Ohio § 5709.82

§ 5709.82.

(A) As used in this section: (1) “ New employee ” means both of the following: (a) Persons employed in the construction of real property exempted from taxation under

the chapters or sections of the Revised Code enumerated in division (B) of this section; (b) Persons not described by division (A)(1)(a) of this section who are first employed

at the site of such property and who within the two previous years have not been subject,

prior to being employed at that site, to income taxation by the municipal corporation

within whose territory the site is located on income derived from employment for the

person's current employer.  “New employee” does not include any person who replaces a person who is not a new

employee under division (A)(1) of this section. (2) “ Infrastructure costs ” means costs incurred by a municipal corporation in a calendar year to acquire, construct,

reconstruct, improve, plan, or equip real or tangible personal property that directly

benefits or will directly benefit the exempted property.  If the municipal corporation finances the acquisition, construction, reconstruction,

improvement, planning, or equipping of real or tangible personal property that directly

benefits the exempted property by issuing debt, “ infrastructure costs ” means the annual debt charges incurred by the municipal corporation from the issuance

of such debt.  Real or tangible personal property directly benefits exempted property only if the

exempted property places or will place direct, additional demand on the real or tangible

personal property for which such costs were or will be incurred. (3) “Taxing unit” has the same meaning as in division (H) of section 5705.01 of the Revised Code . (B)(1) Except as otherwise provided under division (C) of this section, the legislative

authority of any political subdivision that has acted under the authority of Chapter

725. or 1728., sections 3735.65 to 3735.70 , or section 5709.40 , 5709.41 , 5709.45 , 5709.62 , 5709.63 , 5709.632 , 5709.73 , 5709.78 , 5709.84 , or 5709.88 of the Revised Code to grant an exemption from taxation for real or tangible personal property may negotiate

with the board of education of each city, local, exempted village, or joint vocational

school district or other taxing unit within the territory of which the exempted property

is located, and enter into an agreement whereby the school district or taxing unit

is compensated for tax revenue foregone by the school district or taxing unit as a

result of the exemption.  Except as otherwise provided in division (B)(1) of this section, if a political

subdivision enters into more than one agreement under this section with respect to

a tax exemption, the political subdivision shall provide to each school district or

taxing unit with which it contracts the same percentage of tax revenue foregone by

the school district or taxing unit, which may be based on a good faith projection

made at the time the exemption is granted.  Such percentage shall be calculated on the basis of amounts paid by the political

subdivision and any amounts paid by an owner under division (B)(2) of this section.  A political subdivision may provide a school district or other taxing unit with

a smaller percentage of foregone tax revenue than that provided to other school districts

or taxing units only if the school district or taxing unit expressly consents in the

agreement to receiving a smaller percentage.  If a subdivision has acted under the authority of section 3735.671 , 5709.40 , 5709.41 , 5709.45 , 5709.62 , 5709.63 , 5709.632 , 5709.73 , or 5709.78 of the Revised Code and enters into a compensation agreement with a city, local, or exempted village

school district, the subdivision shall provide compensation to the joint vocational

school district within the territory of which the exempted property is located at

the same rate and under the same terms as received by the city, local, or exempted

village school district. (2) An owner of property exempted from taxation under the authority described in division

(B)(1) of this section may, by becoming a party to an agreement described in division

(B)(1) of this section or by entering into a separate agreement with a school district

or other taxing unit, agree to compensate the school district or taxing unit by paying

cash or by providing property or services by gift, loan, or otherwise.  If the owner's property is exempted under the authority of section 3735.671 , 5709.40 , 5709.41 , 5709.45 , 5709.62 , 5709.63 , 5709.632 , 5709.73 , or 5709.78 of the Revised Code and the owner enters into a compensation agreement with a city, local, or exempted

village school district, the owner shall provide compensation to the joint vocational

school district within the territory of which the owner's property is located at the

same rate and under the same terms as received by the city, local, or exempted village

school district. (C) This division does not apply to the following: (1) The legislative authority of a municipal corporation that has acted under the authority

of division (H) of section 715.70 or division (U) of section 715.72 of the Revised Code to consent to the granting of an exemption from taxation for real or tangible personal

property in a joint economic development district. (2) The legislative authority of a municipal corporation that has specified in an ordinance

adopted under section 5709.40 , 5709.41 , or 5709.45 of the Revised Code that payments in lieu of taxes provided for under section 5709.42 or 5709.46 of the Revised Code shall be paid to the city, local, or exempted village school district in which the

improvements are located in the amount of taxes that would have been payable to the

school district if the improvements had not been exempted from taxation, as directed

in the ordinance. If the legislative authority of any municipal corporation has acted under the authority

of Chapter 725. or 1728. or section 3735.671 , 5709.40 , 5709.41 , 5709.45 , 5709.62 , 5709.63 , 5709.632 , or 5709.88 , or a housing officer under section 3735.67 of the Revised Code , to grant or consent to the granting of an exemption from taxation for real or tangible

personal property on or after July 1, 1994, the municipal corporation imposes a tax

on incomes, and the payroll of new employees resulting from the exercise of that authority

equals or exceeds one million dollars, or two million dollars, as adjusted under division

(E) of this section, in the case of the authority exercised under section 3735.67 or 3735.671 of the Revised Code , in any tax year for which such property is exempted, the legislative authority and

the board of education of each city, local, or exempted village school district within

the territory of which the exempted property is located shall attempt to negotiate

an agreement providing for compensation to the school district for all or a portion

of the tax revenue the school district would have received had the property not been

exempted from taxation.  The agreement may include as a party the owner of the property exempted or to be

exempted from taxation and may include provisions obligating the owner to compensate

the school district by paying cash or providing property or services by gift, loan,

or otherwise.  Such an obligation is enforceable by the board of education of the school district

pursuant to the terms of the agreement. If the legislative authority and board of education fail to negotiate an agreement

that is mutually acceptable within six months of formal approval by the legislative

authority of the instrument granting the exemption, the legislative authority shall

compensate the school district in the amount and manner prescribed by division (D)

of this section. (D) Annually, the legislative authority of a municipal corporation subject to this division

shall pay to the city, local, or exempted village school district within the territory

of which the exempted property is located an amount equal to fifty per cent of the

difference between the amount of taxes levied and collected by the municipal corporation

on the incomes of new employees in the calendar year ending on the day the payment

is required to be made, and the amount of any infrastructure costs incurred in that

calendar year.  For purposes of such computation, the amount of infrastructure costs shall not exceed

thirty-five per cent of the amount of those taxes unless the board of education of

the school district, by resolution adopted by a majority of the board, approves an

amount in excess of that percentage.  If the amount of those taxes or infrastructure costs must be estimated at the time

the payment is made, payments in subsequent years shall be adjusted to compensate

for any departure of those estimates from the actual amount of those taxes. A municipal corporation required to make a payment under this section shall make the

payment from its general fund or a special fund established for the purpose.  The payment is payable on the thirty-first day of December of the tax year for or

in which the exemption from taxation commences and on that day for each subsequent

tax year property is exempted and the legislative authority and board fail to negotiate

an acceptable agreement under division (C) of this section. (E)(1) The director of development shall adjust, in September of each year, the payroll

threshold described in division (C)(2) of this section applicable to the exercise

of authority under section 3735.67 or 3735.671 of the Revised Code by completing the following computations: (a) Determine the percentage increase in the gross domestic product deflator determined

by the bureau of economic analysis of the United States department of commerce from

the first day of January of the preceding calendar year to the last day of December

of the preceding calendar year; (b) Multiply that percentage increase by the threshold applicable for the current year; (c) Add the resulting product to the threshold applicable for the current year; (d) Round the resulting sum to the nearest one thousand dollars. (2) The director shall certify the amount of the adjustment under division (E)(1) of

this section to each legislative authority of a municipal corporation and housing

officer designated by a municipal corporation exercising authority under section 3735.67 or 3735.671 of the Revised Code not later than the first day of December of the year the director computes the adjustment.  The certified amount applies to the ensuing calendar year and each calendar year

thereafter until the director makes a new adjustment.  The director shall not calculate a new adjustment in any year in which the resulting

threshold amount from the adjustment would be less than the threshold for the current

year.