Important Update: Limited Duration Property Tax Exemptions
Earlier this summer DHN members began to receive property tax exemptions from Ohio Department of Taxation (ODT) for a limited duration. The long standing ODT practice had been open ended exemptions as long as the use of the property did not change. The recent notices from ODT indicated the nonprofit housing corporation would have to reapply each year for the tax exempt status. In addition to the extra work inherent in annual reapplications, DHN saw this additional requirement as creating fiscal uncertainty for the housing corporations. Attorney Glen Billington representing several Northeast Ohio non- profits and Creative Housing’s attorney contacted ODT on the issue (Letter to Tax Commissioner CH, Inc).
As a result of the intervention ODT has reversed its position and indicated it would revert back to the practice granting open ended exemptions as long as the property use did not change from its original use. Non-profits who received limited duration exemption will receive another “Determination Letter” from ODT vacating the original finding and providing a new “Final Determination letter with the open ended property tax exemption.We will continue to monitor this issue and report back to you.
Many thanks to the attorneys who assisted us in this process.