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TAX EXEMPTION 

 

We have just received additional information regarding this possible tax exemption.   We have been advised that new guidance and application forms should be available October 1st.    More complete information will be going out to counties and auditors at that time.   However, we advise that you actively pursue this if you qualify, as the deadline for each year is December.   Since it is new, you may have to stay on top of it.

 

 

Dear OACCP Member:

If you attended our last Quarterly Meeting on August 1, 2019 in Dayton, you heard the presentation given by Willa Ebersole, our lobbyist, in which she described a potential tax exemption for licensed child care centers.    Since OACCP is dedicated to sharing important information to help you in your child care operations, we are sharing the tax exemption specifics with you again.    If you were unable to attend our last meeting, this will be very valuable new knowledge.

It is critical that you read the language which is included below to determine if you are eligible to apply for this tax exemption.   For instance, you must serve children under six, and 25% of your students must reside in a household receiving public assistance.   In addition, you must apply for the exemption by December 31st of every year that you wish to be considered.   We suggest you bring a copy of this exact language with you so there is no confusion as to what you are asking for.

Counties and cities may be different in the way these exemptions are handled and you may have to be very proactive in the way you pursue this.  Be sure you read the specifics carefully and consult with your own accountant as to your eligibility.  Since this is so new, many people will not be completely aware of it.

Should you decide to pursue this exemption, we encourage you to notify us as to your outcomes as it will help us moving forward.     Here is the exact language:

From the revised code adopted in HB 166:

 

 

Sec. 323.16. (A) As used in this section: (1) "Qualifying child care center" means real property on which a licensed child care program operates. For purposes of this division, "licensed child care program" means a licensed child care program, as defined in section 5104.01 of the Revised Code, that meets all of the following requirements: (a) The program only serves children under six years of age; (b) At least twenty-five per cent of the children in the program reside in a household that receives public assistance; (c) The program is not operated from the permanent residence of the licensee or administrator or from a location that is also used for a separate commercial purpose. (2) "Public assistance" means benefits or assistance provided under any

Am. Sub. H. B. No. 166 133rd G.A. 240

of the following government programs: (a) The publicly funded child care program authorized by Chapter 5104. of the Revised Code; (b) Medicaid. (3) The Ohio works first program established by Chapter 5107. of the Revised Code; (4) The supplemental nutrition assistance program administered by the department of job and family services under section 5101.54 of the Revised Code; (5) The special supplemental nutrition program for women, infants, and children administered by the department of health under section 3701.132 of the Revised Code.

 

(B) A partial real property tax exemption is allowed to a qualifying child care center for each tax year for which an application for the partial exemption has been approved. The partial exemption shall take the form of a percentage reduction in the real property taxes levied on the qualifying child care center. That percentage shall equal one of the following: (1) Twenty-five per cent, if at least twenty-five per cent, but less than fifty per cent, of the children that attend the qualifying child care center reside in a household that receives public assistance; (2) Seventy-five per cent, if at least fifty per cent of the children that attend the qualifying child care center reside in a household that receives public assistance. After complying with section 319.301 of the Revised Code, the county auditor shall reduce the remaining sum to be levied against a qualifying child care center by the applicable percentage. The auditor shall certify the amount of taxes remaining after the reduction to the county treasurer for collection as the real property taxes charged and payable on the qualifying child care center. (C)(1) To obtain the partial exemption, the owner of a qualifying child care center shall file an application each year with the county auditor of the county in which the center is located. The application shall be filed on or before the thirty-first day of December of the year for which the partial exemption is sought. The tax commissioner shall prescribe the form of the application, which shall contain a statement that conviction of willfully falsifying information to obtain the partial exemption results in the revocation of the right to the partial exemption for a period of three years. (2) The county auditor shall approve or deny an application for the partial exemption within thirty days after receiving the application. Notification shall be provided on a form prescribed by the tax

commissioner. If the application is approved, upon issuance of the notification the county auditor shall record the partial exemption in the appropriate column on the general tax list and duplicate of real and public utility property. If the application is denied, the notification shall inform the applicant of the reasons for the denial. If an applicant believes that the application for the partial exemption has been improperly denied for a tax year, the applicant may file an appeal with the county board of revision on or before the last day of March of the ensuing tax year. The appeal shall be treated in the same manner as a complaint relating to the valuation or assessment of real property under Chapter 5715. of the Revised Code.

 

Should you have any questions or concerns, feel free to contact me.

 

Sincerely,

 

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