinance	1558
adopted under section 5709.45 of the Revised Code specifies that	1559
service payments shall be paid to the city, local, or exempted	1560
village school district in which the improvements are located, the	1561
county treasurer shall distribute the portion of the service	1562
payments to that school district in an amount equal to the	1563
property tax payments the school district would have received from	1564
the portion of the improvements exempted from taxation had the	1565
improvements not been exempted, as directed in the ordinance. The	1566
treasurer shall maintain a record of the service payments in lieu	1567
of taxes made from property in each municipal corporation.	1568

(C) If annual service payments in lieu of taxes are required	1569
under this section, the county treasurer shall distribute to the	1570
appropriate taxing authorities the portion of the service payments	1571
that represents payments required under division (E) of section	1572
5709.45 of the Revised Code.	1573

(D) Nothing in this section or section 5709.45 of the Revised	1574
Code affects the taxes levied against that portion of the value of	1575
any parcel of property that is not exempt from taxation.	1576

Sec. 5709.47. (A) A municipal corporation that grants a tax	1577
exemption or enters into a redevelopment charge agreement under	1578
section 5709.45 of the Revised Code shall establish a municipal	1579
downtown redevelopment district fund into which shall be deposited	1580
service payments in lieu of taxes distributed to the municipal	1581
corporation under section 5709.46 of the Revised Code and	1582
redevelopment charges collected pursuant to division (L) of	1583
section 5709.45 of the Revised Code. If an ordinance adopted under	1584
division (B) of section 5709.45 of the Revised Code or an	1585
agreement under division (L) of that section authorizes the use of	1586
service payments or redevelopment charges for more than one of the	1587
purposes described in division (D) of that section, the municipal	1588
corporation shall establish separate accounts for the service	1589
payments and redevelopment charges designated for each such	1590
purpose. Money in an account of the municipal downtown	1591
redevelopment district fund shall be used for the purposes	1592
described in the ordinance creating the downtown redevelopment	1593
district and the redevelopment charge agreements. The municipal	1594
corporation also may deposit into any of those accounts municipal	1595
income tax revenue that has been designated by ordinance to	1596
finance the public infrastructure improvements.	1597

(B)(1) A municipal corporation may distribute money in the	1598
municipal downtown redevelopment district fund to any school	1599
district in which the exempt property is located, in an amount not	1600
to exceed the amount of real property taxes that such school	1601
district would have received from the improvement if it were not	1602
exempt from taxation, or use money in the fund to finance specific	1603
public improvements benefiting the school district. The resolution	1604
or ordinance establishing the fund shall set forth the percentage	1605
of such maximum amount that will be distributed to any affected	1606
school district or used to finance specific public improvements	1607
benefiting the school district.	1608

(2) A municipal corporation also may distribute money in the	1609
municipal downtown redevelopment district fund to a county in	1610
accordance with section 5709.913 of the Revised Code.	1611

(C) Any incidental surplus remaining in the municipal	1612
downtown redevelopment district fund or an account of that fund,	1613
upon dissolution of the account or fund, shall be transferred to	1614
the general fund of the municipal corporation.	1615

Sec. 5709.82.  (A) As used in this section:

1616

(1) "New employee" means both of the following:

1617

(a) Persons employed in the construction of real property	1618
exempted from taxation under the chapters or sections of the	1619
Revised Code enumerated in division (B) of this section;	1620

(b) Persons not described by division (A)(1)(a) of this	1621
section who are first employed at the site of such property and	1622
who within the two previous years have not been subject, prior to	1623
being employed at that site, to income taxation by the municipal	1624
corporation within whose territory the site is located on income	1625
derived from employment for the person's current employer. "New	1626
employee" does not include any person who replaces a person who is	1627
not a new employee under division (A)(1) of this section.	1628

(2) "Infrastructure costs" means costs incurred by a	1629
municipal corporation in a calendar year to acquire, construct,	1630
reconstruct, improve, plan, or equip real or tangible personal	1631
property that directly benefits or will directly benefit the	1632
exempted property. If the municipal corporation finances the	1633
acquisition, construction, reconstruction, improvement, planning,	1634
or equipping of real or tangible personal property that directly	1635
benefits the exempted property by issuing debt, "infrastructure	1636
costs" means the annual debt charges incurred by the municipal	1637
corporation from the issuance of such debt. Real or tangible	1638
personal property directly benefits exempted property only if the	1639
exempted property places or will place direct, additional demand	1640
on the real or tangible personal property for which such costs	1641
were or will be incurred.	1642

(3) "Taxing unit" has the same meaning as in division (H) of	1643
section 5705.01 of the Revised Code.	1644

(B)(1) Except as otherwise provided under division (C) of	1645
this section, the legislative authority of any political	1646
subdivision that has acted under the authority of Chapter 725. or	1647
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41,	1648
5709.45, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or	1649
5709.88 of the Revised Code to grant an exemption from taxation	1650
for real or tangible personal property may negotiate with the	1651
board of education of each city, local, exempted village, or joint	1652
vocational school district or other taxing unit within the	1653
territory of which the exempted property is located, and enter	1654
into an agreement whereby the school district or taxing unit is	1655
compensated for tax revenue foregone by the school district or	1656
taxing unit as a result of the exemption. Except as otherwise	1657
provided in division (B)(1) of this section, if a political	1658
subdivision enters into more than one agreement under this section	1659
with respect to a tax exemption, the political subdivision shall	1660
provide to each school district or taxing unit with which it	1661
contracts the same percentage of tax revenue foregone by the	1662
school district or taxing unit, which may be based on a good faith	1663
projection made at the time the exemption is granted. Such	1664
percentage shall be calculated on the basis of amounts paid by the	1665
political subdivision and any amounts paid by an owner under	1666
division (B)(2) of this section. A political subdivision may	1667
provide a school district or other taxing unit with a smaller	1668
percentage of foregone tax revenue than that provided to other	1669
school districts or taxing units only if the school district or	1670
taxing unit expressly consents in the agreement to receiving a	1671
smaller percentage. If a subdivision has acted under the authority	1672
of section 5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the	1673
Revised Code and enters into a compensation agreement with a city,	1674
local, or exempted village school district, the subdivision shall	1675
provide compensation to the joint vocational school district	1676
within the territory of which the exempted property is located at	1677
the same rate and under the same terms as received by the city,	1678
local, or exempted village school district.	1679

(2) An owner of property exempted from taxation under the	1680
authority described in division (B)(1) of this section may, by	1681
becoming a party to an agreement described in division (B)(1) of	1682
this section or by entering into a separate agreement with a	1683
school district or other taxing unit, agree to compensate the	1684
school district or taxing unit by paying cash or by providing	1685
property or services by gift, loan, or otherwise. If the owner's	1686
property is exempted under the authority of section 5709.40,	1687
5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code and the	1688
owner enters into a compensation agreement with a city, local, or	1689
exempted village school district, the owner shall provide	1690
compensation to the joint vocational school district within the	1691
territory of which the owner's property is located at the same	1692
rate and under the same terms as received by the city, local, or	1693
exempted village school district.	1694

(C) This division does not apply to the following:

1695

(1) The legislative authority of a municipal corporation that	1696
has acted under the authority of division (H) of section 715.70 or	1697
section 715.81 of the Revised Code to consent to the granting of	1698
an exemption from taxation for real or tangible personal property	1699
in a joint economic development district.	1700

(2) The legislative authority of a municipal corporation that	1701
has specified in an ordinance adopted under section 5709.40 or,	1702
5709.41, or 5709.45 of the Revised Code that payments in lieu of	1703
taxes provided for under section 5709.42 or 5709.46 of the Revised	1704
Code shall be paid to the city, local, or exempted village school	1705
district in which the improvements are located in the amount of	1706
taxes that would have been payable to the school district if the	1707
improvements had not been exempted from taxation, as directed in	1708
the ordinance.	1709

If the legislative authority of any municipal corporation has	1710
acted under the authority of Chapter 725. or 1728. or section	1711
3735.671, 5709.40, 5709.41, 5709.45, 5709.62, 5709.63, 5709.632,	1712
or 5709.88, or a housing officer under section 3735.67 of the	1713
Revised Code, to grant or consent to the granting of an exemption	1714
from taxation for real or tangible personal property on or after	1715
July 1, 1994, the municipal corporation imposes a tax on incomes,	1716
and the payroll of new employees resulting from the exercise of	1717
that authority equals or exceeds one million dollars in any tax	1718
year for which such property is exempted, the legislative	1719
authority and the board of education of each city, local, or	1720
exempted village school district within the territory of which the	1721
exempted property is located shall attempt to negotiate an	1722
agreement providing for compensation to the school district for	1723
all or a portion of the tax revenue the school district would have	1724
received had the property not been exempted from taxation. The	1725
agreement may include as a party the owner of the property	1726
exempted or to be exempted from taxation and may include	1727
provisions obligating the owner to compensate the school district	1728
by paying cash or providing property or services by gift, loan, or	1729
otherwise. Such an obligation is enforceable by the board of	1730
education of the school district pursuant to the terms of the	1731
agreement.	1732

If the legislative authority and board of education fail to	1733
negotiate an agreement that is mutually acceptable within six	1734
months of formal approval by the legislative authority of the	1735
instrument granting the exemption, the legislative authority shall	1736
compensate the school district in the amount and manner prescribed	1737
by division (D) of this section.	1738

(D) Annually, the legislative authority of a municipal	1739
corporation subject to this division shall pay to the city, local,	1740
or exempted village school district within the territory of which	1741
the exempted property is located an amount equal to fifty per cent	1742
of the difference between the amount of taxes levied and collected	1743
by the municipal corporation on the incomes of new employees in	1744
the calendar year ending on the day the payment is required to be	1745
made, and the amount of any infrastructure costs incurred in that	1746
calendar year. For purposes of such computation, the amount of	1747
infrastructure costs shall not exceed thirty-five per cent of the	1748
amount of those taxes unless the board of education of the school	1749
district, by resolution adopted by a majority of the board,	1750
approves an amount in excess of that percentage. If the amount of	1751
those taxes or infrastructure costs must be estimated at the time	1752
the payment is made, payments in subsequent years shall be	1753
adjusted to compensate for any departure of those estimates from	1754
the actual amount of those taxes.	1755

A municipal corporation required to make a payment under this	1756
section shall make the payment from its general fund or a special	1757
fund established for the purpose. The payment is payable on the	1758
thirty-first day of December of the tax year for or in which the	1759
exemption from taxation commences and on that day for each	1760
subsequent tax year property is exempted and the legislative	1761
authority and board fail to negotiate an acceptable agreement	1762
under division (C) of this section.	1763

Sec. 5709.83.  (A) Except as otherwise provided in division	1764
(B) or (C) of this section, prior to taking formal action to adopt	1765
or enter into any instrument granting a tax exemption under	1766
section 725.02, 1728.06, 5709.40, 5709.41, 5709.45, 5709.62,	1767
5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 of the	1768
Revised Code or formally approving an agreement under section	1769
3735.671 of the Revised Code, or prior to forwarding an	1770
application for a tax exemption for residential property under	1771
section 3735.67 of the Revised Code to the county auditor, the	1772
legislative authority of the political subdivision or housing	1773
officer shall notify the board of education of each city, local,	1774
exempted village, or joint vocational school district in which the	1775
proposed tax-exempted property is located. The notice shall	1776
include a copy of the instrument or application. The notice shall	1777
be delivered not later than fourteen days prior to the day the	1778
legislative authority takes formal action to adopt or enter into	1779
the instrument, or not later than fourteen days prior to the day	1780
the housing officer forwards the application to the county	1781
auditor. If the board of education comments on the instrument or	1782
application to the legislative authority or housing officer, the	1783
legislative authority or housing officer shall consider the	1784
comments. If the board of education of the city, local, exempted	1785
village, or joint vocational school district so requests, the	1786
legislative authority or the housing officer shall meet in person	1787
with a representative designated by the board of education to	1788
discuss the terms of the instrument or application.	1789

(B) The notice otherwise required to be provided to boards of	1790
education under division (A) of this section is not required if	1791
the board has adopted a resolution waiving its right to receive	1792
such notices, and that resolution remains in effect. If a board of	1793
education adopts such a resolution, the board shall cause a copy	1794
of the resolution to be certified to the legislative authority. If	1795
the board of education rescinds such a resolution, it shall	1796
certify notice of the rescission to the legislative authority. A	1797
board of education may adopt such a resolution with respect to any	1798
one or more counties, townships, or municipal corporations	1799
situated in whole or in part within the school district.	1800

(C) If a legislative authority is required to provide notice	1801
to a city, local, or exempted village school district of its	1802
intent to grant such an exemption as required by section 5709.40,	1803
5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code, the	1804
legislative authority, before adopting a resolution or ordinance	1805
under that section, shall notify the board of education of each	1806
joint vocational school district in which the property to be	1807
exempted is located using the same time requirements for the	1808
notice that applies to notices to city, local, and exempted	1809
village school districts. The content of the notice and procedures	1810
for responding to the notice are the same as required in division	1811
(A) of this section.	1812

Sec. 5709.831. (A) As used in this section:

1813

(1) "Exempted improvements" means improvements exempted from	1814
taxation under section 5709.40, 5709.41, 5709.45, 5709.73, or	1815
5709.78 of the Revised Code.	1816

(2) "Political subdivision" means the county, township, or	1817
municipal corporation granting an exemption from taxation under	1818
section 5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the	1819
Revised Code.	1820

(B) The legislative authority of a political subdivision that	1821
grants an exemption from taxation for an improvement under section	1822
5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code	1823
may require the owner of the improvement to reimburse the local	1824
taxing authorities within whose taxing jurisdiction the exempted	1825
improvement is located for the amount of real property taxes that	1826
would have been payable to the taxing authorities had the	1827
improvement not been exempted from taxation. If the legislative	1828
authority requires the owner of the exempted improvements to make	1829
payments in lieu of taxes, the legislative authority may require	1830
such reimbursement only to the extent that the owner failed to	1831
make those payments as required. The legislative authority may	1832
secure any reimbursement authorized by this section by a lien on	1833
the exempted property, which shall attach, and may be perfected,	1834
collected, and enforced, in the same manner as a mortgage lien on	1835
real property, and which shall otherwise have the same force and	1836
effect as a mortgage lien on real property.	1837

Sec. 5709.832.  The legislative authority of a county,	1838
township, or municipal corporation that grants an exemption from	1839
taxation under Chapter 725. or 1728. or section 3735.67, 5709.40,	1840
5709.41, 5709.45, 5709.62, 5709.63, 5709.632, 5709.73, or 5709.78	1841
of the Revised Code shall develop policies to ensure that the	1842
recipient of the exemption practices nondiscriminatory hiring in	1843
its operations. As used in this section, "nondiscriminatory	1844
hiring" means that no individual may be denied employment solely	1845
on the basis of race, religion, sex, disability, color, national	1846
origin, or ancestry.	1847

Sec. 5709.85.  (A) The legislative authority of a county,	1848
township, or municipal corporation that grants an exemption from	1849
taxation under Chapter 725. or 1728. or under section 3735.67,	1850
5709.28, 5709.40, 5709.41, 5709.45, 5709.62, 5709.63, 5709.632,	1851
5709.73, or 5709.78 of the Revised Code shall create a tax	1852
incentive review council. The council shall consist of the	1853
following members:	1854

(1) In the case of a municipal corporation eligible to	1855
designate a zone under section 5709.62 of the Revised Code, the	1856
chief executive officer or that officer's designee; a member of	1857
the legislative authority of the municipal corporation, appointed	1858
by the president of the legislative authority or, if the chief	1859
executive officer of the municipal corporation is the president,	1860
appointed by the president pro tempore of the legislative	1861
authority; the county auditor or the county auditor's designee;	1862
the chief financial officer of the municipal corporation or that	1863
officer's designee; an individual appointed by the board of	1864
education of each city, local, exempted village, and joint	1865
vocational school district to which the instrument granting the	1866
exemption applies; and two members of the public appointed by the	1867
chief executive officer of the municipal corporation with the	1868
concurrence of the legislative authority. At least four members of	1869
the council shall be residents of the municipal corporation, and	1870
at least one of the two public members appointed by the chief	1871
executive officer shall be a minority. As used in division (A)(1)	1872
of this section, a "minority" is an individual who is	1873
African-American, Hispanic, or Native American.	1874

(2) In the case of a county or a municipal corporation that	1875
is not eligible to designate a zone under section 5709.62 or	1876
5709.632 of the Revised Code, three members appointed by the board	1877
of county commissioners; two members from each municipal	1878
corporation to which the instrument granting the tax exemption	1879
applies, appointed by the chief executive officer with the	1880
concurrence of the legislative authority of the respective	1881
municipal corporations; two members of each township to which the	1882
instrument granting the tax exemption applies, appointed by the	1883
board of township trustees of the respective townships; the county	1884
auditor or the county auditor's designee; and an individual	1885
appointed by the board of education of each city, local, exempted	1886
village, and joint vocational school district to which the	1887
instrument granting the tax exemption applies. At least two	1888
members of the council shall be residents of the municipal	1889
corporations or townships to which the instrument granting the tax	1890
exemption applies.	1891

(3) In the case of a township in which improvements are	1892
declared a public purpose under section 5709.73 of the Revised	1893
Code, the board of township trustees; the county auditor or the	1894
county auditor's designee; and an individual appointed by the	1895
board of education of each city, local, exempted village, and	1896
joint vocational school district to which the instrument granting	1897
the exemption applies.	1898

(B) The county auditor or the county auditor's designee shall	1899
serve as the chairperson of the council. The council shall meet at	1900
the call of the chairperson. At the first meeting of the council,	1901
the council shall select a vice-chairperson. Attendance by a	1902
majority of the members of the council constitutes a quorum to	1903
conduct the business of the council.	1904

(C)(1) Annually, the tax incentive review council shall	1905
review all agreements granting exemptions from property taxation	1906
under Chapter 725. or 1728. or under section 3735.671, 5709.28,	1907
5709.62, 5709.63, or 5709.632 of the Revised Code, and any	1908
performance or audit reports required to be submitted pursuant to	1909
those agreements. The review shall include agreements granting	1910
such exemptions that were entered into prior to July 22, 1994,	1911
that continue to be in force and applicable to the current year's	1912
property taxes.	1913

With respect to each agreement, other than an agreement	1914
entered into under section 5709.28 of the Revised Code, the	1915
council shall determine whether the owner of the exempted property	1916
has complied with the agreement, and may take into consideration	1917
any fluctuations in the business cycle unique to the owner's	1918
business.	1919

With respect to an agreement entered into under section	1920
5709.28 of the Revised Code, the council shall consist of the	1921
members described in division (A)(2) of this section and shall	1922
determine whether the agreement complies with the requirements of	1923
section 5709.28 of the Revised Code and whether a withdrawal,	1924
removal, or conversion of land from an agricultural security area	1925
established under Chapter 931. of the Revised Code has occurred in	1926
a manner that makes the exempted property no longer eligible for	1927
the exemption.	1928

On the basis of the determinations, on or before the first	1929
day of September of each year, the council shall submit to the	1930
legislative authority written recommendations for continuation,	1931
modification, or cancellation of each agreement.	1932

(2) Annually, the tax incentive review council shall review	1933
all exemptions from property taxation resulting from the	1934
declaration of public purpose improvements pursuant to section	1935
5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the Revised	1936
Code. The review shall include such exemptions that were granted	1937
prior to July 22, 1994, that continue to be in force and	1938
applicable to the current year's property taxes. With respect to	1939
each improvement for which an exemption is granted, the council	1940
shall determine the increase in the true value of parcels of real	1941
property on which improvements have been undertaken as a result of	1942
the exemption; the value of improvements exempted from taxation as	1943
a result of the exemption; and the number of new employees or	1944
employees retained on the site of the improvement as a result of	1945
the exemption.	1946

Upon the request of a tax incentive review council, the	1947
county auditor, the housing officer appointed pursuant to section	1948
3735.66 of the Revised Code, the owner of a new or remodeled	1949
structure or improvement, and the legislative authority of the	1950
county, township, or municipal corporation granting the exemption	1951
shall supply the council with any information reasonably necessary	1952
for the council to make the determinations required under division	1953
(C) of this section, including returns or reports filed pursuant	1954
to sections 5711.02, 5711.13, and 5727.08 of the Revised Code.	1955

(D) Annually, the tax incentive review council shall review	1956
the compliance of each recipient of a tax exemption under Chapter	1957
725. or 1728. or section 3735.67, 5709.40, 5709.41, 5709.45,	1958
5709.62, 5709.63, 5709.632, 5709.73, or 5709.78 of the Revised	1959
Code with the nondiscriminatory hiring policies developed by the	1960
county, township, or municipal corporation under section 5709.832	1961
of the Revised Code. Upon the request of the council, the	1962
recipient shall provide the council any information necessary to	1963
perform its review. On the basis of its review, the council may	1964
submit to the legislative authority written recommendations for	1965
enhancing compliance with the nondiscriminatory hiring policies.	1966

(E) A legislative authority that receives from a tax	1967
incentive review council written recommendations under division	1968
(C)(1) or (D) of this section shall, within sixty days after	1969
receipt, hold a meeting and vote to accept, reject, or modify all	1970
or any portion of the recommendations.	1971

(F) A tax incentive review council may request from the	1972
recipient of a tax exemption under Chapter 725. or 1728. or	1973
section 3735.67, 5709.28, 5709.40, 5709.41, 5709.45, 5709.62,	1974
5709.63, 5709.632, 5709.73, or 5709.78 of the Revised Code any	1975
information reasonably necessary for the council to perform its	1976
review under this section. The request shall be in writing and	1977
shall be sent to the recipient by certified mail. Within ten days	1978
after receipt of the request, the recipient shall provide to the	1979
council the information requested.	1980

Sec. 5709.91.  Service payments in lieu of taxes required	1981
under sections 725.04, 5709.42, 5709.46, 5709.74, and 5709.79 of	1982
the Revised Code, minimum service payment obligations, and service	1983
charges in lieu of taxes required under sections 1728.11 and	1984
1728.111 of the Revised Code, shall be treated in the same manner	1985
as taxes for all purposes of the lien described in section 323.11	1986
of the Revised Code, including, but not limited to, the priority	1987
and enforcement of the lien and the collection of the service	1988
payments, minimum service payment obligations, or service charges	1989
secured by the lien. For the purposes of this section, a "minimum	1990
service payment obligation" is an obligation, including a	1991
contingent obligation, for a person to make a payment to a county,	1992
township, or municipal corporation to ensure sufficient funds to	1993
finance public infrastructure improvements or, if applicable,	1994
housing renovations, pursuant to an agreement between that person	1995
and the county, township, or municipal corporation for the	1996
purposes of sections 5709.40 to 5709.43, 5709.45 to 5709.47,	1997
5709.73 to 5709.75, or 5709.77 to 5709.81 of the Revised Code.	1998

Sec. 5709.911.  (A)(1) A municipal corporation, township, or	1999
county that has enacted an ordinance or resolution under section	2000
5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code	2001
or that has entered into an agreement referred to in section	2002
725.02 or 1728.07 of the Revised Code may file an application for	2003
exemption under those sections in the same manner as other real	2004
property tax exemptions, notwithstanding the indication in	2005
division (A) of section 5715.27 of the Revised Code that the owner	2006
of the property may file the application.	2007

(2) Except as provided in division (B) of this section, if	2008
the application for exemption under section 725.02, 1728.10,	2009
5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code	2010
is filed by a municipal corporation, township, or county and more	2011
than one real property tax exemption applies by law to the	2012
property or a portion of the property, both of the following	2013
apply:	2014

(a) An exemption granted under section 725.02, 1728.10,	2015
5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the Revised Code	2016
shall be subordinate to an exemption with respect to the property	2017
or portion of the property granted under any other provision of	2018
the Revised Code.	2019

(b) Neither service payments in lieu of taxes under section	2020
725.04, 5709.42, 5709.46, 5709.74, or 5709.79 of the Revised Code,	2021
nor service charges in lieu of taxes under section 1728.11 or	2022
1728.111 of the Revised Code, shall be required with respect to	2023
the property or portion of the property that is exempt from real	2024
property taxes under that other provision of the Revised Code	2025
during the effective period of the exemption.	2026

(B)(1) If the application for exemption under section 725.02,	2027
1728.10, 5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the	2028
Revised Code is filed by the owner of the property or by a	2029
municipal corporation, township, or county with the owner's	2030
written consent attached to the application, and if more than one	2031
real property tax exemption applies by law to the property or a	2032
portion of the property, no other exemption shall be granted for	2033
the portion of the property already exempt under section 725.02,	2034
1728.10, 5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the	2035
Revised Code unless the municipal corporation, township, or county	2036
that enacted the authorizing ordinance or resolution for the	2037
earlier exemption provides its duly authorized written consent to	2038
the subsequent exemption by means of a duly enacted ordinance or	2039
resolution.	2040

(2) If the application for exemption under section 725.02,	2041
1728.10, 5709.40, 5709.41, 5709.45, 5709.73, or 5709.78 of the	2042
Revised Code is filed by a municipal corporation, township, or	2043
county and approved by the tax commissioner, if the owner of the	2044
property subsequently provides written consent to the exemption	2045
and the consent is filed with the tax commissioner, and if more	2046
than one real property tax exemption applies by law to the	2047
property or a portion of the property, no other exemption shall be	2048
granted for the portion of the property already exempt under	2049
section 725.02, 1728.10, 5709.40, 5709.41, 5709.45, 5709.73, or	2050
5709.78 of the Revised Code unless the municipal corporation,	2051
township, or county that enacted the authorizing ordinance or	2052
resolution for the earlier exemption provides its duly authorized	2053
written consent to the subsequent exemption by means of a duly	2054
enacted ordinance or resolution.	2055

(C)(1) After the tax commissioner has approved or partially	2056
approved an application for exemption filed by or with the consent	2057
of a property owner under the circumstances described in division	2058
(B)(1) of this section, the municipal corporation, township,	2059
county, or property owner shall file a notice with the county	2060
recorder for the county in which the property is located that	2061
clearly identifies the property and the owner of the property and	2062
states that the property, regardless of future use or ownership,	2063
remains liable for any service payments or service charges	2064
required by the exemption until the terms of the exemption have	2065
been satisfied, unless the municipal corporation, township, or	2066
county consents to the subsequent exemption and relinquishes its	2067
right to collect the service payments or service charges as	2068
provided in division (B)(1) of this section. The county recorder's	2069
office shall charge a fee of fourteen dollars to record the	2070
notice, the proceeds of which shall be retained by the county.	2071

(2) If a property owner subsequently provides written consent	2072
to an exemption under the circumstances described in division	2073
(B)(2) of this section, the municipal corporation, township,	2074
county, or property owner shall file notice with the county	2075
recorder for the county in which the property is located that	2076
clearly identifies the property and the owner of the property and	2077
states that the property, regardless of future use or ownership,	2078
remains liable for any service payments or service charges	2079
required by the exemption until the terms of the exemption have	2080
been satisfied, unless the municipal corporation, township, or	2081
county consents to the subsequent exemption and relinquishes its	2082
right to collect the service payments or service charges as	2083
provided in division (B)(2) of this section. The county recorder's	2084
office shall charge a fee of fourteen dollars to record the	2085
notice, the proceeds of which shall be retained by the county.	2086

(D) Upon filing of the notice with the county recorder, the	2087
provisions of division (B) of this section are binding on all	2088
future owners of the property or portion of the property,	2089
regardless of how the property is used. Failure to file the notice	2090
with the county recorder relieves future owners of the property	2091
from the obligation to make service payments in lieu of taxes	2092
under section 725.04, 5709.42, 5709.46, 5709.74, or 5709.79 of the	2093
Revised Code or service charges in lieu of taxes under section	2094
1728.11 or 1728.111 of the Revised Code, if the property or a	2095
portion of the property later qualifies for exemption under any	2096
other provision of the Revised Code. Failure to file the notice	2097
does not, however, relieve the owner of the property, at the time	2098
the application for exemption is filed, from making those payments	2099
or charges.	2100

Sec. 5709.913.  (A) As used in this section:

2101

(1) "Base real property" means the land, structures and	2102
buildings, or portions of structures and buildings, that existed,	2103
and in the condition in which they existed, for the tax year in	2104
which the ordinance or resolution creating the incentive district	2105
referred to in division (B) of this section was enacted or	2106
adopted, as reflected in the exempt tax list or the general tax	2107
list and duplicate of real and public utility property.	2108

(2) "Sexennial reappraisal and triennial update" means the	2109
reappraisal and update referred to in section 5715.24 of the	2110
Revised Code.	2111

(B) This section applies to any parcel of real property that	2112
is located within an incentive district created by a municipal	2113
corporation or township under section 5709.40 or 5709.73 of the	2114
Revised Code or within a downtown redevelopment district created	2115
by a municipal corporation under section 5709.45 of the Revised	2116
Code, and concerning which the municipal corporation or township	2117
applied for an exemption from taxation on behalf of the property	2118
owner under section 5709.911 of the Revised Code.	2119

(C) Each time a county auditor's sexennial reappraisal or	2120
triennial update of the assessed value of a parcel of real	2121
property to which this section applies results in an increase in	2122
such assessed value, the county auditor shall determine the	2123
following amounts:	2124

(1) The amount of the increase in assessed value that is	2125
attributable to the base real property;	2126

(2) The amount determined under division (C)(1) of this	2127
section multiplied by the percentage of improvements in the	2128
incentive district to be exempted from taxation under section	2129
5709.40, 5709.45, or 5709.73 of the Revised Code, as applicable;	2130

(3) The product of the amount calculated under division	2131
(C)(2) of this section multiplied by the rate of the taxes levied	2132
by the county within the ten-mill limitation the proceeds of which	2133
are deposited in the county general fund;	2134

(4) The product of the amount calculated under division	2135
(C)(3) of this section multiplied by one-half.	2136

(D) For any tax year that the owner of a parcel of real	2137
property referred to in division (B) of this section is required	2138
to make service payments in lieu of taxes under section 5709.42,	2139
5709.46, or 5709.74 of the Revised Code, a portion of the total	2140
amount of payments made for the year equal to the amount	2141
calculated under division (C)(4) of this section shall be	2142
distributed to the county treasury to the credit of the county	2143
general fund in lieu of distribution to the municipal public	2144
improvement tax increment equivalent fund, municipal downtown	2145
redevelopment district fund, or the township public improvement	2146
tax increment equivalent fund, as applicable. If the service	2147
payments for the year are paid in two installments, the required	2148
distribution to the county treasury also shall be made in two	2149
installments.	2150

(E)(1) Division (D) of this section does not apply if the	2151
municipal corporation or township enters into an agreement with	2152
the county that provides that such division does not apply. The	2153
agreement may provide for payments to the county by the municipal	2154
corporation or township.	2155

(2) Upon entering into an agreement under division (E)(1) of	2156
this section, the municipal corporation or township shall provide	2157
written notice of it to the county auditor of the county that is a	2158
party to the agreement and the tax commissioner.	2159

(F) With respect to a parcel of real property to which this	2160
section applies, the tax commissioner shall notify the county	2161
auditor of the county in which the parcel is located when a	2162
municipal corporation or township has applied for an exemption	2163
from taxation on behalf of the property owner and the exemption	2164
has been granted under section 5715.27 of the Revised Code.	2165

Sec. 5715.27.  (A)(1) Except as provided in division (A)(2)	2166
of this section and in section 3735.67 of the Revised Code, the	2167
owner, a vendee in possession under a purchase agreement or a land	2168
contract, the beneficiary of a trust, or a lessee for an initial	2169
term of not less than thirty years of any property may file an	2170
application with the tax commissioner, on forms prescribed by the	2171
commissioner, requesting that such property be exempted from	2172
taxation and that taxes, interest, and penalties be remitted as	2173
provided in division (C) of section 5713.08 of the Revised Code.	2174

(2) If the property that is the subject of the application	2175
for exemption is any of the following, the application shall be	2176
filed with the county auditor of the county in which the property	2177
is listed for taxation:	2178

(a) A public road or highway;

2179

(b) Property belonging to the federal government of the	2180
United States;	2181

(c) Additions or other improvements to an existing building	2182
or structure that belongs to the state or a political subdivision,	2183
as defined in section 5713.081 of the Revised Code, and that is	2184
exempted from taxation as property used exclusively for a public	2185
purpose;	2186

(d) Property of the boards of trustees and of the housing	2187
commissions of the state universities, the northeastern Ohio	2188
universities college of medicine, and of the state to be exempted	2189
under section 3345.17 of the Revised Code.	2190

(B) The board of education of any school district may request	2191
the tax commissioner or county auditor to provide it with	2192
notification of applications for exemption from taxation for	2193
property located within that district. If so requested, the	2194
commissioner or auditor shall send to the board on a monthly basis	2195
reports that contain sufficient information to enable the board to	2196
identify each property that is the subject of an exemption	2197
application, including, but not limited to, the name of the	2198
property owner or applicant, the address of the property, and the	2199
auditor's parcel number. The commissioner or auditor shall mail	2200
the reports by the fifteenth day of the month following the end of	2201
the month in which the commissioner or auditor receives the	2202
applications for exemption.	2203

(C) A board of education that has requested notification	2204
under division (B) of this section may, with respect to any	2205
application for exemption of property located in the district and	2206
included in the commissioner's or auditor's most recent report	2207
provided under that division, file a statement with the	2208
commissioner or auditor and with the applicant indicating its	2209
intent to submit evidence and participate in any hearing on the	2210
application. The statements shall be filed prior to the first day	2211
of the third month following the end of the month in which that	2212
application was docketed by the commissioner or auditor. A	2213
statement filed in compliance with this division entitles the	2214
district to submit evidence and to participate in any hearing on	2215
the property and makes the district a party for purposes of	2216
sections 5717.02 to 5717.04 of the Revised Code in any appeal of	2217
the commissioner's or auditor's decision to the board of tax	2218
appeals.	2219

(D) The commissioner or auditor shall not hold a hearing on	2220
or grant or deny an application for exemption of property in a	2221
school district whose board of education has requested	2222
notification under division (B) of this section until the end of	2223
the period within which the board may submit a statement with	2224
respect to that application under division (C) of this section.	2225
The commissioner or auditor may act upon an application at any	2226
time prior to that date upon receipt of a written waiver from each	2227
such board of education, or, in the case of exemptions authorized	2228
by section 725.02, 1728.10, 5709.40, 5709.41, 5709.411, 5709.45,	2229
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88	2230
of the Revised Code, upon the request of the property owner.	2231
Failure of a board of education to receive the report required in	2232
division (B) of this section shall not void an action of the	2233
commissioner or auditor with respect to any application. The	2234
commissioner or auditor may extend the time for filing a statement	2235
under division (C) of this section.	2236

(E) A complaint may also be filed with the commissioner or	2237
auditor by any person, board, or officer authorized by section	2238
5715.19 of the Revised Code to file complaints with the county	2239
board of revision against the continued exemption of any property	2240
granted exemption by the commissioner or auditor under this	2241
section.	2242

(F) An application for exemption and a complaint against	2243
exemption shall be filed prior to the thirty-first day of December	2244
of the tax year for which exemption is requested or for which the	2245
liability of the property to taxation in that year is requested.	2246
The commissioner or auditor shall consider such application or	2247
complaint in accordance with procedures established by the	2248
commissioner, determine whether the property is subject to	2249
taxation or exempt therefrom, and, if the commissioner makes the	2250
determination, certify the determination to the auditor. Upon	2251
making the determination or receiving the commissioner's	2252
determination, the auditor shall correct the tax list and	2253
duplicate accordingly. If a tax certificate has been sold under	2254
section 5721.32 or 5721.33 of the Revised Code with respect to	2255
property for which an exemption has been requested, the tax	2256
commissioner or auditor shall also certify the findings to the	2257
county treasurer of the county in which the property is located.	2258

(G) Applications and complaints, and documents of any kind	2259
related to applications and complaints, filed with the tax	2260
commissioner or county auditor under this section are public	2261
records within the meaning of section 149.43 of the Revised Code.	2262

(H) If the commissioner or auditor determines that the use of	2263
property or other facts relevant to the taxability of property	2264
that is the subject of an application for exemption or a complaint	2265
under this section has changed while the application or complaint	2266
was pending, the commissioner or auditor may make the	2267
determination under division (F) of this section separately for	2268
each tax year beginning with the year in which the application or	2269
complaint was filed or the year for which remission of taxes under	2270
division (C) of section 5713.08 of the Revised Code was requested,	2271
and including each subsequent tax year during which the	2272
application or complaint is pending before the commissioner or	2273
auditor.	2274

Section 2.  That existing sections 133.04, 133.06, 709.024,	2275
709.19, 3317.021, 5501.311, 5709.12, 5709.82, 5709.83, 5709.831,	2276
5709.832, 5709.85, 5709.91, 5709.911, 5709.913, and 5715.27 of the	2277
Revised Code are hereby repealed.	2278

Section 3. The General Assembly, applying the principle	2279
stated in division (B) of section 1.52 of the Revised Code that	2280
amendments are to be harmonized if reasonably capable of	2281
simultaneous operation, finds that the following sections,	2282
presented in this act as composites of the sections as amended by	2283
the acts indicated, are the resulting versions of the sections in	2284
effect prior to the effective date of the sections as presented in	2285
this act:	2286

Section 133.06 of the Revised Code as amended by both Am.	2287
Sub. H.B. 483 and Am. Sub. H.B. 487 of the 130th General Assembly.	2288

Section 5709.12 of the Revised Code as amended by both Am.	2289
Sub. H.B. 483 and Sub. S.B. 172 of the 130th General Assembly.	2290