Ohio House of Representatives and Senate Reach a Compromise on House Bill 126

The Ohio House of Representatives and the Senate adopted a bill that now heads to the Governor for signature. Under this legislation, starting with the tax year 2022, ability of the school district to initiate those valuation challenges to increase a property owner’s real estate tax valuation will be limited. A few key highlights of the bill are summarized below:

• School districts will only be able to file an increase only 1) if the property has sold during the previous tax year and 2) if the price is greater than the value listed on the auditor’s books by both 10% and $500,000. The $500,000 figure is also indexed to inflation.
• School districts must pass a resolution authorizing any increase and provide the property owner with notice of the pending resolution.
• School districts are prohibited from appealing a local Board of Revision’s decision to the Ohio Board of Tax Appeals (BTA).
• Immediately after the law becomes effective (90 days after the Governor signs), parties will be prohibited from agreeing to settlements that involve “private pay” directly to the school district in lieu of increased valuations. However, existing agreements will be grandfathered.

The local tax experts at Ryan continue to monitor this change and are available if you have any questions.

TECHNICAL INFORMATION CONTACTS:

Ken Hartman
Principal
Ryan
312.980.1128
ken.hartman@ryan.com

Wan Kyu Park
Director
Ryan
216.685.9448
wankyu.park@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.