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The county auditor is required by state
law to revalue each parcel of real property every six years. This
program is called revaluation and the last one was conducted in 2000.
During the third year of this six year cycle, Ohio law requires the county
auditor to update real estate values to reflect the current market value.
This program is called triennial update and was conducted this year, in
2003, and will be applicable for taxes paid in calendar year 2004.
By now, most property owners should have
received a notice from the county auditor showing the owner's name and
address, the parcel number, the address of the property, the estimated
market value as last determined, and the estimated current market value.
It is important that you review this
notice immediately. If you agree with the estimated market value,
then no further action is required. However, if the estimated market
value seems too high, you must act quickly or you will lose your rights to
challenge this value. Remember this: YOU MAY ONLY CHALLENGE
THE MARKET VALUE OF THE PROPERTY, YOU MAY NOT CHALLENGE THE TAXES THAT ARE
DUE!
The revaluation notice contains a
comment card that will help you appeal the new estimated market value.
If you recently purchase property, the
purchase price that you paid should best reflect the actual market value.
If you have owned the property for some
time and the estimated market value is substantially greater than your
estimate of market value, you may uses a private appraisal firm to
establish a more reasonable market value. This is particularly true
if the property is rental or commercial property.
If you have listed the property for sale
at a lower advertised price, this could establish a more reasonable market
value. If you have not been able to sell it at the asking price, the
offers to purchase that you received will help form a basis for a more
reasonable market price.
The newspaper has a real estate section
that shows the recent sale of property in each area with the address,
sellers name, buyer's name, and sale price. You should search for a
property that is similar to yours and use that price to establish a more
reasonable market value.
During the appeal process, you will
probably find that a Solomon-like result will occur, with the board
splitting the difference with you. If you try to low-ball the
estimated market value, the school board or other interested taxing
districts may submit evidence to raise market value even higher.
Ask Your Accountant
As a service for our clients and
readers, we are starting a new column to answer your questions that are of
general interest. If you wish to submit a question, please e-mail us
at
Service@NewlandCPA.com using
"ASK YOUR ACCOUNTANT" as the subject line and we will try to print the
questions and the answers that would be of most interest to our readers.
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