Early this spring, real property owners in Ohio have the chance to clean up their real property tax liabilities and enjoy substantial savings – and new legislative changes have made it easier to do so. Understanding the tools at your disposal and the timing of using such tools may determine if you should challenge the 2023 tax value attributed to your real estate this year or wait until next year. This decision must be made by March 31, 2024. While some local boards of revision will accept complaints filed by April 1, 2024 (given that March 31, 2024 falls on a Sunday), it is advisable to submit your complaint before March 31, 2024.

In Ohio, each county auditor is charged with adjusting the assessed value of each parcel in that county every three years. Two different adjustments occur depending on whether it is a “Reappraisal Year” or an “Update Year.” Reappraisal Years occur every six years, at which point each parcel is physically reviewed and evaluated based on market conditions. Update Years occur three years after each Reappraisal Year and involve revaluing real estate without physical inspection. This is often done using computer-assisted modeling of value changes within neighborhoods and types of real estate within the county. Property taxes are always one year behind (in arrears); consequently, the tax bills you receive in 2024 will reflect the value of your property on January 1, 2023. If you already have paid your tax bill, you can still file a tax complaint to challenge the 2023 value. The relevant date for determining property values for tax purposes is January 1 of any given year (“Tax Lien Date”). So, if you are seeking to challenge the value this year for tax year 2023, the local board of revision will be looking at January 1, 2023 as the relevant Tax Lien Date.

Ohio counties are on differing Reappraisal Year and Update Year schedules. Tax year 2023 can be challenged this year by filing a complaint with your local county board of revision by April 1, 2024. Tax year 2023 is a Reappraisal Year for the following counties:

• Auglaize
• Clinton
• Darke
• Defiance
• Delaware
• Franklin
• Gallia
• Geauga
• Hamilton
• Hardin
• Harrison
• Henry
• Jackson
• Licking
• Mahoning
• Mercer
• Morrow
• Perry
• Pickaway
• Pike
• Preble
• Putnam
• Richland
• Seneca
• Shelby
• Trumbull
• Van Wert
• Wood

Tax year 2023 is an Update Year for the following counties:

• Ashland
• Ashtabula
• Athens
• Butler
• Clermont
• Fulton
• Greene
• Madison
• Montgomery
• Knox
• Noble
• Summit
• Wayne

If your county is not listed above, then your property will be reappraised or updated next year or the year after. It is important to take into careful consideration whether it makes sense to file a valuation this year or wait until next year, because – generally – you are able to file a real property tax valuation complaint only once every three-year period commencing with either a Reappraisal Year or an Update Year (each three-year period is referred to as a “Triennium”), subject to certain exceptions.

Additionally, recent legislative changes implemented in 2022 have made the tax valuation appeal process more favorable to property owners. Previously, school districts could be active participants in both filing valuation complaints to increase property values and filing countercomplaints to keep a high valuation when an owner sought to lower it. Now, school districts may only file complaints if the subject property is the subject of a recent arm’s length transaction before the tax year at issue in the complaint, and the sales price of such transaction is both 10% greater and at least $535,000 more than the auditor’s assessed valuation. Additionally, school districts may only file countercomplaints in a board of revision action filed by a property owner if that property owner is seeking a reduction of value of $50,000 or more. Additionally, even if a school district can file a complaint or countercomplaint to increase the assessed value of property, it does not have authority to file an appeal of a local board of revision decision (unlike property owners). There are also other legislative changes limiting the amount of time a school district has to file a countercomplaint and pursue a complaint and/or countercomplaint.

There have been significant changes in the real estate market over the last several years, and all property owners should review their real property tax bills to make sure they are not paying on a value that is inconsistent with the fair market value of their property. But remember, any decisions must be made before March 31, 2024 filing deadline.

This Client Alert has been prepared by Tucker Ellis LLP for the use of our clients. Although prepared by professionals, it should not be used as a substitute for legal counseling in specific situations. Readers should not act upon the information contained herein without professional guidance.