In Ohio, the Board of Tax Appeals provides an alternative method of appealing property valuations, allowing parties to appeal directly to the Board instead of filing an appeal in court. Filing with the Board of Tax Appeals has many advantages over going to court, including the ability to submit additional evidence and no filing fee. However, the Board of Tax Appeals’ procedures have long been a source of frustration for many property owners. Because of the case backlog, the appeal process is often both lengthy and costly. A new law, Sub. H.B. 153, has changed some of these procedures to allow for a fast-track appeal process for small claims. This new process will allow taxpayers to appeal valuations more quickly, inexpensively, and less formally.
Effective October 11, 2013, the small claims docket created at the BTA will permit certain appeals of property valuations to be heard on a more expedited basis. This new procedure applies only to three specific categories of appeals: (1) those from county boards of revision involving real property; (2) those from municipal boards of appeal with an amount in dispute of less than $10,000 (exclusive of interest and penalties); and (3) those from final determinations made by the Tax Commissioner, the Director of Development Services, or the Director of Jobs and Family Services if the amount in controversy is less than $10,000. No business property valuation appeals will be permitted in the small claims division. Rather, this small claims procedure can only be utilized for residential or farm property. To ensure that the small claims process keeps pace with rising property costs, the Board of Tax Appeals has the authority to increase the jurisdictional amount beyond $10,000 in the future.
The small claims docket is a key development for ensuring that property valuation appeals are heard in a timely fashion. However, property owners should note the finality of decisions by the Board of Tax Appeals in these small claims appeals. Specifically, a decision or order for an appeal assigned to the small claims division shall be conclusive as to all parties and may not be appealed.
If you have any questions concerning the process of challenging real estate taxes of have any other questions with respect to real estate in general, please contact a member of our Real Estate Practice Group.