Ohio Senate Bill SB242

Ohio 2023-2024 Regular Session

• Introduced: 4/24/24

Caption

Expand the charitable use property tax exemption

Impact

If enacted, SB242 would significantly impact local and state tax revenues by broadening the scope of tax exemptions for charitable institutions. It aims to not only facilitate the financial viability of nonprofit organizations but also to enhance the availability of supportive housing for vulnerable populations. By clarifying and expanding which properties qualify for exemptions, the bill seeks to promote the establishment of community centers, museums, and other charitable services that benefit the public.

Summary

Senate Bill 242, introduced by Senator O'Brien, seeks to amend section 5709.121 of the Revised Code to expand the charitable use property tax exemption in Ohio. The bill's primary focus is to allow property owned by charitable, religious, or educational institutions to be eligible for property tax exemptions if they are used exclusively for charitable purposes. This includes provisions for properties used by organizations that assist individuals with developmental disabilities or offer supportive housing. The updates also clarify that properties conveyed to non-charitable entities can still maintain their exempt status under certain conditions.

Contention

The proposal may generate discussions surrounding the balance between providing incentives for charitable organizations and the implications for local government funding. Critics might argue that expanding property tax exemptions could reduce essential funding for local services, while supporters would advocate for the bill as a necessary investment in community support frameworks. The debate may hinge on how to maintain adequate public service funding while fostering a charitable environment that addresses critical social issues.