Ohio Administrative Code › Title 5703 - Department of Taxation › Chapter 5703-25 - Equalization - Appraisals › Section 5703-25-06 - Equalization procedures

Current through all regulations passed and filed through July 1, 2024
(A) "True value in money"
			 will be
			 determined, in the first instance, by the county auditor as the assessor of
			 real property in the county on consideration of all facts tending to indicate
			 the current or fair market value of the fee simple estate, as if unencumbered
			 of property including, but not limited to, the physical nature and construction
			 of the property, its adaptation and availability for the purpose for which it
			 was acquired or constructed or for the purpose for which it is or may be used,
			 its actual cost, the method and terms of financing its acquisition, its value
			 as indicated by reproduction cost less physical depreciation and all forms of
			 obsolescence if any, its replacement cost, and its rental income-producing
			 capacity, if any. The auditor will likewise take into consideration the location of
			 the property and the fair market value of similar properties in the same
			 locality.
(B) At least once each
			 six-year period the county auditor of each county, in conformity with the
			 provisions of section
			 5713.01 of the Revised Code,
			 will
			 view and appraise each parcel of real property and the improvements thereon in
			 the county and this appraisal will reflect the one hundred per cent true value in
			 money of each parcel appraised, and the auditor will place each
			 parcel of real property on the tax duplicate at its "taxable value" which is
			 thirty-five per cent of its true value in money.
(C) In the update year the county auditor
			 will
			 determine whether each parcel of real property and the improvements thereon is
			 appraised at its true value in money, as defined in paragraph (A) of rule
			 5705-25-05 of the Administrative
			 Code, as of tax lien date of said year. If the auditor finds that there has
			 been either an increase or decrease in value, the auditor
			 will
			 adjust the tax records to show the true value in money of each parcel and the
			 improvements thereon as well as the "taxable value" thereof, which "taxable
			 value" will be thirty-five per cent of the true value in
			 money thereof as redetermined by the county auditor as of tax lien
			 date.
(D) In making this triennial
			 update of the true value in money and the "taxable value" of each parcel of
			 real property, the county auditor will be guided by sales of comparable property for a
			 like use; the sales ratio and other related studies compiled by the tax
			 commissioner for the three calendar years immediately preceding the update
			 year; by the increase or decrease in current building costs and changes in
			 construction technique both after the proper application of depreciation and
			 obsolescence; by the increase or decrease in the net rental income, expenses,
			 and services for comparable property since the year in which the preceding
			 sexennial reappraisal had been completed; and such other indications of
			 increase or decrease in value as may be pertinent, such as test or sample
			 appraisals on a current basis, where sales of real property are limited or in
			 question.
(E) In implementing any
			 increase or decrease in valuation of real property pursuant to this rule or
			 ordered by the tax commissioner pursuant to section
			 5715.24 of the Revised Code, the
			 county auditor will, when practicable, increase or decrease the
			 taxable valuation of parcels in accordance with actual changes in valuation of
			 real property which occur in different subdivisions, neighborhoods, or among
			 classes of real property in the county. The auditor may increase or decrease
			 the true or taxable value of any lot or parcel of real estate in any township,
			 municipal corporation, or other taxing district by an amount which will cause
			 all real property on the tax list to be valued as required by law, or the
			 auditor may increase or decrease the aggregate value of all real property, or
			 any class of real property, in the county, township, municipal corporation, or
			 other taxing district, or in any ward or other division of a municipal
			 corporation by a per cent or amount which will cause all property to be
			 properly valued and assessed for taxation in accordance with section 36,
			 Article II and section 2, Article XII, Ohio Constitution, and sections
			 5713.03 and
			 5715.01 of the Revised Code, and
			 this rule.
(F) In determining the
			 true value in the year of the sexennial reappraisal or update year of any
			 tract, lot, or parcel of real estate if such tract, lot or parcel has been the
			 subject of an arm's length sale between a willing seller and a willing buyer
			 within a reasonable length of time, either before or after the tax lien date,
			 the auditor may consider the sale price of such tract, lot, or parcel to be the
			 true value for taxation purposes. However, the sale price in an arm's length
			 transaction between a willing seller and a willing buyer
			 will not
			 be considered the true value of the property sold if subsequent to the sale:
(1) The tract, lot, or parcel of real estate
			 loses value due to some casualty;
(2) An improvement is added to the
			 property.