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Fall 2012
 

The Evaluator - Fall 2012

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.

Recent Significant Legislative Changes Impacting Real Property Taxation

This summer the Ohio legislature passed significant changes to real property taxation that will impact all property owners.  These changes include clarifying how a property is to be valued for real property tax purposes, changing how a recent sale should impact the value of property for taxation purposes,  as well as other changes that will impact the filing of complaints at local Boards of Revision. Read more.   

Ohio Supreme Court Decides Several Real Property Tax Cases

During the past quarter, the Ohio Supreme Court issued several decisions regarding real property taxation.  The more significant decisions are summarized below.  For a more detailed analysis, please click on the summary.

  • The party challenging the valuation has the burden of establishing that the valuation was incorrect.  By failing to present sufficient evidence to rebut the county's cost-based valuation, the property owner was not able to shift the burden to the county to explain how it valued the property. Read summary.

  • Continuing complaint provisions of R.C. 5715.19(D) apply to the Board of Revision. Once the BTA issues a final, appealable order and the 30-day appeal period expires, the BTA has no jurisdiction to carry-forward a stipulated value to later years. Read summary.

  • A recent, arm's-length sale price is presumptive true value for taxation purposes.  The proponent of using value other than sale price has burden of proving that sale price is not reflective of true value.  Court finds that BTA failed to consider evidence and remands case.  BTA re-affirms earlier decision. Read summary.

  • A property owner was unable to establish that notice from the Board of Revision of the hearing was improper, and, as a result, was precluded from providing evidence of value at the BTA hearing. Read summary.

Ohio Board of Tax Appeals and Appellate Court Decisions

  • Testimony of an owner who is also an appraiser and real estate broker is not sufficient evidence to establish reduction to real estate. Read summary.

  • Sale of property by seller who acquired the property through foreclosure considered valid sale for valuation purposes. Read summary.

  • Second filing in same triennial not barred where the auditor changes value within the period. Read summary.

  • A complainant must list the correct owner name on line one of the complaint to invoke the jurisdiction of the Board of Revision and the Ohio Board of Tax Appeals. Read summary.

  • Applicant who did not state her position as trustee of the trust did not have standing to file a real property tax exemption; neither did vendee under a land contract. Read summary.

  • Property owner's appeal results in reinstatement of auditor's original value because of what the BTA deemed was insufficient evidence to support the BOR value. Read summary.

  • BTA relies upon sale-leaseback to value property even with competing arm's length sale on the same day. Read summary.

  • Without expert testimony BTA refused to apply Woda Ivy Glen to property subject to restrictive covenants imposed by OHFA. Read summary.

  • A short sale where the property is exposed to the market, the sale price is negotiated and the sale is arm's-length is the best evidence of true value. Read summary.

  • Non-lawyer filers of complaints rely upon Ohio Revised Code to their own peril. Read summary.

  • Testimony by highly qualified owner not sufficient to meet burden of proof. Read summary.

  • Third District Court of Appeals refused to extend the exception the Ohio Supreme Court carved-out in Dayton Supply & Tool to salaried employees. Read summary.

  • Property's subsequent inclusion in LIHTC program cited as reason to reject sale price. Read summary

  • Eleventh District Court of Appeals finds that a wetland mitigation bank satisfies the definition of "land devoted exclusively to agricultural use." Read summary.

  • Taxpayer could not rely upon sale price of land where, subsequent to the purchase but before tax lien date, the taxpayer added substantial improvements to the land. Read summary.

  • BTA rejects property owner's assertion that its high public profile resulted in higher than market purchase price of real property. Read summary.

  • The sale of a fraction interest in real property is not reflective of the value of the entire fee simple interest. Read summary.

  • Sales by Veteran's Affairs not arm's-length. Read summary.

About Us

Our lawyers have significant experience in all aspects of state and local taxation.  As a firm founded in Ohio, we are especially active in Ohio state local tax matters and have more Ohio-based state and local tax professionals that any other law firm in the state.  Please click on the following links for more information on our state and local tax practice and specifically our real property tax practice.  


     

    Contacts

    Nicholas M.J. Ray
    614.464.5640
    nmray@vorys.com

    Scott J. Ziance
    614.464.8287
    sjziance@vorys.com

    Steven L. Smiseck
    614.464.5438
    slsmiseck@vorys.com

    Hilary J. Houston
    614.464.4968
    hjhouston@vorys.com

    Lauren M. Johnson
    614.464.5418
    lmjohnson@vorys.com

    Anthony L. Ehler
    614.464.8282
    tlehler@vorys.com


     

    This alert is for general information purposes and should not be regarded as legal advice. As always, please let us know if you want more information or have questions about how these developments apply to your situation.

    IRS CIRCULAR 230 DISCLOSURE: In order to ensure compliance with requirements imposed by the U.S. Internal Revenue Service, we inform you that any federal tax information contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of (i) avoiding penalties that may be imposed under the U.S. Internal Revenue Code; or (ii) promoting, marketing, or recommending to another person, any transaction or other matter addressed herein.