Bill Text: OH HB605 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To exempt from property taxation real property procured for use by a school through a for-profit lease.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2010-11-23 - To Ways & Means [HB605 Detail]

Download: Ohio-2009-HB605-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 605

Representative Morgan 

Cosponsors: Representatives Huffman, Sears, Lehner, Adams, J. 

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A BILL

To amend section 5709.07 of the Revised Code to

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exempt from property taxation real property

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procured for use by a school through a for-profit

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lease.

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

Section 1.  That section 5709.07 of the Revised Code be	5
amended to read as follows:	6

Sec. 5709.07.  (A) The following property shall be exempt	7
from taxation:	8

(1) Public schoolhouses, the books and furniture in them, and	9
the ground attached to them necessary for the proper occupancy,	10
use, and enjoyment of the schoolhouses, and not leased or	11
otherwise used with a view to profit;Real property used by a	12
school for primary or secondary educational purposes, including	13
only so much of the land as is necessary for the proper occupancy,	14
use, and enjoyment of such real property. Real property otherwise	15
qualifying for exemption under division (A)(1) of this section is	16
not disqualified because it is procured for use by the school	17
through a for-profit lease.	18

For purposes of division (A)(1) of this section:

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(a) "School" means a public or nonpublic school. "School"	20
excludes home instruction as authorized under section 3321.04 of	21
the Revised Code.	22

(b) "Public school" includes schools of a school district,	23
STEM schools established under Chapter 3326. of the Revised Code,	24
community schools established under Chapter 3314. of the Revised	25
Code, and educational service centers established under section	26
3311.05 of the Revised Code.	27

(c) "Nonpublic school" means a nonpublic school for which the	28
state board of education prescribes minimum standards under	29
division (D)(2) of section 3301.07 of the Revised Code.	30

(2) Houses used exclusively for public worship, the books and	31
furniture in them, and the ground attached to them that is not	32
leased or otherwise used with a view to profit and that is	33
necessary for their proper occupancy, use, and enjoyment;	34

(3) Real property owned and operated by a church that is used	35
primarily for church retreats or church camping, and that is not	36
used as a permanent residence. Real property exempted under	37
division (A)(3) of this section may be made available by the	38
church on a limited basis to charitable and educational	39
institutions if the property is not leased or otherwise made	40
available with a view to profit.	41

(4) Public colleges and academies and all buildings connected	42
with them, and all lands connected with public institutions of	43
learning, not used with a view to profit, including those	44
buildings and lands that satisfy all of the following:	45

(a) The buildings are used for housing for full-time students	46
or housing-related facilities for students, faculty, or employees	47
of a state university, or for other purposes related to the state	48
university's educational purpose, and the lands are underneath the	49
buildings or are used for common space, walkways, and green spaces	50
for the state university's students, faculty, or employees. As	51
used in this division, "housing-related facilities" includes both	52
parking facilities related to the buildings and common buildings	53
made available to students, faculty, or employees of a state	54
university. The leasing of space in housing-related facilities	55
shall not be considered an activity with a view to profit for	56
purposes of division (A)(4) of this section.	57

(b) The buildings and lands are supervised or otherwise under	58
the control, directly or indirectly, of an organization that is	59
exempt from federal income taxation under section 501(c)(3) of the	60
Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as	61
amended, and the state university has entered into a qualifying	62
joint use agreement with the organization that entitles the	63
students, faculty, or employees of the state university to use the	64
lands or buildings;	65

(c) The state university has agreed, under the terms of the	66
qualifying joint use agreement with the organization described in	67
division (A)(4)(b) of this section, that the state university, to	68
the extent applicable under the agreement, will make payments to	69
the organization in amounts sufficient to maintain agreed-upon	70
debt service coverage ratios on bonds related to the lands or	71
buildings.	72

(B) This section shall not extend to leasehold estates or	73
real property held under the authority of a college or university	74
of learning in this state; but leaseholds, or other estates or	75
property, real or personal, the rents, issues, profits, and income	76
of which is given to a municipal corporation, school district, or	77
subdistrict in this state exclusively for the use, endowment, or	78
support of schools for the free education of youth without charge	79
shall be exempt from taxation as long as such property, or the	80
rents, issues, profits, or income of the property is used and	81
exclusively applied for the support of free education by such	82
municipal corporation, district, or subdistrict. Division (B) of	83
this section shall not apply with respect to buildings and lands	84
that satisfy all of the requirements specified in divisions	85
(A)(4)(a) to (c) of this section.	86

(C) For purposes of this section, if the requirements	87
specified in divisions (A)(4)(a) to (c) of this section are	88
satisfied, the buildings and lands with respect to which exemption	89
is claimed under division (A)(4) of this section shall be deemed	90
to be used with reasonable certainty in furthering or carrying out	91
the necessary objects and purposes of a state university.	92

(D) As used in this section:

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(1) "Church" means a fellowship of believers, congregation,	94
society, corporation, convention, or association that is formed	95
primarily or exclusively for religious purposes and that is not	96
formed for the private profit of any person.	97

(2) "State university" has the same meaning as in section	98
3345.011 of the Revised Code.	99

(3) "Qualifying joint use agreement" means an agreement that	100
satisfies all of the following:	101

(a) The agreement was entered into before June 30, 2004;

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(b) The agreement is between a state university and an	103
organization that is exempt from federal income taxation under	104
section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat.	105
2085, 26 U.S.C. 1, as amended; and	106

(c) The state university that is a party to the agreement	107
reported to the Ohio board of regents that the university	108
maintained a headcount of at least twenty-five thousand students	109
on its main campus during the academic school year that began in	110
calendar year 2003 and ended in calendar year 2004.	111

Section 2.  That existing section 5709.07 of the Revised Code	112
is hereby repealed.	113