Exclude certain fire and EMS levies from being reduced

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 778

2025-2026

Representatives Miller, K., Thomas,
D.

To
amend sections 3735.67, 5709.40, 5709.41, 5709.73, and 5709.78 of the
Revised Code
to
exclude certain fire and emergency medical services levies from being
reduced by a community reinvestment area or tax increment financing
property tax exemption.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 3735.67, 5709.40, 5709.41, 5709.73, and 5709.78 of the
Revised Code be amended to read as follows:

Sec.
3735.67.
(A)

The

Subject
to division (G) of this section, 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. If a structure is
already subject to a written agreement pursuant to section 3735.671
of the Revised Code, is on the site of a proposed megaproject, and is
expected to be owned or 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 proposed megaproject but is expected to be
owned or occupied by a megaproject supplier that meets the
requirements described in division (A)(13)(b) of section 122.17 of
the Revised Code, the legislative authority may amend the agreement
to cause the exemption for the structure to continue for a maximum
amended term not exceeding thirty years by following the process for
approving an agreement described in section 3735.671 of the Revised
Code.

(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)
If the construction or remodeling meets the requirements for
exemption, 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 or 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 or 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.

(G)
For agreements entered into under section 3735.671 of the Revised
Code on or after the effective date of this amendment or, in the case
of a structure or remodeling that is to be used for residential
purposes, for an exemption approved by a housing officer under this
section on or after the effective date of this amendment, the
structure or remodeling shall not be exempt from any of the
following:

(1)
A tax levied by a joint fire district, fire and ambulance district,
joint ambulance district, or joint emergency medical services
district;

(2)
A tax levied by a township under section 505.39 or division (I), (U),
or (JJ) of section 5705.19 of the Revised Code;

(3)
A tax levied by a township fire district.

Divisions
(G)(2) and (3) of this section do not apply if the board of trustees
of the township that levies the tax is the same board that adopted
the resolution under section 3735.66 of the Revised Code pursuant to
which the exemption is authorized.

Sec.
5709.40.
(A)
As used in this section:

(1)
"Blighted area" and "impacted city" have the same
meanings as in section 1728.01 of the Revised Code.

(2)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined under section 1.14 of the
Revised Code.

(3)
"Housing renovation" means a project carried out for
residential purposes.

(4)
"Improvement" means the increase in the assessed value of
any real property that would first appear on the tax list and
duplicate of real and public utility property after the effective
date of an ordinance adopted under this section were it not for the
exemption granted by that ordinance.

(5)
"Incentive district" means an area not more than three
hundred acres in size enclosed by a continuous boundary in which a
project is being, or will be, undertaken and having one or more of
the following distress characteristics:

(a)
At least fifty-one per cent of the residents of the district have
incomes of less than eighty per cent of the median income of
residents of the political subdivision in which the district is
located, as determined in the same manner specified under section
119(b) of the "Housing and Community Development Act of 1974,"
88 Stat. 633, 42 U.S.C. 5318, as amended;

(b)
The average rate of unemployment in the district during the most
recent twelve-month period for which data are available is equal to
at least one hundred fifty per cent of the average rate of
unemployment for this state for the same period.

(c)
At least twenty per cent of the people residing in the district live
at or below the poverty level as defined in the federal Housing and
Community Development Act of 1974, 42 U.S.C. 5301, as amended, and
regulations adopted pursuant to that act.

(d)
The district is a blighted area.

(e)
The district is in a situational distress area as designated by the
director of development under division (F) of section 122.23 of the
Revised Code.

(f)
As certified by the engineer for the political subdivision, the
public infrastructure serving the district is inadequate to meet the
development needs of the district as evidenced by a written economic
development plan or urban renewal plan for the district that has been
adopted by the legislative authority of the subdivision.

(g)
The district is comprised entirely of unimproved land that is located
in a distressed area as defined in section 122.23 of the Revised
Code.

(6)
"Overlay" means an area of not more than three hundred
acres that is a square, or that is a rectangle having two longer
sides that are not more than twice the length of the two shorter
sides, that the legislative authority of a municipal corporation
delineates on a map of a proposed incentive district.

(7)
"Project" means development activities undertaken on one or
more parcels, including, but not limited to, construction, expansion,
and alteration of buildings or structures, demolition, remediation,
and site development, and any building or structure that results from
those activities.

(8)
"Public infrastructure improvement" includes, but is not
limited to, public roads and highways; water and sewer lines; the
continued maintenance of those public roads and highways and water
and sewer lines; environmental remediation; land acquisition,
including acquisition in aid of industry, commerce, distribution, or
research; demolition, including demolition on private property when
determined to be necessary for economic development purposes;
stormwater and flood remediation projects, including such projects on
private property when determined to be necessary for public health,
safety, and welfare; the provision of gas, electric, and
communications service facilities, including the provision of gas or
electric service facilities owned by nongovernmental entities when
such improvements are determined to be necessary for economic
development purposes; the enhancement of public waterways through
improvements that allow for greater public access; and off-street
parking facilities, including those in which all or a portion of the
parking spaces are reserved for specific uses when determined to be
necessary for economic development purposes.

(9)
"Nonperforming parcel" means a parcel to which all of the
following apply:

(a)
The parcel is exempted from taxation under division (B) of this
section or has been included in a district created under division (C)
of this section.

(b)
The parcel's owner is required to make payments in lieu of taxes in
accordance with section 5709.42 of the Revised Code.

(c)
No such payments have been remitted to the county treasurer since the
inception of the exemption or district.

(10)
"Qualifying fire or emergency medical services tax" means
any of the following:

(a)
A tax levied by a joint fire district, township fire district, fire
and ambulance district, joint ambulance district, or joint emergency
medical services district.

(b)
A tax levied by a township under section 505.39 or division (I), (U),
or (JJ) of section 5705.19 of the Revised Code.

(B)
The legislative authority of a municipal corporation, by ordinance,
may declare improvements to certain parcels of real property located
in the municipal corporation to be a public purpose. Improvements
with respect to a parcel that is used or to be used for residential
purposes may be declared a public purpose under this division only if
the parcel is located in a blighted area of an impacted city. For
this purpose, "parcel that is used or to be used for residential
purposes" means a parcel that, as improved, is used or to be
used for purposes that would cause the tax commissioner to classify
the parcel as residential property in accordance with rules adopted
by the commissioner under section 5713.041 of the Revised Code.
Except as otherwise provided under division (D) of this section or
section 5709.51 or 5709.511 of the Revised Code, not more than
seventy-five per cent of an improvement thus declared to be a public
purpose may be exempted from real property taxation for a period of
not more than ten years. The ordinance shall specify the percentage
of the improvement to be exempted from taxation and the life of the
exemption.

An
ordinance adopted or amended under this division shall designate the
specific public infrastructure improvements made, to be made, or in
the process of being made by the municipal corporation that directly
benefit, or that once made will directly benefit, the parcels for
which improvements are declared to be a public purpose. The service
payments provided for in section 5709.42 of the Revised Code shall be
used to finance the public infrastructure improvements designated in
the ordinance, for the purpose described in division (D)(1) of this
section or as provided in section 5709.43 of the Revised Code.

Improvements
exempted from taxation under division (B) of this section shall not
be exempted from a qualifying fire or emergency medical services tax.

(C)(1)
The legislative authority of a municipal corporation may adopt an
ordinance creating an incentive district and declaring improvements
to parcels within the district to be a public purpose and, except as
provided in division (C)(2) of this section, exempt from taxation as
provided in this section, but no legislative authority of a municipal
corporation that has a population that exceeds twenty-five thousand,
as shown by the most recent federal decennial census, shall adopt an
ordinance that creates an incentive district if the sum of the
taxable value of real property in the proposed district for the
preceding tax year and the taxable value of all real property in the
municipal corporation that would have been taxable in the preceding
year were it not for the fact that the property was in an existing
incentive district and therefore exempt from taxation exceeds
twenty-five per cent of the taxable value of real property in the
municipal corporation for the preceding tax year. The ordinance shall
delineate the boundary of the proposed district and specifically
identify each parcel within the district. A proposed district may not
include any parcel, other than a nonperforming parcel, that is or has
been exempted from taxation under division (B) of this section or
that is or has been within another district created under this
division. On and after the effective date of the district, a
nonperforming parcel within the district is no longer exempted from
taxation under division (B) of this section or included within an
incentive district under any previous ordinance, and the parcel's
owner is no longer required to make payments in lieu of taxes under
such a previous ordinance in accordance with section 5709.42 of the
Revised Code. Any exemption application filed with the tax
commissioner under section 5715.27 of the Revised Code under the
second ordinance shall identify the nonperforming parcels included in
the second district, the original ordinance under which the
nonperforming parcels were originally exempted, and the value history
of each nonperforming parcel since the enactment of the original
ordinance. An ordinance may create more than one such district, and
more than one ordinance may be adopted under division (C)(1) of this
section.

(2)(a)
Not later than thirty days prior to adopting an ordinance under
division (C)(1) of this section, if the municipal corporation intends
to apply for exemptions from taxation under section 5709.911 of the
Revised Code on behalf of owners of real property located within the
proposed incentive district, the legislative authority of the
municipal corporation shall conduct a public hearing on the proposed
ordinance. Not later than thirty days prior to the public hearing,
the legislative authority shall give notice of the public hearing and
the proposed ordinance by first class mail to every real property
owner whose property is located within the boundaries of the proposed
incentive district that is the subject of the proposed ordinance. The
notice shall include a map of the proposed incentive district on
which the legislative authority of the municipal corporation shall
have delineated an overlay. The notice shall inform the property
owner of the owner's right to exclude the owner's property from the
incentive district if the owner's entire parcel of property will not
be located within the overlay, by submitting a written response in
accordance with division (C)(2)(b) of this section. The notice also
shall include information detailing the required contents of the
response, the address to which the response may be mailed, and the
deadline for submitting the response.

(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (C)(1) of this section
whose entire parcel of property is not located within the overlay may
exclude the property from the proposed incentive district by
submitting a written response to the legislative authority of the
municipal corporation not later than forty-five days after the
postmark date on the notice required under division (C)(2)(a) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the legislative authority under
division (C)(2)(a) of this section. The response shall conform to any
content requirements that may be established by the municipal
corporation and included in the notice provided under division
(C)(2)(a) of this section. In the response, property owners may
identify a parcel by street address, by the manner in which it is
identified in the ordinance, or by other means allowing the identity
of the parcel to be ascertained.

(c)
Before adopting an ordinance under division (C)(1) of this section,
the legislative authority of a municipal corporation shall amend the
ordinance to exclude any parcel located wholly or partly outside the
overlay for which a written response has been submitted under
division (C)(2)(b) of this section. A municipal corporation shall not
apply for exemptions from taxation under section 5709.911 of the
Revised Code for any such parcel, and service payments may not be
required from the owner of the parcel. Improvements to a parcel
excluded from an incentive district under this division may be
exempted from taxation under division (B) of this section pursuant to
an ordinance adopted under that division or under any other section
of the Revised Code under which the parcel qualifies.

(3)(a)
An ordinance adopted under division (C)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The ordinance also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the ordinance. The project identified may,
but need not be, the project under division (C)(3)(b) of this section
that places real property in use for commercial or industrial
purposes. Except as otherwise permitted under that division, the
service payments provided for in section 5709.42 of the Revised Code
shall be used to finance the designated public infrastructure
improvements, for the purpose described in division (D)(1), (E), or
(F) of this section, or as provided in section 5709.43 of the Revised
Code.

An
ordinance adopted under division (C)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and no service payment provided
for in section 5709.42 of the Revised Code and received by the
municipal corporation under the ordinance shall be used for police or
fire equipment.

(b)
An ordinance adopted under division (C)(1) of this section may
authorize the use of service payments provided for in section 5709.42
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the ordinance also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The ordinance shall designate the parcels within the district that
are eligible for housing renovation. The ordinance shall state
separately the amounts or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the general purpose of housing renovations.

(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (E) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (D) of
this section.

(D)(1)
If the ordinance declaring improvements to a parcel to be a public
purpose or creating an incentive district specifies that payments in
lieu of taxes provided for in section 5709.42 of the Revised Code
shall be paid to the city, local, or exempted village, and joint
vocational school district in which the parcel or incentive district
is located in the amount of the taxes that would have been payable to
the school district if the improvements had not been exempted from
taxation, the percentage of the improvement that may be exempted from
taxation may exceed seventy-five per cent, and the exemption may be
granted for up to thirty years, without the approval of the board of
education as otherwise required under division (D)(2) of this
section.

(2)
Improvements with respect to a parcel may be exempted from taxation
under division (B) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (C) of this section, for up to ten years or, with the
approval under this paragraph of the board of education of the city,
local, or exempted village school district within which the parcel or
district is located, for up to thirty years. The percentage of the
improvement exempted from taxation may, with such approval, exceed
seventy-five per cent, but shall not exceed one hundred per cent. Not
later than forty-five business days prior to adopting an ordinance
under this section declaring improvements to be a public purpose that
is subject to approval by a board of education under this division,
the legislative authority shall deliver to the board of education a
notice stating its intent to adopt an ordinance making that
declaration. The notice regarding improvements with respect to a
parcel under division (B) of this section shall identify the parcels
for which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period for which the improvements would be exempted from taxation and
the percentage of the improvement that would be exempted, and
indicate the date on which the legislative authority intends to adopt
the ordinance. The notice regarding improvements to parcels within an
incentive district under division (C) of this section shall delineate
the boundaries of the district, specifically identify each parcel
within the district, identify each anticipated improvement in the
district, provide an estimate of the true value in money of each such
improvement, specify the life of the district and the percentage of
improvements that would be exempted, and indicate the date on which
the legislative authority intends to adopt the ordinance. The board
of education, by resolution adopted by a majority of the board, may
approve the exemption for the period or for the exemption percentage
specified in the notice; may disapprove the exemption for the number
of years in excess of ten, may disapprove the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both; or may approve the exemption on the
condition that the legislative authority and the board negotiate an
agreement providing for compensation to the school district equal in
value to a percentage of the amount of taxes exempted in the eleventh
and subsequent years of the exemption period or, in the case of
exemption percentages in excess of seventy-five per cent,
compensation equal in value to a percentage of the taxes that would
be payable on the portion of the improvement in excess of
seventy-five per cent were that portion to be subject to taxation, or
other mutually agreeable compensation. If an agreement is negotiated
between the legislative authority and the board to compensate the
school district for all or part of the taxes exempted, including
agreements for payments in lieu of taxes under section 5709.42 of the
Revised Code, the legislative authority shall compensate the joint
vocational school district within which the parcel or district is
located at the same rate and under the same terms received by the
city, local, or exempted village school district.

(3)
The board of education shall certify its resolution to the
legislative authority not later than fourteen days prior to the date
the legislative authority intends to adopt the ordinance as indicated
in the notice. If the board of education and the legislative
authority negotiate a mutually acceptable compensation agreement, the
ordinance may declare the improvements a public purpose for the
number of years specified in the ordinance or, in the case of
exemption percentages in excess of seventy-five per cent, for the
exemption percentage specified in the ordinance. In either case, if
the board and the legislative authority fail to negotiate a mutually
acceptable compensation agreement, the ordinance may declare the
improvements a public purpose for not more than ten years, and shall
not exempt more than seventy-five per cent of the improvements from
taxation. If the board fails to certify a resolution to the
legislative authority within the time prescribed by this division,
the legislative authority thereupon may adopt the ordinance and may
declare the improvements a public purpose for up to thirty years, or,
in the case of exemption percentages proposed in excess of
seventy-five per cent, for the exemption percentage specified in the
ordinance. The legislative authority may adopt the ordinance at any
time after the board of education certifies its resolution approving
the exemption to the legislative authority, or, if the board approves
the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board and the legislative
authority.

(4)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of exemptions by the board is
not required under division (D) of this section. If a board of
education has adopted a resolution allowing a legislative authority
to deliver the notice required under division (D) of this section
fewer than forty-five business days prior to the legislative
authority's adoption of the ordinance, the legislative authority
shall deliver the notice to the board not later than the number of
days prior to such adoption as prescribed by the board in its
resolution. If a board of education adopts a resolution waiving its
right to approve agreements or shortening the notification period,
the board shall certify a copy of the resolution to the legislative
authority. If the board of education rescinds such a resolution, it
shall certify notice of the rescission to the legislative authority.

(5)
If the legislative authority is not required by division (D) of this
section to notify the board of education of the legislative
authority's intent to declare improvements to be a public purpose,
the legislative authority shall comply with the notice requirements
imposed 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.

(6)
Nothing in division (D) of this section prohibits the legislative
authority of a municipal corporation from amending the ordinance or
resolution under section 5709.51 or 5709.511 of the Revised Code to
extend the term of the exemption.

(E)(1)
If a proposed ordinance under division (C)(1) of this section exempts
improvements with respect to a parcel within an incentive district
for more than ten years, or the percentage of the improvement
exempted from taxation exceeds seventy-five per cent, not later than
forty-five business days prior to adopting the ordinance the
legislative authority of the municipal corporation shall deliver to
the board of county commissioners of the county within which the
incentive district will be located a notice that states its intent to
adopt an ordinance creating an incentive district. The notice shall
include a copy of the proposed ordinance, identify the parcels for
which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period of time for which the improvements would be exempted from
taxation, specify the percentage of the improvements that would be
exempted from taxation, and indicate the date on which the
legislative authority intends to adopt the ordinance.

(2)
The board of county commissioners, by resolution adopted by a
majority of the board, may object to the exemption for the number of
years in excess of ten, may object to the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both. If the board of county commissioners
objects, the board may negotiate a mutually acceptable compensation
agreement with the legislative authority. In no case shall the
compensation provided to the board exceed the property taxes forgone
due to the exemption. If the board of county commissioners objects,
and the board and legislative authority fail to negotiate a mutually
acceptable compensation agreement, the ordinance adopted under
division (C)(1) of this section shall provide to the board
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the county or, if the board's objection
includes an objection to an exemption percentage in excess of
seventy-five per cent, compensation equal in value to not more than
fifty per cent of the taxes that would be payable to the county, on
the portion of the improvement in excess of seventy-five per cent,
were that portion to be subject to taxation. The board of county
commissioners shall certify its resolution to the legislative
authority not later than thirty days after receipt of the notice.

(3)
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 legislative authority may adopt the
ordinance, and no compensation shall be provided to the board of
county commissioners. If the board timely certifies its resolution
objecting to the ordinance, the legislative authority may adopt the
ordinance at any time after a mutually acceptable compensation
agreement is agreed to by the board and the legislative authority,
or, if no compensation agreement is negotiated, at any time after the
legislative authority agrees in the proposed ordinance to provide
compensation to the board of fifty per cent of the taxes that would
be payable to the county in the eleventh and subsequent years of the
exemption period or on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.

(F)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to an ordinance creating an incentive district under division (C)(1)
of this section that is adopted on or after January 1, 2006, or a
later date as specified in this division, shall be distributed to the
appropriate taxing authority as required under division (C) of
section 5709.42 of the Revised Code in an amount equal to the amount
of taxes from that additional levy or from the increase in the
effective tax rate of such renewal or replacement levy that would
have been payable to that taxing authority from the following levies
were it not for the exemption authorized under division (C) of this
section:

(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;

(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;

(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;

(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or facilities;

(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;

(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;

(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;

(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;

(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;

(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;

(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;

(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program.

(13)
A
tax
levied by a township under section 505.39, division (I) of section
5705.19, or division (JJ) of section 5705.19 of the Revised Code to
the extent the proceeds are used for the purposes described in
division (I) of that section, for the purpose of funding
qualifying

fire
,
emergency medical, and ambulance services as described in that
section and those divisions. Division (F)(13) of this section applies
only if the township levying the tax provides fire, emergency
medical, or ambulance services in the incentive district, and only to
incentive districts created by an ordinance adopted on or after the
effective date of the amendment of this section by H.B. 69 of the
132nd general assembly, March 23, 2018

or emergency medical services tax
.
The board of township trustees may, by resolution, waive the
application of this division or negotiate with the municipal
corporation that created the district for a lesser amount of payments
in lieu of taxes.

(G)
An exemption from taxation granted under this section commences with
the tax year specified in the ordinance so long as the year specified
in the ordinance commences after the effective date of the ordinance.
If the ordinance specifies a year commencing before the effective
date of the resolution or specifies no year whatsoever, the exemption
commences with the tax year in which an exempted improvement first
appears on the tax list and duplicate of real and public utility
property and that commences after the effective date of the
ordinance. In lieu of stating a specific year, the ordinance may
provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the ordinance.
With respect to the exemption of improvements to parcels under
division (B) of this section, the ordinance may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.

Except
as otherwise provided in this division or section 5709.51 or 5709.511
of the Revised Code, the exemption ends on the date specified in the
ordinance as the date the improvement ceases to be a public purpose
or the incentive district expires, or ends on the date on which the
public infrastructure improvements and housing renovations are paid
in full from the municipal public improvement tax increment
equivalent fund established under division (A) of section 5709.43 of
the Revised Code, whichever occurs first. The exemption of an
improvement with respect to a parcel or within an incentive district
may end on a later date, as specified in the ordinance, if the
legislative authority and the board of education of the city, local,
or exempted village school district within which the parcel or
district is located have entered into a compensation agreement under
section 5709.82 of the Revised Code with respect to the improvement,
and the board of education has approved the term of the exemption
under division (D)(2) of this section, but in no case shall the
improvement be exempted from taxation for more than thirty years.
Exemptions shall be claimed and allowed in the same manner as in the
case of other real property exemptions. If an exemption status
changes during a year, the procedure for the apportionment of the
taxes for that year is the same as in the case of other changes in
tax exemption status during the year.

(H)
Additional municipal financing of public infrastructure improvements
and housing renovations may be provided by any methods that the
municipal corporation may otherwise use for financing such
improvements or renovations. If the municipal corporation issues
bonds or notes to finance the public infrastructure improvements and
housing renovations and pledges money from the municipal public
improvement tax increment equivalent fund to pay the interest on and
principal of the bonds or notes, the bonds or notes are not subject
to Chapter 133. of the Revised Code.

(I)
The municipal corporation, not later than fifteen days after the
adoption of an ordinance under this section, shall submit to the
director of development a copy of the ordinance. On or before the
thirty-first day of March of each year, the municipal corporation
shall submit a status report to the director. The report shall
indicate, in the manner prescribed by the director, the progress of
the project during each year that an exemption remains in effect,
including a summary of the receipts from service payments in lieu of
taxes; expenditures of money from the funds created under section
5709.43 of the Revised Code; a description of the public
infrastructure improvements and housing renovations financed with
such expenditures; and a quantitative summary of changes in
employment and private investment resulting from each project.

(J)
Nothing in this section shall be construed to prohibit a legislative
authority from declaring to be a public purpose improvements with
respect to more than one parcel.

(K)
If a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.

(L)(1)
Notwithstanding the limitations on the life of an incentive district
and the number of years that improvements to a parcel or parcels
within an incentive district may be exempted from taxation prescribed
by divisions (C) and (D) of this section, the legislative authority
of a municipal corporation may amend an ordinance originally adopted
under division (C) of this section before January 1, 2006, to extend
the life of an incentive district created by that ordinance. The
extension shall be for a period not to exceed fifteen years and shall
not increase the percentage of the value of improvements exempted
from taxation.

(2)
Before adopting an amendment authorized by division (L)(1) of this
section, the legislative authority of the municipal corporation shall
provide notice of the amendment to each board of education of the
city, local, or exempted village school district in which the
incentive district is located, in the same manner as provided under
division (D) of this section, and shall obtain the approval of each
such board in the manner required under that division, except both of
the following apply:

(a)
The board of education may approve the exemption on the condition
that the legislative authority and the board negotiate an agreement
providing for mutually agreeable compensation to the school district.

(b)
If the board of education fails to certify a resolution approving the
amendment to the legislative authority within the time prescribed by
division (D) of this section, the legislative authority shall not
adopt the amendment authorized under division (L) of this section.

(3)
No approval otherwise required by division (L)(2) of this section
shall be required from a board of education if either of the
following apply:

(a)
The amendment provides for compensation to the city, local, or
exempted village school district in which the incentive district is
located equal in value to the amount of taxes that would be payable
to the school district if the improvements exempted from taxation had
not been exempted for the additional period.

(b)
The board of education has adopted a resolution waiving its right to
approve exemptions from taxation pursuant to division (D)(4) of this
section. If the board has adopted such a resolution, the municipal
corporation shall comply with the notice requirements imposed by
section 5709.83 of the Revised Code before taking formal action to
adopt an amendment authorized under division (L)(1) of this section
unless the board has adopted a resolution under that section waiving
its right to receive that notice.

(4)
Not later than fourteen days before adopting an amendment authorized
by division (L)(1) of this section, the legislative authority of the
municipal corporation shall deliver a notice identical to a notice
required under section 5709.83 of the Revised Code to the board of
county commissioners of each county in which the incentive district
is located.

Sec.
5709.41.
(A)
As used in this section:

(1)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined under section 1.14 of the
Revised Code.

(2)
"Improvement" means the increase in assessed value of any
parcel of property subsequent to the acquisition of the parcel by a
municipal corporation engaged in urban redevelopment or by a township
engaged in redevelopment.

(B)
The legislative authority of a municipal corporation or township, by
ordinance or resolution, may declare to be a public purpose any
improvement to a parcel of real property if both of the following
apply:

(1)
The municipal corporation or township held fee title to the parcel
prior to the adoption of the ordinance or resolution;

(2)
The parcel is leased, or the fee of the parcel is conveyed, to any
person either before or after adoption of the ordinance or
resolution.

Improvements
used or to be used for residential purposes may be declared a public
purpose under this section only if the parcel is located in a
blighted area of an impacted city, in the case of a municipal
corporation, or in a blighted area, in the case of a township, as
those terms are defined in section 1728.01 of the Revised Code. For
this purpose, "parcel that is used or to be used for residential
purposes" means a parcel that, as improved, is used or to be
used for purposes that would cause the tax commissioner to classify
the parcel as residential property in accordance with rules adopted
by the commissioner under section 5713.041 of the Revised Code.

Improvements
exempted from taxation under this section shall not be exempted from
a qualifying fire or emergency medical services tax, as defined in
section 5709.40 of the Revised Code.

(C)
Except as otherwise provided in division (C)(1), (2), or (3) of this
section, not more than seventy-five per cent of an improvement thus
declared to be a public purpose may be exempted from real property
taxation. The ordinance or resolution shall specify the percentage of
the improvement to be exempted from taxation. If a parcel is located
in a new community district in which the new community authority
imposes a community development charge on the basis of rentals
received from leases of real property as described in division (L)(2)
of section 349.01 of the Revised Code, the parcel may not be exempted
from taxation under this section.

(1)
If the ordinance or resolution declaring improvements to a parcel to
be a public purpose specifies that payments in lieu of taxes provided
for in section 5709.42 or 5709.74 of the Revised Code shall be paid
to the city, local, or exempted village school district in which the
parcel is located in the amount of the taxes that would have been
payable to the school district if the improvements had not been
exempted from taxation, the percentage of the improvement that may be
exempted from taxation may exceed seventy-five per cent, and the
exemption may be granted for up to thirty years, without the approval
of the board of education as otherwise required under division (C)(2)
of this section.

(2)
Improvements may be exempted from taxation for up to ten years or,
with the approval of the board of education of the city, local, or
exempted village school district within the territory of which the
improvements are or will be located, for up to thirty years. The
percentage of the improvement exempted from taxation may, with such
approval, exceed seventy-five per cent, but shall not exceed one
hundred per cent. Not later than forty-five business days prior to
adopting an ordinance or resolution under this section, the
legislative authority shall deliver to the board of education a
notice stating its intent to declare improvements to be a public
purpose under this section. The notice shall describe the parcel and
the improvements, provide an estimate of the true value in money of
the improvements, specify the period for which the improvements would
be exempted from taxation and the percentage of the improvements that
would be exempted, and indicate the date on which the legislative
authority intends to adopt the ordinance or resolution. The board of
education, by resolution adopted by a majority of the board, may
approve the exemption for the period or for the exemption percentage
specified in the notice, may disapprove the exemption for the number
of years in excess of ten, may disapprove the exemption for the
percentage of the improvements to be exempted in excess of
seventy-five per cent, or both, or may approve the exemption on the
condition that the legislative authority and the board negotiate an
agreement providing for compensation to the school district equal in
value to a percentage of the amount of taxes exempted in the eleventh
and subsequent years of the exemption period, or, in the case of
exemption percentages in excess of seventy-five per cent,
compensation equal in value to a percentage of the taxes that would
be payable on the portion of the improvement in excess of
seventy-five per cent were that portion to be subject to taxation.
The board of education shall certify its resolution to the
legislative authority not later than fourteen days prior to the date
the legislative authority intends to adopt the ordinance or
resolution as indicated in the notice. If the board of education
approves the exemption on the condition that a compensation agreement
be negotiated, the board in its resolution shall propose a
compensation percentage. If the board of education and the
legislative authority negotiate a mutually acceptable compensation
agreement, the ordinance or resolution may declare the improvements a
public purpose for the number of years specified in the ordinance or
resolution or, in the case of exemption percentages in excess of
seventy-five per cent, for the exemption percentage specified in the
ordinance or resolution. In either case, if the board and the
legislative authority fail to negotiate a mutually acceptable
compensation agreement, the ordinance or resolution may declare the
improvements a public purpose for not more than ten years, but shall
not exempt more than seventy-five per cent of the improvements from
taxation. If the board fails to certify a resolution to the
legislative authority within the time prescribed by this division,
the legislative authority thereupon may adopt the ordinance or
resolution and may declare the improvements a public purpose for up
to thirty years. The legislative authority may adopt the ordinance or
resolution at any time after the board of education certifies its
resolution approving the exemption to the legislative authority, or,
if the board approves the exemption on the condition that a mutually
acceptable compensation agreement be negotiated, at any time after
the compensation agreement is agreed to by the board and the
legislative authority. If a mutually acceptable compensation
agreement is negotiated between the legislative authority and the
board, including agreements for payments in lieu of taxes under
section 5709.42 or 5709.74 of the Revised Code, the legislative
authority shall compensate the joint vocational school district
within the territory of which the improvements are or will be located
at the same rate and under the same terms received by the city,
local, or exempted village school district.

(3)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation and the resolution remains in
effect, approval of exemptions by the board is not required under
this division. If a board of education has adopted a resolution
allowing a legislative authority to deliver the notice required under
this division fewer than forty-five business days prior to the
legislative authority's adoption of the ordinance or resolution, the
legislative authority shall deliver the notice to the board not later
than the number of days prior to such adoption as prescribed by the
board in its resolution. If a board of education adopts a resolution
waiving its right to approve exemptions or shortening the
notification period, the board shall certify a copy of the resolution
to the legislative authority. If the board of education rescinds such
a resolution, it shall certify notice of the rescission to the
legislative authority.

(4)
If the legislative authority is not required by division (C)(1), (2),
or (3) of this section to notify the board of education of the
legislative authority's intent to declare improvements to be a public
purpose, the legislative authority shall comply with the notice
requirements imposed 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.

(5)
Nothing in division (C) of this section prohibits the legislative
authority of a municipal corporation or township from amending the
ordinance or resolution under section 5709.51 or 5709.511 of the
Revised Code to extend the term of the exemption.

(D)
An exemption granted under this section commences with the tax year
specified in the ordinance or resolution so long as the year
specified in the ordinance or resolution commences after the
effective date of the ordinance or resolution. If the ordinance or
resolution specifies a year commencing before the effective date of
the ordinance or resolution or specifies no year, the exemption
commences with the tax year in which an exempted improvement first
appears on the tax list and that commences after the effective date
of the ordinance or resolution. In lieu of stating a specific year,
the ordinance or resolution may provide that the exemption commences
in the tax year in which the value of an improvement exceeds a
specified amount or in which the construction of one or more
improvements is completed, provided that such tax year commences
after the effective date of the ordinance or resolution. In lieu of
stating a specific year, the ordinance or resolution may allow for
the exemption to commence in different tax years on a
parcel-by-parcel basis, with a separate exemption term specified for
each parcel. The exemption ends on the date specified in the
ordinance or resolution as the date the improvement ceases to be a
public purpose. The exemption shall be claimed and allowed in the
same or a similar manner as in the case of other real property
exemptions. If an exemption status changes during a tax year, the
procedure for the apportionment of the taxes for that year is the
same as in the case of other changes in tax exemption status during
the year.

(E)
A municipal corporation or township, not later than fifteen days
after the adoption of an ordinance or resolution granting a tax
exemption under this section, shall submit to the director of
development a copy of the ordinance or resolution. On or before the
thirty-first day of March each year, the municipal corporation or
township shall submit a status report to the director of development
outlining the progress of the project during each year that the
exemption remains in effect.

Sec.
5709.73.
(A)
As used in this section and section 5709.74 of the Revised Code:

(1)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined in section 1.14 of the Revised
Code.

(2)
"Further improvements" or "improvements" means
the increase in the assessed value of real property that would first
appear on the tax list and duplicate of real and public utility
property after the effective date of a resolution adopted under this
section were it not for the exemption granted by that resolution. For
purposes of division (B) of this section, "improvements" do
not include any property used or to be used for residential purposes.
For this purpose, "property that is used or to be used for
residential purposes" means property that, as improved, is used
or to be used for purposes that would cause the tax commissioner to
classify the property as residential property in accordance with
rules adopted by the commissioner under section 5713.041 of the
Revised Code.

(3)
"Housing renovation" means a project carried out for
residential purposes.

(4)
"Incentive district" has the same meaning as in section
5709.40 of the Revised Code, except that a blighted area is in the
unincorporated area of a township.

(5)
"Overlay" has the same meaning as in section 5709.40 of the
Revised Code, except that the overlay is delineated by the board of
township trustees.

(6)

"Project"
and
"Project,"

"public
infrastructure improvement
,
"

and
"qualifying fire or emergency medical services tax"
have
the same meanings as in section 5709.40 of the Revised Code.

(7)
"Urban township" has the same meaning as in section 504.01
of the Revised Code.

(8)
"Nonperforming parcel" means a parcel to which all of the
following apply:

(a)
The parcel is exempted from taxation under division (B) of this
section or has been included in a district created under division (C)
of this section.

(b)
The parcel's owner is required to make payments in lieu of taxes in
accordance with section 5709.74 of the Revised Code.

(c)
No such payments have been remitted to the county treasurer since the
inception of the exemption or district.

(B)
A board of township trustees may adopt a resolution that declares to
be a public purpose any public infrastructure improvements made that
are necessary for the development of certain parcels of land located
in the unincorporated area of the township. Except for a resolution
adopted by the board of an urban township, the resolution shall be
adopted by a unanimous vote of the board. Except as otherwise
provided under division (D) of this section or section 5709.51 or
5709.511 of the Revised Code, the resolution may exempt from real
property taxation not more than seventy-five per cent of further
improvements to a parcel of land that directly benefits from the
public infrastructure improvements, for a period of not more than ten
years. The resolution shall specify the percentage of the further
improvements to be exempted and the life of the exemption.

Improvements
exempted from taxation under this section shall not be exempted from
a qualifying fire or emergency medical services tax.

(C)(1)
A board of township trustees may adopt a resolution creating an
incentive district and declaring improvements to parcels within the
district to be a public purpose and, except as provided in division
(C)(2) of this section, exempt from taxation as provided in this
section. Except for a resolution adopted by the board of an urban
township, the resolution shall be adopted by a unanimous vote of the
board. A board of township trustees of a township that has a
population that exceeds twenty-five thousand, as shown by the most
recent federal decennial census, may not adopt a resolution that
creates an incentive district if the sum of the taxable value of real
property in the proposed district for the preceding tax year and the
taxable value of all real property in the township that would have
been taxable in the preceding year were it not for the fact that the
property was in an existing incentive district and therefore exempt
from taxation exceeds twenty-five per cent of the taxable value of
real property in the township for the preceding tax year. The
district shall be located within the unincorporated area of the
township and shall not include any territory that is included within
a district created under division (B) of section 5709.78 of the
Revised Code. The resolution shall delineate the boundary of the
proposed district and specifically identify each parcel within the
district. A proposed district may not include any parcel, other than
a nonperforming parcel, that is or has been exempted from taxation
under division (B) of this section or that is or has been within
another district created under this division. On and after the
effective date of the district, a nonperforming parcel within the
district is no longer exempted from taxation under division (B) of
this section or included within an incentive district under any
previous resolution, and the parcel's owner is no longer required to
make payments in lieu of taxes under such a previous resolution in
accordance with section 5709.74 of the Revised Code. Any exemption
application filed with the tax commissioner under section 5715.27 of
the Revised Code under the second resolution shall identify the
nonperforming parcels included in the second district, the original
resolution under which the nonperforming parcels were originally
exempted, and the value history of each nonperforming parcel since
the enactment of the original resolution. A resolution may create
more than one such district, and more than one resolution may be
adopted under division (C)(1) of this section.

(2)(a)
Not later than thirty days prior to adopting a resolution under
division (C)(1) of this section, if the township intends to apply for
exemptions from taxation under section 5709.911 of the Revised Code
on behalf of owners of real property located within the proposed
incentive district, the board shall conduct a public hearing on the
proposed resolution. Not later than thirty days prior to the public
hearing, the board shall give notice of the public hearing and the
proposed resolution by first class mail to every real property owner
whose property is located within the boundaries of the proposed
incentive district that is the subject of the proposed resolution.
The notice shall include a map of the proposed incentive district on
which the board of township trustees shall have delineated an
overlay. The notice shall inform the property owner of the owner's
right to exclude the owner's property from the incentive district if
both of the following conditions are met:

(i)
The owner's entire parcel of property will not be located within the
overlay.

(ii)
The owner has submitted a statement to the board of county
commissioners of the county in which the parcel is located indicating
the owner's intent to seek a tax exemption for improvements to the
owner's parcel under division (A) or (B) of section 5709.78 of the
Revised Code within the next five years.

When
both of the preceding conditions are met, the owner may exclude the
owner's property from the incentive district by submitting a written
response in accordance with division (C)(2)(b) of this section. The
notice also shall include information detailing the required contents
of the response, the address to which the response may be mailed, and
the deadline for submitting the response.

(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (C)(1) of this section who
meets the conditions specified in divisions (C)(2)(a)(i) and (ii) of
this section may exclude the property from the proposed incentive
district by submitting a written response to the board not later than
forty-five days after the postmark date on the notice required under
division (C)(2)(a) of this section. The response shall include a copy
of the statement submitted under division (C)(2)(a)(ii) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the board under division
(C)(2)(a) of this section. The response shall conform to any content
requirements that may be established by the board and included in the
notice provided under division (C)(2)(a) of this section. In the
response, property owners may identify a parcel by street address, by
the manner in which it is identified in the resolution, or by other
means allowing the identity of the parcel to be ascertained.

(c)
Before adopting a resolution under division (C)(1) of this section,
the board shall amend the resolution to exclude any parcel for which
a written response has been submitted under division (C)(2)(b) of
this section. A township shall not apply for exemptions from taxation
under section 5709.911 of the Revised Code for any such parcel, and
service payments may not be required from the owner of the parcel.
Improvements to a parcel excluded from an incentive district under
this division may be exempted from taxation under division (B) of
this section pursuant to a resolution adopted under that division or
under any other section of the Revised Code under which the parcel
qualifies.

(3)(a)
A resolution adopted under division (C)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The resolution also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the resolution. The project identified
may, but need not be, the project under division (C)(3)(b) of this
section that places real property in use for commercial or industrial
purposes.

A
resolution adopted under division (C)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and, except as provided in
division (F) of this section, no service payment provided for in
section 5709.74 of the Revised Code and received by the township
under the resolution shall be used for police or fire equipment.

(b)
A resolution adopted under division (C)(1) of this section may
authorize the use of service payments provided for in section 5709.74
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the resolution also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The resolution shall designate the parcels within the district that
are eligible for housing renovations. The resolution shall state
separately the amount or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the purpose of housing renovations.

(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (E) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (D) of
this section.

(D)
Improvements with respect to a parcel may be exempted from taxation
under division (B) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (C) of this section, for up to ten years or, with the
approval of the board of education of the city, local, or exempted
village school district within which the parcel or district is
located, for up to thirty years. The percentage of the improvements
exempted from taxation may, with such approval, exceed seventy-five
per cent, but shall not exceed one hundred per cent. Not later than
forty-five business days prior to adopting a resolution under this
section declaring improvements to be a public purpose that is subject
to approval by a board of education under this division, the board of
township trustees shall deliver to the board of education a notice
stating its intent to adopt a resolution making that declaration. The
notice regarding improvements with respect to a parcel under division
(B) of this section shall identify the parcels for which improvements
are to be exempted from taxation, provide an estimate of the true
value in money of the improvements, specify the period for which the
improvements would be exempted from taxation and the percentage of
the improvements that would be exempted, and indicate the date on
which the board of township trustees intends to adopt the resolution.
The notice regarding improvements made under division (C) of this
section to parcels within an incentive district shall delineate the
boundaries of the district, specifically identify each parcel within
the district, identify each anticipated improvement in the district,
provide an estimate of the true value in money of each such
improvement, specify the life of the district and the percentage of
improvements that would be exempted, and indicate the date on which
the board of township trustees intends to adopt the resolution. The
board of education, by resolution adopted by a majority of the board,
may approve the exemption for the period or for the exemption
percentage specified in the notice; may disapprove the exemption for
the number of years in excess of ten, may disapprove the exemption
for the percentage of the improvements to be exempted in excess of
seventy-five per cent, or both; or may approve the exemption on the
condition that the board of township trustees and the board of
education negotiate an agreement providing for compensation to the
school district equal in value to a percentage of the amount of taxes
exempted in the eleventh and subsequent years of the exemption period
or, in the case of exemption percentages in excess of seventy-five
per cent, compensation equal in value to a percentage of the taxes
that would be payable on the portion of the improvements in excess of
seventy-five per cent were that portion to be subject to taxation, or
other mutually agreeable compensation.

The
board of education shall certify its resolution to the board of
township trustees not later than fourteen days prior to the date the
board of township trustees intends to adopt the resolution as
indicated in the notice. If the board of education and the board of
township trustees negotiate a mutually acceptable compensation
agreement, the resolution may declare the improvements a public
purpose for the number of years specified in the resolution or, in
the case of exemption percentages in excess of seventy-five per cent,
for the exemption percentage specified in the resolution. In either
case, if the board of education and the board of township trustees
fail to negotiate a mutually acceptable compensation agreement, the
resolution may declare the improvements a public purpose for not more
than ten years, and shall not exempt more than seventy-five per cent
of the improvements from taxation. If the board of education fails to
certify a resolution to the board of township trustees within the
time prescribed by this section, the board of township trustees
thereupon may adopt the resolution and may declare the improvements a
public purpose for up to thirty years or, in the case of exemption
percentages proposed in excess of seventy-five per cent, for the
exemption percentage specified in the resolution. The board of
township trustees may adopt the resolution at any time after the
board of education certifies its resolution approving the exemption
to the board of township trustees, or, if the board of education
approves the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board of education and the
board of township trustees. If a mutually acceptable compensation
agreement is negotiated between the board of township trustees and
the board of education, including agreements for payments in lieu of
taxes under section 5709.74 of the Revised Code, the board of
township trustees shall compensate the joint vocational school
district within which the parcel or district is located at the same
rate and under the same terms received by the city, local, or
exempted village school district.

If
a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of such exemptions by the
board of education is not required under division (D) of this
section. If a board of education has adopted a resolution allowing a
board of township trustees to deliver the notice required under
division (D) of this section fewer than forty-five business days
prior to adoption of the resolution by the board of township
trustees, the board of township trustees shall deliver the notice to
the board of education not later than the number of days prior to the
adoption as prescribed by the board of education in its resolution.
If a board of education adopts a resolution waiving its right to
approve exemptions or shortening the notification period, the board
of education shall certify a copy of the resolution to the board of
township trustees. If the board of education rescinds the resolution,
it shall certify notice of the rescission to the board of township
trustees.

If
the board of township trustees is not required by division (D) of
this section to notify the board of education of the board of
township trustees' intent to declare improvements to be a public
purpose, the board of township trustees shall comply with the notice
requirements imposed under section 5709.83 of the Revised Code before
taking formal action to adopt the resolution making that declaration,
unless the board of education has adopted a resolution under that
section waiving its right to receive the notice.

Nothing
in this division prohibits the board of township trustees from
amending the resolution under section 5709.51 or 5709.511 of the
Revised Code to extend the term of the exemption.

(E)(1)
If a proposed resolution under division (C)(1) of this section
exempts improvements with respect to a parcel within an incentive
district for more than ten years, or the percentage of the
improvement exempted from taxation exceeds seventy-five per cent, not
later than forty-five business days prior to adopting the resolution
the board of township trustees shall deliver to the board of county
commissioners of the county within which the incentive district is or
will be located a notice that states its intent to adopt a resolution
creating an incentive district. The notice shall include a copy of
the proposed resolution, identify the parcels for which improvements
are to be exempted from taxation, provide an estimate of the true
value in money of the improvements, specify the period of time for
which the improvements would be exempted from taxation, specify the
percentage of the improvements that would be exempted from taxation,
and indicate the date on which the board of township trustees intends
to adopt the resolution.

(2)
The board of county commissioners, by resolution adopted by a
majority of the board, may object to the exemption for the number of
years in excess of ten, may object to the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both. If the board of county commissioners
objects, the board may negotiate a mutually acceptable compensation
agreement with the board of township trustees. In no case shall the
compensation provided to the board of county commissioners exceed the
property taxes foregone due to the exemption. If the board of county
commissioners objects, and the board of county commissioners and
board of township trustees fail to negotiate a mutually acceptable
compensation agreement, the resolution adopted under division (C)(1)
of this section shall provide to the board of county commissioners
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the county or, if the board of county
commissioner's objection includes an objection to an exemption
percentage in excess of seventy-five per cent, compensation equal in
value to not more than fifty per cent of the taxes that would be
payable to the county, on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.
The board of county commissioners shall certify its resolution to the
board of township trustees not later than thirty days after receipt
of the notice.

(3)
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 may adopt
its resolution, 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 trustees' resolution, the
board of township trustees may adopt its resolution at any time after
a mutually acceptable compensation agreement is agreed to by the
board of county commissioners and the board of township trustees, or,
if no compensation agreement is negotiated, at any time after the
board of township trustees agrees in the proposed resolution to
provide compensation to the board of county commissioners of fifty
per cent of the taxes that would be payable to the county in the
eleventh and subsequent years of the exemption period or on the
portion of the improvement in excess of seventy-five per cent, were
that portion to be subject to taxation.

(F)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to a resolution creating an incentive district under division (C)(1)
of this section that is adopted on or after January 1, 2006, or a
later date as specified in this division, shall be distributed to the
appropriate taxing authority as required under division (C) of
section 5709.74 of the Revised Code in an amount equal to the amount
of taxes from that additional levy or from the increase in the
effective tax rate of such renewal or replacement levy that would
have been payable to that taxing authority from the following levies
were it not for the exemption authorized under division (C) of this
section:

(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;

(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;

(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;

(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or families;

(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;

(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;

(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;

(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;

(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;

(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;

(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;

(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program;

(13)
A tax levied by a township under section 505.39, 505.51, or division
(I), (J), (U), or (JJ) of section 5705.19 of the Revised Code for the
purpose of funding fire, police, emergency medical, or ambulance
services as described in those sections

or by a township fire district
.
Division (F)(13) of this section applies only to incentive districts

created
by a resolution adopted on or after March 22, 2019, the effective
date of the amendment of this section by H.B. 500 of the 132nd
general assembly, and only if that
if
the
resolution

adopted
under division (C) of this section
specifies
that division (F) of this section shall apply to such a tax.

(14)
A tax levied by a joint fire district, fire and ambulance district,
joint ambulance district, or joint emergency medical services
district.

(G)
An exemption from taxation granted under this section commences with
the tax year specified in the resolution so long as the year
specified in the resolution commences after the effective date of the
resolution. If the resolution specifies a year commencing before the
effective date of the resolution or specifies no year whatsoever, the
exemption commences with the tax year in which an exempted
improvement first appears on the tax list and duplicate of real and
public utility property and that commences after the effective date
of the resolution. In lieu of stating a specific year, the resolution
may provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the resolution.
With respect to the exemption of improvements to parcels under
division (B) of this section, the resolution may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.

Except
as otherwise provided in this division and sections 5709.51 and
5709.511 of the Revised Code, the exemption ends on the date
specified in the resolution as the date the improvement ceases to be
a public purpose or the incentive district expires, or ends on the
date on which the public infrastructure improvements and housing
renovations are paid in full from the township public improvement tax
increment equivalent fund established under section 5709.75 of the
Revised Code, whichever occurs first. The exemption of an improvement
with respect to a parcel or within an incentive district may end on a
later date, as specified in the resolution, if the board of township
trustees and the board of education of the city, local, or exempted
village school district within which the parcel or district is
located have entered into a compensation agreement under section
5709.82 of the Revised Code with respect to the improvement and the
board of education has approved the term of the exemption under
division (D) of this section, but in no case shall the improvement be
exempted from taxation for more than thirty years. The board of
township trustees may, by majority vote, adopt a resolution
permitting the township to enter into such agreements as the board
finds necessary or appropriate to provide for the construction or
undertaking of public infrastructure improvements and housing
renovations. Any exemption shall be claimed and allowed in the same
or a similar manner as in the case of other real property exemptions.
If an exemption status changes during a tax year, the procedure for
the apportionment of the taxes for that year is the same as in the
case of other changes in tax exemption status during the year.

(H)
The board of township trustees may issue the notes of the township to
finance all costs pertaining to the construction or undertaking of
public infrastructure improvements and housing renovations made
pursuant to this section. The notes shall be signed by the board and
attested by the signature of the township fiscal officer, shall bear
interest not to exceed the rate provided in section 9.95 of the
Revised Code, and are not subject to Chapter 133. of the Revised
Code. The resolution authorizing the issuance of the notes shall
pledge the funds of the township public improvement tax increment
equivalent fund established pursuant to section 5709.75 of the
Revised Code to pay the interest on and principal of the notes. The
notes, which may contain a clause permitting prepayment at the option
of the board, shall be offered for sale on the open market or given
to the vendor or contractor if no sale is made.

(I)
The township, not later than fifteen days after the adoption of a
resolution under this section, shall submit to the director of
development a copy of the resolution. On or before the thirty-first
day of March of each year, the township shall submit a status report
to the director. The report shall indicate, in the manner prescribed
by the director, the progress of the project during each year that
the exemption remains in effect, including a summary of the receipts
from service payments in lieu of taxes; expenditures of money from
the fund created under section 5709.75 of the Revised Code; a
description of the public infrastructure improvements and housing
renovations financed with the expenditures; and a quantitative
summary of changes in private investment resulting from each project.

(J)
Nothing in this section shall be construed to prohibit a board of
township trustees from declaring to be a public purpose improvements
with respect to more than one parcel.

If
a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.

(K)
A board of township trustees that adopted a resolution under this
section prior to July 21, 1994, may amend that resolution to include
any additional public infrastructure improvement. A board of township
trustees that seeks by the amendment to utilize money from its
township public improvement tax increment equivalent fund for land
acquisition in aid of industry, commerce, distribution, or research,
demolition on private property, or stormwater and flood remediation
projects may do so provided that the board currently is a party to a
hold-harmless agreement with the board of education of the city,
local, or exempted village school district within the territory of
which are located the parcels that are subject to an exemption. For
the purposes of this division, a "hold-harmless agreement"
means an agreement under which the board of township trustees agrees
to compensate the school district for one hundred per cent of the tax
revenue that the school district would have received from further
improvements to parcels designated in the resolution were it not for
the exemption granted by the resolution.

(L)(1)
Notwithstanding the limitation prescribed by division (D) of this
section on the number of years that improvements to a parcel or
parcels may be exempted from taxation, and subject to division (L)(3)
of this section, a board of trustees of a township with a population
of fifteen thousand or more may amend a resolution originally adopted
under this section before December 31, 1994, to extend the exemption
of improvements to the parcel or parcels included in such resolution
for an additional period not to exceed fifteen years. The amendment
shall not increase the percentage of improvements to the parcel or
parcels exempted from taxation.

(2)
Notwithstanding the limitations prescribed by divisions (C) and (D)
of this section on the life of an incentive district and the number
of years that improvements to a parcel or parcels within an incentive
district may be exempted from taxation, and subject to division
(L)(3) of this section, a board of township trustees may amend a
resolution originally adopted under division (C) of this section
before January 1, 2006, to extend the life of an incentive district
created by that resolution. The extension shall be for a period not
to exceed fifteen years and shall not increase the percentage of the
value of improvements exempted from taxation.

(3)
Before adopting an amendment authorized under division (L)(1) or (2)
of this section, the board of township trustees shall provide notice
of the amendment to each board of education of the city, local, or
exempted village school district in which the exempted parcels or
incentive district are located, in the same manner as provided under
division (D) of this section, and shall obtain the approval of each
such board of education in the manner required under that division,
except that (a) the board of education may approve the exemption on
the condition that the board of township trustees and the board of
education negotiate an agreement providing for compensation to the
school district equal in value to the amount of taxes the district
forgoes in each year the exemption is extended or any other mutually
agreeable compensation and (b) if the board of education fails to
certify a resolution approving the amendment to the board of township
trustees within the time prescribed by division (D) of this section,
the board of township trustees shall not adopt the amendment.

No
approval under division (L)(3) of this section shall be required for
an amendment authorized under division (L)(2) of this section if the
amendment provides for compensation to the city, local, or exempted
village school district in which the incentive district is located
equal in value to the amount of taxes that would be payable to the
school district if the improvements exempted from taxation had not
been exempted for the additional period. Approval is also not
required for an amendment authorized under either division (L)(1) or
(2) of this section from a board of education that has adopted a
resolution waiving its right to approve exemptions from taxation
pursuant to division (D) of this section. If the board of education
has adopted such a resolution, the board of township trustees shall
comply with the notice requirements imposed under section 5709.83 of
the Revised Code before taking formal action to adopt the amendment
unless the board of education has adopted a resolution under that
section waiving its right to receive the notice. Not later than
fourteen days before adopting an amendment authorized under division
(L)(1) or (2) of this section, the board of township trustees shall
deliver a notice identical to a notice required under section 5709.83
of the Revised Code to the board of county commissioners of each
county in which the exempted parcels or incentive district are
located.

Sec.
5709.78.
(A)
A board of county commissioners may, by resolution, declare
improvements to certain parcels of real property located in the
unincorporated territory of the county to be a public purpose. Except
as otherwise provided under division (C) of this section or section
5709.51 or 5709.511 of the Revised Code, not more than seventy-five
per cent of an improvement thus declared to be a public purpose may
be exempted from real property taxation, for a period of not more
than ten years. The resolution shall specify the percentage of the
improvement to be exempted and the life of the exemption.

A
resolution adopted under this division shall designate the specific
public infrastructure improvements made, to be made, or in the
process of being made by the county that directly benefit, or that
once made will directly benefit, the parcels for which improvements
are declared to be a public purpose. The service payments provided
for in section 5709.79 of the Revised Code shall be used to finance
the public infrastructure improvements designated in the resolution,
or as provided in section 5709.80 of the Revised Code.
Improvements
exempted from taxation under division (A) of this section shall not
be exempted from a qualifying fire or emergency medical services tax,
as defined in section 5709.40 of the Revised Code.

(B)(1)
A board of county commissioners may adopt a resolution creating an
incentive district and declaring improvements to parcels within the
district to be a public purpose and, except as provided in division
(B)(2) of this section, exempt from taxation as provided in this
section, but no board of county commissioners of a county that has a
population that exceeds twenty-five thousand, as shown by the most
recent federal decennial census, shall adopt a resolution that
creates an incentive district if the sum of the taxable value of real
property in the proposed district for the preceding tax year and the
taxable value of all real property in the county that would have been
taxable in the preceding year were it not for the fact that the
property was in an existing incentive district and therefore exempt
from taxation exceeds twenty-five per cent of the taxable value of
real property in the county for the preceding tax year. The district
shall be located within the unincorporated territory of the county
and shall not include any territory that is included within a
district created under division (C) of section 5709.73 of the Revised
Code. The resolution shall delineate the boundary of the proposed
district and specifically identify each parcel within the district. A
proposed district may not include any parcel that is or has been
exempted from taxation under division (A) of this section or that is
or has been within another district created under this division. A
resolution may create more than one such district, and more than one
resolution may be adopted under division (B)(1) of this section.

(2)(a)
Not later than thirty days prior to adopting a resolution under
division (B)(1) of this section, if the county intends to apply for
exemptions from taxation under section 5709.911 of the Revised Code
on behalf of owners of real property located within the proposed
incentive district, the board of county commissioners shall conduct a
public hearing on the proposed resolution. Not later than thirty days
prior to the public hearing, the board shall give notice of the
public hearing and the proposed resolution by first class mail to
every real property owner whose property is located within the
boundaries of the proposed incentive district that is the subject of
the proposed resolution. The board also shall provide the notice by
first class mail to the clerk of each township in which the proposed
incentive district will be located. The notice shall include a map of
the proposed incentive district on which the board of county
commissioners shall have delineated an overlay. The notice shall
inform property owners of the owner's right to exclude the owner's
property from the incentive district if both of the following
conditions are met:

(i)
The owner's entire parcel of property will not be located within the
overlay.

(ii)
The owner has submitted a statement to the board of township trustees
of the township in which the parcel is located indicating the owner's
intent to seek a tax exemption for improvements to the owner's parcel
under section 5709.41 or division (B) or (C) of section 5709.73 of
the Revised Code within the next five years.

When
both of the preceding conditions are met, the owner may exclude the
owner's property from the incentive district by submitting a written
response in accordance with division (B)(2)(b) of this section. The
notice also shall include information detailing the required contents
of the response, the address to which the response may be mailed, and
the deadline for submitting the response.

(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (B) (1) of this section
who meets the conditions specified in divisions (B)(2)(a)(i) and (ii)
of this section may exclude the property from the proposed incentive
district by submitting a written response to the board not later than
forty-five days after the postmark date on the notice required under
division (B)(2)(a) of this section. The response shall include a copy
of the statement submitted under division (B)(2)(a)(ii) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the board under division
(B)(2)(a) of this section. The response shall conform to any content
requirements that may be established by the board and included in the
notice provided under division (B)(2)(a) of this section. In the
response, property owners may identify a parcel by street address, by
the manner in which it is identified in the resolution, or by other
means allowing the identity of the parcel to be ascertained.

(c)
Before adopting a resolution under division (B)(1) of this section,
the board shall amend the resolution to exclude any parcel for which
a written response has been submitted under division (B)(2)(b) of
this section. A county shall not apply for exemptions from taxation
under section 5709.911 of the Revised Code for any such parcel, and
service payments may not be required from the owner of the parcel.
Improvements to a parcel excluded from an incentive district under
this division may be exempted from taxation under division (A) of
this section pursuant to a resolution adopted under that division or
under any other section of the Revised Code under which the parcel
qualifies.

(3)(a)
A resolution adopted under division (B)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The resolution also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the resolution. The project identified
may, but need not be, the project under division (B)(3)(b) of this
section that places real property in use for commercial or industrial
purposes.

A
resolution adopted under division (B)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and no service payment provided
for in section 5709.79 of the Revised Code and received by the county
under the resolution shall be used for police or fire equipment.

(b)
A resolution adopted under division (B)(1) of this section may
authorize the use of service payments provided for in section 5709.79
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the resolution also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The resolution shall designate the parcels within the district that
are eligible for housing renovations. The resolution shall state
separately the amount or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the purpose of housing renovations.

(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (D) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (C) of
this section.

(C)(1)
Improvements with respect to a parcel may be exempted from taxation
under division (A) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (B) of this section, for up to ten years or, with the
approval of the board of education of each city, local, or exempted
village school district within which the parcel or district is
located, for up to thirty years. The percentage of the improvements
exempted from taxation may, with such approval, exceed seventy-five
per cent, but shall not exceed one hundred per cent. Not later than
forty-five business days prior to adopting a resolution under this
section declaring improvements to be a public purpose that is subject
to the approval of a board of education under this division, the
board of county commissioners shall deliver to the board of education
a notice stating its intent to adopt a resolution making that
declaration. The notice regarding improvements with respect to a
parcel under division (A) of this section shall identify the parcels
for which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period for which the improvements would be exempted from taxation and
the percentage of the improvements that would be exempted, and
indicate the date on which the board of county commissioners intends
to adopt the resolution. The notice regarding improvements to parcels
within an incentive district under division (B) of this section shall
delineate the boundaries of the district, specifically identify each
parcel within the district, identify each anticipated improvement in
the district, provide an estimate of the true value in money of each
such improvement, specify the life of the district and the percentage
of improvements that would be exempted, and indicate the date on
which the board of county commissioners intends to adopt the
resolution. The board of education, by resolution adopted by a
majority of the board, may approve the exemption for the period or
for the exemption percentage specified in the notice; may disapprove
the exemption for the number of years in excess of ten, may
disapprove the exemption for the percentage of the improvements to be
exempted in excess of seventy-five per cent, or both; or may approve
the exemption on the condition that the board of county commissioners
and the board of education negotiate an agreement providing for
compensation to the school district equal in value to a percentage of
the amount of taxes exempted in the eleventh and subsequent years of
the exemption period or, in the case of exemption percentages in
excess of seventy-five per cent, compensation equal in value to a
percentage of the taxes that would be payable on the portion of the
improvements in excess of seventy-five per cent were that portion to
be subject to taxation, or other mutually agreeable compensation.

(2)
The board of education shall certify its resolution to the board of
county commissioners not later than fourteen days prior to the date
the board of county commissioners intends to adopt its resolution as
indicated in the notice. If the board of education and the board of
county commissioners negotiate a mutually acceptable compensation
agreement, the resolution of the board of county commissioners may
declare the improvements a public purpose for the number of years
specified in that resolution or, in the case of exemption percentages
in excess of seventy-five per cent, for the exemption percentage
specified in the resolution. In either case, if the board of
education and the board of county commissioners fail to negotiate a
mutually acceptable compensation agreement, the resolution may
declare the improvements a public purpose for not more than ten
years, and shall not exempt more than seventy-five per cent of the
improvements from taxation. If the board of education fails to
certify a resolution to the board of county commissioners within the
time prescribed by this section, the board of county commissioners
thereupon may adopt the resolution and may declare the improvements a
public purpose for up to thirty years or, in the case of exemption
percentages proposed in excess of seventy-five per cent, for the
exemption percentage specified in the resolution. The board of county
commissioners may adopt the resolution at any time after the board of
education certifies its resolution approving the exemption to the
board of county commissioners, or, if the board of education approves
the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board of education and the
board of county commissioners. If a mutually acceptable compensation
agreement is negotiated between the board of county commissioners and
the board of education, including agreements for payments in lieu of
taxes under section 5709.79 of the Revised Code, the board of county
commissioners shall compensate the joint vocational school district
within which the parcel or district is located at the same rate and
under the same terms received by the city, local, or exempted village
school district.

(3)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of such exemptions by the
board of education is not required under division (C) of this
section. If a board of education has adopted a resolution allowing a
board of county commissioners to deliver the notice required under
division (C) of this section fewer than forty-five business days
prior to approval of the resolution by the board of county
commissioners, the board of county commissioners shall deliver the
notice to the board of education not later than the number of days
prior to such approval as prescribed by the board of education in its
resolution. If a board of education adopts a resolution waiving its
right to approve exemptions or shortening the notification period,
the board of education shall certify a copy of the resolution to the
board of county commissioners. If the board of education rescinds
such a resolution, it shall certify notice of the rescission to the
board of county commissioners.

(4)
Nothing in division (C) of this section prohibits the board of county
commissioners from amending the resolution under section 5709.51 or
5709.511 of the Revised Code to extend the term of the exemption.

(D)(1)
If a proposed resolution under division (B)(1) of this section
exempts improvements with respect to a parcel within an incentive
district for more than ten years, or the percentage of the
improvement exempted from taxation exceeds seventy-five per cent, not
later than forty-five business days prior to adopting the resolution
the board of county commissioners shall deliver to the board of
township trustees of any township within which the incentive district
is or will be located a notice that states its intent to adopt a
resolution creating an incentive district. The notice shall include a
copy of the proposed resolution, identify the parcels for which
improvements are to be exempted from taxation, provide an estimate of
the true value in money of the improvements, specify the period of
time for which the improvements would be exempted from taxation,
specify the percentage of the improvements that would be exempted
from taxation, and indicate the date on which the board intends to
adopt the resolution.

(2)
The board of township trustees, by resolution adopted by a majority
of the board, may object to the exemption for the number of years in
excess of ten, may object to the exemption for the percentage of the
improvement to be exempted in excess of seventy-five per cent, or
both. If the board of township trustees objects, the board of
township trustees may negotiate a mutually acceptable compensation
agreement with the board of county commissioners. In no case shall
the compensation provided to the board of township trustees exceed
the property taxes forgone due to the exemption. If the board of
township trustees objects, and the board of township trustees and the
board of county commissioners fail to negotiate a mutually acceptable
compensation agreement, the resolution adopted under division (B)(1)
of this section shall provide to the board of township trustees
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the township or, if the board of township
trustee's objection includes an objection to an exemption percentage
in excess of seventy-five per cent, compensation equal in value to
not more than fifty per cent of the taxes that would be payable to
the township on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.
The board of township trustees shall certify its resolution to the
board of county commissioners not later than thirty days after
receipt of the notice.

(3)
If the board of township trustees does not object or fails to certify
a resolution objecting to an exemption within thirty days after
receipt of the notice, the board of county commissioners may adopt
its resolution, and no compensation shall be provided to the board of
township trustees. If the board of township trustees certifies its
resolution objecting to the commissioners' resolution, the board of
county commissioners may adopt its resolution at any time after a
mutually acceptable compensation agreement is agreed to by the board
of county commissioners and the board of township trustees. If the
board of township trustees certifies a resolution objecting to the
commissioners' resolution, the board of county commissioners may
adopt its resolution at any time after a mutually acceptable
compensation agreement is agreed to by the board of county
commissioners and the board of township trustees, or, if no
compensation agreement is negotiated, at any time after the board of
county commissioners in the proposed resolution to provide
compensation to the board of township trustees of fifty per cent of
the taxes that would be payable to the township in the eleventh and
subsequent years of the exemption period or on the portion of the
improvement in excess of seventy-five per cent, were that portion to
be subject to taxation.

(E)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to a resolution creating an incentive district under division (B)(1)
of this section that is adopted on or after January 1, 2006, shall be
distributed to the appropriate taxing authority as required under
division (D) of section 5709.79 of the Revised Code in an amount
equal to the amount of taxes from that additional levy or from the
increase in the effective tax rate of such renewal or replacement
levy that would have been payable to that taxing authority from the
following levies were it not for the exemption authorized under
division (B) of this section:

(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;

(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;

(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;

(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or facilities;

(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;

(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;

(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;

(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;

(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;

(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;

(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;

(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program
;

(13)
A qualifying fire or emergency medical services tax, as defined in
section 5709.40 of the Revised Code
.

(F)
An exemption from taxation granted under this section commences with
the tax year specified in the resolution so long as the year
specified in the resolution commences after the effective date of the
resolution. If the resolution specifies a year commencing before the
effective date of the resolution or specifies no year whatsoever, the
exemption commences with the tax year in which an exempted
improvement first appears on the tax list and duplicate of real and
public utility property and that commences after the effective date
of the resolution. In lieu of stating a specific year, the resolution
may provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the resolution.
With respect to the exemption of improvements to parcels under
division (A) of this section, the resolution may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.

Except
as otherwise provided in this division, the exemption ends on the
date specified in the resolution as the date the improvement ceases
to be a public purpose or the incentive district expires, or ends on
the date on which the county can no longer require annual service
payments in lieu of taxes under section 5709.79 of the Revised Code,
whichever occurs first. The exemption of an improvement with respect
to a parcel or within an incentive district may end on a later date,
as specified in the resolution, if the board of commissioners and the
board of education of the city, local, or exempted village school
district within which the parcel or district is located have entered
into a compensation agreement under section 5709.82 of the Revised
Code with respect to the improvement, and the board of education has
approved the term of the exemption under division (C)(1) of this
section, but in no case shall the improvement be exempted from
taxation for more than thirty years. Exemptions shall be claimed and
allowed in the same or a similar manner as in the case of other real
property exemptions. If an exemption status changes during a tax
year, the procedure for the apportionment of the taxes for that year
is the same as in the case of other changes in tax exemption status
during the year.

(G)
If the board of county commissioners is not required by this section
to notify the board of education of the board of county
commissioners' intent to declare improvements to be a public purpose,
the board of county commissioners shall comply with the notice
requirements imposed under section 5709.83 of the Revised Code before
taking formal action to adopt the resolution making that declaration,
unless the board of education has adopted a resolution under that
section waiving its right to receive such a notice.

(H)
The county, not later than fifteen days after the adoption of a
resolution under this section, shall submit to the director of
development a copy of the resolution. On or before the thirty-first
day of March of each year, the county shall submit a status report to
the director. The report shall indicate, in the manner prescribed by
the director, the progress of the project during each year that an
exemption remains in effect, including a summary of the receipts from
service payments in lieu of taxes; expenditures of money from the
fund created under section 5709.80 of the Revised Code; a description
of the public infrastructure improvements and housing renovations
financed with such expenditures; and a quantitative summary of
changes in employment and private investment resulting from each
project.

(I)
Nothing in this section shall be construed to prohibit a board of
county commissioners from declaring to be a public purpose
improvements with respect to more than one parcel.

(J)
If a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.

Section
2.
That
existing sections 3735.67, 5709.40, 5709.41, 5709.73, and 5709.78 of
the Revised Code are hereby repealed.

Section
3.
The
amendment by this act of sections 5709.40, 5709.41, 5709.73, and
5709.78 applies to exemptions authorized in ordinances or resolutions
adopted under those sections on or after the effective date of this
section.