The Ohio House of Representatives and the Senate adopted a bill that now heads to the Governor for signature. Under this legislation, starting with the tax year 2022, ability of the school district to initiate those valuation challenges to increase a property owner’s real estate tax valuation will be limited. A few key highlights of the bill are summarized below:
- School districts will only be able to file an increase only 1) if the property has sold during the previous tax year and 2) if the price is greater than the value listed on the auditor’s books by both 10% and $500,000. The $500,000 figure is also indexed to inflation.
- School districts must pass a resolution authorizing any increase and provide the property owner with notice of the pending resolution.
- School districts are prohibited from appealing a local Board of Revision’s decision to the Ohio Board of Tax Appeals (BTA).
- Immediately after the law becomes effective (90 days after the Governor signs), parties will be prohibited from agreeing to settlements that involve “private pay” directly to the school district in lieu of increased valuations. However, existing agreements will be grandfathered.
The local tax experts at Ryan continue to monitor this change and are available if you have any questions.
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