To enact section 5713.40 of the Revised Code to partially exempt conservation easement property from taxation.

Section 1. That section 5713.40 of the Revised Code be enacted to read as follows:

Sec. 5713.40.  (A) As used in this section, "conservation easement" or "agricultural easement" means a conservation easement or agricultural easement as defined in section 5301.67 of the Revised Code that is perpetual in duration and the instrument for which is executed and recorded as other instruments conveying real property interests.

(B) One-half of the taxable value of any tract, lot, or parcel of real property, or any portion thereof, that is subject to a conservation easement or agricultural easement shall be exempt from property taxation if the property is not valued in the current tax year at its current agricultural use value under section 5713.31 of the Revised Code.

At any time after the first Monday of January and before the first Monday of March in any tax year, the owner of land subject to a conservation or agricultural easement may file an application with the county auditor requesting that the land be partially exempted from taxation as provided in this section. The county auditor shall verify the existence and extent of the easement by examining the recorded instrument and, if so verified, shall grant the partial exemption to the whole or any part of such land that is subject to the easement.

In determining the extent of land to be partially exempted under this section, the county auditor may exclude any portion of the land on which a homestead is situated or on which homesteads are planned to be situated. The excluded portion for each homestead shall be not less than the minimum agricultural homestead area prescribed by any applicable zoning regulations or one acre, whichever is greater.

Land partially exempted under this section may not be valued at its current agricultural use value, and its taxable value shall not be diminished to account for the existence of a conservation easement as provided under section 5713.04 of the Revised Code. Land subject to a conservation easement that is not partially exempted under this section or valued at its current agricultural use shall be valued for taxation by taking into account the diminution in value as a result of the existence of the easement as provided under section 5713.04 of the Revised Code.

Land partially exempted under this section shall continue to be partially exempted for the tax year in which the exemption is originally approved and all ensuing tax years, except as provided in division (C) of this section.

(C) Land subject to a conservation or agricultural easement shall not be partially exempted from taxation under this section if the terms of the easement are violated or the use of the land is otherwise not in compliance with those terms.