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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 154
2025-2026
Representatives Thomas, D., Glassburn
Cosponsors: Representatives Johnson,
Click
To
amend section 3735.67 of the Revised Code
to
require school district approval of residential community
reinvestment area property tax exemptions.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 3735.67 of the Revised Code be amended to read as follows:
Sec.
3735.67.
(A)
The owner of real property located in a community reinvestment area
and eligible for exemption from taxation under a resolution adopted
pursuant to section 3735.66 of the Revised Code may file an
application for an exemption from real property taxation of a
percentage of the assessed valuation of a new structure, or of the
increased assessed valuation of an existing structure after
remodeling began, if the new structure or remodeling is completed
after the effective date of the resolution adopted pursuant to
section 3735.66 of the Revised Code. The application shall be filed
with the housing officer designated for the community reinvestment
area in which the property is located. If any part of the new
structure or remodeled structure that would be exempted is of real
property to be used for commercial or industrial purposes, the
legislative authority and the owner of the property shall enter into
a written agreement pursuant to section 3735.671 of the Revised Code
prior to commencement of construction or remodeling
;
if such an agreement is subject to approval by the board of education
of the school district within the territory of which the property is
or will be located, the agreement shall not be formally approved by
the legislative authority until the board of education approves the
agreement in the manner prescribed by that section
.
(B)
The housing officer shall verify the construction of the new
structure or the cost of the remodeling of the existing structure and
the facts asserted in the application. The housing officer shall
determine whether the construction or remodeling meets the
requirements for an exemption under this section. In cases involving
a structure of historical or architectural significance, the housing
officer shall not determine whether the remodeling meets the
requirements for a tax exemption unless the appropriateness of the
remodeling has been certified, in writing, by the society,
association, agency, or legislative authority that has designated the
structure or by any organization or person authorized, in writing, by
such society, association, agency, or legislative authority to
certify the appropriateness of the remodeling.
(C)
(C)(1)
If the construction or remodeling meets the requirements for
exemption, the housing officer shall
forward
request
approval of
the
application
from
the board of education of the city, local, or exempted village school
district within the territory of which the property is or will be
located.
For
the purpose of obtaining such approval, the housing officer shall
certify a copy of the application to the board of education. The
board, by resolution adopted by a majority of the board, shall
approve or disapprove the application and certify a copy of the
resolution to the property owner and the housing officer not later
than forty-five days after the application is certified to the board.
The board may include in the resolution conditions under which the
board would approve the application. The housing officer may approve
an application at any time after the board certifies its resolution
approving the application, or, if the board approves the application
conditionally, at any time after the housing officer is notified that
the conditions are agreed to by the board and the property owner.
(2)
Approval of an application by a board of education is not required
under division (C)(1) of this section if, for each tax year the
dwelling is exempted from taxation, the sum of the following
quantities, as estimated at or prior to the time the application is
formally approved by the housing officer, equals or exceeds
twenty-five per cent of the amount of taxes, as estimated at or prior
to that time, that would have been charged and payable that year upon
the dwelling had that dwelling not been exempted from taxation:
(a)
The amount of taxes charged and payable on any portion of the
assessed valuation of the new dwelling or of the increased assessed
valuation of an existing dwelling after remodeling began that will
not be exempted from taxation under the agreement;
(b)
The amount of any cash payment by the owner of the dwelling to the
school district and any payment by the legislative authority that
designated the community reinvestment area to the school district
pursuant to section 5709.82 of the Revised Code.
The
estimates of quantities used for purposes of division (C)(2) of this
section shall be estimated by the housing officer. Departures of the
actual quantities from the estimates subsequent to approval of the
application do not invalidate the application.
(3)
If a board of education has adopted a resolution waiving its right to
approve applications under this division and that resolution remains
in effect, approval of an application by the board is not required
under division (C)(1) of this section. If a board adopts a resolution
waiving its right to approve applications, the board shall certify a
copy of the resolution to the housing officer. If the board rescinds
such a resolution, it shall certify notice of the rescission to the
housing officer.
(4)
If the owner of the dwelling agrees to make any payment to a school
district as described in division (C)(2)(b) of this section, the
owner shall agree to make payments to the joint vocational school
district within which the property is located at the same rate or
amount and under the same terms received by the city, local, or
exempted village school district.
(5)
Upon approval of an application, the housing officer shall forward
the application
to
the county auditor with a certification as to the division of this
section under which the exemption is granted, and the period and
percentage of the exemption as determined by the legislative
authority pursuant to that division. If the construction or
remodeling is of commercial or industrial property and the
legislative authority is not required to certify a copy of a
resolution under section 3735.671 of the Revised Code, the housing
officer shall comply with the notice requirements prescribed under
section 5709.83 of the Revised Code, unless the board has adopted a
resolution under that section waiving its right to receive such a
notice.
(D)
Except as provided in division (F) of this section, the tax exemption
shall first apply in the year the construction or remodeling would
first be taxable but for this section. In the case of remodeling that
qualifies for exemption, a percentage, not to exceed one hundred per
cent, of the increased assessed valuation of an existing structure
after remodeling began shall be exempted from real property taxation.
In the case of construction of a structure that qualifies for
exemption, a percentage, not to exceed one hundred per cent, of the
assessed value of the structure shall be exempted from real property
taxation. In either case, the percentage shall be the percentage set
forth in the agreement if the structure or remodeling is to be used
for commercial or industrial purposes, or the percentage set forth in
the resolution describing the community reinvestment area if the
structure or remodeling is to be used for residential purposes.
The
construction of new structures and the remodeling of existing
structures are hereby declared to be a public purpose for which
exemptions from real property taxation may be granted for the
following periods:
(1)
For every dwelling and commercial or industrial properties, located
within the same community reinvestment area, upon which the cost of
remodeling is at least two thousand five hundred dollars in the case
of a dwelling containing not more than two family units or at least
five thousand dollars in the case of all other property, a period to
be determined by the legislative authority adopting the resolution,
but not exceeding fifteen years. The period of exemption for a
dwelling described in division (D)(1) of this section may be extended
by a legislative authority for up to an additional ten years if the
dwelling is a structure of historical or architectural significance,
is a certified historic structure that has been subject to federal
tax treatment under 26 U.S.C. 47 and 170(h), and units within the
structure have been leased to individual tenants for five consecutive
years;
(2)
Except as provided in division (F) of this section, for construction
of every dwelling, and commercial or industrial structure located
within the same community reinvestment area, a period to be
determined by the legislative authority adopting the resolution, but
not exceeding one of the following:
(a)
Thirty years, if the commercial or industrial structure is situated
on the site of a megaproject and is owned and occupied by a
megaproject operator as defined in division (A)(12) of section 122.17
of the Revised Code, or is not situated on the site of a megaproject
but is owned and occupied by a megaproject supplier that meets the
requirements described in division (A)(13)(b) of section 122.17 of
the Revised Code;
(b)
Fifteen years, for any other dwelling or commercial or industrial
structure.
(E)
Any person, board, or officer authorized by section 5715.19 of the
Revised Code to file complaints with the county board of revision may
file a complaint with the housing officer challenging the continued
exemption of any property granted an exemption under this section. A
complaint against exemption shall be filed prior to the thirty-first
day of December of the tax year for which taxation of the property is
requested. The housing officer shall determine whether the property
continues to meet the requirements for exemption and shall certify
the housing officer's findings to the complainant. If the housing
officer determines that the property does not meet the requirements
for exemption, the housing officer shall notify the county auditor,
who shall correct the tax list and duplicate accordingly.
(F)
The owner of a dwelling constructed in a community reinvestment area
may file an application for an exemption after the year the
construction first became subject to taxation. The application shall
be processed in accordance with the procedures prescribed under this
section and shall be granted if the construction that is the subject
of the application otherwise meets the requirements for an exemption
under this section. If approved, the exemption sought in the
application first applies in the year the application is filed. An
exemption approved pursuant to this division continues only for those
years remaining in the period described in division (D)(2) of this
section. No exemption may be claimed for any year in that period that
precedes the year in which the application is filed.
Section
2.
That
existing section 3735.67 of the Revised Code is hereby repealed.