Real estate taxes can be one of the largest operating expenses when owning and operating commercial real estate. This expense could also have a significant impact on the valuation of your property.
The market value placed on the land and buildings by the local taxing authority, the County Auditor, and the taxing district’s millage rate determine real estate taxes. For Ohio, millage rates are determined by the district voters and applied to the assessed value of the real estate (35% x Market Value). The county auditor re-appraises properties within the county every six years and performs an update, called the Triennial Update, every three years. Depending on where your county is in its cycle, the value determined for your property could be in effect for three years.
The 88 Ohio counties have sent out notices of assessments which could result in changes to tax bills for the next few years. The county mass appraisal process often uses comparable sales of properties that occurred up to 3 years prior to the effective date of value and rental rates that do not take into consideration the particulars of your property. This means that they could be using data to value your property that may or may not be relevant.
If you think your property assessment is above the fair market value of your property, you should consider filing a tax appeal. It’s not too late to challenge your 2015 tax assessment (Payable 2016). You may be able to lock in tax savings for the next 6 years. Before filing, have an analysis or appraisal completed as Ohio allows an appeal to be filed only once during each triennial cycle.
ALL OHIO APPEALS MUST BE FILED PRIOR TO MARCH 31st each year.
If you need further information regarding the real estate tax appeal process, or are interested in filing a tax complaint, contact Cindy Hatton Tepe, (937) 528-4006, or Kelly Fried, (513) 707-1021, with Gem Real Estate Advisory Group. They can help you determine the true value of your property.