CLEVELAND, Ohio — For decades, some institutions have been untouchable when it comes to property taxes: hospitals, churches, museums, and conservation groups. Now Ohio lawmakers want to test that boundary — starting with land conservancies.
On Tuesday’s episode of the Today in Ohio podcast, hosts explored a new bill that targets The Nature Conservancy’s vast land holdings and could pave the way for taxing other nonprofits once considered off-limits.
House Bill 540, introduced by Republican Representatives Justin Pizzulli of Scioto County and Dave Thomas of Ashtabula County, proposes a targeted approach that could eventually lead to a much broader revolution in nonprofit taxation.
“What these lawmakers tell us straight up is that this test case is really focusing squarely on one nonprofit that’s out there. It’s called the Nature Conservancy, and it owns nearly 20,000 acres in Adams County,” explained Today in Ohio co-host Courtney Astolfi. “Apparently, they own a good chunk of two entire townships out there. So, they’re starting with this first, seeing if it’s going to work, and then potentially move on from there.”
The bill would specifically target large nonprofit conservation groups owning more than 15,000 acres in a single county. Starting next year, these organizations would owe 2.5% of the taxable value of their land, with proceeds going to local governments. For The Nature Conservancy, this would amount to between $230,000 and $275,000 annually.
But the bigger question is what comes next, the podcasters wondered. If this “pilot project” succeeds, could it open the door to taxing other nonprofit institutions that have traditionally enjoyed property tax exemptions?
Co-host Leila Atassi wondered whether that would be good or bad for Ohio.
“I am so torn on this, Leila,” Astolfi said. “I mean, I think it could go either way. If it’s done correctly, I can see some big benefits here. But if it’s warped in a way that we see things get warped in Ohio on occasion, then I’m nervous where it could go.
“These gentlemen who have proposed this say they’re testing the waters, but you look at different groups that don’t pay property tax in our state. Museums, hospitals and churches.”
The proposal’s targeting of land conservancies rather than more profitable nonprofit entities has raised eyebrows. Unlike hospitals or museums, land conservancies typically don’t generate revenue from their properties.
“Why start with the Land Conservancy? They don’t make any money on that land right there. That’s the point. That’s the point of the Land Conservancy is to set it aside,” questioned Leila Atassi. “Could it possibly be that they want to destroy the Land Conservancy and open up this public land for development or something like that?”
The representatives behind the bill claim they have no intention of extending the tax to churches, but the proposal nevertheless represents a significant shift in how Ohio approaches nonprofit property tax exemptions.
For local governments struggling with budget shortfalls, new revenue from previously untaxed entities could provide welcome relief. But for the nonprofits themselves — especially those with extensive property holdings but limited cash flow — such taxes could fundamentally threaten their operations and missions.
At least one Democratic lawmaker has questioned whether the proposal may be unconstitutional. But regardless of whether this specific bill advances, it signals a potential sea change in how Ohio — and perhaps other states — might approach nonprofit taxation in the future.
Listen to the discussion online.
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