HB 540

As Introduced
136th General Assembly
   Regular Session  H. B. No. 540
       2025-2026
  Representatives Pizzulli, Thomas, D.
  To enact section 5709.122 of the Revised Code to  1
  require payments in lieu of taxes from  2
  conservation organizations with significant  3
  holdings of tax-exempt land.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 5709.122 of the Revised Code be  5
enacted to read as follows:  6
     Sec. 5709.122. (A) As used in this section:  7
     (1) "Nonprofit conservation organization" means an  8
organization that is described under section 501(c)(3) of the  9
Internal Revenue Code and exempt from federal income taxation  10
under section 501(a) of the Internal Revenue Code and the  11
primary purpose of which is to conserve the environment.  12
     (2) "Qualifying real property" means real property that  13
meets all of the following criteria:  14
     (a) The property is owned by a nonprofit conservation  15
organization or its subsidiary, or such an organization or its  16
subsidiary owns an interest in the property.  17
     (b) The property or the organization's interest in the  18
property is exempt from taxation under section 5709.12 or  19
H. B. No. 540  Page 2
As Introduced
5790.121 of the Revised Code as land used exclusively for  20
charitable purposes.  21
       (c) The total area of the property located in a single  22
county is more than fifteen thousand acres.  23
       "Qualifying real property" does not include any portion of  24
such property that is used primarily for meetings, research or  25
educational activities, or the administration of a nonprofit  26
conservation organization.  27
       (3) "Unimproved taxable value" means the taxable value of  28
qualifying real property for the current tax year, exclusive of  29
improvements, and assuming that the property was subject to  30
taxation.  31
       (B) On or before the thirtieth day of June of each year,  32
beginning in 2026, a nonprofit conservation organization shall  33
pay to the county treasurer of each county in which qualifying  34
real property is located an amount equal to two and one-half per  35
cent of the unimproved taxable value of qualifying real property  36
located within that county.  37
       (C) Within thirty days after receiving a payment under  38
division (B) of this section, the county auditor shall  39
distribute the money among the taxing units within the territory  40
of which the qualifying real property is located in proportion  41
to the amount of taxes that would have been collected and  42
distributed to those taxing units with respect to such property  43
if the property was subject to taxation.  44
       (D) Money received by a taxing unit under this section  45
shall be used for any lawful purpose.  46
       (E) If a payment required under this section is not paid  47
when due, the unpaid amount shall be collected in the same  48
H. B. No. 540  Page 3
As Introduced
manner provided for the collection of delinquent real property  49
taxes.  50