The March 31st deadline to file property tax challenges with Ohio Boards of Revision (BOR) is rapidly approaching. In recent years, counties have imposed historically large property value increases. Now, many counties have set new tax values for the next three years. Winning your challenge generally ensures that any reduction will remain in place for the entire three-year period, resulting in year-over-year tax savings.
Ohio Counties’ Appraisal Cycles
Ohio counties are on a six-year appraisal cycle. Each County Auditor reappraises every property countywide once every six years and conducts a market-based value update at the three-year midpoint.
Massive Property Value Increases
In the first major reappraisal since the pandemic, most counties installed significant increases in property values. Of the major counties that were reappraised, Cuyahoga County values jumped an average of 32%, Lorain County 31%, Portage County 33%, and Stark County 34%. The increase in Lucas County was an average of 30% with many property owners finding errors in their property values leading to gross overvaluations.
Commercial Office Space
Commercial office space continues to be the worst performing sector. It is on pace for another difficult year with sluggish rents and low demand. Increases to property tax values for office space are likely unwarranted and should be closely examined.
Locking in a Reduction at the Board of Revision
Thanks to House Bill 126, passed in 2022, any reduction you receive at the BOR should not be challenged by the school district. The new law generally takes away school districts’ rights to appeal a BOR decision to the Ohio Board of Tax Appeals (BTA). Generally, this means the school district’s only chance to sustain a higher value is at the BOR. This provides taxpayers with an opportunity to present strong evidence of a lower value to the BOR, achieve a reduction, and conclude the complaint process.
In contrast, taxpayers still have the right to appeal an unfavorable decision to the BTA in Columbus or at the local common pleas court.