NEW LEGISLATION AFFECTS PROPERTY TAX COMPLAINT PROCESS

On July 21, 2022, House Bill 126 will become a law that will change Ohio’s real property tax valuation complaint process.  SDG believes the following portions of the new legislation will impact our clients the most:

1. School Districts are prohibited from filing assessment complaints on properties unless they (1) sold in an arm’s-length transaction, and (2) the sale price is greater than 10% and $500,000 above the value set by the County.

2. A school district’s complaint based on a sale (that satisfies the requirements above) can only be filed for a tax year that follows the year in which the property sold. This provision eliminates the concern for a buyer being obligated to pay an increased real estate tax based on a sale price for a duration of time the buyer did not own the property. This portion of the law is applicable to complaints filed for tax year 2022.
3. A school district can no longer file an appeal from a decision of the local board of revision to the Board of Tax Appeals, whether the district had filed an original complaint or counter-complaint. However, the school district still has the right to enter an appearance in an appeal initiated by the property owner.
4. Direct pay agreements between taxpayers and school districts are prohibited. These agreements have been utilized to settle assessment complaints initiated by the school districts outside of the typical complaint process. This prohibition goes into effect July 21, 2022.

Use this link to visit the state webpage about HB126. You can also read the full version of House Bill 126 by clicking here. Importantly, the impact of the legislation on pending and future appeals should be thoroughly discussed and strategies re-visited.

If you have any questions regarding House Bill 126 and how it impacts any pending or future tax appeals, please do not hesitate to contact us.