America's Property Tax Advisor

New Rules for Ohio Appeals

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

Counties throughout Ohio are in the process of issuing real estate valuations for property tax purposes. This is the first year that property assessments will be impacted by the passage of House Bill 126. The new law is focused on ensuring that Ohio’s board of revision process is fair, transparent, and accountable to citizens.

 

Value Complaints Initiated by Boards of Education Curtailed

 

Going forward, governmental authority complaints to increase property assessments are limited. 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

 

Future Impacts of HB 126

 

The Ohio Legislative Service Commission projects that the new law’s limits on filing of property tax complaints by persons or political subdivisions other than the owner may lead to a reduction in property tax revenue to some political subdivisions. These provisions may reduce the number of complaints to county Boards of Revision (BORs). The prohibition on appeals of county BOR decisions by subdivisions unless they own the subject property may tend to lower both tax revenues and costs of the Board of Tax Appeals (BTA) and the courts.

 

While the changes proposed by HB 126 take effect for tax year 2022, the full valuation impacts of the changes may take several years to be observed throughout the state.