Tax Rules: Final: 5703-25
5703-25-55 Real estate assessment fund; expenditures;
allowable; disallowable; procedures
(A) Allowable expenditures from the real estate assessment
fund include the costs incurred by the county auditor
described in paragraph (B) of this rule and, at the
discretion of the county auditor, the costs incurred by the
county auditor described in paragraph (C) of this rule, and
the costs incurred by the county board of revision under
Chapter 5715. of the Revised Code.
(B) Allowable expenditures by the county auditor from the
real estate assessment fund consist of all costs incurred by
the auditor related to the assessment of real property for
taxation purposes, whether for the determination of "true
value in money" or "true value" of all real property as
defined in paragraph (A) of rule 5703-25-05 of the
Administrative Code, or for the determination of "current
agricultural use value of land" as defined in paragraph
(B)(2) of rule 5703-25-30 of the Administrative Code, and for
the assessment of manufactured or mobile homes taxed like
real property under section 4503.06(D)(2) of the Revised
Code. Allowable expenditures may be made for the following:
(1) Contracts for the professional services of an appraiser,
which includes contracts for a complete or partial appraisal,
either for a sexennial reappraisal, triennial update, annual
maintenance, or for any other special appraisal contract, for
the appraisal of manufactured or mobile homes taxed like real
property, and for any appraisal consulting contracts.
(2) Contracts for the preparation of tax maps, which
includes, but is not limited to, pilot projects, aerial
photography, and the complete computerized appraisal mapping
program with digital map files.
(3) Contracts, in whole or in part, for the purchase or lease
of computer hardware and software, and the maintenance
thereof, including consulting contracts related to the same,
used in the real property assessment process.
(a) Computers purchased or leased pursuant to this paragraph
can be used to store property record card data, to update
property values statistically, to print various abstracts of
real property values, to type and print various valuation
notices and taxpayer letters, and to perform other
assessment-related functions.
(b) In the case where the computer contract is for both
assessment-related and nonassessment-related goods or
services, the portion of computer hardware, software,
maintenance, and consulting costs related to assessment
purposes may be determined based on the percentage of time
used for assessment-related purposes, on the percentage of
disc space utilized for assessment-related activities, or a
combination of both items, or on any other reasonable method.
The applicable apportionment method is subject to the
approval of the tax commissioner, which shall be final.
(4) In-house assessment-related expenses of the county
auditor, in whole or in part, for real property, machinery,
equipment, supplies, vehicles, utilities, and employee
salaries and benefits. Costs for property, utilities, and
personnel used for both assessment and nonassessment purposes
may be paid out of the real estate assessment fund to the
extent that they are allocable to the assessment-related use.
Costs for property, utilities, and personnel can only be
considered as assessment-related, if the property, utility,
or person is used directly in the real estate assessment
process, or used directly in the assessment of manufactured
or mobile homes taxed like real property.
(5) The cost to implement a permanent parcel numbering
system.
(6) The cost to attend assessment-related seminars,
continuing education courses, and conferences.
(7) The cost to update plat books and property record cards.
(8) Appraisal costs incurred by the county auditor to support
values for real property and manufactured or mobile homes
taxed like real property in administrative or judicial
proceedings.
(9) The cost to prepare and print the real property tax list,
the exempt real property list, the agricultural land tax
list, and the portion of the manufactured home tax list that
relates to the manufactured or mobile homes taxed like real
property.
(10) Costs related to real property and manufactured or
mobile home transfers.
(11) Costs incurred by the county auditor for the in-house
preparation of tax maps.
(12) Costs related to the imaging or sketching of real
property, and manufactured or mobile homes taxed like real
property, on any medium.
(13) Costs to prepare and print various abstracts of real
property values, valuation notices, and taxpayer letters.
(14) Costs related to the application and determination
process for the current agricultural use valuation program
described in sections 5713.31 to 5713.38 of the Revised Code.
(C) Other expenses allowable from the real estate assessment
fund, at the discretion of the county auditor, may be divided
into two categories: costs associated with activities of the
county auditor related to real estate, but not to the
assessment thereof by the county auditor; and costs
associated with activities of the county auditor not related
to real estate at all.
(1) Costs associated with activities related to real estate,
but not to the assessment thereof by the county auditor,
include costs incurred by the auditor for the following
activities:
(a) Costs in preparing the tax list of real and public
utility property.
(b) Costs in administering laws related to the taxation of
real property, which include, but are not limited to,
calculation of tax rates and taxes, preparation and printing
of the tax duplicate and the delinquent tax lists and
reports, tax settlement between county auditor and county
treasurer, and distributions of tax settlements.
(c) Costs in administering laws related to the levying of
special assessments on real property.
(d) Costs in administering the tax reduction factors and the
ten-percent rollback under Chapter 319. of the Revised Code.
(e) Costs in administering the homestead exemption on real
property and the two and one-half percent rollback on real
property and manufactured or mobile homes taxed like real
property under Chapter 323. of the Revised Code.
(f) Costs in administering the homestead exemption on
manufactured or mobile homes under section 4503.065 of the
Revised Code.
(g) Nonappraisal costs to support values of real property in
any administrative or judicial proceeding.
(h) Costs for geographic information systems, mapping
programs, and technological advances in those or similar
systems or programs.
(2) Costs associated with activities not related to real
estate, occurring in the county auditor's office, include
costs incurred by the auditor for the following activities:
(a) Costs in compiling the general tax list of tangible
personal property and administering tangible personal
property taxes under Chapters 5711. and 5719. of the Revised
Code, which include, but are not limited to, processing
tangible personal property tax returns, assessing tangible
personal property, and compiling the tangible personal
property tax duplicates.
(b) Costs, expenses, and fees in the administration of estate
taxes under Chapter 5731. of the Revised Code.
(D) Expenditures not allowable from the real estate
assessment fund may be divided into two categories: costs
associated with activities of the county auditor related to
real estate, but not to the assessment thereof by the county
auditor; and costs associated with activities of the county
auditor not related to real estate at all.
(1) Costs associated with activities related to real estate,
but not to the assessment thereof by the county auditor,
include, but are not limited to, costs for the following
activities:
(a) Preparation and printing of the tax bills and the daily
payment journal;
(b) The appraisal of real property for purposes other than
the determination of current, true market value; for example,
to determine the historical value or insurance value of
county buildings;
(c) The county auditor's salary, pursuant to section 325.01
of the Revised Code;
(d) Administrative expenses of the county budget commission;
and
(e) Expenses of the county engineer incurred in the drafting
of tax maps, pursuant to section 5713.10 of the Revised Code.
(2) Costs associated with activities not related to real
estate, occurring in the county auditor's office, include,
but are not limited to, costs for the following activities:
(a) Payroll;
(b) Disbursement cycle:
(c) Any licenses;
(d) Manufactured home tax, except as provided in paragraphs
(B) and (C) of this rule;
(e) General relief;
(f) Budgetary and fiscal process;
(g) Weights and measures; and
(h) Building maintenance.
(E) If the county auditor intends to spend money from the
real estate assessment fund for any costs not specifically
allowed under paragraph (A), (B), or (C) of this rule or
specifically disallowed under paragraph (D) of this rule, the
auditor must first seek approval from the tax commissioner
upon the filing of a form prescribed by the tax commissioner
for that purpose.
(F) Under the general authority of section 5713.01 of the
Revised Code, if the board of county commissioners fails to
appropriate sufficient money for the county auditor's
assessment activities, the auditor may apply to the tax
commissioner for an additional allowance for the type of
expenditures listed in paragraph (B) of this rule. However,
under division (B) of section 325.20 of the Revised Code this
right to apply to the tax commissioner is not available for
certain travel outside this state. Under this latter section,
the county auditor must apply to the board of county
commissioners in writing showing the necessity of the travel
and the probable costs to the county from the real estate
assessment fund for any out-of-state travel, if those travel
expenses will or may exceed one hundred dollars. The board
shall approve or disapprove the auditor's request. The
board's decision is final.
(G) Under division (B) of section 325.31 of the Revised Code,
a copy of any appraisal plans, progress of work reports,
contracts, or other documents required to be filed with the
tax commissioner shall be filed also with the board of county
commissioners. This requirement includes the DTE form 108,
the DTE form 92, any contracts listed on the form 92, any
applications for additional allowances filed pursuant to
section 5713.01 of the Revised Code, any forms filed pursuant
to paragraph (E) of this rule, and any other documents
requested by the tax commissioner relating to the real estate
assessment fund. This requirement applies to any person
filing the document with the tax commissioner: whether that
person is, for example, the county auditor, an individual
appraiser, an appraisal firm, a consultant, or a computer
firm.
Effective: 11-18-04
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 325.20, 325.31, 5713.01
Prior effective dates: 5-10-93, 7-15-96 as 5705-9-01,
9-18-03