To enact section 5709.89 of the Revised Code to authorize local governments to exempt homes that have been vacant for at least twelve months from property taxation for up to three years when purchased by an owner-occupant.

Section 1. That section 5709.89 of the Revised Code be enacted to read as follows:

Sec. 5709.89. (A) For purposes of this section:

(1) "Vacant home" means a single-family or condominium dwelling that has not been occupied by the owner or any legal tenant for the twelve consecutive months immediately preceding the purchase described in this section. "Vacant home" includes so much of the land surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling as a home.

(2) "Purchase" includes a purchase under a land installment contract conforming with Chapter 5313. of the Revised Code.

(3) "School district" means a city, local, exempted village, joint vocational, or cooperative educational school district.

(B) For the public purpose of minimizing blight caused by the presence of vacant housing, a board of township trustees or the legislative authority of a municipal corporation, by resolution or ordinance, may exempt from real property taxation vacant homes situated in the township or municipal corporation and purchased for not more than one hundred fifty thousand dollars by an individual whose domicile is in this state and who occupies the dwelling as the individual's principal residence within sixty days after taking possession. The board or legislative authority shall certify a copy of the resolution or ordinance to the county auditor, who shall attach a copy of the resolution or ordinance to each application for exemption.

The exemption commences with the tax year in which the deed or other evidence of title is endorsed by the county auditor or, in the case of a land installment contract, the tax year in which the contract is recorded. The exemption ends at the conclusion of the second ensuing tax year, or at the conclusion of the tax year in which the individual ceases to own or occupy the dwelling as the individual's principal residence, whichever occurs earlier. The owner shall apply for exemption as provided in section 5715.27 of the Revised Code.

Notwithstanding division (C) of section 5713.08 and division (A) of section 5713.081 of the Revised Code, the tax commissioner shall remit any unpaid or delinquent taxes, penalties, and interest charged against a property when the property becomes entitled to the exemption authorized under this section.

The exemption and remission apply only to vacant homes purchased on or after the effective date of the resolution or ordinance.

(C)(1) Not later than forty-five days before adopting a resolution or ordinance under division (B) of this section, the board or legislative authority shall deliver to the board of county commissioners of each county within which the territory of the township or municipal corporation is located a notice that states the board's or legislative authority's intent to adopt such a resolution or ordinance. The notice shall include a copy of the proposed resolution or ordinance and indicate the date on which the board or legislative authority intends to adopt the resolution or ordinance.

(2) The board of county commissioners, by resolution, may object to the exemption. If the board objects, the board may negotiate a mutually acceptable compensation agreement with the board of township trustees or legislative authority. In no case shall the compensation provided to the board exceed the property taxes forgone due to the exemption. The board of county commissioners shall certify its resolution to the board of township trustees or legislative authority not later than thirty days after receipt of the notice. If the board of county commissioners does not object or fails to certify its resolution objecting to an exemption within thirty days after receipt of the notice, the board of township trustees or legislative authority may adopt the resolution or ordinance, and no compensation shall be provided to the board of county commissioners.

If the board of county commissioners timely certifies its resolution objecting to the ordinance, the board of township trustees or legislative authority may adopt the resolution or ordinance only after a mutually acceptable compensation agreement is entered.

(D) A board of township trustees or the legislative authority of a municipal corporation that exempts property under this section shall require the individual who purchased the vacant home to make annual service payments in lieu of taxes to the county treasurer on or before the final dates for payment of real property taxes. Service payments shall be required for each tax year for which the property is exempt. Each payment shall be charged, collected, and distributed in the same manner and in the same amount as the following property taxes that would have been charged and payable against the property were it not for the exemption authorized under this section:

(1) All school district property taxes; and

(2) Twenty-five per cent of taxes levied under division (L) of section 5705.19 or section 5705.191 of the Revised Code for community developmental disabilities programs and services pursuant to Chapter 5126. of the Revised Code.