Real Estate Valuation Complaints – Updated Filing Threshold

January marks the beginning of the tax year 2023 valuation complaint filing period. With the passage of House Bill 126 in July 2022, boards of education are severely limited in the valuation complaints that they can initiate.  To qualify as an eligible sale, the sale has to have occurred before, but not after, the tax lien date for the tax year for which the complaint is to be filed.  Additionally, sale values must overcome two-pronged value threshold: the sale price has to be over at least $535,000 (increased for inflation from $500,000) and the sale price has to exceed 10% of the County's value.  Prior to filing an increase complaint (“original complaint”), a board of education has to notify the taxpayer and is required to authorize the filing of any complaints through a proper resolution. 

Additionally, while boards of education can defend valuation complaints filed by property owners, H.B. 126 changed the time frame within which to do so.  Now, boards of education must file a countercomplaint within 30 days from the date the property owner files the initial complaint.  This differs significantly from prior law, where school districts previously had 30 days from the date they received notification of the complaint.  This major change requires districts to work closely with the county to obtain and review complaints as they are filed.  It is extremely important that districts have a plan in place to obtain valuation decrease complaints so that they may timely file counter-complaints if they intend to challenge requested reductions in property values.

The deadline to file original complaints is March 31, 2024.

Legislative Update on H.B. 187

House Bill 187 would impose further restrictions on school district involvement in property valuation matters.  

First, the bill tightens qualifying sale requirements by specifying that a conveyance fee statement for a sale must have been filed with the county auditor within the two years preceding the year for which the original complaint is filed. Current law requires that a sale occur prior to the tax lien date at issue, but does not expressly include any limit on when that sale occurred.  Continuing law allows school districts to file a counter-complaint if a property tax complaint alleges a change in value of at least $50,000 in fair market value ($17,500 in taxable value).  Further, the bill provides that a school district may only file such a counter-complaint if the original complaint was filed by the owner or lessee of the property – essentially prohibiting school districts from filing counter-complaints when the original complaint is filed by another political subdivision or by a third-party complainant. 

The bill would also modify Revised Code Section 2506.01 to expressly prohibit administrative appeals of decisions of county boards of revision to county courts of common pleas.  H.B. 126 previously implemented provisions that prohibit political subdivisions from appealing board of revision decisions on property they do not own to the Board of Tax Appeals (BTA).

The bill was passed by the Senate and the House may consider H.B. 187 later this month.  PKM attorneys will continue to monitor this legislation and provide updates.