“The long-term effect on our nation and on Montgomery County is uncertain at this point,” Keith said. “The long-term effect on property values is uncertain, and we felt a delay would allow an opportunity to better assess that effect.”
Keith said he was disappointed in Ohio Tax Commissioner Jeff McClain’s denial, but would “respect the decision.”
McClain found no wiggle room within state laws for the county to delay its reappraisal of commercial, residential and agricultural property required every six years to determine their tax values.
FIRST REPORT: Coronavirus: Your property values might not change this year. Here’s why
In his decision to the county, McClain cited Ohio code that “neither authorizes the Tax Commissioner to change the year for which the reappraisal was ordered, nor does it authorize a county auditor to effectively skip a tax year for reappraisal.”
The county had claimed the pandemic put limitations on the auditor’s office’s ability to hold informal hearings with taxpayers and engage with the public.
McClain said such hearings are not required by law and urged Montgomery County to hold telephone or virtual hearings and other conferences to the extent possible. He also noted that Keith’s office had already completed the bulk of the reappraisal work for this cycle.
“We appreciate the concern for the taxpayers shown by Auditor Keith, but there is no authority to grant the sort of extension sought by Montgomery County or any other county that would make a similar request. The law is clear in this case, thus the decision to deny the request,” McClain said Thursday.
Earlier this month, McClain did approve a request by Montgomery County’s treasurer to give property owners an extra month to pay their next tax bill. Taxes originally payable by July 17 are now due Aug. 14.
MORE: Coronavirus: Montgomery County property owners get tax extension, new payment options
Property values are likely to show solid growth despite last year’s tornadoes and this year’s coronavirus pandemic, Keith said.
The auditor’s office determined Montgomery County property values dropped by $46.3 million for tornado-damaged homes and businesses and Keith expects further losses will be revealed during the reappraisal, he said.
MORE: Memorial Day tornadoes’ toll: $46.3M in lost property values, schools to lose big
But some areas of the county have hundreds of new homes which have added hundreds of millions of dollars in value, Keith said. And tornado-damaged homes and commercial properties that saw valuations decrease after the storm will tick back up with rebuilding and repairs.
“Even in the areas where the storm occurred there’s been some new construction,” he said.
A record number of sales over the past couple of years is also a good indicator property values will rise, Keith said.
“The market has been robust really countywide,” he said. “These new values will reflect that to some degree … Most communities will see increases. Most property owners will see increases, some of them will see very significant increases.”
MORE: Record home sales to offset lost Montgomery County tax revenue
County auditors are required to do a full general reappraisal once in every six years. The auditor and a qualified appraiser are required to view and appraise every property. The mass appraisal process takes between two and two-and-a-half years to complete on about 253,550 parcels in Montgomery County, according to the county office.
On the third year in between reappraisals, the auditor is required to perform a triennial update, a statistical analysis of the valid sales occurring within the prior three years and provide a percentage adjustment to equalize values of all properties in each given marketing neighborhood area.
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