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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 540
2025-2026
Representatives Pizzulli, Thomas, D.
To
enact section 5709.122 of the Revised Code
to
require payments in lieu of taxes from conservation organizations
with significant holdings of tax-exempt land.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 5709.122 of the Revised Code be enacted to read as follows:
Sec.
5709.122.
(A)
As used in this section:
(1)
"Nonprofit conservation organization" means an organization
that is described under section 501(c)(3) of the Internal Revenue
Code and exempt from federal income taxation under section 501(a) of
the Internal Revenue Code and the primary purpose of which is to
conserve the environment.
(2)
"Qualifying real property" means real property that meets
all of the following criteria:
(a)
The property is owned by a nonprofit conservation organization or its
subsidiary, or such an organization or its subsidiary owns an
interest in the property.
(b)
The property or the organization's interest in the property is exempt
from taxation under section 5709.12 or 5790.121 of the Revised Code
as land used exclusively for charitable purposes.
(c)
The total area of the property located in a single county is more
than fifteen thousand acres.
"Qualifying
real property" does not include any portion of such property
that is used primarily for meetings, research or educational
activities, or the administration of a nonprofit conservation
organization.
(3)
"Unimproved taxable value" means the taxable value of
qualifying real property for the current tax year, exclusive of
improvements, and assuming that the property was subject to taxation.
(B)
On or before the thirtieth day of June of each year, beginning in
2026, a nonprofit conservation organization shall pay to the county
treasurer of each county in which qualifying real property is located
an amount equal to two and one-half per cent of the unimproved
taxable value of qualifying real property located within that county.
(C)
Within thirty days after receiving a payment under division (B) of
this section, the county auditor shall distribute the money among the
taxing units within the territory of which the qualifying real
property is located in proportion to the amount of taxes that would
have been collected and distributed to those taxing units with
respect to such property if the property was subject to taxation.
(D)
Money received by a taxing unit under this section shall be used for
any lawful purpose.
(E)
If a payment required under this section is not paid when due, the
unpaid amount shall be collected in the same manner provided for the
collection of delinquent real property taxes.