Ohio § 5709.12

Full text of Ohio Ohio Revised Code § 5709.12, with citation guidance and answers to common questions.

§ 5709.12.

(A) As used in this section, “ independent living facilities ” means any residential housing facilities and related property that are not a nursing

home, residential care facility, or residential facility as defined in division (A) of section 5701.13 of the Revised Code . (B) Lands, houses, and other buildings belonging to a county, township, or municipal

corporation and used exclusively for the accommodation or support of the poor, or

leased to the state or any political subdivision for public purposes shall be exempt

from taxation.  Real and tangible personal property belonging to institutions that is used exclusively

for charitable purposes shall be exempt from taxation, including real property belonging

to an institution that is a nonprofit corporation that receives a grant under the

Thomas Alva Edison grant program authorized by division (C) of section 122.33 of the Revised Code at any time during the tax year and being held for leasing or resale to others.  If, at any time during a tax year for which such property is exempted from taxation,

the corporation ceases to qualify for such a grant, the director of development shall

notify the tax commissioner, and the tax commissioner shall cause the property to

be restored to the tax list beginning with the following tax year.  All property owned and used by a nonprofit organization exclusively for a home for

the aged, as defined in section 5701.13 of the Revised Code , also shall be exempt from taxation. (C)(1) If a home for the aged described in division (B)(1) of section 5701.13 of the Revised Code is operated in conjunction with or at the same site as independent living facilities,

the exemption granted in division (B) of this section shall include kitchen, dining

room, clinic, entry ways, maintenance and storage areas, and land necessary for access

commonly used by both residents of the home for the aged and residents of the independent

living facilities.  Other facilities commonly used by both residents of the home for the aged and residents

of independent living units shall be exempt from taxation only if the other facilities

are used primarily by the residents of the home for the aged.  Vacant land currently unused by the home, and independent living facilities and

the lands connected with them are not exempt from taxation.  Except as provided in division (A)(1) of section 5709.121 of the Revised Code , property of a home leased for nonresidential purposes is not exempt from taxation. (2) Independent living facilities are exempt from taxation if they are operated in conjunction

with or at the same site as a home for the aged described in division (B)(2) of section 5701.13 of the Revised Code ;  operated by a corporation, association, or trust described in division (B)(1)(b)

of that section;  operated exclusively for the benefit of members of the corporation,

association, or trust who are retired, aged, or infirm;  and provided to those members

without charge in consideration of their service, without compensation, to a charitable,

religious, fraternal, or educational institution.  For the purposes of division (C)(2) of this section, “compensation” does not include

furnishing room and board, clothing, health care, or other necessities, or stipends

or other de minimis payments to defray the cost thereof. (D)(1) A private corporation established under federal law, as defined in 36 U.S.C. 1101 , Pub. L. No. 102-199, 105 Stat. 1629, as amended, the objects of which include encouraging the advancement of science generally,

or of a particular branch of science, the promotion of scientific research, the improvement

of the qualifications and usefulness of scientists, or the increase and diffusion

of scientific knowledge is conclusively presumed to be a charitable or educational

institution.  A private corporation established as a nonprofit corporation under the laws of a

state that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986 , 100 Stat. 2085, 26 U.S.C.A. 1 , as amended, and that has as its principal purpose one or more of the foregoing objects

also is conclusively presumed to be a charitable or educational institution. The fact that an organization described in this division operates in a manner that

results in an excess of revenues over expenses shall not be used to deny the exemption

granted by this section, provided such excess is used, or is held for use, for exempt

purposes or to establish a reserve against future contingencies;  and, provided further,

that such excess may not be distributed to individual persons or to entities that

would not be entitled to the tax exemptions provided by this chapter.  Nor shall the fact that any scientific information diffused by the organization

is of particular interest or benefit to any of its individual members be used to deny

the exemption granted by this section, provided that such scientific information is

available to the public for purchase or otherwise. (2) Division (D)(2) of this section does not apply to real property exempted from taxation

under this section and division (A)(3) of section 5709.121 of the Revised Code and belonging to a nonprofit corporation described in division (D)(1) of this section

that has received a grant under the Thomas Alva Edison grant program authorized by division (C) of section 122.33 of the Revised Code during any of the tax years the property was exempted from taxation. When a private corporation described in division (D)(1) of this section sells all

or any portion of a tract, lot, or parcel of real estate that has been exempt from

taxation under this section and section 5709.121 of the Revised Code , the portion sold shall be restored to the tax list for the year following the year

of the sale and, except in connection with a sale and transfer of such a tract, lot,

or parcel to a county land reutilization corporation organized under Chapter 1724.

of the Revised Code, a charge shall be levied against the sold property in an amount

equal to the tax savings on such property during the four tax years preceding the

year the property is placed on the tax list.  The tax savings equals the amount of the additional taxes that would have been levied

if such property had not been exempt from taxation. The charge constitutes a lien of the state upon such property as of the first day

of January of the tax year in which the charge is levied and continues until discharged

as provided by law.  The charge may also be remitted for all or any portion of such property that the

tax commissioner determines is entitled to exemption from real property taxation for

the year such property is restored to the tax list under any provision of the Revised

Code, other than sections 725.02, 1728.10, 3735.67, 5709.40, 5709.41, 5709.45, 5709.62,

5709.63, 5709.71, 5709.73, 5709.78, and 5709.84, upon an application for exemption

covering the year such property is restored to the tax list filed under section 5715.27 of the Revised Code . (E)(1) Real property held by an organization organized and operated exclusively for charitable

purposes as described under section 501(c)(3) of the Internal Revenue Code and exempt from federal taxation under section 501(a) of the Internal Revenue Code , 26 U.S.C.A. 501(a) and (c)(3) , as amended, for the purpose of constructing or rehabilitating residences for eventual

transfer to qualified low-income families through sale, lease, or land installment

contract, shall be exempt from taxation. The exemption shall commence on the day title to the property is transferred to the

organization and shall continue to the end of the tax year in which the organization

transfers title to the property to a qualified low-income family.  In no case shall the exemption extend beyond the second succeeding tax year following

the year in which the title was transferred to the organization.  If the title is transferred to the organization and from the organization to a qualified

low-income family in the same tax year, the exemption shall continue to the end of

that tax year.  The proportionate amount of taxes that are a lien but not yet determined, assessed,

and levied for the tax year in which title is transferred to the organization shall

be remitted by the county auditor for each day of the year that title is held by the

organization. Upon transferring the title to another person, the organization shall file with the

county auditor an affidavit affirming that the title was transferred to a qualified

low-income family or that the title was not transferred to a qualified low-income

family, as the case may be;  if the title was transferred to a qualified low-income

family, the affidavit shall identify the transferee by name.  If the organization transfers title to the property to anyone other than a qualified

low-income family, the exemption, if it has not previously expired, shall terminate,

and the property shall be restored to the tax list for the year following the year

of the transfer and a charge shall be levied against the property in an amount equal

to the amount of additional taxes that would have been levied if such property had

not been exempt from taxation.  The charge constitutes a lien of the state upon such property as of the first day

of January of the tax year in which the charge is levied and continues until discharged

as provided by law. The application for exemption shall be filed as otherwise required under section 5715.27 of the Revised Code , except that the organization holding the property shall file with its application

documentation substantiating its status as an organization organized and operated

exclusively for charitable purposes under section 501(c)(3) of the Internal Revenue Code and its qualification for exemption from federal taxation under section 501(a) of the Internal Revenue Code , and affirming its intention to construct or rehabilitate the property for the eventual

transfer to qualified low-income families. As used in this division, “ qualified low-income family ” means a family whose income does not exceed two hundred per cent of the official

federal poverty guidelines as revised annually in accordance with section 673(2) of

the “Omnibus Budget Reconciliation Act of 1981,” 95 Stat. 511, 42 U.S.C.A. 9902 , as amended, for a family size equal to the size of the family whose income is being

determined. (2) Real property constituting a retail store, including the land on which the retail

store is located, that is owned and operated by an organization described in division

(E)(1) of this section shall be exempt from taxation if the retail store sells primarily

donated items suitable for residential housing purposes and if the proceeds of such

sales are used solely for the purposes of the organization. (F)(1) Real property that is acquired and held by a county land reutilization corporation

organized under Chapter 1724. of the Revised Code and that is not exempt from taxation

under Chapter 5722. of the Revised Code shall be deemed real property used for a public

purpose and shall be exempt from taxation until sold or transferred by the corporation.  Notwithstanding section 5715.27 of the Revised Code , a county land reutilization corporation is not required to apply to any county or

state agency in order to qualify for the exemption. (2) Real property that is acquired and held by an electing subdivision other than a county

land reutilization corporation on or after April 9, 2009, for the public purpose of

implementing an effective land reutilization program or for a related public purpose,

and that is not exempt from taxation under Chapter 5722. of the Revised Code, shall

be exempt from taxation until sold or transferred by the electing subdivision.  Notwithstanding section 5715.27 of the Revised Code , an electing subdivision is not required to apply to any county or state agency in

order to qualify for an exemption with respect to property acquired or held for such

purposes on or after such date, regardless of how the electing subdivision acquires

the property. As used in this section, “electing subdivision” and “land reutilization program” have

the same meanings as in section 5722.01 of the Revised Code , and “ county land reutilization corporation ” means a county land reutilization corporation organized under Chapter 1724. of the

Revised Code and any subsidiary wholly owned by such a county land reutilization corporation

that is identified as “a wholly owned subsidiary of a county land reutilization corporation”

in the deed of conveyance transferring title to the subsidiary. In lieu of the application for exemption otherwise required to be filed as required

under section 5715.27 of the Revised Code , a county land reutilization corporation holding the property shall, upon the request

of any county or state agency, submit its articles of incorporation substantiating

its status as a county land reutilization corporation. (G) Real property that is owned by an organization described under section 501(c)(3) of the Internal Revenue Code and exempt from federal income taxation under section 501(a) of the Internal Revenue Code and that is used by that organization exclusively for receiving, processing, or distributing

human blood, tissues, eyes, or organs or for research and development thereof shall

be exempt from taxation. (H) Real property that is owned by an organization described under section 501(c)(3) of the Internal Revenue Code and exempt from federal income taxation under section 501(a) of the Internal Revenue Code and that received a loan from the federal small business administration as a participating

intermediary in the federal microloan program under 15 U.S.C. 636(m) shall be exempt from taxation if the property is used by that organization primarily

for small business lending, economic development, job training, entrepreneur education,

or associated administrative purposes as such a participating intermediary.

Frequently Asked Questions About Ohio § 5709.12

What does Ohio Revised Code § 5709.12 cover?

Section 5709.12 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Ohio § 5709.12?

A common citation format is "Ohio Revised Code § 5709.12" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Ohio law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.

How does Ohio § 5709.12 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.