Key REALTOR-backed bill to rein in property valuation challenges OK'd, heads to Gov. DeWine
By Beth Wanless, Ohio REALTORS Director of Government Affairs
UPDATE (4/21/2022): Gov. Mike DeWine signed Substitute House Bill 126 into law on Thursday, April 21, 2022. The measure will go into effect in mid-July.
Ohio REALTORS is thrilled to announce the passage of Substitute House Bill 126, a top legislative priority for our Association. The bill, introduced by Rep. Derek Merrin (R-Monclova), will rein in predatory property valuation challenges and protect commercial and residential property owners.
The legislation has been a multi-year priority for Ohio REALTORS. HB 126 was introduced and approved by the House earlier this year, but underwent several changes before its adoption in the Senate. As a result, the measure went to Conference Committee, where legislators from both chambers and parties negotiated provisions in the legislation. The final version of Substitute HB 126 is fair, reasonable and most importantly, it protects property rights in Ohio.
The bill will make the following changes to Ohio law:
- School districts can challenge the value of a property if they adopt a resolution in a public meeting and only if the property meets the following criteria:
- The property was sold in an arm’s length transaction, before the tax lien date for the tax year the complaint is filed, and
- The sale price exceeds 10% and $500,000 of the auditor’s last assessed value.
- This provision will apply to tax year 2022, so for appeals filed in early 2023.
- The county auditor is still able to adjust values of properties that transfer ownership.
This will protect new homebuyers from these frivolous challenges that have hit many Ohioans. This will also protect them from paying back tax increases on the home before they even owned it. Additionally, this will protect commercial properties from receiving and defending these valuation challenges arbitrarily.
- If a complaint is filed by a third party against a property, if the board of revision does not render a decision on the complaint within one year of the complaint filing date, the board of revision must dismiss the complaint. This is to encourage a speedy decision and prevent drawing out the process.
- If a property owner believes the County Auditor has valued their property too high, they can then file a complaint with the local board of revision. School districts and other third parties can still file a counter-complaint to protect the County Auditor’s valuation of that property, but they must file within 30 days and the County Auditor is no longer required to notify school districts of the property owner’s complaint.
- Prohibits private settlements that distort school funding, and takes money from school districts who do not engage in this predatory practice. This provision goes into effect 90 days after the Governor signs the legislation into law.
Ohio REALTORS is very pleased with the final product as it includes several reforms that make Ohio’s property valuation complaint system consistent with the majority of other states. We are grateful to Rep. Merrin, Chair Louis Blessing, President Matt Huffman and Speaker Robert Cupp and all members of the General Assembly for hearing our concerns, listening to our stories and making reasonable changes to protect property owners. Substitute HB126 now goes to Gov. Mike DeWine for his consideration and signature. We will keep you updated on any developments.
