Pending Ohio legislation that may affect CRE

In addition to the Budget Bill, several other pending Bills that could dramatically impact the commercial real estate industry are making their way through the Statehouse. The volume of pending legislation that would affect CRE businesses is truly unprecedented–we can’t recall a time in which this many pending Bills were under consideration by Ohio’s General Assembly that would affect our world in so many ways.

Senate Bill 6 (Roegner) – Would allow immediate appeals from adverse building inspection  determinations that would otherwise unnecessarily slow down completion of developments.

Senate Bill 29 (Blessing, Ingram) – Would allow municipalities to form Joint Economic Development Districts without involving a township, expanding economic collaboration tools for cities and villages. 

Senate Bill 102 (Patton) – Would reform the tax foreclosure process and how county land re-utilization corporations (land banks) could operate when it comes to taking control of property. 

Senate Bill  101 (Blessing) – Would require liens filed to include the debtor’s last known address to improve transparency and allow better notice to parties to real estate transactions. The Bill would also mandate that certain real property trust instruments be recorded when they provide the authority needed for a real estate transaction.

House Bill 28 (Mathews, A. Hall, T.) – Eliminates authority for replacement property tax levies, meaning local governments could no longer propose “replacement” levies that reset property valuations to current market values. Current status: Voted out of the House.

House Bill 86 (Demetriou) – House version of Senate Bill 102 (above).

House Bill 113 (Bird, Newman) – Would modify annexation law, significantly tightening rules around how municipalities may expand boundaries. Would also mandate that school districts approve residential CRA tax exemptions that exceed 75% abatement.

House Bill 124 (Thomas, D., Hall, T.) – Would update the process for conducting sales-assessment ratio studies, which are used to determine if property valuations are aligned with market values. 

House Bill 147 (Lorenz) – Would provide a sales and use tax exemption on building materials purchased by contractors for large-scale projects ($25 million+) located in areas with port authorities.

House Bill 154 (Thomas, Glassburn) – Would require school district approval before granting residential property tax exemptions under CRA programs that exceed 75% abatement. This Bill is similar to the CRA component of HB 113.

What do you think of these pending policies? Stay tuned for more insight on how they may affect your business.