Changes to Ohio Property Tax Assessment Challenges – Property Taxes
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Ohio passed HB 126, effective July 21, 2022. This new law changes procedures for school boards to file appeals and counterclaims to challenge property tax assessments. Many of the changes set out below will be observed in the 2022 tax year, for matters coming in the 2023 calendar year.
Limits on filing a complaint with the school board
School boards can only file their own complaints about commercial properties to a limited extent. They can no longer file complaints against residential and agricultural properties.
In their limited ability to file complaints against commercial properties, school boards can only file property tax complaints when: (1) the property was sold in a recent arm’s length transaction within the year prior to the date of the tax lien on which the complaint is filed, and (2) the sale price is at least 10% and $500,000 above the auditor’s value. This $500,000 threshold will increase with inflation.
Before filing a property tax complaint against commercial property, school boards must first pass a resolution authorizing the complaint at a public meeting. The resolution cannot identify more than one parcel except when a parcel has the same owner. School boards must also notify landowners at least seven calendar days before passing a resolution. After a resolution is passed, school boards must check a box on the Property Tax Complaint Form confirming that a resolution authorizing the complaint has been passed and the property owner has been notified. Without a school board resolution, the board of review will have no jurisdiction over the complaint.
Parties can no longer enter into private payment agreements as of July 21, 2022
Also effective July 21, 2022, school boards are prohibited from entering into private payment arrangements with landlords.
Additional procedural changes, limited appeal rights and requirements
To file a counter-complaint, school boards must file it within 30 days of the initial complaint being filed. School boards no longer receive the mandatory notice of original complaints and can only file counter-complaints if the original complaint requested a change of at least $17,500 in assessed value.
A Board of Review will only have jurisdiction over property tax complaints for one year after the complaint is filed. If the review board has not rendered a decision within one year, it must dismiss the original complaint.
Although property owners can always appeal decisions of the Board of Review, school boards can only appeal a decision of the Board of Review to the Board of Tax Appeals if it concerns their own property.
In Ohio, property values are reassessed every six years and updated every three years by county auditors.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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