Ohio House targets property value challenges

Apr. 15—COLUMBUS — The Ohio House of Representatives on Thursday voted 62-29 for a bill requiring school boards and local governments to pass a separate resolution for each property valuation challenge they make and to give owners advance notice that such a vote is coming.

The bill now heads to the state Senate, where it stalled twice before in prior sessions.

"We are not stopping the process of local governments from being able to file complaints," said the bill's sponsor, state Rep. Derek Merrin (R., Monclova Township). "They will be able to continue to challenge property values.... All we're saying is pass a resolution and give notice to the property owner."

The bill is generally opposed by school districts and many local government groups, but supported by organizations representing businesses, real estate agents, and county auditors.

"House Bill 126 is a solution in search of a problem," said state Rep. Lisa Sobecki (D., Toledo), a former Toledo Board of Education member who cast a "no" vote. "It is rooted in the misconception or perception that the board of revision process is corrupt, especially when used by our school districts."

Republicans rejected her proposed amendment to instead require school boards to first establish a general policy for when to challenge property valuations.

Under the bill, local governments could no longer rely on blanket policies for the automatic filing of challenges under certain circumstances, but would instead have to pass a resolution authorizing each one for tax purposes.

These individual resolutions, however, could be packaged together and passed with a single vote of the government body.

Before such a vote could take place, the property owners would have to be notified in writing. Currently, owners are notified after a complaint has been filed with the county board of revision.

"We have unfortunately a handful of school districts that are making predatory complaints," Mr. Merrin said, sometimes claiming exaggerated estimates of properties' worth.

"A lot of business and residential property owners ultimately settle because they have legal fees and they don't want to fight this for a year or two," he said. "That's very unfortunate. This has really hurt the business climate in this state."

In recent testimony before the House Ways and Means Committee, Jeff Dornbusch, treasurer of Port Clinton City Schools, noted the district has many vacation homes that often sell at prices much higher than their county-assessed valuations. It has a policy of challenging valuations of any homes selling for $75,000 or more above listed value.

"This bill proposed is a great example of passing a new law that is burdensome, regulatory, and at the end of the day produces winners and losers regarding the taxes certain homeowners pay," he said.

The House rejected a Democratic amendment that would have simply prohibited school districts from challenging property values when there is an alleged discrepancy of less than $75,000, in line with Port Clinton's policy.

The Ohio Chamber of Commerce supports the bill.

"The real-property owners in the state of Ohio should be able to rely on the expertise of their county auditor's office when value is established on the real property located in that county," Tony Long, the chamber's director of tax and economic policy, said in committee.

"This second bite of the valuation apple offered to other local governmental entities is disruptive, expensive, and creates tax uncertainty for the real-property owner," he said.

The House also passed a series of bills to distribute roughly $1.6 billion federal coronavirus response dollars:

— $857.1 million to schools, the Ohio Department of Health, and Ohio Adjutant General to assist in their coronavirus responses.

— $465 million to help Ohioans pay rent and utility bills.

— $180 million to assist indoor entertainment venues, local fairs, child-care providers, veterans' homes, and new businesses.

— $100 million to bars and restaurants and $25 million to lodging businesses.

The Senate has separately passed similar bills. The two chambers will have to determine which version will reach Gov. Mike DeWine's desk.

First Published April 15, 2021, 4:00pm