While the Ohio real estate market has slightly rebounded over the last year, many areas still suffer from deflated property values. As such, the market value for your commercial or residential property may not be accurately reflected in your county’s 2012 valuation of all real estate properties. Property owners should note the ability to challenge and potentially reduce their real estate taxes. However, with a filing deadline of March 31, 2013 or April 1, 2013 in all Ohio counties, property owners must act fast.
In Ohio, real estate taxes are paid in arrears. For example, property owners pay the real estate taxes for the first half of 2012 in January of 2013 and the real estate taxes for the second half of 2012 in June of 2013. Generally, a property owner may only challenge the county’s assessment of the property once every three years. This three year period is commonly referred to as a triennium. Counties will either physically re-appraise or perform a computer update of all property values at the end of each triennium.
For several Ohio counties, such as Cuyahoga, Erie, Lake, Lorain, Lucas, Ottawa, Portage Stark, and Warren, the 2012 tax year served as the first year of the triennium. Property owners in these counties should consider whether it is appropriate to file a Complaint challenging their county’s 2012 valuation of their property. A successful reduction could result in a lower property value until the values are either updated or re-appraised again in 2015.
The procedure for filing a Complaint is essentially the same for residential and commercial properties. The information submitted by the property owner supporting a reduction in value, however, is usually more detailed in commercial property challenges. While an appraisal is not required to file a Complaint, it may be beneficial to support the property owner’s requested reduction in value. After a Complaint is filed, the Board of Education for the city where the property is located will generally have an opportunity to file a counter- complaint. The county’s Board of Revision typically will then set a hearing. At the hearing, the parties will each have an opportunity to present testimony regarding their respective positions. If the property owner successfully receives a reduction in value, the owner will receive a refund for taxes already paid and a lower value moving forward for future tax calculations.
If you have any questions concerning the process for challenging real estate taxes or would like to file a Complaint, please contact a member of our Real Estate Practice Group.