Property:
Ohio: Commercial Property is Valued Based on Arm’s Length Sales Price Despite Proximity to COVID-19 Pandemic
Case No. 2021-2009, Ohio Bd. of Tax App. (10/15/24). In a case involving the property tax valuation of a commercial office building, the Ohio Board of Tax Appeals (Board) held that the owner’s documentation of the property’s arm’s length sale during January 2021 created a rebuttable presumption of the property’s reduced true value, and the taxing authority failed to rebut it. In doing so, the Board rejected the taxing authority’s claim that the January 2021 sale was a “distressed sale due to the market change in light of COVID-19” – concluding that a sale is not disqualified merely because it occurred during the COVID-19 pandemic. According to the Board, the taxing authority offered “unsubstantiated, conclusory statements about the effects of COVID” that, without more support, were insufficient to rebut the sale’s presumptive validity. Also rejecting the taxing authority’s claim that the January 2021 sale was not “recent” because it was remote from the tax lien date due to the COVID-19 pandemic, the Board held that the taxing authority failed to quantify the impact the COVID-19 pandemic had on the subject property, if any. Please contact us with any questions.
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