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H. B. No. 455 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Representatives Ujvagi, Gardner
Cosponsors:
Representatives Huffman, Hagan, R., McGregor, J., Yuko, Brown, Lundy, Szollosi, Barrett
A BILL
To amend sections 149.311, 5725.151, 5733.47, and
5747.76 and to enact section 5703.75
of the
Revised Code to authorize a county that is
issued
a historic building rehabilitation tax
credit
certificate to assign the certificate to
another
person.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 149.311, 5725.151, 5733.47, and
5747.76 be amended and section
5703.75 of the Revised Code be
enacted to read as follows:
Sec. 149.311. (A) As used in this section:
(1) "Historic building" means a building, including its
structural components, that is located in this state and that is
either individually listed on the national register of historic
places under 16 U.S.C. 470a, located in a registered historic
district, and certified by the state historic preservation officer
as being of historic significance to the district, or is
individually listed as a historic landmark designated by a local
government certified under 16 U.S.C. 470a(c).
(2) "Qualified rehabilitation expenditures" means
expenditures paid or incurred during the rehabilitation period,
and before and after that period as determined under 26 U.S.C. 47,
by an owner of a historic building to rehabilitate the building.
"Qualified rehabilitation expenditures" includes architectural or
engineering fees paid or incurred in connection with the
rehabilitation, and expenses incurred in the preparation of
nomination forms for listing on the national register of historic
places. "Qualified rehabilitation expenditures" does not include
any of the following:
(a) The cost of acquiring, expanding, or enlarging a historic
building;
(b) Expenditures attributable to work done to facilities
related to the building, such as parking lots, sidewalks, and
landscaping;
(c) New building construction costs.
(3) "Owner" of a historic building means a person holding,
including a board of county commissioners, that holds the
fee
simple interest in the building.
(4) "Certificate owner" means the owner of a historic
building to which a rehabilitation tax credit certificate was
issued under this section or an assignee of the certificate
registered with the tax commissioner under section 5703.75 of the
Revised Code.
(5) "Registered historic district" means a historic district
listed in the national register of historic places under 16 U.S.C.
470a, a historic district designated by a local government
certified under 16 U.S.C. 470a(c), or a local historic district
certified under 36 C.F.R. 67.8 and 67.9.
(6) "Rehabilitation" means the process of repairing or
altering a historic building or buildings, making possible an
efficient use while preserving those portions and features of the
building and its site and environment that are significant to its
historic, architectural, and cultural values.
(7) "Rehabilitation period" means one of the following:
(a) If the rehabilitation initially was not planned to be
completed in stages, a period chosen by the owner not to exceed
twenty-four months during which rehabilitation occurs;
(b) If the rehabilitation initially was planned to be
completed in stages, a period chosen by the owner not to exceed
sixty months during which rehabilitation occurs.
(8) "State historic preservation officer" or "officer" means
the state historic preservation officer appointed by the governor
under 16 U.S.C. 470a.
(9) "Application period" means either of the following time
periods during which an application for a rehabilitation tax
credit certificate may be filed under this section:
(a) July 1, 2007, through June 30, 2008;
(b) July 1, 2008, through June 30, 2009.
(B) On or after July 1, 2007, but before July 1, 2009, the
owner of a historic building may apply to the state historic
preservation officer for a rehabilitation tax credit certificate
for qualified rehabilitation expenditures paid or incurred after
April 4, 2007, for
rehabilitation of a historic building. The
form and manner of
filing such applications shall be prescribed
by rule of the
director of development, and applications expire
at the end of
each application period. Before July 1, 2007, the
director, after
consultation with the tax commissioner and in
accordance with
Chapter 119. of the Revised Code, shall adopt
rules that establish
all of the following:
(1) Forms and procedures by which applicants may apply for
rehabilitation tax credit certificates;
(2) Criteria for reviewing, evaluating, and approving
applications for certificates within the limitation on the number
of applications that may be approved in an application period
under division (D) of this section, criteria for assuring that the
certificates issued encompass a mixture of high and low qualified
rehabilitation expenditures, and criteria for issuing certificates
under division (C)(3)(b) of this section;
(3) Eligibility requirements for obtaining a certificate
under this section;
(4) The form of rehabilitation tax credit certificates, each
one of which shall bear a unique registration number;
(5) Reporting requirements and monitoring procedures;
(6) Any other rules necessary to implement and administer
this section.
(C) The state historic preservation officer shall accept
applications in the order in which they are filed. Within seven
days after an application is filed, the officer shall forward it
to the director of development who shall review the application
and determine whether all of the following criteria are met:
(1) That the building that is the subject of the application
is a historic building and the applicant is the owner of the
building;
(2) That the rehabilitation will satisfy standards prescribed
by the United States secretary of the interior under 16 U.S.C.
470, et seq., as amended, and 36 C.F.R. 67.7 or a successor to
that section;
(3) That receiving a rehabilitation tax credit certificate
under this section is a major factor in the applicant's decision
to do either of the following:
(a) The applicant's decision to rehabilitate Rehabilitate the
historic
building; or
(b) To increase Increase the level of investment in such
rehabilitation.
An applicant shall demonstrate to the satisfaction of the
state historic preservation officer and director of development
that the rehabilitation will satisfy the standards described in
division (C)(2) of this section before the applicant begins the
physical rehabilitation of the historic building.
(D) If (1) Except as provided in division (D)(2) of this
section, if the director of development determines that the
criteria in divisions (C)(1), (2), and (3) of this section are
met, the director, in conjunction with the tax commissioner, shall
conduct a cost and benefit analysis for the historic building that
is the subject of an application filed under this section to
determine whether rehabilitation of the historic building,
including activities during the construction phase of the
rehabilitation, will result in a net revenue gain in state and
local taxes. The director shall not
approve an application and
issue a rehabilitation tax credit
certificate to an applicant
unless the cost and benefit analysis
of the historic building
determines that there will be a net
revenue gain in state and
local taxes once the building is used. A
(2) The director shall not conduct a cost and benefit
analysis for a historic building that is the subject of an
application filed by a board of county commissioners under this
section, but the board's application must meet the criteria in
divisions (C)(1), (2), and (3) of this section.
(3) A
rehabilitation tax
credit certificate shall not be
issued before
rehabilitation of a
historic building is
completed. The director
shall not approve
more than one hundred
applications in an
application period, and may not approve more
than a total of five applications filed by boards of county
commissioners in an application period.
(E)
Issuance of a certificate represents a finding by the
director of development of the matters described in divisions
(C)(1), (2), and (3) of this section only; issuance of a
certificate does not represent a verification or certification by
the director of the amount of qualified rehabilitation
expenditures for which a tax credit may be claimed under section
5725.151, 5733.47, or 5747.76 of the Revised Code. The amount of
qualified rehabilitation expenditures for which a tax credit may
be claimed is subject to inspection and examination by the tax
commissioner or employees of the commissioner under section
5703.19 of the Revised Code and any other applicable law. Upon the
issuance of a certificate, the director shall certify to the tax
commissioner, in the form and manner requested by the tax
commissioner, the name of the applicant, the amount of qualified
rehabilitation expenditures shown on the certificate, the
registration number of the certificate, and any
other information
required by the rules adopted under this
section.
(F) A board of county commissioners to which a rehabilitation
tax credit certificate is issued under this section may assign the
certificate to any other person for such consideration as is
mutually agreeable. Upon assignment, the assignee shall register
with the tax commissioner as the certificate owner. A tax credit
may not be claimed under section 5725.151, 5733.47, or 5747.76 of
the Revised Code by a person who is not the certificate owner. A
certificate owner may not assign a certificate after claiming a
credit under any of those sections.
(G)(1) On or before the first day of December in 2007, 2008,
and 2009, the director of development and tax commissioner jointly
shall submit to the president of the senate and the speaker of the
house of representatives a report on the tax credit program
established under this section and sections 5725.151, 5733.47, and
5747.76 of the Revised Code. The report shall present an overview
of the program and shall include information on the number of
rehabilitation tax credit certificates issued under this section
during an application period, an update on the status of each
historic building for which an application was approved under this
section, the dollar amount of the tax credits granted under
sections 5725.151, 5733.47, and 5747.76 of the Revised Code, and
any other information the director and commissioner consider
relevant to the topics addressed in the report.
(2) On or before December 1, 2010, the director of
development and tax commissioner jointly shall submit to the
president of the senate and the speaker of the house of
representatives a comprehensive report that includes the
information required by division (F)(G)(1) of this section and a
detailed analysis of the effectiveness of issuing tax credits for
rehabilitating historic buildings. The report shall be prepared
with the assistance of an economic research organization jointly
chosen by the director and commissioner.
Sec. 5703.75. For the purpose of sections 5725.151, 5733.47,
and 5747.76 of the Revised Code, the tax commissioner shall
compile and maintain a register of rehabilitation tax credit
certificates that are issued under section 149.311 of the Revised
Code and assigned under that section to another person by a board
of county commissioners. The register shall record, according to
the registration number of each certificate so issued and
assigned, the name of the board of county commissioners to which
the certificate was issued, the name of the person to which the
certificate was assigned, and the dollar amount of qualified
rehabilitation expenditures shown on the certificate.
Sec. 5725.151. (A) As used in this section, "certificate
owner" has the same meaning as in section 149.311 of the Revised
Code.
(B) There is allowed a refundable credit against the tax
imposed by section 5707.03 and assessed under section 5725.15 of
the Revised Code for a dealer in intangibles subject to that tax
that is a certificate owner of a rehabilitation tax credit
certificate issued under section 149.311 of the Revised Code. The
credit shall equal twenty-five per cent of the dollar amount
indicated on the certificate, but in no case shall the credit
exceed two million dollars if the certificate owner is an assignee
of a board of county commissioners. The credit shall be claimed in
the calendar year specified in the certificate.
(C) A dealer in intangibles claiming a credit under this
section shall retain the rehabilitation tax credit certificate for
four years following the end of the year in which the credit was
claimed, and shall make the certificate available for inspection
by the tax commissioner upon the request of the tax commissioner
during that period.
(D) For the purpose of division (C) of section 5725.24 of the
Revised Code, reductions in the amount of taxes collected on
account of credits allowed under this section shall be applied to
reduce the amount credited to the general revenue fund and shall
not be applied to reduce the amount to be credited to the
undivided local government funds of the counties in which such
taxes originate.
Sec. 5733.47. (A) As used in this section, "certificate
owner" has the same meaning as in section 149.311 of the Revised
Code.
(B) There is allowed a refundable credit against the tax
imposed under section 5733.06 of the Revised Code for a taxpayer
that is a certificate owner of a rehabilitation tax credit
certificate issued under section 149.311 of the Revised Code. The
credit shall equal twenty-five per cent of the dollar amount
indicated on the certificate, but in no case shall the credit
exceed two million dollars if the certificate owner is an assignee
of a board of county commissioners. The credit shall be claimed
for the tax year specified in the certificate and in the order
required under section 5733.98 of the Revised Code. For purposes
of making tax payments under this chapter, taxes equal to the
amount of the refundable credit shall be considered to be paid to
the state on the first day of the tax year.
(C) A taxpayer claiming a credit under this section shall
retain the rehabilitation tax credit certificate for four years
following the end of the tax year to which the credit was applied,
and shall make the certificate available for inspection by the tax
commissioner upon the request of the tax commissioner during that
period.
(D) If, pursuant to division (G) of section 5733.01 of the
Revised Code, a taxpayer no longer pays a tax under this chapter,
the taxpayer may nonetheless file an annual report under section
5733.02 of the Revised Code and claim the refundable credit
authorized by this section. Nothing in this division allows a
taxpayer to claim the credit under this section more than once.
Sec. 5747.76. (A) As used in this section, "certificate
owner" has the same meaning as in section 149.311 of the Revised
Code.
(B) There is allowed a refundable credit against the tax
imposed under section 5747.02 of the Revised Code for a taxpayer
that is the certificate owner of a rehabilitation tax credit
certificate issued under section 149.311 of the Revised Code. The
credit shall equal twenty-five per cent of the dollar amount
indicated on the certificate, but in no case shall the credit
exceed two million dollars if the certificate owner is an assignee
of a board of county commissioners. The credit shall be claimed
for the taxable year specified in the certificate and in the order
required under section 5747.98 of the Revised Code. For purposes
of making tax payments under this chapter, taxes equal to the
amount of the refundable credit shall be considered to be paid to
the state on the first day of the taxable year.
(C) Nothing in this section limits or disallows pass-through
treatment of the credit if the certificate owner is a pass-through
entity.
(D) A taxpayer claiming a credit under this section shall
retain the rehabilitation tax credit certificate for four years
following the end of the taxable year to which the credit was
applied, and shall make the certificate available for inspection
by the tax commissioner upon the request of the tax commissioner
during that period.
Section 2. That existing sections 149.311, 5725.151, 5733.47,
and 5747.76 of the Revised Code
are hereby repealed.
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