reducing your property tax bill

Reducing your property tax billReducing your property tax bill

Property Tax Valuation Property Tax Valuation Appeals in OhioAppeals in Ohio

Sponsored by Finney Law Firm, LLC


Presenter:

Christopher P. Finney, Esq.Christopher P. Finney, Esq.


Finney Law Firm, LLC

•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•Bankruptcy•DUI


1. Benefit: First $25,000 of home’s value is exempt from taxation (worth about $700 per year in tax reduction)2. Who is eligible:

a) Single family residence/Owner occupiedb) Any one owner who is either over 65 years old or permanently disabledb) Property held in trust is an issue

3. When is application due? June 1, 2014

Quick Diversion on Homestead Quick Diversion on Homestead ExemptionExemption


Why are my property taxes so high…Why are my property taxes so high…


SHOULD I APPEAL?SHOULD I APPEAL?

If Assessed Value (from tax bill) = Fair Market Value

(what would your property sell for)

STOP - DO NOT APPEALSTOP - DO NOT APPEAL


I. I. Your House As Seen By:Your House As Seen By:

Yourself…

Your buyer…


Your lender…

Your appraiser…


And Your County’s Tax Assessor…


A. Property Tax History in Hamilton CountyA. Property Tax History in Hamilton County


B. History & Projection of Taxes B. History & Projection of Taxes


Hamilton County Property Taxes vs. Hamilton County Property Taxes vs. Surrounding CountiesSurrounding Counties

Butler County: Butler County: Hamilton Local School District

Warren County:Warren County: Mason City School District

Hamilton County:Hamilton County: Cincinnati Schools

Clermont County: Clermont County: Batavia Local School District


C. Comparison to Surrounding C. Comparison to Surrounding CountiesCounties

* 2011 tax year effective rate residential rate


D. Major Ohio CountiesD. Major Ohio Counties

* 2012 tax year effective rate residential rate


How are my taxes calculated?How are my taxes calculated?

II. Components of Components of Hamilton County Hamilton County property tax billproperty tax bill


Broad calculation of tax billBroad calculation of tax bill

VALUATION VALUATION x RATE x RATE

– – ROLLBACKSROLLBACKS

TAXTAX


The Valuation ComponentThe Valuation Component

Valuation is the one variable you can influence


What valuation reduction meansWhat valuation reduction means

1. Valuation reduction results in

proportionate reduction in taxes

2. A reduction of $10,000 in value will

result in ~$300 of ANNUAL tax

savings


3.Savings last AT LEAST through the

end of the triennial

a. Hamilton, Clermont and Butler

Counties this is the second year in

the triennial

b. Warren County—2012 is first year

of the triennial so savings in 2012

will last for at least three year


3630 Zumstein Avenue, Cincinnati, Ohio3630 Zumstein Avenue, Cincinnati, Ohio

First Half Calculations Tax Distributions 1/1/2012

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


3630 Zumstein Avenue, Cincinnati, Ohio3630 Zumstein Avenue, Cincinnati, Ohio

Tax Calculations for 3630 Zumstein Tax Calculations for 3630 Zumstein AvenueAvenue



Tax Distributions for 3630 Zumstein Tax Distributions for 3630 Zumstein AvenueAvenueHalf Year Real Taxes + Delq. Real Estate (if any)


III. Complaint form and filing proceduresIII. Complaint form and filing procedures

A. Critically important dates

B. The 35% issue – they do it to confuse you

C. Review of Complaint form and its

completion

D. Presentation of case at Board of Revision

E. Risks to complainant

F. Procedural issues

G. Appeal procedures


1. Tax lien date: 1/1/2013i. This is the effective date of the valuation

challenged in 2014ii. 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: 4/1/2014

A. Critically Important DatesA. 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 1/1/2013 Tax Lien Date

B. They Do It To Confuse YouB. They Do It To Confuse You


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 RevisionD. Presentation at the Board of Revision


5. Comparable sales (this means SALES, not listings)

i. 1/1/2013 tax lien date

ii. Timing: Best sales are 6 months on either side of that date

iii. Location: Close in location, in the neighborhood or neighborhoods close by

iv. Size of house and lot: Similar house and lot size

v. Age: Similar age of construction

vi. Bedrooms

vii. Bathrooms

viii. Total square footage

ix. Number of garages

x. Amenities like finished basement and pool

xi. Interior finish and recent renovation

Valuation Information to Present (cont.)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,

2013)

Evidence Presented at the HearingEvidence 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; or2. Improvement added

Evidence Presented at the Hearing Evidence Presented at the Hearing (cont.)(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

Evidence Presented at the Hearing (cont.)Evidence Presented at the Hearing (cont.)


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 ComplainantE. 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 IssuesF. Procedural Issues


2. Jurisdiction a. Handling appeals of property valuations within

their jurisdiction.

Procedural Issues (cont.)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.)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

Tender Pay at Tender Pay at FilingFiling


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 DecisionG. Appeal of Board of Revision Decision

Reducing your property tax billReducing your property tax billIV. ConclusionIV. Conclusion

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

reducing your property tax bill

Documents

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