The Central Ohio real estate market continues to soar here at the end of 2021, setting up the region for its sixth straight year of growth. It’s safe to say that the market has fully rebounded from last decade’s Great Recession, and homeowners are once again seeing a return on investment in their property’s value. In fact, most counties across the state saw double-digit property value increases from 2017 to 2021.
Property Value and Taxes
Rising property values are generally good news, but they also result in increased property taxes. However, rest assured that property taxes do not increase dollar-for-dollar when values go up. For instance, in Columbus—where real estate values rose by about 16 percent in the past four years—property taxes increased by less than 3 percent. House Bill 920, which passed in 1976, protects homeowners against large property tax increases when this happens. It also protects taxing entities from losing money when values go down.
Home and business owners who feel their property values are too high can file a complaint and request a value reassessment. This has a direct impact on the taxes they end up owing.
Senate Bill 57 and its Affect on Ohio Property Taxes
Pandemic-related valuation cases and options for filing complaints were expanded earlier this year when Governor Mike DeWine signed Senate Bill 57 into law. This legislation was promoted by commercial and industrial property owners who have been negatively impacted by the pandemic. Here are the changes you need to know about.
- Who can file complaints: Before the new law, only property owners could file complaints challenging their real estates’ tax valuation with the County Board of Revision (BOR). Now, certain commercial and industrial tenants can file BOR complaints in their own names.
- When complaints can be filed: The old law limited property owners to filing complaints once per three-year valuation period. The new bill waives this restriction, permitting multiple filings for 2020, 2021, and 2022 tax years. As a result, property owners who have already filed a complaint in the current valuation period can still file a special complaint, provided they meet certain legal requirements.
- When property valuations are determined: Property values are traditionally decided on January 1. The new legislation allows property owners to request their BOR to redo property tax valuations as of October 1, 2020, instead of January 1, 2020. Anyone filing a complaint must demonstrate that the pandemic caused a property value change between those dates.
SB 57 took effect on July 26, 2021. Property owners had 30 days to request a new valuation and prove that pandemic-related circumstances caused their property values to change.
If you are considering buying or selling a house in Columbus, Ohio, reach out to Vutech | Ruff, Corcoran Global Living. We have over 60 years of combined experience in the real estate industry and would be pleased to help you achieve your buying or selling goals. Call us at 614-897-0618 or contact us online today to learn more.