property tax appeals 2010

Property Tax Valuation Appeals in Ohio

Sponsored by the law firm of Finney, Stagnaro, Saba and Patterson Co., L.P.A.

Reducing Your Property Tax Bill


Presenters:

• 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

Finney, Stagnaro, Saba & Patterson


http://www.fssp-law.com

What The Packet Contains


Right Pocket:•Finney, Stagnaro, Saba & Patterson Co., L.P.A. Brochure•Course Outline•Real Estate Tax Analysts FlyerRight Pocket:•Tax Graphs•Homestead exemption application•Tax chart by jurisdiction •Blank and completed Board of Revision Complaint forms•Comparable Sales Presentation

1. Benefit: First $25,000 of home’s value is exempt from taxation (worth about $500 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

c) Property held in trust is an issue

3. When is application due? June 1, 2011

Quick Diversion on Homestead Exemption


…and, what can I do about it?

Why are my property taxes so high…


Year

Residential Effective Rate

Mills

A. Property Tax History in Hamilton County



B. History & Projection of taxes (City of Cincinnati, Cincinnati Public Schools)


C. Comparison to Surrounding Counties



D. Major Ohio Counties


II. COMPONENTS OF HAMILTON COUNTY PROPERTY TAX BILL

How are my taxes calculated?


A. Broad calculation of tax bill


VALUATION x RATE

– ROLLBACKS=

TAX

Valuation isthe one variable

you can influence

B. The Valuation Component



C. What valuation reduction means

1.Valuation reduction results in proportionate reduction in taxes

2.A reduction of $10,000 in value will result in $200 of ANNUAL tax savings


What valuation reduction means (cont.)

3. Savings last AT LEAST through the end of the triennial

a. Hamilton, Clermont and Butler Counties this is the last year in the triennial

b. Warren County—2011 is second year of new triennial so savings in 2011 will last for at least two years


The Assessment Challenge

Hamilton County has 1,300 different appraisal districts

Hamilton County has 350,000 separate Auditor parcels to be assessed

D. Rate Consists of Various Components


1. Review of prototype Hamilton County tax bill 3630 Zumstein Ave, owned by Mark Miller

2. Overview Chart of tax breakout


First Half Calculations Tax Distributions 1/5/2010

Half Year Real Taxes + Delq Real Estate (if any)

3630 Zumstein Avenue, Cincinnati, Ohio


Property Value and Rate

Reduction Factor

0.332776

3630 Zumstein Avenue, Cincinnati, Ohio


Calculations for 3630 Zumstein Avenue



Percent

65%

15%

5%

4%

3%

2%

2%

2%

1%

1%

Tax Distributions for 3630 Zumstein Avenue


Tax Distributions for 3630 Zumstein Avenue


III. Complaint form and filing procedures

A. Critically important datesB. The 35% issue – they do it to confuse youC. Review of Complaint form and its

completionD. Presentation of case at Board of RevisionE. Risks to complainantF. Procedural issuesG. Appeal procedures



1. Tax lien date: 1/1/2010i. This is the effective date of the valuation challenged in

2011

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: 3/31/2011

A. Critically Important Dates


“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 1/1/2010 Tax Lien Date

B. They Do It To Confuse You



2010



1/20/2010

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



5. Comparable sales (this means SALES, not listings)i. 1/1/2010 tax lien dateii. Timing: Best sales are 6 months on either side of that dateiii. Location: Close in location, in the neighborhood or

neighborhoods close byiv. Size of house and lot: Similar house and lot sizev. Age: Similar age of constructionvi. Bedroomsvii. Bathroomsviii. Total square footageix. Number of garagesx. Amenities like finished basement and poolxi. Interior finish and recent renovation

Valuation Information to Present (cont.)


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 1st,

2010)

Evidence Presented at the Hearing


D. Value is defined in ORC §5713.03, 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 5713.03

1. Unless loss due to casualty; or

2. Improvement added

Evidence Presented at the Hearing (cont.)



F. Three valuation techniques:

1. Comparable Sales Approach

2. Income Approach

3. Replacement Value Approach



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



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




A. Auditor can go back five years to make corrections to errors, or until conveyance. (Whichever is shorter)

-Omitted tax-ORC §5713.20

B. Board of Revision can increase valuation in its proceedings

*Note frequent school board countercomplaints.

( Expect same on commercial properties)

E. Risk to Complainant


A. Board of Revision1. 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


2. Jurisdiction a. Handling appeals of property valuations within their jurisdiction.

Procedural Issues (cont.)


3. Proceduresa. 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.)



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

Website: www.fssp-law.com

Tender Pay at Filing

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


A. CAUV. “Current Agricultural Use Valuation” ORC §5713.31Note: Partial recoupment on sale

B. Forestry. ORC §5713.231. By completing an application

with Ohio Department of Natural Resources

2. If devoted exclusively to forestry or timber owner, tax rate

is ½ of typical rate

3. Is accompanied by physical inspection by ODNR

IV. Other Statutory Savings


C. Homestead Exemption1. Reduction for senior (65 or older) or disabled citizen, regardless of income, on dwelling that is individual’s principal place of residence and up to 1 acre

2. Exemption is equal to the amount of tax that would be charged

on up to $25,000.00 of market value

3. Must own and have occupied home on Jan. 1 of the year in

which you file.

D. Tax Abatement Programs

Other Statutory Savings (cont.)


V. Conclusion


A. Thank you for comingB. Go save some moneyC. Let us know if you want us to assist you in your filing
