| (B) A board of township trustees may, by unanimous vote, | 28 |
|
adopt a resolution that declares to be a public purpose any public | 29 |
|
infrastructure improvements made that are necessary for the | 30 |
|
development of certain parcels of land located in the | 31 |
|
unincorporated area of the township. Except with the approval | 32 |
|
under division (D) of this section of the board of education of | 33 |
|
each city, local, or exempted village school district within which | 34 |
|
the improvements are located, the resolution may exempt from real | 35 |
|
property taxation not more than seventy-five per cent of further | 36 |
|
improvements to a parcel of land that directly benefits from the | 37 |
|
public infrastructure improvements, for a period of not more than | 38 |
|
ten years. The resolution shall specify the percentage of the | 39 |
|
further improvements to be exempted and the life of the exemption. | 40 |
| (C)(1) A board of township trustees may adopt, by unanimous | 41 |
|
vote, a resolution creating an incentive district and declaring | 42 |
|
improvements to parcels within the district to be a public purpose | 43 |
|
and, except as provided in division (F) of this section, exempt | 44 |
|
from taxation as provided in this section, but no board of | 45 |
|
township trustees of a township that has a population that exceeds | 46 |
|
twenty-five thousand, as shown by the most recent federal | 47 |
|
decennial census, shall adopt a resolution that creates an | 48 |
|
incentive district if the sum of the taxable value of real | 49 |
|
property in the proposed district for the preceding tax year and | 50 |
|
the taxable value of all real property in the township that would | 51 |
|
have been taxable in the preceding year were it not for the fact | 52 |
|
that the property was in an existing incentive district and | 53 |
|
therefore exempt from taxation exceeds twenty-five per cent of the | 54 |
|
taxable value of real property in the township for the preceding | 55 |
|
tax year. The district shall be located within the unincorporated | 56 |
|
area of the township and shall not include any territory that is | 57 |
|
included within a district created under division (B) of section | 58 |
|
5709.78 of the Revised Code. The resolution shall delineate the | 59 |
|
boundary of the district and specifically identify each parcel | 60 |
|
within the district. A district may not include any parcel that is | 61 |
|
or has been exempted from taxation under division (B) of this | 62 |
|
section or that is or has been within another district created | 63 |
|
under this division. A resolution may create more than one | 64 |
|
district, and more than one resolution may be adopted under | 65 |
|
division (C)(1) of this section. | 66 |
| (2) Not later than thirty days prior to adopting a resolution | 67 |
|
under division (C)(1) of this section, if the township intends to | 68 |
|
apply for exemptions from taxation under section 5709.911 of the | 69 |
|
Revised Code on behalf of owners of real property located within | 70 |
|
the proposed incentive district, the board shall conduct a public | 71 |
|
hearing on the proposed resolution. Not later than thirty days | 72 |
|
prior to the public hearing, the board shall give notice of the | 73 |
|
public hearing and the proposed resolution by first class mail to | 74 |
|
every real property owner whose property is located within the | 75 |
|
boundaries of the proposed incentive district that is the subject | 76 |
|
of the proposed resolution. | 77 |
| (3)(a) A resolution adopted under division (C)(1) of this | 78 |
|
section shall specify the life of the incentive district and the | 79 |
|
percentage of the improvements to be exempted, shall designate the | 80 |
|
public infrastructure improvements made, to be made, or in the | 81 |
|
process of being made, that benefit or serve, or, once made, will | 82 |
|
benefit or serve parcels in the district. The resolution also | 83 |
|
shall identify one or more specific projects being, or to be, | 84 |
|
undertaken in the district that place additional demand on the | 85 |
|
public infrastructure improvements designated in the resolution. | 86 |
|
The project identified may, but need not be, the project under | 87 |
|
division (C)(3)(b) of this section that places real property in | 88 |
|
use for commercial or industrial purposes. | 89 |
| (b) A resolution adopted under division (C)(1) of this | 96 |
|
section may authorize the use of service payments provided for in | 97 |
|
section 5709.74 of the Revised Code for the purpose of housing | 98 |
|
renovations within the incentive district, provided that the | 99 |
|
resolution also designates public infrastructure improvements that | 100 |
|
benefit or serve the district, and that a project within the | 101 |
|
district places real property in use for commercial or industrial | 102 |
|
purposes. Service payments may be used to finance or support | 103 |
|
loans, deferred loans, and grants to persons for the purpose of | 104 |
|
housing renovations within the district. The resolution shall | 105 |
|
designate the parcels within the district that are eligible for | 106 |
|
housing renovations. The resolution shall state separately the | 107 |
|
amount or the percentages of the expected aggregate service | 108 |
|
payments that are designated for each public infrastructure | 109 |
|
improvement and for the purpose of housing renovations. | 110 |
| (4) Except with the approval of the board of education of | 111 |
|
each city, local, or exempted village school district within the | 112 |
|
territory of which the incentive district is or will be located, | 113 |
|
and subject to division (E) of this section, the life of an | 114 |
|
incentive district shall not exceed ten years, and the percentage | 115 |
|
of improvements to be exempted shall not exceed seventy-five per | 116 |
|
cent. With approval of the board of education, the life of a | 117 |
|
district may be not more than thirty years, and the percentage of | 118 |
|
improvements to be exempted may be not more than one hundred per | 119 |
|
cent. The approval of a board of education shall be obtained in | 120 |
|
the manner provided in division (D) of this section. | 121 |
| (D) Improvements with respect to a parcel may be exempted | 122 |
|
from taxation under division (B) of this section, and improvements | 123 |
|
to parcels within an incentive district may be exempted from | 124 |
|
taxation under division (C) of this section, for up to ten years | 125 |
|
or, with the approval of the board of education of the city, | 126 |
|
local, or exempted village school district within which the parcel | 127 |
|
or district is located, for up to thirty years. The percentage of | 128 |
|
the improvements exempted from taxation may, with such approval, | 129 |
|
exceed seventy-five per cent, but shall not exceed one hundred per | 130 |
|
cent. Not later than forty-five business days prior to adopting a | 131 |
|
resolution under this section declaring improvements to be a | 132 |
|
public purpose that is subject to approval by a board of education | 133 |
|
under this division, the board of township trustees shall deliver | 134 |
|
to the board of education a notice stating its intent to adopt a | 135 |
|
resolution making that declaration. The notice regarding | 136 |
|
improvements with respect to a parcel under division (B) of this | 137 |
|
section shall identify the parcels for which improvements are to | 138 |
|
be exempted from taxation, provide an estimate of the true value | 139 |
|
in money of the improvements, specify the period for which the | 140 |
|
improvements would be exempted from taxation and the percentage of | 141 |
|
the improvements that would be exempted, and indicate the date on | 142 |
|
which the board of township trustees intends to adopt the | 143 |
|
resolution. The notice regarding improvements made under division | 144 |
|
(C) of this section to parcels within an incentive district shall | 145 |
|
delineate the boundaries of the district, specifically identify | 146 |
|
each parcel within the district, identify each anticipated | 147 |
|
improvement in the district, provide an estimate of the true value | 148 |
|
in money of each such improvement, specify the life of the | 149 |
|
district and the percentage of improvements that would be | 150 |
|
exempted, and indicate the date on which the board of township | 151 |
|
trustees intends to adopt the resolution. The board of education, | 152 |
|
by resolution adopted by a majority of the board, may approve the | 153 |
|
exemption for the period or for the exemption percentage specified | 154 |
|
in the notice; may disapprove the exemption for the number of | 155 |
|
years in excess of ten, may disapprove the exemption for the | 156 |
|
percentage of the improvements to be exempted in excess of | 157 |
|
seventy-five per cent, or both; or may approve the exemption on | 158 |
|
the condition that the board of township trustees and the board of | 159 |
|
education negotiate an agreement providing for compensation to the | 160 |
|
school district equal in value to a percentage of the amount of | 161 |
|
taxes exempted in the eleventh and subsequent years of the | 162 |
|
exemption period or, in the case of exemption percentages in | 163 |
|
excess of seventy-five per cent, compensation equal in value to a | 164 |
|
percentage of the taxes that would be payable on the portion of | 165 |
|
the improvements in excess of seventy-five per cent were that | 166 |
|
portion to be subject to taxation, or other mutually agreeable | 167 |
|
compensation. | 168 |
| The board of education shall certify its resolution to the | 169 |
|
board of township trustees not later than fourteen days prior to | 170 |
|
the date the board of township trustees intends to adopt the | 171 |
|
resolution as indicated in the notice. If the board of education | 172 |
|
and the board of township trustees negotiate a mutually acceptable | 173 |
|
compensation agreement, the resolution may declare the | 174 |
|
improvements a public purpose for the number of years specified in | 175 |
|
the resolution or, in the case of exemption percentages in excess | 176 |
|
of seventy-five per cent, for the exemption percentage specified | 177 |
|
in the resolution. In either case, if the board of education and | 178 |
|
the board of township trustees fail to negotiate a mutually | 179 |
|
acceptable compensation agreement, the resolution may declare the | 180 |
|
improvements a public purpose for not more than ten years, and | 181 |
|
shall not exempt more than seventy-five per cent of the | 182 |
|
improvements from taxation. If the board of education fails to | 183 |
|
certify a resolution to the board of township trustees within the | 184 |
|
time prescribed by this section, the board of township trustees | 185 |
|
thereupon may adopt the resolution and may declare the | 186 |
|
improvements a public purpose for up to thirty years or, in the | 187 |
|
case of exemption percentages proposed in excess of seventy-five | 188 |
|
per cent, for the exemption percentage specified in the | 189 |
|
resolution. The board of township trustees may adopt the | 190 |
|
resolution at any time after the board of education certifies its | 191 |
|
resolution approving the exemption to the board of township | 192 |
|
trustees, or, if the board of education approves the exemption on | 193 |
|
the condition that a mutually acceptable compensation agreement be | 194 |
|
negotiated, at any time after the compensation agreement is agreed | 195 |
|
to by the board of education and the board of township trustees. | 196 |
|
If a mutually acceptable compensation agreement is negotiated | 197 |
|
between the board of township trustees and the board of education, | 198 |
|
including agreements for payments in lieu of taxes under section | 199 |
|
5709.74 of the Revised Code, the board of township trustees shall | 200 |
|
compensate the joint vocational school district within which the | 201 |
|
parcel or district is located at the same rate and under the same | 202 |
|
terms received by the city, local, or exempted village school | 203 |
|
district. | 204 |
| If a board of education has adopted a resolution waiving its | 205 |
|
right to approve exemptions from taxation under this section and | 206 |
|
the resolution remains in effect, approval of such exemptions by | 207 |
|
the board of education is not required under division (D) of this | 208 |
|
section. If a board of education has adopted a resolution allowing | 209 |
|
a board of township trustees to deliver the notice required under | 210 |
|
division (D) of this section fewer than forty-five business days | 211 |
|
prior to adoption of the resolution by the board of township | 212 |
|
trustees, the board of township trustees shall deliver the notice | 213 |
|
to the board of education not later than the number of days prior | 214 |
|
to the adoption as prescribed by the board of education in its | 215 |
|
resolution. If a board of education adopts a resolution waiving | 216 |
|
its right to approve exemptions or shortening the notification | 217 |
|
period, the board of education shall certify a copy of the | 218 |
|
resolution to the board of township trustees. If the board of | 219 |
|
education rescinds the resolution, it shall certify notice of the | 220 |
|
rescission to the board of township trustees. | 221 |
| (E)(1) If a proposed resolution under division (C)(1) of this | 231 |
|
section exempts improvements with respect to a parcel within an | 232 |
|
incentive district for more than ten years, or the percentage of | 233 |
|
the improvement exempted from taxation exceeds seventy-five per | 234 |
|
cent, not later than forty-five business days prior to adopting | 235 |
|
the resolution the board of township trustees shall deliver to the | 236 |
|
board of county commissioners of the county within which the | 237 |
|
incentive district is or will be located a notice that states its | 238 |
|
intent to adopt a resolution creating an incentive district. The | 239 |
|
notice shall include a copy of the proposed resolution, identify | 240 |
|
the parcels for which improvements are to be exempted from | 241 |
|
taxation, provide an estimate of the true value in money of the | 242 |
|
improvements, specify the period of time for which the | 243 |
|
improvements would be exempted from taxation, specify the | 244 |
|
percentage of the improvements that would be exempted from | 245 |
|
taxation, and indicate the date on which the board of township | 246 |
|
trustees intends to adopt the resolution. | 247 |
| (2) The board of county commissioners, by resolution adopted | 248 |
|
by a majority of the board, may object to the exemption for the | 249 |
|
number of years in excess of ten, may object to the exemption for | 250 |
|
the percentage of the improvement to be exempted in excess of | 251 |
|
seventy-five per cent, or both. If the board of county | 252 |
|
commissioners objects, the board may negotiate a mutually | 253 |
|
acceptable compensation agreement with the board of township | 254 |
|
trustees. In no case shall the compensation provided to the board | 255 |
|
of county commissioners exceed the property taxes foregone due to | 256 |
|
the exemption. If the board of county commissioners objects, and | 257 |
|
the board of county commissioners and board of township trustees | 258 |
|
fail to negotiate a mutually acceptable compensation agreement, | 259 |
|
the resolution adopted under division (C)(1) of this section shall | 260 |
|
provide to the board of county commissioners compensation in the | 261 |
|
eleventh and subsequent years of the exemption period equal in | 262 |
|
value to not more than fifty per cent of the taxes that would be | 263 |
|
payable to the county or, if the board of county commissioner's | 264 |
|
objection includes an objection to an exemption percentage in | 265 |
|
excess of seventy-five per cent, compensation equal in value to | 266 |
|
not more than fifty per cent of the taxes that would be payable to | 267 |
|
the county, on the portion of the improvement in excess of | 268 |
|
seventy-five per cent, were that portion to be subject to | 269 |
|
taxation. The board of county commissioners shall certify its | 270 |
|
resolution to the board of township trustees not later than thirty | 271 |
|
days after receipt of the notice. | 272 |
| (3) If the board of county commissioners does not object or | 273 |
|
fails to certify its resolution objecting to an exemption within | 274 |
|
thirty days after receipt of the notice, the board of township | 275 |
|
trustees may adopt its resolution, and no compensation shall be | 276 |
|
provided to the board of county commissioners. If the board of | 277 |
|
county commissioners timely certifies its resolution objecting to | 278 |
|
the trustees' resolution, the board of township trustees may adopt | 279 |
|
its resolution at any time after a mutually acceptable | 280 |
|
compensation agreement is agreed to by the board of county | 281 |
|
commissioners and the board of township trustees, or, if no | 282 |
|
compensation agreement is negotiated, at any time after the board | 283 |
|
of township trustees agrees in the proposed resolution to provide | 284 |
|
compensation to the board of county commissioners of fifty per | 285 |
|
cent of the taxes that would be payable to the county in the | 286 |
|
eleventh and subsequent years of the exemption period or on the | 287 |
|
portion of the improvement in excess of seventy-five per cent, | 288 |
|
were that portion to be subject to taxation. | 289 |
| (F) Service payments in lieu of taxes that are attributable | 290 |
|
to any amount by which the effective tax rate of either a renewal | 291 |
|
levy with an increase or a replacement levy exceeds the effective | 292 |
|
tax rate of the levy renewed or replaced, or that are attributable | 293 |
|
to an additional levy, for a levy authorized by the voters for any | 294 |
|
of the following purposes on or after January 1, 2006, and which | 295 |
|
are provided pursuant to a resolution creating an incentive | 296 |
|
district under division (C)(1) of this section that is adopted on | 297 |
|
or after January 1, 2006, shall be distributed to the appropriate | 298 |
|
taxing authority as required under division (C) of section 5709.74 | 299 |
|
of the Revised Code in an amount equal to the amount of taxes from | 300 |
|
that additional levy or from the increase in the effective tax | 301 |
|
rate of such renewal or replacement levy that would have been | 302 |
|
payable to that taxing authority from the following levies were it | 303 |
|
not for the exemption authorized under division (C) of this | 304 |
|
section: | 305 |
| (G) An exemption from taxation granted under this section | 342 |
|
commences with the tax year specified in the resolution so long as | 343 |
|
the year specified in the resolution commences after the effective | 344 |
|
date of the resolution. If the resolution specifies a year | 345 |
|
commencing before the effective date of the resolution or | 346 |
|
specifies no year whatsoever, the exemption commences with the tax | 347 |
|
year in which an exempted improvement first appears on the tax | 348 |
|
list and duplicate of real and public utility property and that | 349 |
|
commences after the effective date of the resolution. Except as | 350 |
|
otherwise provided in this division, the exemption ends on the | 351 |
|
date specified in the resolution as the date the improvement | 352 |
|
ceases to be a public purpose or the incentive district expires, | 353 |
|
or ends on the date on which the public infrastructure | 354 |
|
improvements and housing renovations are paid in full from the | 355 |
|
township public improvement tax increment equivalent fund | 356 |
|
established under section 5709.75 of the Revised Code, whichever | 357 |
|
occurs first. The exemption of an improvement with respect to a | 358 |
|
parcel or within an incentive district may end on a later date, as | 359 |
|
specified in the resolution, if the board of township trustees and | 360 |
|
the board of education of the city, local, or exempted village | 361 |
|
school district within which the parcel or district is located | 362 |
|
have entered into a compensation agreement under section 5709.82 | 363 |
|
of the Revised Code with respect to the improvement and the board | 364 |
|
of education has approved the term of the exemption under division | 365 |
|
(D) of this section, but in no case shall the improvement be | 366 |
|
exempted from taxation for more than thirty years. The board of | 367 |
|
township trustees may, by majority vote, adopt a resolution | 368 |
|
permitting the township to enter into such agreements as the board | 369 |
|
finds necessary or appropriate to provide for the construction or | 370 |
|
undertaking of public infrastructure improvements and housing | 371 |
|
renovations. Any exemption shall be claimed and allowed in the | 372 |
|
same or a similar manner as in the case of other real property | 373 |
|
exemptions. If an exemption status changes during a tax year, the | 374 |
|
procedure for the apportionment of the taxes for that year is the | 375 |
|
same as in the case of other changes in tax exemption status | 376 |
|
during the year. | 377 |
| (H) The board of township trustees may issue the notes of the | 378 |
|
township to finance all costs pertaining to the construction or | 379 |
|
undertaking of public infrastructure improvements and housing | 380 |
|
renovations made pursuant to this section. The notes shall be | 381 |
|
signed by the board and attested by the signature of the township | 382 |
|
fiscal officer, shall bear interest not to exceed the rate | 383 |
|
provided in section 9.95 of the Revised Code, and are not subject | 384 |
|
to Chapter 133. of the Revised Code. The resolution authorizing | 385 |
|
the issuance of the notes shall pledge the funds of the township | 386 |
|
public improvement tax increment equivalent fund established | 387 |
|
pursuant to section 5709.75 of the Revised Code to pay the | 388 |
|
interest on and principal of the notes. The notes, which may | 389 |
|
contain a clause permitting prepayment at the option of the board, | 390 |
|
shall be offered for sale on the open market or given to the | 391 |
|
vendor or contractor if no sale is made. | 392 |
| (I) The township, not later than fifteen days after the | 393 |
|
adoption of a resolution under this section, shall submit to the | 394 |
|
director of development a copy of the resolution. On or before the | 395 |
|
thirty-first day of March of each year, the township shall submit | 396 |
|
a status report to the director of development. The report shall | 397 |
|
indicate, in the manner prescribed by the director, the progress | 398 |
|
of the project during each year that the exemption remains in | 399 |
|
effect, including a summary of the receipts from service payments | 400 |
|
in lieu of taxes; expenditures of money from the fund created | 401 |
|
under section 5709.75 of the Revised Code; a description of the | 402 |
|
public infrastructure improvements and housing renovations | 403 |
|
financed with the expenditures; and a quantitative summary of | 404 |
|
changes in private investment resulting from each project. | 405 |
| (K) A board of township trustees that adopted a resolution | 409 |
|
under this section prior to July 21, 1994, may amend that | 410 |
|
resolution to include any additional public infrastructure | 411 |
|
improvement. A board of township trustees that seeks by the | 412 |
|
amendment to utilize money from its township public improvement | 413 |
|
tax increment equivalent fund for land acquisition in aid of | 414 |
|
industry, commerce, distribution, or research, demolition on | 415 |
|
private property, or stormwater and flood remediation projects may | 416 |
|
do so provided that the board currently is a party to a | 417 |
|
hold-harmless agreement with the board of education of the city, | 418 |
|
local, or exempted village school district within the territory of | 419 |
|
which are located the parcels that are subject to an exemption. | 420 |
|
For the purposes of this division, a "hold-harmless agreement" | 421 |
|
means an agreement under which the board of township trustees | 422 |
|
agrees to compensate the school district for one hundred per cent | 423 |
|
of the tax revenue that the school district would have received | 424 |
|
from further improvements to parcels designated in the resolution | 425 |
|
were it not for the exemption granted by the resolution. | 426 |
| (L) With respect to improvements resulting from projects | 427 |
|
undertaken on or after February 1, 2012, for which an exemption | 428 |
|
has been or will be sought pursuant to a resolution adopted under | 429 |
|
this section before December 14, 2001, "property used or to be | 430 |
|
used for residential purposes," as used in division (A)(2) of this | 431 |
|
section, means only that property that, as improved, the tax | 432 |
|
commissioner would classify as residential land and improvements | 433 |
|
pursuant to rules adopted by the tax commissioner under section | 434 |
|
5713.041 of the Revised Code. | 435 |
