Maximizing Reassessment Value Reductions for Commercial Real Estate in Ohio

In Ohio, under state law and Department of Taxation rules, commercial real estate in all counties is reappraised every six years and property values are updated in the third year following each sexennial reappraisal. 2023 marks the beginning of a reassessment year statewide.

Ohio commercial real estate owners and investors will be receiving their newly reassessed notices of value in the mail in the coming days. The initial mailings were sent out as of January 1st, but updated notices of value are currently available online for all properties. The time to file an appeal in Ohio is between January 1, 2023, and March 31, 2023.

Appeals are recommended if your property value is overstated by the county, or a recent purchase or sale of the property is significantly lower than the counties listed market value. To initiate an appeal, form DTE 1 must be filed to document your complaint. 

Documentation is necessary to support this claim for a reduction in value. Full copies of a purchase and sale agreement, deed, addendums, documents to support sale price, or an appraisal are examples of evidence that may reduce the valuation. Due to projected immense increases in commercial real estate property values this reassessment cycle, Invoke Tax Partners recommends partnering with a local, experienced property tax consulting firm to structure your appeals in a way that provides optimal value reductions for all Ohio properties in your portfolio.

If you disagree with the value and taxes applied to your property, it is our recommendation to pay the taxes upfront to avoid interest and penalties. The taxes will be refunded if we are successful in obtaining a reduction in value.

New Ohio Law – Sub. H.B. 126

This new Ohio property tax law will dramatically limit the ability of legislative authorities, such as the Board of Education, and other third parties from filing complaints against the valuation of property they do not own or lease unless:

  • The party was sold in an arms-length transaction before and not after the tax lien date for the year for which the complaint is being filed, and
  • The sales price exceeds the auditor’s true value of the property by both: 10% and a threshold of $500,000, which is subject to an annual adjustment based on inflation

Important Notes in Navigating The Ohio Reassessment

As a commercial real estate owner or investor, there are several important things to note as you navigate this reassessment and receive your newly assessed value online or in the mail in the coming weeks:

  • In Ohio, commercial real estate property taxes are assessed at 35% of market value. This is in effect for 2023 reassessment values.
  • We recommend filing an appeal on all newly assessed properties, as this is the time with the highest likelihood that the Department of Taxation will provide significant value reductions, and as a result, property tax reductions. Working with Invoke Tax Partners’ Ohio-based property tax experts will ensure all appeals are filed by the March 31st deadline and are structured in such a way that maximizes value and property tax savings.
  • The lien date is January 1, 2022.
  • Though property owners may not have received their assessments in the mail, newly assessed values are available for all properties online as of January 1, 2023.

Because Ohio operates on a six-year cycle, commercial real estate owners are going to be receiving notices of value from an economy that is recovering from a pandemic and is several cycles behind other states in the region. This, among other factors, are likely contributors to the large value increases commercial properties are seeing this reassessment. Because of this, we strongly recommend partnering with our experienced Ohio team to navigate the appeal cycle, maximize value reductions, and save property tax dollars as a result. If you have Ohio parcels undergoing reassessment in 2023, contact our Ohio office today.