Tax Rules: Final: 5703-25
5703-25-06 Equalization procedures
(A) "True value in money" shall 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 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 assessor shall 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, shall view and appraise each
parcel of real property and the improvements thereon in the
county and this appraisal shall reflect the 100 per cent true
value in money of each parcel appraised, and the auditor
shall 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 shall 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 shall 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"
shall 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 shall 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 shall, 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 section 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 shall
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 shall 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.
(G) The lien for taxes attaches to all real property on the
first day of January. If a building, structure, fixture or
other improvement to land is under construction on January
first of any year, its valuation shall be based upon its
value or percentage of completion as it existed on January
first.
(H) When the county auditor revalues real property,
notifications of the change in value shall be made as
provided in section 5713.01 of the Revised Code.
Effective: 9-18-03
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5713.01, 5715.01
Prior effective dates: 12-28-73, 11-1-77 as 5705-3-02