As attorney Casey Jones of this firm wrote last year, a recent arms length sale of real property generally is — under Ohio law — the best evidence of the value of property for tax purposes. If that’s what you paid, that generally is the value for property tax purposes. And rebutting that sale price as the taxable valuation can be very difficult.
Further, as I wrote in 2022, that reality hit a purchaser of an apartment complex in Clermont County when he got a whopping valuation increase of $26 million increase in valuation and a retroactive tax increase — post closing — of $682,000. Ouch.
Well, that apartment-purchasing property owner appealed its property valuation for 2023 (only 18 months after the closing) seeking after-the-fact tax relief, arguing that the sudden rise in interest rates increased the rate of return investors expect from apartment properties, and therefore the value of the property fell from the 2021 sale price.
The Ohio Board of Tax Appeals disagreed and just issued its decision for that 2023 tax year — it retained that value at $32.600,000. Ouch, again.
You may read that decision here.
