Board Listens, May Lower Your Property Taxes

COLUMBUS, Ohio -- Most people think their taxes are too high. But there is something you can do about it.

Craig Smith came to the Franklin County Board of Revision hoping to lower his property taxes. He sat down in front a board of three people: one representative from the County Commissioners, a rep from the Auditor's Office and a rep from the County Treasurer's Office.

"I think the average, common person can do this," he says. Smith did all the research himself. He pulled up data about recent home sales in his neighborhood and the tax data for houses similar to his.

"I think the Franklin County Auditor's website gives you plenty of information just to do it on your own," Smith says.

The hearing only lasted a few minutes and was relatively informal. Board members tell property owners they like to think of it more as a "conversation" than a "hearing." The reps asked a few questions about the condition of Smith's property and whether there were many foreclosures in his neighborhood. They said his data was exactly the kind of evidence they needed to make a decision about whether the county had over-valued his property. Smith will receive a decision by certified mail in four to six weeks.

How are taxes calculated?
(source: Franklin County Treasurer's website)

Determine the assessed value
FORMULA: (Appraised Value) x 35% = Assessed Value
Example: $100,000 x .35 =$35,000

Calculate the adjusted tax
FORMULA: (Assessed Value) x (Effective Rate) = Adjusted Tax
Example: $35,000 x 48.388 = $1,693.58

"If someone is going to challenge their property value, the burden of proof is on them that the property value that we currently hold on that property is not appropriate for the current market," says Franklin
County Auditor Joe Testa.

He says anyone requesting a hearing needs to show up with the right evidence. He says you should bring data from the sales of comparable homes in your neighborhood or a new, professional appraisal. If you have refinanced your home recently, the bank may have ordered a new appraisal.

But, Testa says, before you ask for a hearing, you should evaluate whether it is really worth the time, money and effort.

"Just to give you an example, in the Columbus School District, based on the tax rate, you'd have to have a reduction of about $16,000 to $17,000 in market value in order to get a $300 reduction in tax."

An Ohio-licensed appraisal may cost $300 or more, Testa says. If the change in value doesn't cause a larger change in taxes, the savings may be eaten up by the cost of the appraisal.

Plus, in 2011, the county is scheduled to do its sexennial (every six years) appraisal, a complete, door-to-door, visual reassessment. Every property will be individually valued. The last triennial (every three years) review was in 2008 and the county decided to let the existing values stand.

Testa says most of the Board of Revision's residential property hearings are brief because the evidence is usually very clear. He says you don't need a lawyer or a realtor but you do need to do your homework.

The Board of Revision will rarely raise a property's value and, thus, the taxes. More often, it will simply let the existing values stand unless the evidence to the contrary is compelling.

The hearings being held now are for property owners who filed complaints or appeals between January 1 and March 31, 2009.

"We tax a year in arrears so people who filed this year are actually appealing 2008's values that would be used for 2008's taxes being paid in 2009," Testa says.

Appeal forms are available as .pdf files on the Franklin County Auditor's Website. The next opportunity to file is January 2010.

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