Reducing your property tax bill

1. Reducing your property tax bill Property Tax Valuation Appeals in Ohio Sponsored by Finney Law Firm, LLC

2. Reducing your property tax bill Presenter: Christopher P. Finney, Esq.

3. Reducing your property tax bill 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

4. Reducing your property tax bill Quick Diversion on Homestead Exemption • Benefit: First $25,000 of home’s value is exempt from taxation • (worth about $700 per year in tax reduction) • Who is eligible: • Single family residence/Owner occupied • Any one owner who is either over 65 years old or permanently • disabled • Property held in trust is an issue • When is application due? June 1, 2014

5. Reducing your property tax bill Why are my property taxes so high…

6. Reducing your property tax bill SHOULD I APPEAL? If Assessed Value (from tax bill) = Fair Market Value (what would your property sell for) STOP - DO NOT APPEAL

7. Reducing your property tax bill I. Your House As Seen By: Yourself… Your buyer…

8. Reducing your property tax bill Your lender… Your appraiser…

9. Reducing your property tax bill And Your County’s Tax Assessor…

10. Reducing your property tax bill A. Property Tax History in Hamilton County

11. Reducing your property tax bill B. History & Projection of Taxes

12. Reducing your property tax bill Hamilton County Property Taxes vs. Surrounding Counties Butler County: Hamilton Local School District Warren County: Mason City School District Hamilton County: Cincinnati Schools Clermont County: Batavia Local School District

13. Reducing your property tax bill C. Comparison to Surrounding Counties * 2011 tax year effective rate residential rate

14. Reducing your property tax bill D. Major Ohio Counties * 2012 tax year effective rate residential rate

15. Reducing your property tax bill How are my taxes calculated? II. Components of Hamilton County property tax bill

16. Reducing your property tax bill Broad calculation of tax bill VALUATION x RATE – ROLLBACKS TAX

17. Reducing your property tax bill The Valuation Component Valuation is the one variable you can influence

18. Reducing your property tax bill What valuation reduction means • Valuation reduction results in proportionate reduction in taxes • A reduction of $10,000 in value will result in ~$300 of ANNUAL tax savings

19. Reducing your property tax bill 3.Savings last ATLEAST through the end of the triennial • Hamilton, Clermont and Butler Counties this is the second year in the triennial • Warren County—2012 is first year of the triennial so savings in 2012 will last for at least three year

20. Reducing your property tax bill 3630 Zumstein Avenue, Cincinnati, Ohio First Half  Calculations Tax Distributions 1/1/2012 Half Year Real Taxes + Delq Real Estate (if any)

21. Reducing your property tax bill 3630 Zumstein Avenue, Cincinnati, Ohio

22. Reducing your property tax bill Tax Calculations for 3630 Zumstein Avenue

23. Reducing your property tax bill Tax Distributions for 3630 Zumstein Avenue Half Year Real Taxes + Delq. Real Estate (if any)

24. Reducing your property tax bill III. 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

25. Reducing your property tax bill A. Critically Important Dates • Tax lien date: 1/1/2013 • This is the effective date of the valuation challenged in 2014 • All of your evidence MUSTBE targeted towards proving your property’s value ASOFTHATDATE (not when you get tax bill or have your hearing) • Lots of cases this year were dismissed because this key issue was missed 2. Filing deadline: 4/1/2014

26. Reducing your property tax bill B. They Do It To Confuse You • “True Value” • “Full Value” What your house is worth • “Market Value” • “Fair Market Value” • “Assessed Value” 35% of Fair Market Value • “Taxable Value” NoteAgain 1/1/2013 Tax Lien Date

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29. Reducing your property tax bill D. Presentation at the Board of Revision Residential Actual sales or construction data of the subject property Comparable sales are the best evidence Listings are of little value Auditor’s valuations of others’ properties of NO use

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31. Reducing your property tax bill Valuation Information to Present (cont.) 5. Comparable sales (this means SALES, not listings) • 1/1/2013 tax lien date • Timing: Best sales are 6 months on either side of that date • Location: Close in location, in the neighborhood or neighborhoods close by • Size of house and lot: Similar house and lot size • Age: Similar age of construction • Bedrooms • Bathrooms • Total square footage • Number of garages • Amenities like finished basement and pool • Interior finish and recent renovation

32. Reducing your property tax bill Evidence Presented at the Hearing • “My property did not go up 25% in value in one year” • Auditor’s value of neighbors property is irrelevant • The only issue is: what the property is worth as of the “tax lien date” (January 1st, 2013)

33. Reducing your property tax bill Evidence Presented at the Hearing (cont.) 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 • Unless loss due to casualty; or • Improvement added

34. Reducing your property tax bill Evidence Presented at the Hearing (cont.) • F. Three valuation techniques: • Comparable Sales Approach • Income Approach • Replacement Value Approach

35. Reducing your property tax bill Evidence Presented at the Hearing (cont.) G. Who May Testify: • Expert Witness (realtor or appraiser) may present valuation issues • Property owner is always qualified to render opinion as to the value of his or her property 3. No one else may present evidence

36. Reducing your property tax bill Evidence Presented at the Hearing (cont.) H. Property Owner has the burden of proof • 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

37. Reducing your property tax bill E. Risk to Complainant • Auditor can go back five years to make corrections to errors, or until conveyance. (Whichever is shorter) -Omitted tax -ORC §5713.20 • Board of Revision can increase valuation in its proceedings *Note frequent school board countercomplaints. ( Expect same on commercial properties)

38. Reducing your property tax bill F. Procedural Issues • Board of Revision • Composition • Representatives of County Auditor, County Commissioners and County Treasurer • Note conflict of Auditor as original assessor, “prosecutor” and judge • In the outlying counties, frequently these elected officials will serve in person • Some claim that political pressures of school boards or “inertia” of protecting established values

39. Reducing your property tax bill Procedural Issues (cont.) 2. Jurisdiction a. Handling appeals of property valuations within their jurisdiction.

40. Reducing your property tax bill Procedural Issues (cont.) 3. Procedures a. 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

41. Reducing your property tax bill Tender Pay at Filing • A. Accelerates filing to before tax due date • If prevail, no interest and penalties • 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

42. Reducing your property tax bill G. Appeal of Board of Revision Decision • Forum: Either to Common Pleas Court where property is located or Board of Tax Appeals • Trial de novo at Board of Tax Appeals- new evidence allowed • Filed appeal to Board of Revision and appellate jurisdiction, 30 days after mailing of BOR decisions • Appeal from either of those to the Ohio Supreme Court

43. Reducing your property tax bill IV. Conclusion A. Thank you for coming B. Go save some money C. Let us know if you want us to assist you in your filing