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Reducing your property tax bill Property Tax Valuation Appeals in Ohio Sponsored by Finney Law Firm, LLC.

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Presentation on theme: "Reducing your property tax bill Property Tax Valuation Appeals in Ohio Sponsored by Finney Law Firm, LLC."— Presentation transcript:

1 Reducing your property tax bill Property Tax Valuation Appeals in Ohio Sponsored by Finney Law Firm, LLC

2 Reducing your property tax bill Presenter: Christopher P. Finney, Esq.

3 Reducing your property tax bill Finney Law Firm, LLC Real Estate Corporate General Litigation Business disputes Personal injury and medical malpractice Constitutional law Labor and employment law Wills, trusts, estate planning and estate administration Real estate tax valuation appeals Bankruptcy DUI

4 Reducing your property tax bill 1.Benefit: First $25,000 of home’s value is exempt from taxation (worth about $700 per year in tax reduction) 2.Who is eligible: a)Single family residence/Owner occupied b)Any one owner who is either over 65 years old or permanently disabled b)Property held in trust is an issue 3.When is application due? June 1, 2014 Quick Diversion on Homestead Exemption

5 Reducing your property tax bill Why are my property taxes so high…

6 Reducing your property tax bill SHOULD I APPEAL? If Assessed Value (from tax bill) = Fair Market Value (what would your property sell for) STOP - DO NOT APPEAL

7 Reducing your property tax bill I. Your House As Seen By: I. Your House As Seen By: Yourself… Your buyer…

8 Reducing your property tax bill Your lender… Your appraiser…

9 Reducing your property tax bill And Your County’s Tax Assessor…

10 Reducing your property tax bill A. Property Tax History in Hamilton County

11 Reducing your property tax bill B. History & Projection of Taxes

12 Reducing your property tax bill Hamilton County Property Taxes vs. Surrounding Counties Butler County: Butler County: Hamilton Local School District Warren County: Warren County: Mason City School District Hamilton County: Hamilton County:Cincinnati Schools Clermont County: Clermont County: Batavia Local School District

13 Reducing your property tax bill C. Comparison to Surrounding Counties * 2011 tax year effective rate residential rate

14 Reducing your property tax bill D. Major Ohio Counties * 2012 tax year effective rate residential rate

15 Reducing your property tax bill How are my taxes calculated? Components of Hamilton County property tax bill II. Components of Hamilton County property tax bill

16 Reducing your property tax bill Broad calculation of tax bill VALUATION x RATE – ROLLBACKS TAX

17 Reducing your property tax bill The Valuation Component Valuation is the one variable you can influence

18 Reducing your property tax bill What valuation reduction means 1.Valuation reduction results in proportionate reduction in taxes 2.A reduction of $10,000 in value will result in ~$300 of ANNUAL tax savings

19 Reducing your property tax bill 3.Savings last AT LEAST through the end of the triennial a.Hamilton, Clermont and Butler Counties this is the second year in the triennial b.Warren County—2012 is first year of the triennial so savings in 2012 will last for at least three year

20 Reducing your property tax bill 3630 Zumstein Avenue, Cincinnati, Ohio First Half Calculations Tax Distributions 1/1/2012 Half Year Real Taxes + Delq Real Estate (if any)

21 Reducing your property tax bill 3630 Zumstein Avenue, Cincinnati, Ohio

22 Tax Calculations for 3630 Zumstein Avenue Reducing your property tax bill

23 Tax Distributions for 3630 Zumstein Avenue Half Year Real Taxes + Delq. Real Estate (if any)

24 Reducing your property tax bill III. Complaint form and filing procedures A.Critically important dates B. The 35% issue – they do it to confuse you C.Review of Complaint form and its completion D.Presentation of case at Board of Revision E. Risks to complainant F.Procedural issues G.Appeal procedures

25 Reducing your property tax bill 1. Tax lien date: 1/1/2013 i.This is the effective date of the valuation challenged in 2014 ii.All of your evidence MUST BE targeted towards proving your property’s value AS OF THAT DATE (not when you get tax bill or have your hearing) a.Lots of cases this year were dismissed because this key issue was missed 2. Filing deadline: 4/1/2014 A. Critically Important Dates

26 Reducing your property tax bill “True Value” “Full Value”What your house is worth “Market Value” “Fair Market Value” “Assessed Value”35% of Fair Market Value “Taxable Value” Note Again 1/1/2013 Tax Lien Date B. They Do It To Confuse You

27 Reducing your property tax bill

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29 Residential 1. Actual sales or construction data of the subject property 2. Comparable sales are the best evidence 3. Listings are of little value 4. Auditor’s valuations of others’ properties of NO use D. Presentation at the Board of Revision

30 Reducing your property tax bill

31 5.Comparable sales (this means SALES, not listings) i.1/1/2013 tax lien date ii.Timing: Best sales are 6 months on either side of that date iii.Location: Close in location, in the neighborhood or neighborhoods close by iv.Size of house and lot: Similar house and lot size v.Age: Similar age of construction vi.Bedrooms vii.Bathrooms viii.Total square footage ix.Number of garages x.Amenities like finished basement and pool xi.Interior finish and recent renovation Valuation Information to Present (cont.)

32 Reducing your property tax bill A.“My property did not go up 25% in value in one year” B.Auditor’s value of neighbors property is irrelevant C.The only issue is: what the property is worth as of the “tax lien date” (January 1 st, 2013) Evidence Presented at the Hearing

33 Reducing your property tax bill D. Value is defined in ORC § , which requires County Auditor to determine the “true value of each parcel of real property” E. If Tract is part of on-going arms length sale, it is required to accept this as the “true value” ORC Unless loss due to casualty; or 2.Improvement added Evidence Presented at the Hearing (cont.)

34 Reducing your property tax bill F. Three valuation techniques: 1.Comparable Sales Approach 2.Income Approach 3.Replacement Value Approach Evidence Presented at the Hearing (cont.)

35 Reducing your property tax bill G. Who May Testify: 1.Expert Witness (realtor or appraiser) may present valuation issues 2.Property owner is always qualified to render opinion as to the value of his or her property 3. No one else may present evidence Evidence Presented at the Hearing (cont.)

36 Reducing your property tax bill H. Property Owner has the burden of proof 1.Neither Auditor nor school board have a duty to introduce any evidence at the hearing, except to rebut what property owner accepts 2. The Board of Revision does not even have the duty to accept evidence tendered by the property owner Evidence Presented at the Hearing (cont.)

37 Reducing your property tax bill A.Auditor can go back five years to make corrections to errors, or until conveyance. (Whichever is shorter) -Omitted tax -ORC § B.Board of Revision can increase valuation in its proceedings *Note frequent school board countercomplaints. ( Expect same on commercial properties) E. Risk to Complainant

38 Reducing your property tax bill A.Board of Revision 1.Composition a.Representatives of County Auditor, County Commissioners and County Treasurer b.Note conflict of Auditor as original assessor, “prosecutor” and judge c.In the outlying counties, frequently these elected officials will serve in person d.Some claim that political pressures of school boards or “inertia” of protecting established values F. Procedural Issues

39 Reducing your property tax bill 2. Jurisdiction a. Handling appeals of property valuations within their jurisdiction. Procedural Issues (cont.)

40 Reducing your property tax bill 3. Procedures a. Values of the Auditor for a tax year are made in December of that tax year, after the tax levies from that year are certified b. Filing deadline of March 31 for preceding tax year (December valuation) c. Only one appeal during a triennial, unless there has been a material change in the property during that time such as improvements, casualty or loss of a major tenant Procedural Issues (cont.)

41 Reducing your property tax bill A. Accelerates filing to before tax due date B.If prevail, no interest and penalties C.If lose, interest applies and if bill increases from about originally billed, penalty will apply Note: Danger of tender pay on multiple parcels. A win can still result in penalties and interest Tender Pay at Filing

42 Reducing your property tax bill A.Forum: Either to Common Pleas Court where property is located or Board of Tax Appeals B.Trial de novo at Board of Tax Appeals- new evidence allowed C.Filed appeal to Board of Revision and appellate jurisdiction, 30 days after mailing of BOR decisions D.Appeal from either of those to the Ohio Supreme Court G. Appeal of Board of Revision Decision

43 Reducing your property tax bill IV. Conclusion A. Thank you for coming B. Go save some money C. Let us know if you want us to assist you in your filing


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