Apr 21, 2022 – UPDATE: HB 126 was officially signed by Governor Mike DeWine. To learn more about the effects of HB 126 on the Ohio property tax landscape click here.
By: Walt Rapacz – Director of Property Tax
The property tax landscape on Ohio will be changing once Gov. Mike DeWine signs House Bill 126 into law. Historically, School Board Attorneys would chase property sales in Ohio creating traps for the unwary buyer and necessitating modeling and educated guessing for the sophisticated investor.
In Ohio, buyers often were trapped by caselaw surrounding arm’s length sales and often not provided valuation information by Listing Brokers. If they did receive valuation information, it was often incomplete and/or incorrect. As a result, buyers were often left with an underperforming property or lost it to foreclosure. The sophisticated investor often walked away from purchasing properties due to the increased valuation and resulting property tax burden. Other times, an investor made the acquisition with the anticipation of the likelihood that the property tax liability could be reduced by negotiating with School Board Attorneys. In many instances, the buyer would be in a take it or leave it situation and often accepted the fact that an annual check was required to keep the property taxes down.
Because appeals are filed a year in arrears, House Bill 126 will further erode the value of investment properties. The School Board Attorneys will still file increased complaints on properties that are transferred for a valuation increase in excess of $500,000, yet this bill prevents a buyer from mitigating the full increase, even for a short time. The valuation increase is retroactively applied to the January 1st lien date, which in some instances could have occurred 15 months prior to the sale date. This House Bill is only a half measure and will continue to allow School Board Attorneys to suppress large amounts of development money that would otherwise be generated prior to this bill.
When it comes to navigating the Ohio property tax landscape, Invoke Tax Partners has the expertise and experience needed to achieve maximum property tax savings. Contact our Ohio property tax experts today to ensure your properties are valued and taxed fairly this tax year.
