Justia Ohio Supreme Court Opinion Summaries

Appellant, a former linebacker for the Chicago Bears, filed applications for refunds of income taxes paid to Cleveland for tax years 2004 through 2006. A nonresident of Cleveland, Appellant asserted that Cleveland had adopted an unlawful method of computing the amount of his compensation that was subject to its city income tax. Appellant’s applications were denied. The City of Cleveland Board of Review and the Board of Tax Appeals upheld the denials. The Supreme Court reversed, holding that although Cleveland has the right to tax the compensation earned by a nonresident professional athlete for his work performed in Cleveland, the city’s method of allocating income violates the due-process rights of National Football League players such as Appellant. View "Hillenmeyer v. Cleveland Bd. of Review" on Justia Law

A property owner appealed a valuation of its real property. After the Board of Tax Appeals issued its decision on August 29, 2013, the property owner appealed. The notice of appeal was filed on September 30, 2013, but the property owner failed to initiate service of the notice of appeal on the tax commissioner. On October 24, 2013, the property owner served the tax commissioner with the appeal. On November 4, 2013, the appeal was returned from mediation to the regular docket. That order specified that Appellant’s brief was due forty days from the date of the order. On November 12, 2013, the school board filed a motion to dismiss. The Supreme Court dismissed the appeal for lack of jurisdiction because the property owner failed to initiate service of the notice of appeal on the tax commissioner, a necessary party, within the thirty-day appeal period. View "Columbus City Schs. Bd. of Educ. v. Franklin County Bd. of Revision" on Justia Law

The Indian Hill Exempted Village School District Board of Education (BOE) passed a resolution to convert 1.25 inside mills from operating levies to permanent-improvement levies. The conversion had the effect of increasing the effective rate of taxation under the “outside millage,” resulting in the district experiencing a net increase of revenue and the district’s taxpayers experiencing an increased burden. The Hamilton County Budget Commission approved to the conversion of the inside mills. The Board of Tax Appeals affirmed. The Supreme Court reversed, holding that because the BOE did not demonstrate that the revenue derived from the increased effective rate of taxation under the outside mills was necessary to cover operating expenses during the ensuing fiscal year, the BOE did not meet the requirements of Ohio Rev. Code 5705.341. View "Sanborn v. Hamilton County Budget Comm’n" on Justia Law

Canal Winchester MOB, LLC (“MOB”), the ground lessee of a medical office building, filed a complaint challenging the tax-year-2010 valuation of the building. The Board of Revision retained the auditor’s valuation. MOB, together with the record owner of the property, appealed. In its decision, the Board of Tax Appeals (“BTA”) sua sponte considered the jurisdictional validity of the complaint and held that MOB did not have standing to file the complaint. Accordingly, the BTA ordered dismissal. The Supreme Court vacated the BTA’s decision, holding that the BTA should have afforded MOB the opportunity to plead and prove its standing. Remanded. View "Diley Ridge Med. Ctr. v. Fairfield County Bd. of Revision" on Justia Law

This case involved the tax-year-2009 value of a parcel of property and presented the question of whether an auction sale price can ever be regarded as evidence of a property’s value and, if so, under what circumstances. The Board of Tax Appeals (BTA) found that the auction sale in this case was a voluntary, arm’s-length transaction, and therefore, that the sale price was the best evidence of the true value of the property. The Supreme Court affirmed, holding (1) Ohio Rev. Code 5713.04, read in conjunction with former Ohio Rev. Code 5713.03, requires the taxing authorities to presume that an auction sale price is not a voluntary, arm’s-length transaction, but that presumption may be rebutted by evidence that a particular sale was in fact voluntary and did occur at arm’s length; and (2) the record supported the BTA’s finding that this particular auction sale was voluntary and occurred at arm’s length. View "Olentangy Local Sch. Bd. of Educ. v. Delaware County Bd. of Revision" on Justia Law

In 2006, the City of Cincinnati filed an application for exemption from real-property tax for property that constituted part of the City’s convention center. The tax commissioner granted the exemption for 2006 but denied it for subsequent years. While the City’s appeal was pending at the Board of Tax Appeals (BTA), new legislation was enacted that provided an exemption in the present situation. Therefore, the BTA remanded the case to the tax commissioner. While the 2006 exemption application was again pending before the tax commissioner, the Cincinnati City School District Board of Education attempted to intervene as a party. The tax commissioner denied the school board’s motion to intervene and, pursuant to the newly enacted legislation, granted the exemption for 2007 and later years. The school board appealed. The BTA dismissed the appeal on the grounds that the school board lacked standing to appeal. The Supreme Court affirmed, holding that the BTA acted reasonably and lawfully in determining that the school board lacked standing to appeal because of its failure to comply with Ohio Rev. Code 5715.27(C). View "Cincinnati City Sch. Dist. Bd. of Educ. v. Testa" on Justia Law

A property owner (Taxpayer) filed a complaint for tax year 2010, asking for a reduction from the auditor’s value of its property. The Cuyahoga County Board of Revision (BOR) dismissed Taxpayer’s complaint. Taxpayer then filed a complaint challenging the valuation for tax year 2011. Ohio Rev. Code 5715.19(A)(2) generally prohibits the filing of a second complaint within the same interim period, with certain exceptions, and the 2010 and 2011 tax years were part of the same interim period between the 2009 update and the 2012 reappraisal in Cuyahoga County. Taxpayer argued that two exceptions to the general rule applied in this case. The Board of Tax Appeals (BTA) disagreed and held that neither applied. The Supreme Court reversed, holding that the filing of Taxpayer’s tax-year-2011 complaint came within the exception in Ohio Rev. Code 5715.19(A)(2)(a), and the filing therefore invoked the jurisdiction of the BOR. Remanded. View "Soyko Kulchystsky, LLC v. Bd. of Revision" on Justia Law

In 2009, the Harrison County Board of Revision (BOR) issued two orders purporting to determine the value of two parcels owned by L.J. Smith, Inc. However, the BOR did not certify a transcript showing the filing of the complaint. Smith prosecuted an appeal to the Board of Tax Appeals (BTA) challenging the valuation. The BTA remanded the case to the BOR with instructions to vacate its decision, concluding that “nothing in the record demonstrated that Smith did, in fact, file a complaint” with the BOR. The Supreme Court affirmed, holding (1) the presumption of regularity was rebutted by the BOR’s failure to certify a transcript under these circumstances, and therefore, the BTA should not have relied on that presumption; but (2) the BTA acted reasonably and lawfully in deeming the evidence of filing to be insufficient and in vacating the BOR order. View "L.J. Smith, Inc. v. Harrison County Bd. of Revision" on Justia Law

In tax year 2007, a county fiscal officer valued an improved 6.415-acre parcel in the county at $8,740,000, consistent with the property's 2004 sale price. The property owner filed an amended complaint seeking a reduction to $3,100,000. The board of revision issued a decision retaining the fiscal officer’s valuation of the property. The owner and the school board of education both appealed. Before the board of tax appeals (BTA), the parties presented competing appraisals. The BTA accepted the owner’s appraisal and assigned a value of $3,100,000. The Supreme Court affirmed, holding (1) the school board did not show that the BTA’s acceptance of the valuation presented by the owner was unlawful or unreasonable; and (2) the record supported the BTA’s decision.View "Health Care REIT, Inc. v. Cuyahoga County Bd. of Revision" on Justia Law

The county auditor assigned an aggregate value for four properties of $468,470 for the tax year 2008, which represented a significant increase over the aggregate valuation of the parcels’ two ancestor parcels. After a hearing before the county board of revision (BOR), the aggregate valuation of the four parcels changed to $383,180. The Board of Tax Appeals (BTA) reversed, holding that the sale price of $135,000 from a 2006 transaction was the best evidence of value of the four parcels on the tax-lien date for tax year 2008. The Supreme Court reversed, holding that the 2006 purchase of the two ancestor parcels was not recent to the 2008 tax lien date because Appellant changed the character of the property when it split the two parcels into four total parcels in 2007.View "Richman Props., LLC v. Medina County Bd. of Revision" on Justia Law