The proposed Neighborhood Protection Act aims to amend section 5747.01 and introduce new sections 1749.01, 1749.02, and 1749.04 of the Revised Code, establishing regulations for institutional investors in the residential property market. The bill defines key terms such as "combined group," "covered entity," and "institutional real estate investor," and prohibits these entities from purchasing single-family or two-family residences unless they have been publicly listed for at least thirty days. This measure is designed to maintain neighborhood stability and ensure accessibility of residential properties to the general public. Additionally, the bill grants the director of commerce the authority to conduct hearings and impose civil penalties of up to $250,000 for violations of these purchasing restrictions, with the attorney general empowered to pursue legal action for penalty collection.

In conjunction with the Neighborhood Protection Act, the bill also introduces significant amendments to the tax code, including new definitions and clarifications related to taxation, particularly for trusts and pass-through entities. It allows taxpayers to deduct various amounts, such as life insurance reimbursements and military pay, while also requiring certain additions to income for depreciation expenses and interest deductions related to properties owned by institutional real estate investors. The bill repeals the existing section 5747.01, indicating a comprehensive update to the tax code, and ensures that the new provisions will take effect for taxable years ending on or after the effective date, thereby refining the tax treatment of income sources and deductions in Ohio.

Statutes affected:
As Introduced: 5747.01