Required by Ohio law every six years, the sexennial reappraisal is a comprehensive evaluation of real property values. Unlike the interim triennial updates, which focus on statistical adjustments, the sexennial process involves an in-depth review of each property. Appraisers use neighborhood trends, recent comparable sales, and property-specific factors to determine current market values.
Given the real estate market's strong performance in recent years, especially in desirable neighborhoods, many property owners may face higher valuations. In turn, these increases are likely to result in higher property tax obligations.
What Impacts Property Values?
The reappraisal incorporates multiple data points:
- Market Trends: Properties in areas with significant development or strong demand may see considerable value increases.
- Recent Sales Data: Comparable property sales in your neighborhood play a critical role in determining value.
- Physical Characteristics: Renovations, repairs, or neglected maintenance may all affect valuation.
The Tax Implications of Higher Assessments
While rising property values can indicate a strong market, they can also directly influence tax bills. Property taxes are calculated by multiplying a property's assessed value (35% of the appraised value in Ohio) by the local tax rate (millage rate). Thus, even a modest value increase can lead to noticeable tax hikes.
However, property owners should remember that millage rates are determined by local levies and government budgets. Higher appraised values do not automatically result in proportional tax increases unless levies change as well.
How to Challenge Your Property Assessment
If you believe your property has been overvalued, you have the right to appeal the valuation. Appeals must be filed with the Cuyahoga County Board of Revision (BOR) between January 1 and March 31, 2025. Steps include:
- Review Your Valuation: Compare your appraised value with comparable property sales in your area.
- Gather Evidence: Such as comparable property sales in 2023 and 2024, recent appraisals or broker price opinions, and documentation of defects or deferred maintenance, including dated photos or contractor estimates. Any appraiser must testify in support of their opinion of value.
- File Your Complaint: Submit the required forms through the BOR portal or in person.
- Attend Your Hearing: Present your evidence before the BOR,
which will decide whether to adjust the valuation.
- Your local school board may submit its own evidence of value to challenge your proposed value.
- File An Appeal: If necessary, you may file an appeal with the Ohio Board of Tax Appeals or the Cuyahoga County Court of Common Pleas within 30 days of the written release of the BOR's decision.
A well-prepared appeal supported by expert guidance often yields better outcomes, especially when challenging complex or large-scale discrepancies.
Why Early Action Matters
The 2024 reappraisal will establish tax liabilities through 2030, meaning errors in this cycle can have long-lasting financial effects. Property owners are encouraged to:
- Audit their valuations for accuracy.
- Monitor neighborhood trends that could affect market value.
- Consult legal counsel or property tax specialists for preemptive strategies.
Legal Assistance for Property Reappraisal Issues
Navigating the intricacies of property valuation and tax appeals requires a keen understanding of the process and evidence standards. Our firm has extensive experience representing property owners in valuation disputes, from analyzing market data to advocating before the BOR.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
