America's Property Tax Advisor

Ohio Seeks to Reform Third-Party Appeals

BY ROBERT BOXLEY, MBA, CMI, CHICAGO, APRIL 2022

For decades, school districts in Ohio have been able to challenge property assessments believed to be undervalued for tax purposes. It’s a way to obtain more tax revenue for public education. Commercial properties are most often challenged by school districts since they generate more tax revenue than residential properties.

 

State lawmakers approved HB 126 on April 6. Governor Mike DeWine is expected to approve the legislation in the weeks ahead.

 

HB 126 limits how school districts can challenge property values at local boards of revision. Specifically:

 

  • The property must have sold no more than a year before the tax year for which the complaint is filed. This ends the practice of retroactive tax increases.

  • The sale price must be at 10% and $500,000 more than the appraiser’s value. The $500,000 threshold is indexed to increase each year with inflation.

  • Notice must be sent to the property owner before the complaint is filed.

  • Private pay agreements between the board of education and a property owner are no longer allowed

  • Third parties can no longer appeal a Board of Revision decision to the Board of Tax Appeal

 

HB 126 specifies that these changes will apply to complaints or counter-complaints filed for tax year 2022 and thereafter.