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S. B. No. 370 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Senators Lehner, Seitz, Turner
A BILL
To amend section 5709.12 of the Revised Code to
specify that a nonprofit corporation, the
principal purpose of which is operating a halfway
house, community-based correctional facility, or
other venue offering rehabilitative residential
programming to criminal offenders is presumed to
be a charitable institution exempt from property
taxation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5709.12 of the Revised Code be
amended to read as follows:
Sec. 5709.12. (A) As used in this section, "independent
living facilities" means any residential housing facilities and
related property that are not a nursing home, residential care
facility, or residential facility as defined in division (A) of
section 5701.13 of the Revised Code.
(B) Lands, houses, and other buildings belonging to a county,
township, or municipal corporation and used exclusively for the
accommodation or support of the poor, or leased to the state or
any political subdivision for public purposes shall be exempt from
taxation. Real and tangible personal property belonging to
institutions that is used exclusively for charitable purposes
shall be exempt from taxation, including real property belonging
to an institution that is a nonprofit corporation that receives a
grant under the Thomas Alva Edison grant program authorized by
division (C) of section 122.33 of the Revised Code at any time
during the tax year and being held for leasing or resale to
others. If, at any time during a tax year for which such property
is exempted from taxation, the corporation ceases to qualify for
such a grant, the director of development shall notify the tax
commissioner, and the tax commissioner shall cause the property to
be restored to the tax list beginning with the following tax year.
All property owned and used by a nonprofit organization
exclusively for a home for the aged, as defined in section 5701.13
of the Revised Code, also shall be exempt from taxation.
(C)(1) If a home for the aged described in division (B)(1) of
section 5701.13 of the Revised Code is operated in conjunction
with or at the same site as independent living facilities, the
exemption granted in division (B) of this section shall include
kitchen, dining room, clinic, entry ways, maintenance and storage
areas, and land necessary for access commonly used by both
residents of the home for the aged and residents of the
independent living facilities. Other facilities commonly used by
both residents of the home for the aged and residents of
independent living units shall be exempt from taxation only if the
other facilities are used primarily by the residents of the home
for the aged. Vacant land currently unused by the home, and
independent living facilities and the lands connected with them
are not exempt from taxation. Except as provided in division
(A)(1) of section 5709.121 of the Revised Code, property of a home
leased for nonresidential purposes is not exempt from taxation.
(2) Independent living facilities are exempt from taxation if
they are operated in conjunction with or at the same site as a
home for the aged described in division (B)(2) of section 5701.13
of the Revised Code; operated by a corporation, association, or
trust described in division (B)(1)(b) of that section; operated
exclusively for the benefit of members of the corporation,
association, or trust who are retired, aged, or infirm; and
provided to those members without charge in consideration of their
service, without compensation, to a charitable, religious,
fraternal, or educational institution. For the purposes of
division (C)(2) of this section, "compensation" does not include
furnishing room and board, clothing, health care, or other
necessities, or stipends or other de minimis payments to defray
the cost thereof.
(D)(1) A private corporation established under federal law,
defined in 36 U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629, as
amended, the objects of which include encouraging the advancement
of science generally, or of a particular branch of science, the
promotion of scientific research, the improvement of the
qualifications and usefulness of scientists, or the increase and
diffusion of scientific knowledge is conclusively presumed to be a
charitable or educational institution. A private corporation
established as a nonprofit corporation under the laws of a state,
that is exempt from federal income taxation under section
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 26
U.S.C.A. 1, as amended, and has as its principal purpose one or
more of the foregoing objects, also is conclusively presumed to be
a charitable or educational institution.
The fact that an organization described in this division
operates in a manner that results in an excess of revenues over
expenses shall not be used to deny the exemption granted by this
section, provided such excess is used, or is held for use, for
exempt purposes or to establish a reserve against future
contingencies; and, provided further, that such excess may not be
distributed to individual persons or to entities that would not be
entitled to the tax exemptions provided by this chapter. Nor shall
the fact that any scientific information diffused by the
organization is of particular interest or benefit to any of its
individual members be used to deny the exemption granted by this
section, provided that such scientific information is available to
the public for purchase or otherwise.
(2) Division (D)(2) of this section does not apply to real
property exempted from taxation under this section and division
(A)(3) of section 5709.121 of the Revised Code and belonging to a
nonprofit corporation described in division (D)(1) of this section
that has received a grant under the Thomas Alva Edison grant
program authorized by division (C) of section 122.33 of the
Revised Code during any of the tax years the property was exempted
from taxation.
When a private corporation described in division (D)(1) of
this section sells all or any portion of a tract, lot, or parcel
of real estate that has been exempt from taxation under this
section and section 5709.121 of the Revised Code, the portion sold
shall be restored to the tax list for the year following the year
of the sale and, except in connection with a sale and transfer of
such a tract, lot, or parcel to a county land reutilization
corporation organized under Chapter 1724. of the Revised Code, a
charge shall be levied against the sold property in an amount
equal to the tax savings on such property during the four tax
years preceding the year the property is placed on the tax list.
The tax savings equals the amount of the additional taxes that
would have been levied if such property had not been exempt from
taxation.
The charge constitutes a lien of the state upon such property
as of the first day of January of the tax year in which the charge
is levied and continues until discharged as provided by law. The
charge may also be remitted for all or any portion of such
property that the tax commissioner determines is entitled to
exemption from real property taxation for the year such property
is restored to the tax list under any provision of the Revised
Code, other than sections 725.02, 1728.10, 3735.67, 5709.40,
5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, and 5709.84,
upon an application for exemption covering the year such property
is restored to the tax list filed under section 5715.27 of the
Revised Code.
(E) Real property held by an organization organized and
operated exclusively for charitable purposes as described under
section 501(c)(3) of the Internal Revenue Code and exempt from
federal taxation under section 501(a) of the Internal Revenue
Code, 26 U.S.C.A. 501(a) and (c)(3), as amended, for the purpose
of constructing or rehabilitating residences for eventual transfer
to qualified low-income families through sale, lease, or land
installment contract, shall be exempt from taxation.
The exemption shall commence on the day title to the property
is transferred to the organization and shall continue to the end
of the tax year in which the organization transfers title to the
property to a qualified low-income family. In no case shall the
exemption extend beyond the second succeeding tax year following
the year in which the title was transferred to the organization.
If the title is transferred to the organization and from the
organization to a qualified low-income family in the same tax
year, the exemption shall continue to the end of that tax year.
The proportionate amount of taxes that are a lien but not yet
determined, assessed, and levied for the tax year in which title
is transferred to the organization shall be remitted by the county
auditor for each day of the year that title is held by the
organization.
Upon transferring the title to another person, the
organization shall file with the county auditor an affidavit
affirming that the title was transferred to a qualified low-income
family or that the title was not transferred to a qualified
low-income family, as the case may be; if the title was
transferred to a qualified low-income family, the affidavit shall
identify the transferee by name. If the organization transfers
title to the property to anyone other than a qualified low-income
family, the exemption, if it has not previously expired, shall
terminate, and the property shall be restored to the tax list for
the year following the year of the transfer and a charge shall be
levied against the property in an amount equal to the amount of
additional taxes that would have been levied if such property had
not been exempt from taxation. The charge constitutes a lien of
the state upon such property as of the first day of January of the
tax year in which the charge is levied and continues until
discharged as provided by law.
The application for exemption shall be filed as otherwise
required under section 5715.27 of the Revised Code, except that
the organization holding the property shall file with its
application documentation substantiating its status as an
organization organized and operated exclusively for charitable
purposes under section 501(c)(3) of the Internal Revenue Code and
its qualification for exemption from federal taxation under
section 501(a) of the Internal Revenue Code, and affirming its
intention to construct or rehabilitate the property for the
eventual transfer to qualified low-income families.
As used in this division, "qualified low-income family" means
a family whose income does not exceed two hundred per cent of the
official federal poverty guidelines as revised annually in
accordance with section 673(2) of the "Omnibus Budget
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C.A. 9902, as
amended, for a family size equal to the size of the family whose
income is being determined.
(F) Real property held by a county land reutilization
corporation organized under Chapter 1724. of the Revised Code
shall be exempt from taxation. Notwithstanding section 5715.27 of
the Revised Code, a county land reutilization corporation is not
required to apply to any county or state agency in order to
qualify for the exemption.
The exemption shall commence on the day title to the property
is transferred to the corporation and shall continue to the end of
the tax year in which the instrument transferring title from the
corporation to another owner is recorded, if the use to which the
other owner puts the property does not qualify for an exemption
under this section or any other section of the Revised Code. If
the title to the property is transferred to the corporation and
from the corporation in the same tax year, the exemption shall
continue to the end of that tax year. The proportionate amount of
taxes that are a lien but not yet determined, assessed, and levied
for the tax year in which title is transferred to the corporation
shall be remitted by the county auditor for each day of the year
that title is held by the corporation.
Upon transferring the title to another person, the
corporation shall file with the county auditor an affidavit
affirming that the title was transferred to such other person and
shall identify the transferee by name. If the corporation
transfers title to the property to anyone that does not qualify or
the use to which the property is put does not qualify the property
for an exemption under this section or any other section of the
Revised Code, the exemption, if it has not previously expired,
shall terminate, and the property shall be restored to the tax
list for the year following the year of the transfer. A charge
shall be levied against the property in an amount equal to the
amount of additional taxes that would have been levied if such
property had not been exempt from taxation. The charge constitutes
a lien of the state upon such property as of the first day of
January of the tax year in which the charge is levied and
continues until discharged as provided by law.
In lieu of the application for exemption otherwise required
to be filed as required under section 5715.27 of the Revised Code,
a count land reutilization corporation holding the property shall,
upon the request of any county or state agency, submit its
articles of incorporation substantiating its status as a county
land reutilization corporation.
(G) A private corporation established as a nonprofit
corporation under the laws of a state and that is exempt from
federal income taxation under section 501(c)(3) of the Internal
Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C.A. 1, as amended,
is conclusively presumed to be a charitable institution under this
section and section 5709.121 of the Revised Code if the principal
purpose of the corporation is operating one or more halfway
houses, community-based correctional facilities, or other venues
that provide residential programming and services to criminal
offenders including, but not limited to, drug and alcohol
counseling, education services, employment counseling, anger
management counseling, and cognitive behavioral therapy.
Section 2. That existing section 5709.12 of the Revised Code
is hereby repealed.
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