OH HB596

Requires municipal legislative authorities to obtain approval from the affected school district board of education before adopting ordinances that create tax increment financing incentive districts, except when specific conditions are met.

Exempts municipalities from the school board approval requirement if the ordinance specifies that payments in lieu of taxes will be paid to the school district in amounts equal to taxes that would have been owed if improvements had not been exempted.

Applies to ordinances creating incentive districts adopted 45 days or more after the bill's effective date, with grandfather provisions for previously adopted ordinances.

Requires municipal legislative authorities to deliver notice to school boards at least 45 business days before adopting such ordinances, with boards having 14 days to certify their approval or disapproval by resolution.

Allows school boards to approve exemptions, disapprove them, or approve them conditionally with negotiated compensation agreements between the municipality and school district.