Ohio HB 126 Prohibits School Districts from Challenging Property Tax Valuations

On December 15, 2021, the Ohio Senate passed its version of House Bill No. 126 (HB 126), which prohibits school districts from challenging valuations. Earlier this year, the Ohio House of Representatives passed HB 126, limiting a school district’s authority to file a complaint to increase a property owner’s real estate tax valuation. The Senate amendment will now return to the House for a concurrence vote when they return to session in early 2022. 

Under current law, school districts in Ohio can challenge property values to increase the assessed value or fight the property owners’ attempts to lower their assessed values. If the Senate amendment to HB 126 is accepted by the House and it is signed into law by the Governor, the bill will:

1. Prohibit school districts from initiating complaints at the county boards of revision unless the school district is the owner of the real estate subject to the complaint.
2. Prohibit a school district from appealing the decision of a board of revision to the Ohio Board of Tax Appeals.
3. Allow school districts to file countercomplaints when property owners are trying to lower their assessment values but require school boards to formally authorize, by resolution, each countercomplaint they file first.
4. Prohibit school districts from entering settlements with property owners that involve payments directly to the school district in lieu of increased valuations.

The local Ryan property tax team will continue to monitor developments in the bill’s potential passage into law. We encourage clients and owners of commercial properties in Ohio to contact us with questions.

TECHNICAL INFORMATION CONTACTS:

Kenneth Hartman
Principal
Ryan
312.980.1128
kenneth.hartman@ryan.com

Wan Kyu Park
Director
Ryan
216.685.9448
wankyu.park@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.