Upcoming Changes in Ohio Property Tax Exemption Laws Bricker & Eckler srl

Beginning in 2022, Ohio will require owners of exempt real estate to notify the county auditor if the property “ceases to be eligible for the exemption.”

House Bill 110 – the most recent budget bill – included a provision that will require real estate owners who own property exempt from property taxes to notify the county auditor if their exempt property is no longer eligible for the exemption. Hospitals, churches and other exempt property based on use will be directly affected by the new law.

This requirement, which comes into effect for the 2022 tax year and can be found in Section 5713.083 of the revised Ohio Code, will impose a monetary penalty on any homeowner who fails to notify the auditor that the property has ceased. to benefit from an exemption before December 31 of the year during which the property is no longer eligible for the exemption. The penalty will be “equal to the total amount by which taxes were reduced for any of the previous five tax years” as the auditor determines that the property was not entitled to the exemption. This penalty will only apply to years in which the title to the property was held by the current owner.

How the 88 Ohio County auditors plan to monitor and enforce this new provision remains unclear, and because it is the Ohio Tax Commissioner who generally determines the property is eligible for the exemption. in the first place, it is not clear what test owners must apply in trying to comply with this change.

The tax commissioner will promulgate a form that owners can use to try to comply with this law. Landowners should plan to prepare an inventory of their exempt properties before the notification requirement goes into effect in 2022.

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