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sb307_02_PS
As Passed by the Senate
136th
General Assembly
Regular
Session
S. B. No. 307
2025-2026
Senator Timken
Cosponsors: Senators Roegner, Liston,
Schaffer, Antonio, Brenner, Chavez, Cirino, Craig, DeMora, Gavarone,
Ingram, Landis, O'Brien, Patton, Reineke, Reynolds, Weinstein,
Wilkin, Wilson
To
amend section 5709.40 of the Revised Code
to
allow funding for police and firefighting facilities in tax increment
financing arrangements.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 5709.40 of the Revised Code be amended to read as follows:
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;
buildings
for police or firefighting;
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.
(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 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.
(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 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 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. 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 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.
Section
2.
That
existing section 5709.40 of the Revised Code is hereby repealed.