Ohio Admin. Code 5703-25-06 - Equalization procedures
(A) "True value in money"
shall
will 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 fee simple estate, as if unencumbered
of 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 auditor shall
will 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
will
view and appraise each parcel of real property and the improvements thereon in
the county and this appraisal shall
will reflect the one hundred per cent true value in
money of each parcel appraised, and the auditor shall
will 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
will
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
will
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
will 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
will 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
will , 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 sections
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 may 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
will 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
will 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
will be
made as provided in section
5713.01 of the Revised
Code.
Notes
Promulgated Under: 119
Statutory Authority: 5703.05
Rule Amplifies: 5713.01, 5715.01
Prior Effective Dates: 12/28/1973, 11/01/1977, 09/18/2003, 10/09/2014, 07/01/2021
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