By Brian Massie, A Watchman on the Wall
https://www.lexology.com/library/detail.aspx?g=4ec0fc21-4ae0-42d0-86ad-77c3a942f1a3
Cuyahoga County Reassesses Real Property in 2024
By Thompson Hine (Cleveland Law Firm)
Thompson Hine LLP – Thomas Wyatt Palmer, Thomas J. Coyne and Matthew B. Lake
- Reappraisal adjustments are set to take effect as of January 1, 2024.
- A property owner can file an informal complaint before August 30.
- The opportunity to file a formal challenge to the valuation increases begins January 1, 2025.
- Taxpayers should start gathering evidence now.
Higher Tax Values and Higher Tax Bills
The Ohio Tax Commissioner requires the Cuyahoga County Fiscal Officer to reappraise all real property in Cuyahoga County every six years. With tax year 2024 being such a reappraisal year, Cuyahoga County property owners are receiving notices of revised property values for real property tax bills for calendar year 2024, payable in 2025.
Many commercial properties, particularly office buildings, have significantly lost value since the pandemic, and the new appraisals may not fully reflect this devaluation.
In addition, residential property values in Cleveland are expected to increase 49%. Values in other Cuyahoga County communities are expected to increase similarly: Cleveland Heights – 44%; East Cleveland – 67%; Garfield Heights – 52%; Newburgh Heights – 66%; Maple Heights – 59%.
The Fiscal Officer’s expected increases can be viewed here: 2024 Appraisal Value Change (cuyahogacounty.us).
While the effects of these valuation updates will be felt for many years, taxpayers have the opportunity to fight the adjustments now.
What Can I Do if I Disagree with the Increased Value?
If you disagree with the revised value as of January 1, 2024, for taxes payable in 2025, you can first file an informal tax valuation complaint (see “Informal Complaint” below). You can also file a formal complaint with the Cuyahoga County Board of Revision between January 1 and March 31, 2025 (see “Formal Complaint” below). Failure to file a complaint during this period locks in the taxes payable in 2025.
What Evidence Do I Need?
A recent arm’s length sale (12 months before or 12 months after January 1, 2024) is often the best evidence of value. If the property has not been sold recently, an appraisal prepared by an independent certified appraiser with an effective date of January 1, 2024, is recommended. Your appraiser must testify to support their opinion of value. Be careful – information submitted to support a value reduction is public record.
Who Might Oppose My Complaint?
Your local school district, which often receives more than 50% of the property tax you pay, may seek to maintain your property’s valuation. The school district may submit its own evidence of value and can challenge or attempt to discredit a property owner’s evidence and witnesses.
Informal Complaint
The first opportunity to file a complaint is to use the county’s informal complaint process, which is open now through August 30, 2024. This process allows a property owner to challenge the proposed new value of their property; however, they still must present some evidence of value, such as an appraisal, recent sales of similar properties, or evidence of property condition. The Fiscal Officer will review the submitted materials and potentially adjust the proposed value in November 2024.
Formal Complaint
If a property owner does not file an informal complaint or it is unsuccessful, they can file a formal complaint with the Cuyahoga County Board of Revision between January 1 and March 31, 2025. The Board of Revision will schedule an in-person or video hearing during the summer or fall of 2025 to review, examine, and ask questions about the evidence submitted. During this hearing the property owner can explain their evidence and even have a professional appraiser provide an appraisal report.
What Happens If I Disagree with the Board of Revision’s Decision?
You may file an appeal with the Ohio Board of Tax Appeals or the Cuyahoga County Court of Common Pleas within 30 days of the written release of the Board of Revision’s decision.
How Long Will the Benefit Last?
If you are granted a lower valuation, in many cases, the reduction will carry forward to the next mandatory revaluation (typically three years).
Categories: Community Activism, Contributors