MAY 28, 2024 REPORT #11
LEGISLATIVE UPDATE
PRE-RESIDENTIAL DEVELOPMENT PROPERTY
In anticipation of the implementation of a new process for those applying for tax benefits on pre-residential development property under Ohio Revised Code 5709.56, OHBA urges potential applicants to put their country auditor on notice. The new law will be set to take effect 90 days after the signature of the Governor. Upon effect, the old law is repealed, removing the Ohio Dept of Tax and certain notice/appeal provisions.
The application process should be simple, as the requirements are limited to those set out in 5709.56 which include being a ‘qualified owner’ of ‘pre-residential development property’. Both of the definitions are highlighted below.
"Pre-residential development property" means a subdivided parcel of unimproved real property on which construction of one or more residential buildings is planned but has not yet commenced. The construction of streets, sidewalks, curbs, or driveways or the installation of water, Sub. H. B. No. 50 135th G.A. 8 sewer, or other utility lines on a subdivided parcel does not cause construction of a residential building to commence for purposes of division (A)(1) or (B) of this section. "Pre-residential development property" does not include a parcel, any portion of the value of which is exempted from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.
"Qualifying owner" means the owner of pre-residential development property for any portion of a tax year ending on or after the effective date of this section October 3, 2023, that includes the date a plat subdividing land including such property is presented to the county auditor under section 5713.18 of the Revised Code, or any other person to which title to the property is transferred, without consideration, by another qualifying owner.
The amendment by this act of sections 5709.56 and 5715.27 of the Revised Code applies to applications filed under section 5715.27 of the Revised Code for tax years beginning on or after the effective date of this section.
Feel free to contact OHBA with any questions or comments at 614-228-6647 or build@ohiohba.com.
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