OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 242 Bill Analysis
135th General Assembly
Click here for S.B. 242’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. O’Brien
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Extends a property tax exemption available to political subdivisions and charitable
and educational institutions that use or lease property exclusively for charitable,
educational, or public purposes to religious institutions and purposes.
DETAILED ANALYSIS
Property tax exemption for religious institutions
The bill expands a property tax exemption currently available to political subdivisions
and charitable and educational institutions that use or lease property exclusively for charitable,
educational, or public purposes.1 Under continuing law, such property qualifies for the existing
charitable use exemption if the state, a subdivision, or a charitable or educational institution
uses the real property or tangible personal property for its own charitable, educational, or
public purposes or leases the property to another institution for those uses. Property used
exclusively by religious organizations for public worship are generally entitled to a separate
exemption, but the leasing of property between these different institutions can leave the
property qualifying for neither exemption under current law.2 The bill applies the charitable use
exemption if the property’s owner or lessee is a religious institution or if the property is used by
the owner or lessee for a religious purpose.3 The bill’s expanded exemption applies to tax years
ending on or after the bill’s 90-day effective date.4
1 R.C. 5709.12, not in the bill.
2 R.C. 5709.07, not in the bill.
3 R.C. 5709.121.
4 Section 3.
May 20, 2024
Office of Research and Drafting LSC Legislative Budget Office
HISTORY
Action Date
Introduced 04-16-24
ANSB0242IN-135/sb
P a g e |2 S.B. 242
As Introduced


Statutes affected:
As Introduced: 5709.121