HB 126 changes Ohio’s real property tax valuation challenge system in the following ways:
Original Complaints are Limited for School Districts in Valuation Complaints:
School districts, other local jurisdictions, and third parties (neighbors) are authorized to challenge a county auditor’s valuation of any real property to the county board of revision, but only if:
1. The district or jurisdiction provides certified notice to the property owner and adopts a resolution authorizing the filing of the valuation complaint at a public meeting; and
2. The property was sold in an arm’s length transaction before the tax lien date for the tax year for which the complaint is to be filed (ex. a complaint for a sale that occurs during
2022 cannot be filed until tax year 2023); and
3. The sale price exceeds the true value of the property appearing on the tax list for that tax year by ten percent, and a minimum threshold of $500,000 (which threshold is indexed);
and
4. The BOR has one year to render a decision for an original complaint filed by a legislative authority or a third party. Otherwise, the BOR loses jurisdiction, and the case must be
dismissed.
Counter-Complaints by School Boards:
School districts and other local jurisdictions are generally permitted to file counter complaints to defend the county auditor’s valuation. However:
1. There is no longer notice of original complaints sent to the school district. (NOTE: this may make a complaint that is missing a “value sought” valid. The key reason it is currently
defective is that the auditor needs a value sought to know when to notify the school).
2. The board of education must file any counter-complaint within thirty days after the original complaint is filed.
Elimination of Private Pay Agreements:
Private pay agreements to resolve pending or future valuation disputes between school districts or other jurisdictions and taxpayers are prohibited from being entered into as of the effective date of the bill.
A “private payment agreement” is defined as any type of agreement in which a property owner, a tenant authorized to file a valuation complaint, or any person acting on behalf of a property owner, or such a tenant agrees to make one or more payments to a subdivision in exchange for the legislative authority of that subdivision doing any of the following:
> Refraining from filing a complaint or counter-complaint;
> Dismissing a complaint or counter-complaint filed by the legislative authority; or
> Resolving a claim by settlement agreement.
A “private payment agreement” does not include a stipulated value, provided that the agreement does not require any payments described above.
Appeals of Board of Revisions Decisions:
A subdivision can no longer file an appeal to the BTA, whether the subdivision had been an original complainant or counter-complainant. If a property owner appeals, however, all parties at the BOR remain, such as a school board.