Changes To Ohio Real Property Tax Valuation Challenges – Property Taxes

Ohio passed H.B. 126, effective on July 21, 2022. This new law
changes the procedures for school boards to file appeals and
counterclaims to challenge property tax valuations. Many of the
changes set forth below will be seen in tax year 2022, for upcoming
matters in calendar year 2023.

School Board Complaint Initiation Limitations

School boards can only initiate their own complaints as to
commercial properties in a limited capacity. They can no longer
initiate complaints to residential and agricultural
properties.

In their limited capacity to initiate 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 in the year before the tax lien date that the complaint
is filed, and (2) the sale price is at least 10 percent and
$500,000 more than the auditor’s value. This $500,000 threshold
will increase with inflation.

Before initiating a property tax complaint against a commercial
property, school boards must first adopt 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 property owners at least seven
calendar days before a resolution is adopted. After a resolution
passes, school boards must check a box on the property tax
complaint form confirming that a resolution authorizing the
complaint was passed and that the owner was given notice. Without a
school board resolution, the Board of Revision will not have
jurisdiction over the complaint.

Parties Can No Longer Enter into Private Payment Agreements
Starting July 21, 2022

Also starting on July 21, 2022, school boards are prohibited
from entering into private payment agreements with property
owners.

Additional Procedural Changes, Limited Appeal Rights, and
Requirements

To file a counter-complaint, school boards must file within 30
days after the original complaint is filed. School boards no longer
receive mandatory notice of original complaints and can only file
counter-complaints if the original complaint sought a change of at
least $17,500 in taxable value.

A Board of Revision will only have jurisdiction over property tax
complaints for one year after the complaint is filed. If the Board
of Revision has not rendered a decision within one year, they must
dismiss the original complaint.

While property owners can still appeal decisions by the Board of
Revision, school boards can only appeal a Board of Revision
decision to the Board of Tax Appeals if it is with respect to their
own property.

In Ohio, property values are reappraised every six years and
updated every three years by county auditors.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.