The county auditor maintains a list of all real property exempted from taxation. The Auditor is required to update the list annually based on property transfer data it receives locally and from the State. However, as a result of the recently passed a budget bill starting with the tax year 2022, there is now an affirmative duty placed on owners of tax-exempt real and personal property to notify the county auditor if the property ceases to qualify for an exemption.
A form must be filed with the county auditor on or before the last day of the tax year the property ceases to qualify for an exemption. If the county auditor discovers that an owner failed to file, a charge can be imposed against the property equal to the total amount by which taxes were reduced for any of the five preceding tax years that the Auditor ascertains the property was not entitled to the exemption and was owned by the current owner.
Tax exemption status is not provided based on who owns the property but rather the property’s current use. Owners of a tax-exempt property need to be aware of this new requirement and review whether the use of their property still qualifies for an Ohio real property tax exemption.
For more information regarding tax exemption status, please contact Gerald McDonald at gmcdonald@pselaw.com or 937.223.1130.
Reference: Ohio Revised Code Section 5713.083; Budget Bill (H.B. 110)
