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Sub. H. B. No. 127 As Reported by the House Ways and Means CommitteeAs Reported by the House Ways and Means Committee
125th General Assembly | Regular Session | 2003-2004 |
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Representatives Jolivette, Young, Price, S. Patton, Hartnett, Seitz, Widowfield, Olman, Hagan, Carano, Hollister, Koziura, Hughes, Niehaus, McGregor, Collier, Latta, Taylor, Schaffer, Ujvagi, Kilbane
A BILL
To amend sections 323.152, 718.01, 718.14, 4503.065, 5722.01, and 5722.02 and to enact section 5722.21 of the Revised Code to permit municipal corporations and townships to acquire tax-delinquent land for redevelopment free from liens for the unpaid taxes, to revise municipal taxation of non-Ohio source S corporation income, and to change the inflation adjustment rounding for homestead exemption tax reductions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 323.152, 718.01, 718.14, 4503.065, 5722.01, and 5722.02 be amended and section 5722.21 of the Revised Code be enacted to read as follows:
Sec. 323.152. In addition to the reduction in taxes
required
under section 319.302 of the Revised Code, taxes shall
be reduced
as provided in divisions (A) and
(B) of this section. (A)(1) Division (A) of this
section applies to any of the
following: (a) A person who is permanently and totally disabled; (b) A person who is sixty-five years of age or older; (c) A person who is the surviving spouse of a deceased
person who was permanently and totally disabled or sixty-five
years of age or older and who applied and qualified for a
reduction in taxes under this division in the year of death,
provided the
surviving spouse is at least fifty-nine but not
sixty-five or more years of
age on the date the deceased spouse
dies. (2) Real property taxes on a homestead owned and occupied,
or a
homestead in a housing cooperative occupied, by a
person to
whom division (A) of this section
applies shall be reduced for
each year for which the owner obtains a certificate of reduction
from the county auditor under section 323.154 of the Revised
Code
or for which the occupant obtains a certificate of reduction in
accordance with
section 323.159 of the Revised Code. The
reduction
shall equal the amount obtained by
multiplying the tax
rate for the tax year for which the
certificate is issued by the
reduction in taxable value shown in
the following schedule:
|
|
Reduce Taxable Value |
Total Income |
|
by the Lesser of: |
$11,900 or less |
|
$5,000 or seventy-five per cent |
More than $11,900 but not more than $17,500 |
|
$3,000 or sixty per cent |
More than $17,500 but not more than $23,000 |
|
$1,000 or twenty-five per cent |
More than $23,000 |
|
-0- |
(3) Each calendar year, the tax
commissioner shall adjust
the foregoing schedule
by completing the
following
calculations
in September of each year: (a) Determine the percentage increase in the gross
domestic
product deflator determined by the bureau of economic
analysis of
the United
States department of commerce
from the first day of
January of
the preceding calendar year to the last day of
December of the
preceding calendar
year; (b) Multiply that percentage increase by each of
the total
income amounts, and by each dollar amount by which taxable value
is
reduced, for the current tax year; (c) Add the resulting product to each of the total
income
amounts, and to each of the dollar amounts by which taxable value
is
reduced, for the current tax year; (d) Round the resulting sum for each of the total income amounts to the nearest
multiple of one
hundred dollars; (e) Round the resulting sum for each of the dollar amounts by which taxable value is reduced to the nearest multiple of ten dollars. The commissioner shall certify the amounts resulting from
the
adjustment to each county auditor not later than the first
day of
December each year. The
certified amounts apply to the following
tax year. The
commissioner shall not make the adjustment in any
calendar year
in which the amounts resulting from the adjustment
would be less
than the total income amounts, or less than the
dollar amounts by which
taxable value is reduced, for the current
tax year. (B) Real property taxes on any homestead, and manufactured
home
taxes on any manufactured or mobile home on which a
manufactured home tax is
assessed pursuant to division (D)(2) of
section 4503.06 of the
Revised Code, shall be reduced for each
year for
which the owner obtains a certificate of
reduction from
the county auditor under section 323.154 of the
Revised Code. The
amount of the reduction shall equal one-fourth
of the amount by
which the taxes charged and payable on the
homestead or the
manufactured or mobile home are reduced for such year
under
section 319.302 of the
Revised Code. (C) The reductions granted by this section do not apply to
special assessments or respread of assessments levied against the
homestead, and if there is a transfer of ownership subsequent to
the filing of an application for a reduction in taxes, such
reductions are not forfeited for such year by virtue of such
transfer. (D) The reductions in taxable value referred to in this
section
shall be applied solely as a factor for the purpose of
computing
the reduction of taxes under this section and shall not
affect
the total value of property in any subdivision or taxing
district
as listed and assessed for taxation on the tax lists and
duplicates, or any direct or indirect limitations on indebtedness
of a subdivision or taxing district. If after application of
sections 5705.31 and 5705.32 of the Revised Code, including the
allocation of all levies within the ten-mill limitation to debt
charges to the extent therein provided, there would be
insufficient funds for payment of debt charges not provided for
by
levies in excess of the ten-mill limitation, the reduction of
taxes provided for in sections 323.151 to 323.159 of
the Revised
Code shall be proportionately adjusted to the extent necessary
to
provide such funds from levies within the ten-mill limitation. (E) No reduction shall be made on the taxes due on the
homestead of any person convicted of violating division (C) or
(D)
of section 323.153 of the Revised Code for a period of three
years
following the conviction.
Sec. 718.01. (A) As used in this chapter: (1)
"Internal Revenue Code" means the Internal Revenue Code
of
1986, 100
Stat. 2085, 26 U.S.C. 1, as amended. (2)
"Schedule C" means internal revenue service schedule C
filed by a
taxpayer pursuant to the Internal Revenue Code. (3)
"Form 2106" means internal revenue service form 2106
filed by a taxpayer
pursuant to the Internal Revenue Code. (4)
"Intangible income" means income of any of the following
types: income
yield, interest, dividends, or other income arising
from the ownership, sale,
exchange, or other disposition of
intangible property including, but not
limited to, investments,
deposits, money, or credits as those terms are
defined in Chapter
5701. of the Revised Code. (5) "S corporation" means a corporation that has made an
election under subchapter S of Chapter 1 of Subtitle A of the
Internal Revenue Code for its taxable year. (B) No municipal corporation with respect to that income
that it may tax
shall tax such income at other than a uniform
rate. (C) No municipal corporation shall levy a tax on income at a
rate in excess
of one per cent without having obtained the
approval of the excess by a
majority of the electors of the
municipality voting on the question at a
general, primary, or
special election. The legislative authority of the
municipal
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the
ordinance
together with a resolution specifying the date the
election is to be held and
directing the board of elections to
conduct the election. The ballot shall be
in the following form:
"Shall the Ordinance providing for a ... per cent levy
on income
for (Brief description of the purpose of the proposed levy) be
passed? In the event of an affirmative vote, the proceeds of the
levy
may be used only for the specified purpose. (D)(1) Except as otherwise provided in division (D)(2)
or
(F)(9) of
this section, no
municipal corporation shall exempt from
a tax on
income, compensation for
personal services of individuals
over
eighteen years of age or the net profit
from a business or
profession. (2) The legislative authority of a municipal corporation
may, by ordinance or
resolution, exempt from a tax on income any
compensation arising from the
grant, sale, exchange, or other
disposition of a stock option; the exercise of
a stock option; or
the sale, exchange, or other disposition of stock purchased
under
a stock option. (E) Nothing in this section shall prevent a municipal
corporation from
permitting lawful deductions as prescribed by
ordinance. If a taxpayer's
taxable income includes income against
which the taxpayer has taken a
deduction for federal income tax
purposes as reportable on the taxpayer's form
2106, and against
which a like deduction has not been allowed by the municipal
corporation, the municipal corporation shall deduct from the
taxpayer's
taxable income an amount equal to the deduction shown
on such form allowable
against such income, to the extent not
otherwise so allowed as a deduction by
the municipal corporation.
In the case of a taxpayer who has a net profit
from a business or
profession that is operated as a sole proprietorship, no
municipal
corporation may tax or use as the base for determining the amount
of
the net profit that shall be considered as having a taxable
situs in the
municipal corporation, a greater amount than the net
profit reported by the
taxpayer on schedule C filed in reference
to the year in question as taxable
income from such sole
proprietorship, except as otherwise specifically
provided by
ordinance or regulation. (F) A municipal corporation shall not tax any of the
following: (1) The military pay or allowances of members of the armed
forces of the
United States and of members of their reserve
components, including the Ohio
national guard; (2) The income of religious, fraternal, charitable,
scientific, literary, or
educational institutions to the extent
that such income is derived from
tax-exempt real estate,
tax-exempt tangible or intangible property, or
tax-exempt
activities; (3) Except as otherwise provided in division (G) of this
section, intangible
income; (4) Compensation paid under section 3501.28 or 3501.36 of
the Revised Code to
a person serving as a precinct election
official, to the extent that such
compensation does not exceed one
thousand dollars annually. Such compensation
in excess of one
thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer
of such
compensation to withhold any tax from that compensation. (5) Compensation paid to an employee of a transit authority,
regional transit
authority, or regional transit commission created
under Chapter 306. of the
Revised Code for operating a transit bus
or other motor vehicle for the
authority or commission in or
through the municipal corporation, unless the
bus or vehicle is
operated on a regularly scheduled route, the operator is
subject
to such a tax by reason of residence or domicile in the municipal
corporation, or the headquarters of the authority or commission is
located
within the municipal corporation; (6) The income of a public utility when that public utility
is
subject to the tax levied under section 5727.24 or 5727.30 of
the Revised
Code, except starting January 1, 2002, the income of
an
electric company or combined company, as defined in section
5727.01 of the
Revised Code, may
be taxed by a municipal
corporation, subject to
Chapter 5745. of the
Revised Code. (7) On and after January 1, 2003, items excluded from
federal gross income pursuant to section 107 of the Internal
Revenue Code; (8) On and after January 1, 2001, compensation paid to a
nonresident
individual to the extent prohibited under
section
718.011 of the Revised Code; (9)(a) An S corporation shareholder's distributive share of net profits of the S corporation to the extent such distributive share would not be allocated or apportioned to this state under divisions (B)(1) and (2) of section 5733.05 of the Revised Code if the S corporation were a corporation subject to the taxes imposed under Chapter 5733. of the Revised Code. (b) Except as provided in division (H) of this section, an S
corporation
shareholder's distributive share of net
profits of the
S
corporation that would be so allocated or apportioned to this state, other than any part of the
distributive share of
net
profits that represents
wages as defined in section 3121(a) of
the Internal Revenue Code or net earnings from self-employment as
defined in section 1402(a) of the Internal Revenue Code, to the
extent such distributive share would not be allocated or
apportioned to this state under division (B)(1) and (2) of section
5733.05 of the Revised Code if the S corporation were a
corporation subject to the taxes imposed under Chapter 5733. of
the Revised Code. (G) Any municipal corporation that taxes any type of
intangible income on
March 29, 1988, pursuant to Section 3 of
Amended Substitute Senate Bill No.
238 of the 116th general
assembly, may continue to tax that type of income
after 1988 if a
majority of the electors of the municipal corporation voting
on
the question of whether to permit the taxation of that type of
intangible
income after 1988 vote in favor thereof at an election
held on November 8,
1988. (H) Any municipal corporation that, on December 6, 2002,
taxes an S corporation shareholder's distributive share of net
profits of the S corporation to any greater extent than that
permitted under division (F)(9)(b) of this section may continue after
2002 to tax such distributive shares to such greater extent only
if a majority of the electors of the municipal corporation voting
on the question of such continuation vote in favor thereof at an
election held on November 4, 2003. If a majority of electors vote
in favor of that question, then, for purposes of section 718.14 of
the Revised Code, "pass-through entity" includes S corporations,
"income from a pass-through entity" includes distributive shares
from an S corporation, and "owner" includes a shareholder of an S
corporation, notwithstanding that section to the contrary. (I) Nothing in this section or section 718.02 of the Revised
Code
shall authorize the levy of any tax on income that a
municipal
corporation is not
authorized to levy under existing
laws or shall require a municipal
corporation to allow a deduction
from taxable income for losses incurred from
a sole proprietorship
or partnership.
Sec. 718.14. (A) As used in this section: (1) "Limited liability company" means a limited liability
company
formed under Chapter 1705. of the Revised Code or under
the laws
of another state. (2)
"Pass-through entity" means a partnership,
limited liability company, S corporation, or any other class of
entity the income
or profits
from
which are given pass-through
treatment under the
Internal
Revenue Code, excluding an S
corporation. (3)
"Income from a pass-through entity" means partnership
income
of partners,
membership interests of members of a limited
liability company, distributive shares of shareholders of an S corporation,
or other distributive or proportionate
shares
of
income from other pass-through entities. (4)
"Owner" means a partner of a partnership,
a member of a limited liability
company, a shareholder of an S corporation, or
other
person with an ownership interest in a
pass-through entity. (5)
"Owner's proportionate share," with respect to each
owner
of
a pass-through entity, means the
ratio of (a) the owner's
income from the pass-through entity
that is subject to taxation by
the municipal corporation, to (b)
the total income from that
entity of all owners
whose income from the entity is subject to
taxation
by that municipal corporation. (B) On and after January 1, 2003, any municipal
corporation
imposing a tax that applies to income from a pass-through
entity
shall grant a
credit to each owner who is domiciled in the
municipal corporation
for
taxes paid to another municipal
corporation by a pass-through entity that does
not conduct
business
in the municipal corporation. The amount of the credit
shall
equal the lesser of the following amounts, subject to
division (C)
of this section: (1) The owner's proportionate share of the amount, if any,
of tax paid
by the pass-through entity to
another municipal
corporation in this state; (2) The owner's proportionate share of the amount of tax
that would be
imposed on the pass-through
entity by the municipal
corporation in which the taxpayer is
domiciled if the pass-through
entity conducted business in the municipal
corporation. (C) If a municipal corporation grants a credit for a
percentage,
less than one hundred per cent, of the amount of
income taxes paid on
compensation by an
individual who resides or
is domiciled in the municipal corporation to
another municipal
corporation, the amount of credit otherwise
required by division
(B) of this section shall be multiplied by
that percentage. (D) On and after January 1, 2003, any municipal
corporation
that
imposes a tax on income of or from a pass-through entity
shall specify by ordinance or rule
whether the tax applies to
income of the pass-through entity
in the hands of the
entity or to
income from the pass-through entity in the hands of
the owners of
the entity. A municipal corporation may specify a
different
ordinance or rule under this division for each of the classes
of
pass-through entity enumerated in division (A)(2) of this
section.
Sec. 4503.065. (A) This section applies to any of the
following: (1) An individual who is permanently and totally disabled; (2) An individual who is sixty-five years of age or older; (3) An individual who is the surviving spouse of a
deceased
person who was permanently and totally disabled or
sixty-five
years of age or older and who applied and qualified
for a
reduction in assessable value under this section in the
year of
death, provided the surviving spouse is at least
fifty-nine but
not sixty-five or more years of age on the date
the deceased
spouse dies. (B)(1) The manufactured home tax on a manufactured
or mobile
home that is paid pursuant to division (C) of
section 4503.06 of
the Revised Code and that is owned
and occupied as a home by an
individual whose domicile is in this
state and to whom this
section applies, shall be reduced
for any tax year for which the
owner obtains a certificate of reduction from the county auditor
under section 4503.067 of the Revised Code, provided the
individual did not acquire ownership from a person, other than
the
individual's spouse, related by consanguinity or
affinity for the
purpose
of qualifying for the reduction in assessable value. An
owner
includes a settlor of a revocable inter vivos trust holding
the
title to a manufactured or mobile home occupied by the settlor
as of
right under the trust. The reduction shall equal the amount
obtained by
multiplying the tax rate for the tax year for which
the
certificate is issued by the reduction in assessable value
shown
in the following schedule.
|
|
Reduce Assessable Value |
Total Income |
|
by the Lesser of: |
|
|
Column A |
Column B |
$11,900 or less |
|
$5,000 or seventy-five per cent |
More than $11,900 but not more than $17,500 |
|
$3,000 or sixty per cent |
More than $17,500 but not more than $23,000 |
|
$1,000 or twenty-five per cent
|
More than $23,000 |
|
-0- |
(2) Each calendar year, the tax
commissioner shall adjust
the foregoing schedule by completing
the
following
calculations
in September of each year: (a) Determine the percentage increase in the gross
domestic
product deflator determined by the bureau of economic
analysis of
the United
States department of commerce
from the first day of
January of
the preceding calendar year to the last day of
December of the
preceding calendar
year; (b) Multiply that percentage increase by each of
the total
income amounts, and by each dollar amount by which assessable
value
is reduced, for the ensuing tax year; (c) Add the resulting product to each of the total
income
amounts, and to each of the dollar amounts by which assessable
value is
reduced, for the ensuing tax year; (d) Round the resulting sum for each of the total income amounts to the nearest
multiple of one
hundred dollars; (e) Round the resulting sum for each of the dollar amounts by which assessable value is reduced to the nearest multiple of ten dollars. The commissioner shall certify the amounts resulting from
the
adjustment to each county auditor not later than the first
day of
December each year. The
certified amounts apply to the second
ensuing tax year. The
commissioner shall not make the adjustment
in any calendar year
in which the amounts resulting from the
adjustment would be less
than the total income amounts, or less
than the dollar amounts by which
assessable value is reduced, for
the ensuing tax year. (C) If the owner or the spouse of the owner of a
manufactured or
mobile
home is eligible for a homestead exemption
on the land upon which
the home is located, the reduction in
assessable
value to which the owner or spouse is entitled under
this
section shall not exceed
the difference between the reduction
in assessable value
to which the owner or spouse is entitled under
column A of the above schedule
and the amount of the reduction in
taxable value that was used to compute the
homestead exemption. (D) No reduction shall be made on the assessable value of
the
home of any person convicted of violating division
(C) or (D)
of section 4503.066 of the Revised Code for a period
of three
years following the conviction.
Sec. 5722.01. As used in this chapter: (A) "Electing subdivision" means a municipal corporation
that has enacted an ordinance or a township or county that has
adopted a resolution pursuant to section 5722.02 of the Revised
Code for purposes of adopting and implementing the procedures set
forth in this chapter sections 5722.02 to 5722.15 of the Revised Code. (B) "Delinquent lands" and "delinquent vacant lands" have
the same meanings as in section 5721.01 of the Revised Code. (C) "Land reutilization program" means the procedures and
activities concerning the acquisition, management, and
disposition of affected delinquent lands set forth in this
chapter sections 5722.02 to 5722.15 of the Revised Code. (D) "Minimum bid," in the case of a sale of property
foreclosed pursuant to section 323.25 or 5721.18 or foreclosed
and forfeited pursuant to section 5721.14 of the Revised Code,
means a bid in an amount equal to the sum of the taxes,
assessments, charges, penalties, and interest due and payable on
the parcel subsequent to the delivery to the county prosecuting
attorney of the delinquent land or delinquent vacant land tax
certificate or master list of delinquent or delinquent vacant
tracts containing the parcel, and prior to the transfer of the
deed of the parcel to the purchaser following confirmation of
sale, plus the costs of foreclosure or foreclosure and forfeiture
proceedings against the property. (E) "Nonproductive land" means any parcel of delinquent
vacant land with respect to which a foreclosure proceeding
pursuant to section 323.25, a foreclosure proceeding pursuant to
division (A) or (B) of section 5721.18, or a foreclosure and
forfeiture proceeding pursuant to section 5721.14 of the Revised
Code has been instituted; and any parcel of delinquent land with
respect to which a foreclosure proceeding pursuant to section
323.25 or division (A) or (B) of section 5721.18 of the Revised
Code has been instituted, and upon which there are no buildings
or other structures, or upon which there are either: (1) Buildings or other structures that are not in the
occupancy of any person and as to which the township or municipal
corporation within whose boundaries the parcel is situated has
instituted proceedings under section 505.86 or 715.26 of the
Revised Code, or Section 3 of Article XVIII, Ohio Constitution,
for the removal or demolition of such buildings or other
structures by the township or municipal corporation because of
their insecure, unsafe, or structurally defective condition; (2) Buildings or structures that are not in the occupancy
of any person at the time the foreclosure proceeding is initiated
and whose acquisition the municipal corporation, county, or
township determines to be necessary for the implementation of an
effective land reutilization program. (F) "Occupancy" means the actual, continuous, and
exclusive use and possession of a parcel by a person having a
lawful right to such use and possession. (G) "Land within an electing subdivision's boundaries"
does not include land within the boundaries of a municipal
corporation unless the electing subdivision is the municipal
corporation.
Sec. 5722.02. Any municipal corporation, county, or
township may elect to adopt and implement the procedures set
forth in this chapter sections 5722.02 to 5722.15 of the Revised Code to facilitate the effective reutilization
of nonproductive land situated within its boundaries. Such
election shall be made by ordinance in the case of a municipal
corporation, and by resolution in the case of a county or
township. The ordinance or resolution shall state that the
existence of nonproductive land within its boundaries is such as
to necessitate the implementation of a land reutilization program
to foster either the return of such nonproductive land to tax
revenue generating status or the devotion thereof to public use. An electing subdivision shall promptly deliver certified
copies of such ordinance or resolution to the auditor, treasurer,
and the prosecutor of each county in which the electing
subdivision is situated. On and after the effective date of such
ordinance or resolution, the foreclosure, sale, management, and
disposition of all nonproductive land situated within the
electing subdivision's boundaries shall be governed by the
procedures set forth in this chapter sections 5722.02 to 5722.15 of the Revised Code.
Sec. 5722.21. (A) As used in this section: (1) "Eligible delinquent land" means delinquent land or delinquent vacant land, as defined in section 5721.01 of the Revised Code, included in a delinquent tax list or delinquent vacant land tax list that has been certified delinquent within the meaning of section 5721.03 of the Revised Code, excluding any certificate parcel as defined in section 5721.30 of the Revised Code. (2) "Delinquent taxes" means the cumulative amount of unpaid taxes, assessments, recoupment charges, penalties, and interest charged against eligible delinquent land that became delinquent before transfer of title to a municipal corporation or township under this section. (3) "Foreclosure costs" means the sum of all costs or other charges of publication, service of notice, prosecution, or other proceedings against the land under sections 323.25 to 323.28 or Chapter 5721. of the Revised Code as may pertain to delinquent land or be fairly apportioned to it by the county treasurer. (4) "Tax foreclosure sale" means a sale of delinquent land pursuant to foreclosure proceedings under sections 323.25 to 323.28 or section 5721.14 or 5721.18 of the Revised Code. (5) "Taxing authority" means the legislative authority of any taxing unit, as defined in section 5705.01 of the Revised Code, in which is located a parcel of eligible delinquent land acquired or to be acquired by a municipal corporation or township in which a declaration under division (B) of this section is in effect. (B) The legislative authority of a municipal corporation or a board of township trustees may declare by ordinance or resolution that it is in the public interest for the municipal corporation or township to acquire tax-delinquent real property within the municipal corporation or township for the public purpose of redeveloping the property or otherwise rendering it suitable for productive, tax-paying use. In any municipal corporation or township in which such a declaration is in effect, the municipal corporation or township may purchase or otherwise acquire title to eligible delinquent land, other than by appropriation, and the title shall pass free and clear of the lien for delinquent taxes to the extent provided in division (D) of this section. The authority granted by this section is supplemental to the authority granted under sections 5722.01 to 5722.15 of the Revised Code. (C) With respect to any parcel of eligible delinquent land purchased or acquired by a municipal corporation or township in which a declaration is in effect under this section, the municipal corporation or township may obtain the consent of each taxing authority for release of any claim on the delinquent taxes and associated costs attaching to that property at the time of conveyance to the municipal corporation or township. Consent shall be obtained in writing, and shall be certified by the taxing authority granting consent or by the fiscal officer or other person authorized by the taxing authority to provide such consent. Consent may be obtained before or after title to the eligible delinquent land is transferred to the municipal corporation or township. The taxing authority of a taxing unit and a municipal corporation or township in which a declaration is in effect under this section may enter into an agreement whereby the taxing authority consents in advance to release of the taxing authority's claim on delinquent taxes and associated costs with respect to all or specified number of parcels of eligible delinquent land that may be purchased or acquired by the municipal corporation or township for the purposes of this section. The agreement shall provide for any terms and conditions on the release of such claim as are mutually agreeable to the taxing authority and municipal corporation or township, including any notice to be provided by the municipal corporation or township to the taxing authority of the purchase or acquisition of eligible delinquent land situated in the taxing unit; any option vesting in the taxing authority to revoke its release with respect to any parcel of eligible delinquent land before the release becomes effective; and the manner in which notice of such revocation shall be effected. Nothing in this section or in such an agreement shall be construed to bar a taxing authority from revoking its advance consent with respect to any parcels of eligible delinquent land purchased or acquired by the municipal corporation or township before the municipal corporation or township enters into a purchase or other agreement for acquisition of the parcels. (D) The lien for so much of the delinquent taxes and associated costs for which taxing authorities have consented to release their claim under this section is hereby extinguished, and the transfer of title to such delinquent land to the municipal corporation or township shall be transferred free and clear of the lien for such taxes and costs to that extent. If a taxing authority does not consent to the release of its claim on delinquent taxes and associated costs, the lien for such taxes and costs shall continue as otherwise provided by law until paid or otherwise discharged according to law. (E) All eligible delinquent land acquired by a municipal corporation or township under this section is real property held for a public purpose and is exempted from taxation until the municipal corporation or township sells or otherwise disposes of property. (F) If a municipal corporation or township sells or otherwise disposes of delinquent land it purchased or acquired and for which all or a portion of a taxing authority's claim for delinquent taxes was released under this section, the net proceeds from such sale or disposition shall be used for such redevelopment purposes the legislative authority of the municipal corporation or the board of township trustees considers necessary or appropriate.
Section 2. That existing sections 323.152, 718.01, 718.14, 4503.065, 5722.01, and 5722.02 of the Revised Code are hereby repealed.
Section 3. (A) The amendment by this act of section 323.152 of the Revised Code applies to tax year 2003 and thereafter. (B) The amendment by this act of section 4503.065 of the Revised Code applies to taxes levied in 2004 and thereafter.
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