Bill Text: OH SB90 | 2009-2010 | 128th General Assembly | Comm Sub

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Bill Title: To authorize local governments to exempt homes that have been vacant for at least twelve months from property taxation for up to three years when purchased by an owner-occupant.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-01-27 - Committee Report - S [SB90 Detail]

Download: Ohio-2009-SB90-Comm_Sub.html

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As Reported by the Senate Ways and Means and Economic Development Committee

128th General Assembly Regular Session 2009-2010

Sub. S. B. No. 90

Senators Kearney, Seitz 

Cosponsors: Senators Wagoner, Morano, Goodman, Smith, Turner, Schiavoni, Miller, D., Gibbs, Schaffer 

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A BILL

To enact section 5709.89 of the Revised Code to

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authorize local governments to exempt homes that

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have been vacant for at least twelve months from

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property taxation for up to three years when

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purchased by an owner-occupant.

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

Section 1. That section 5709.89 of the Revised Code be	6
enacted to read as follows:	7

Sec. 5709.89. (A) For purposes of this section:

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(1) "Vacant home" means a single-family or condominium	9
dwelling that has not been occupied by the owner or any legal	10
tenant for the twelve consecutive months immediately preceding the	11
purchase described in this section. "Vacant home" includes so much	12
of the land surrounding it, not exceeding one acre, as is	13
reasonably necessary for the use of the dwelling as a home.	14

(2) "Purchase" includes a purchase under a land installment	15
contract conforming with Chapter 5313. of the Revised Code.	16

(3) "School district" means a city, local, exempted village,	17
joint vocational, or cooperative educational school district.	18

(B) For the public purpose of minimizing blight caused by the	19
presence of vacant housing, a board of township trustees or the	20
legislative authority of a municipal corporation, by resolution or	21
ordinance, may exempt from real property taxation vacant homes	22
situated in the township or municipal corporation and purchased	23
for not more than one hundred fifty thousand dollars by an	24
individual whose domicile is in this state and who occupies the	25
dwelling as the individual's principal residence within sixty days	26
after taking possession. The board or legislative authority shall	27
certify a copy of the resolution or ordinance to the county	28
auditor, who shall attach a copy of the resolution or ordinance to	29
each application for exemption.	30

The exemption commences with the tax year in which the deed	31
or other evidence of title is endorsed by the county auditor or,	32
in the case of a land installment contract, the tax year in which	33
the contract is recorded. The exemption ends at the conclusion of	34
the second ensuing tax year, or at the conclusion of the tax year	35
in which the individual ceases to own or occupy the dwelling as	36
the individual's principal residence, whichever occurs earlier.	37
The owner shall apply for exemption as provided in section 5715.27	38
of the Revised Code.	39

Notwithstanding division (C) of section 5713.08 and division	40
(A) of section 5713.081 of the Revised Code, the tax commissioner	41
shall remit any unpaid or delinquent taxes, penalties, and	42
interest charged against a property when the property becomes	43
entitled to the exemption authorized under this section.	44

The exemption and remission apply only to vacant homes	45
purchased on or after the effective date of the resolution or	46
ordinance.	47

(C)(1) Not later than forty-five days before adopting a	48
resolution or ordinance under division (B) of this section, the	49
board or legislative authority shall deliver to the board of	50
county commissioners of each county within which the territory of	51
the township or municipal corporation is located a notice that	52
states the board's or legislative authority's intent to adopt such	53
a resolution or ordinance. The notice shall include a copy of the	54
proposed resolution or ordinance and indicate the date on which	55
the board or legislative authority intends to adopt the resolution	56
or ordinance.	57

(2) The board of county commissioners, by resolution, may	58
object to the exemption. If the board objects, the board may	59
negotiate a mutually acceptable compensation agreement with the	60
board of township trustees or legislative authority. In no case	61
shall the compensation provided to the board exceed the property	62
taxes forgone due to the exemption. The board of county	63
commissioners shall certify its resolution to the board of	64
township trustees or legislative authority not later than thirty	65
days after receipt of the notice. If the board of county	66
commissioners does not object or fails to certify its resolution	67
objecting to an exemption within thirty days after receipt of the	68
notice, the board of township trustees or legislative authority	69
may adopt the resolution or ordinance, and no compensation shall	70
be provided to the board of county commissioners.	71

If the board of county commissioners timely certifies its	72
resolution objecting to the ordinance, the board of township	73
trustees or legislative authority may adopt the resolution or	74
ordinance only after a mutually acceptable compensation agreement	75
is entered.	76

(D) A board of township trustees or the legislative authority	77
of a municipal corporation that exempts property under this	78
section shall require the individual who purchased the vacant home	79
to make annual service payments in lieu of taxes to the county	80
treasurer on or before the final dates for payment of real	81
property taxes. Service payments shall be required for each tax	82
year for which the property is exempt. Each payment shall be	83
charged, collected, and distributed in the same manner and in the	84
same amount as the following property taxes that would have been	85
charged and payable against the property were it not for the	86
exemption authorized under this section:	87

(1) All school district property taxes; and

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(2) Twenty-five per cent of taxes levied under division (L)	89
of section 5705.19 or section 5705.191 of the Revised Code for	90
community developmental disabilities programs and services	91
pursuant to Chapter 5126. of the Revised Code.	92