Bill Text: OH SB76 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To specify that a nonprofit corporation, the principal purpose of which is operating a halfway house, community-based correctional facility, or other venue offering rehabilitative residential programming to criminal offenders is presumed to be a charitable institution exempt from property taxation.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-03-12 - To Ways & Means [SB76 Detail]

Download: Ohio-2013-SB76-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 76

Senator Schiavoni 

Cosponsor: Senator Seitz 

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A BILL

To amend section 5709.12 of the Revised Code to

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specify that a nonprofit corporation, the

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principal purpose of which is operating a halfway

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house, community-based correctional facility, or

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other venue offering rehabilitative residential

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programming to criminal offenders is presumed to

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be a charitable institution exempt from property

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taxation.

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

Section 1. That section 5709.12 of the Revised Code be	9
amended to read as follows:	10

Sec. 5709.12.  (A) As used in this section, "independent	11
living facilities" means any residential housing facilities and	12
related property that are not a nursing home, residential care	13
facility, or residential facility as defined in division (A) of	14
section 5701.13 of the Revised Code.	15

(B) Lands, houses, and other buildings belonging to a county,	16
township, or municipal corporation and used exclusively for the	17
accommodation or support of the poor, or leased to the state or	18
any political subdivision for public purposes shall be exempt from	19
taxation. Real and tangible personal property belonging to	20
institutions that is used exclusively for charitable purposes	21
shall be exempt from taxation, including real property belonging	22
to an institution that is a nonprofit corporation that receives a	23
grant under the Thomas Alva Edison grant program authorized by	24
division (C) of section 122.33 of the Revised Code at any time	25
during the tax year and being held for leasing or resale to	26
others. If, at any time during a tax year for which such property	27
is exempted from taxation, the corporation ceases to qualify for	28
such a grant, the director of development shall notify the tax	29
commissioner, and the tax commissioner shall cause the property to	30
be restored to the tax list beginning with the following tax year.	31
All property owned and used by a nonprofit organization	32
exclusively for a home for the aged, as defined in section 5701.13	33
of the Revised Code, also shall be exempt from taxation.	34

(C)(1) If a home for the aged described in division (B)(1) of	35
section 5701.13 of the Revised Code is operated in conjunction	36
with or at the same site as independent living facilities, the	37
exemption granted in division (B) of this section shall include	38
kitchen, dining room, clinic, entry ways, maintenance and storage	39
areas, and land necessary for access commonly used by both	40
residents of the home for the aged and residents of the	41
independent living facilities. Other facilities commonly used by	42
both residents of the home for the aged and residents of	43
independent living units shall be exempt from taxation only if the	44
other facilities are used primarily by the residents of the home	45
for the aged. Vacant land currently unused by the home, and	46
independent living facilities and the lands connected with them	47
are not exempt from taxation. Except as provided in division	48
(A)(1) of section 5709.121 of the Revised Code, property of a home	49
leased for nonresidential purposes is not exempt from taxation.	50

(2) Independent living facilities are exempt from taxation if	51
they are operated in conjunction with or at the same site as a	52
home for the aged described in division (B)(2) of section 5701.13	53
of the Revised Code; operated by a corporation, association, or	54
trust described in division (B)(1)(b) of that section; operated	55
exclusively for the benefit of members of the corporation,	56
association, or trust who are retired, aged, or infirm; and	57
provided to those members without charge in consideration of their	58
service, without compensation, to a charitable, religious,	59
fraternal, or educational institution. For the purposes of	60
division (C)(2) of this section, "compensation" does not include	61
furnishing room and board, clothing, health care, or other	62
necessities, or stipends or other de minimis payments to defray	63
the cost thereof.	64

(D)(1) A private corporation established under federal law,	65
defined in 36 U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629, as	66
amended, the objects of which include encouraging the advancement	67
of science generally, or of a particular branch of science, the	68
promotion of scientific research, the improvement of the	69
qualifications and usefulness of scientists, or the increase and	70
diffusion of scientific knowledge is conclusively presumed to be a	71
charitable or educational institution. A private corporation	72
established as a nonprofit corporation under the laws of a state,	73
that is exempt from federal income taxation under section	74
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 26	75
U.S.C.A. 1, as amended, and has as its principal purpose one or	76
more of the foregoing objects, also is conclusively presumed to be	77
a charitable or educational institution.	78

The fact that an organization described in this division	79
operates in a manner that results in an excess of revenues over	80
expenses shall not be used to deny the exemption granted by this	81
section, provided such excess is used, or is held for use, for	82
exempt purposes or to establish a reserve against future	83
contingencies; and, provided further, that such excess may not be	84
distributed to individual persons or to entities that would not be	85
entitled to the tax exemptions provided by this chapter. Nor shall	86
the fact that any scientific information diffused by the	87
organization is of particular interest or benefit to any of its	88
individual members be used to deny the exemption granted by this	89
section, provided that such scientific information is available to	90
the public for purchase or otherwise.	91

(2) Division (D)(2) of this section does not apply to real	92
property exempted from taxation under this section and division	93
(A)(3) of section 5709.121 of the Revised Code and belonging to a	94
nonprofit corporation described in division (D)(1) of this section	95
that has received a grant under the Thomas Alva Edison grant	96
program authorized by division (C) of section 122.33 of the	97
Revised Code during any of the tax years the property was exempted	98
from taxation.	99

When a private corporation described in division (D)(1) of	100
this section sells all or any portion of a tract, lot, or parcel	101
of real estate that has been exempt from taxation under this	102
section and section 5709.121 of the Revised Code, the portion sold	103
shall be restored to the tax list for the year following the year	104
of the sale and, except in connection with a sale and transfer of	105
such a tract, lot, or parcel to a county land reutilization	106
corporation organized under Chapter 1724. of the Revised Code, a	107
charge shall be levied against the sold property in an amount	108
equal to the tax savings on such property during the four tax	109
years preceding the year the property is placed on the tax list.	110
The tax savings equals the amount of the additional taxes that	111
would have been levied if such property had not been exempt from	112
taxation.	113

The charge constitutes a lien of the state upon such property	114
as of the first day of January of the tax year in which the charge	115
is levied and continues until discharged as provided by law. The	116
charge may also be remitted for all or any portion of such	117
property that the tax commissioner determines is entitled to	118
exemption from real property taxation for the year such property	119
is restored to the tax list under any provision of the Revised	120
Code, other than sections 725.02, 1728.10, 3735.67, 5709.40,	121
5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, and 5709.84,	122
upon an application for exemption covering the year such property	123
is restored to the tax list filed under section 5715.27 of the	124
Revised Code.	125

(E) Real property held by an organization organized and	126
operated exclusively for charitable purposes as described under	127
section 501(c)(3) of the Internal Revenue Code and exempt from	128
federal taxation under section 501(a) of the Internal Revenue	129
Code, 26 U.S.C.A. 501(a) and (c)(3), as amended, for the purpose	130
of constructing or rehabilitating residences for eventual transfer	131
to qualified low-income families through sale, lease, or land	132
installment contract, shall be exempt from taxation.	133

The exemption shall commence on the day title to the property	134
is transferred to the organization and shall continue to the end	135
of the tax year in which the organization transfers title to the	136
property to a qualified low-income family. In no case shall the	137
exemption extend beyond the second succeeding tax year following	138
the year in which the title was transferred to the organization.	139
If the title is transferred to the organization and from the	140
organization to a qualified low-income family in the same tax	141
year, the exemption shall continue to the end of that tax year.	142
The proportionate amount of taxes that are a lien but not yet	143
determined, assessed, and levied for the tax year in which title	144
is transferred to the organization shall be remitted by the county	145
auditor for each day of the year that title is held by the	146
organization.	147

Upon transferring the title to another person, the	148
organization shall file with the county auditor an affidavit	149
affirming that the title was transferred to a qualified low-income	150
family or that the title was not transferred to a qualified	151
low-income family, as the case may be; if the title was	152
transferred to a qualified low-income family, the affidavit shall	153
identify the transferee by name. If the organization transfers	154
title to the property to anyone other than a qualified low-income	155
family, the exemption, if it has not previously expired, shall	156
terminate, and the property shall be restored to the tax list for	157
the year following the year of the transfer and a charge shall be	158
levied against the property in an amount equal to the amount of	159
additional taxes that would have been levied if such property had	160
not been exempt from taxation. The charge constitutes a lien of	161
the state upon such property as of the first day of January of the	162
tax year in which the charge is levied and continues until	163
discharged as provided by law.	164

The application for exemption shall be filed as otherwise	165
required under section 5715.27 of the Revised Code, except that	166
the organization holding the property shall file with its	167
application documentation substantiating its status as an	168
organization organized and operated exclusively for charitable	169
purposes under section 501(c)(3) of the Internal Revenue Code and	170
its qualification for exemption from federal taxation under	171
section 501(a) of the Internal Revenue Code, and affirming its	172
intention to construct or rehabilitate the property for the	173
eventual transfer to qualified low-income families.	174

As used in this division, "qualified low-income family" means	175
a family whose income does not exceed two hundred per cent of the	176
official federal poverty guidelines as revised annually in	177
accordance with section 673(2) of the "Omnibus Budget	178
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C.A. 9902, as	179
amended, for a family size equal to the size of the family whose	180
income is being determined.	181

(F) Real property held by a county land reutilization	182
corporation organized under Chapter 1724. of the Revised Code	183
shall be exempt from taxation. Notwithstanding section 5715.27 of	184
the Revised Code, a county land reutilization corporation is not	185
required to apply to any county or state agency in order to	186
qualify for the exemption.	187

The exemption shall commence on the day title to the property	188
is transferred to the corporation and shall continue to the end of	189
the tax year in which the instrument transferring title from the	190
corporation to another owner is recorded, if the use to which the	191
other owner puts the property does not qualify for an exemption	192
under this section or any other section of the Revised Code. If	193
the title to the property is transferred to the corporation and	194
from the corporation in the same tax year, the exemption shall	195
continue to the end of that tax year. The proportionate amount of	196
taxes that are a lien but not yet determined, assessed, and levied	197
for the tax year in which title is transferred to the corporation	198
shall be remitted by the county auditor for each day of the year	199
that title is held by the corporation.	200

Upon transferring the title to another person, the	201
corporation shall file with the county auditor an affidavit	202
affirming that the title was transferred to such other person and	203
shall identify the transferee by name. If the corporation	204
transfers title to the property to anyone that does not qualify or	205
the use to which the property is put does not qualify the property	206
for an exemption under this section or any other section of the	207
Revised Code, the exemption, if it has not previously expired,	208
shall terminate, and the property shall be restored to the tax	209
list for the year following the year of the transfer. A charge	210
shall be levied against the property in an amount equal to the	211
amount of additional taxes that would have been levied if such	212
property had not been exempt from taxation. The charge constitutes	213
a lien of the state upon such property as of the first day of	214
January of the tax year in which the charge is levied and	215
continues until discharged as provided by law.	216

In lieu of the application for exemption otherwise required	217
to be filed as required under section 5715.27 of the Revised Code,	218
a count land reutilization corporation holding the property shall,	219
upon the request of any county or state agency, submit its	220
articles of incorporation substantiating its status as a county	221
land reutilization corporation.	222

(G) A private corporation that is established as a nonprofit	223
corporation under the laws of a state and is exempt from federal	224
income taxation under section 501(c)(3) of the Internal Revenue	225
Code is conclusively presumed to be a charitable institution under	226
this section and section 5709.121 of the Revised Code if the	227
principal purpose of the corporation is operating one or more	228
halfway houses, community-based correctional facilities, or other	229
venues that provide residential programming and services to	230
criminal offenders including, but not limited to, drug and alcohol	231
counseling, education services, employment counseling, anger	232
management counseling, and cognitive behavioral therapy.	233

Section 2. That existing section 5709.12 of the Revised Code	234
is hereby repealed.	235