The current real estate market is suffering and in many cases, property values have fallen across the State of Ohio. However, not all property values have fallen and many property owners are still paying taxes based on overvalued properties. Although times are tough in the real estate industry, the one bright spot for property owners is the possibility of reducing their real estate taxes.
In Ohio, real estate taxes are paid in arrears. For example, property owners pay the real estate taxes for the first half of 2009 in January 2010 and the real estate taxes for the second half of 2009 in June 2010. Keep in mind that 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.
There are several counties across the State of Ohio where the 2009 tax year will serve as the first year of the triennium (see chart below). Therefore, property owners in these counties should consider whether it’s appropriate to file a Complaint challenging the County’s 2009 value because a successful reduction could result in a lower property value for the next three years, until the property values are either updated or re-appraised again in 2012.
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. An appraisal is not required to file a Complaint, but it may be beneficial to the property owner’s argument requesting a reduction.
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 Board of Revisions will then either set a hearing or make a unilateral ruling, depending on the amount of the reduction in question. At the hearing, the parties will each have an opportunity to present testimony regarding their respective positions. If an appraisal was involved, the appraiser might provide expert testimony where appropriate. 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.
Please contact Reminger Co., L.P.A. if you have any questions related to challenging your 2009 property values.