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| To amend section 5709.07 of the Revised Code to | 1 |
| exempt church day-care centers from property | 2 |
| taxation, provided the day-care center does not | 3 |
| produce over $30,000 in income for the church per | 4 |
| year. | 5 |
| Section 1. That section 5709.07 of the Revised Code be | 6 |
| amended to read as follows: | 7 |
| Sec. 5709.07. (A) The following property shall be exempt | 8 |
| from taxation: | 9 |
| (1) Real property used by a school for primary or secondary | 10 |
| educational purposes, including only so much of the land as is | 11 |
| necessary for the proper occupancy, use, and enjoyment of such | 12 |
| real property by the school for primary or secondary educational | 13 |
| purposes. The exemption under division (A)(1) of this section does | 14 |
| not apply to any portion of the real property not used for primary | 15 |
| or secondary educational purposes. | 16 |
| For purposes of division (A)(1) of this section: | 17 |
| (a) "School" means a public or nonpublic school. "School" | 18 |
| excludes home instruction as authorized under section 3321.04 of | 19 |
| the Revised Code. | 20 |
| (b) "Public school" includes schools of a school district, | 21 |
| STEM schools established under Chapter 3326. of the Revised Code, | 22 |
| community schools established under Chapter 3314. of the Revised | 23 |
| Code, and educational service centers established under section | 24 |
| 3311.05 of the Revised Code. | 25 |
| (c) "Nonpublic school" means a nonpublic school for which the | 26 |
| state board of education has issued a charter pursuant to section | 27 |
| 3301.16 of the Revised Code and prescribes minimum standards under | 28 |
| division (D)(2) of section 3301.07 of the Revised Code. | 29 |
| (2) Houses used exclusively for public worship, the books and | 30 |
| furniture in them, and the ground attached to them that is not | 31 |
| leased or otherwise used with a view to profit and that is | 32 |
| necessary for their proper occupancy, use, and enjoyment; | 33 |
| (3) Real property owned and operated by a church that is used | 34 |
| primarily for church retreats or church camping, and that is not | 35 |
| used as a permanent residence. Real property exempted under | 36 |
| division (A)(3) of this section may be made available by the | 37 |
| church on a limited basis to charitable and educational | 38 |
| institutions if the property is not leased or otherwise made | 39 |
| available with a view to profit. | 40 |
| (4) Real property owned or occupied by a church and used | 41 |
| primarily as a child day-care center, provided that the total | 42 |
| income received by the church from the operation of the day-care | 43 |
| center, before accounting for any cost or expense incurred in the | 44 |
| operation of the center, does not exceed thirty thousand dollars | 45 |
| for the tax year. | 46 |
| (5) Public colleges and academies and all buildings connected | 47 |
| with them, and all lands connected with public institutions of | 48 |
| learning, not used with a view to profit, including those | 49 |
| buildings and lands that satisfy all of the following: | 50 |
| (a) The buildings are used for housing for full-time students | 51 |
| or housing-related facilities for students, faculty, or employees | 52 |
| of a state university, or for other purposes related to the state | 53 |
| university's educational purpose, and the lands are underneath the | 54 |
| buildings or are used for common space, walkways, and green spaces | 55 |
| for the state university's students, faculty, or employees. As | 56 |
| used in this division, "housing-related facilities" includes both | 57 |
| parking facilities related to the buildings and common buildings | 58 |
| made available to students, faculty, or employees of a state | 59 |
| university. The leasing of space in housing-related facilities | 60 |
| shall not be considered an activity with a view to profit for | 61 |
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purposes of division (A) | 62 |
| (b) The buildings and lands are supervised or otherwise under | 63 |
| the control, directly or indirectly, of an organization that is | 64 |
| exempt from federal income taxation under section 501(c)(3) of the | 65 |
| Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as | 66 |
| amended, and the state university has entered into a qualifying | 67 |
| joint use agreement with the organization that entitles the | 68 |
| students, faculty, or employees of the state university to use the | 69 |
| lands or buildings; | 70 |
| (c) The state university has agreed, under the terms of the | 71 |
| qualifying joint use agreement with the organization described in | 72 |
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division (A) | 73 |
| to the extent applicable under the agreement, will make payments | 74 |
| to the organization in amounts sufficient to maintain agreed-upon | 75 |
| debt service coverage ratios on bonds related to the lands or | 76 |
| buildings. | 77 |
| (B) This section shall not extend to leasehold estates or | 78 |
| real property held under the authority of a college or university | 79 |
| of learning in this state; but leaseholds, or other estates or | 80 |
| property, real or personal, the rents, issues, profits, and income | 81 |
| of which is given to a municipal corporation, school district, or | 82 |
| subdistrict in this state exclusively for the use, endowment, or | 83 |
| support of schools for the free education of youth without charge | 84 |
| shall be exempt from taxation as long as such property, or the | 85 |
| rents, issues, profits, or income of the property is used and | 86 |
| exclusively applied for the support of free education by such | 87 |
| municipal corporation, district, or subdistrict. Division (B) of | 88 |
| this section shall not apply with respect to buildings and lands | 89 |
| that satisfy all of the requirements specified in divisions | 90 |
|
(A) | 91 |
| (C) For purposes of this section, if the requirements | 92 |
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specified in divisions (A) | 93 |
| satisfied, the buildings and lands with respect to which exemption | 94 |
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is claimed under division (A) | 95 |
| deemed to be used with reasonable certainty in furthering or | 96 |
| carrying out the necessary objects and purposes of a state | 97 |
| university. | 98 |
| (D) As used in this section: | 99 |
| (1) "Church" means a fellowship of believers, congregation, | 100 |
| society, corporation, convention, or association that is formed | 101 |
| primarily or exclusively for religious purposes and that is not | 102 |
| formed for the private profit of any person. | 103 |
| (2) "State university" has the same meaning as in section | 104 |
| 3345.011 of the Revised Code. | 105 |
| (3) "Qualifying joint use agreement" means an agreement that | 106 |
| satisfies all of the following: | 107 |
| (a) The agreement was entered into before June 30, 2004; | 108 |
| (b) The agreement is between a state university and an | 109 |
| organization that is exempt from federal income taxation under | 110 |
| section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. | 111 |
| 2085, 26 U.S.C. 1, as amended; and | 112 |
| (c) The state university that is a party to the agreement | 113 |
| reported to the Ohio board of regents that the university | 114 |
| maintained a headcount of at least twenty-five thousand students | 115 |
| on its main campus during the academic school year that began in | 116 |
| calendar year 2003 and ended in calendar year 2004. | 117 |
| Section 2. That existing section 5709.07 of the Revised Code | 118 |
| is hereby repealed. | 119 |
| Section 3. The amendment by this act of section 5709.07 of | 120 |
| the Revised Code applies to tax years ending on or after the | 121 |
| effective date of this act. | 122 |