Welcome to Our Inaugural Issue
At Vorys, we are constantly educating ourselves on the changing real property tax environment. It's our job to stay on top of these changes so you don't have to. We created The Evaluator to provide the relevant information that you need in this area, including summaries of statutory and regulatory adjustments. In this quarterly publication, our attorneys will research and write articles that are insightful, interesting and helpful to you. If something is on the horizon that you should know, we'll tell you how it affects you and what you should do to prepare. The information provided is only summary in nature. For a more detailed evaluation of your properties, please contact one of the Vorys attorneys listed on the right.
These stories are focused primarily on developments within Ohio, but we are happy to do a similar analysis of how these issues affect you in other states. If you are interested in a review of the issues for your state, please let us know. We hope you enjoy the read.
On June 11, 2012, Governor Kasich signed into law Am. Sub H.B. 487 (H.B. 487). That legislation includes changes to R.C. 5713.03, the section of the Revised Code that pertains to the valuation of real property in Ohio. The first major change in the statute in over 40 years, the amendment to R.C. 5713.03 clarifies what real property interest is to be valued and "legislatively reverses" recent Ohio Supreme Court precedent that dictated the acceptance of a sale price as value, even where there have been extenuating circumstances impacting the sale price. This change will present both opportunities and challenges to property owners in Ohio. Read more.
The development of oil and gas from Utica shale is one of the most significant opportunities for economic development in Ohio in the recent past. For example, geologists have estimated that Ohio’s portion of Utica shale alone could contain up to 15 trillion cubic feet of natural gas and 5 million barrels of oil-related liquids. Extracting the natural gas and especially the liquids is expected to create many thousands of jobs.
Many of the areas where oil and gas are present are rural in nature, and the roads and other infrastructure currently in place may need to be upgraded to handle the expected traffic needed to drill and produce the oil and gas. Companies that drill for oil and gas often fund these road and infrastructure improvements themselves, resulting in millions of dollars of capital expenditures that could be used for production and the creation of additional jobs. Read more.
On December 21, 2011, Governor Kasich signed Substitute House Bill 225 (the “Bill”). As enacted, the Bill includes changes to Ohio’s New Community Authority (“NCA”) law, permits the county boards of revision to adopt procedures for the electronic filing of real property tax valuation complaints and makes county auditors responsible for the review and approval of property tax exemption applications for certain types of publicly owned property. Read more.
About the Vorys State and Local Tax Group
Our firm has an extensive real and personal property tax practice. On the personal property tax side of our practice, our lawyers routinely assist clients with planning and compliance issues, audit defense, dispute resolution, and litigation, both for general business taxpayers and public utility taxpayers. Our real property tax practice includes the filing of valuation complaints and representation of clients before boards of revision, the Ohio Board of Tax Appeals, and Ohio courts. Our firm also regularly files real property tax exemption applications, and we have broad experience in litigating exemption disputes. We also regularly assist clients in claiming exemptions for exempt facilities (e.g., thermal efficiency and pollution exemptions). Read more.