Reducing property taxes

Tax, SDIRAs & Cost Segregation
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Reducing property taxes

Michael Goldberg
Investor · Member since 2020 · 32 posts · 33 votes

I have been buying homes in Ohio for years now and most of the time the property taxes are not correct or they balloon to an insane number that doesn't make sense after my first year owning. Anyone else have this problem or know of a good solution?

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Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
2mo
Quote from @Michael Goldberg:

I have been buying homes in Ohio for years now and most of the time the property taxes are not correct or they balloon to an insane number that doesn't make sense after my first year owning. Anyone else have this problem or know of a good solution?


 I would look at the treasurer site to make sure. You can also fight your property taxes in columbus. I'm doing mine now.

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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2mo
    Quote from @Michael Goldberg:

    I have been buying homes in Ohio for years now and most of the time the property taxes are not correct or they balloon to an insane number that doesn't make sense after my first year owning. Anyone else have this problem or know of a good solution?


     I would look at the treasurer site to make sure. You can also fight your property taxes in columbus. I'm doing mine now.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 530 Reviews
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    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Michael Goldberg:

    I have been buying homes in Ohio for years now and most of the time the property taxes are not correct or they balloon to an insane number that doesn't make sense after my first year owning. Anyone else have this problem or know of a good solution?

    Great question, Michael. I've seen this happen quite a bit in Ohio. A lot of times the county is still taxing the property based on the previous owner's valuation or an older assessed value, then after the sale they update it closer to the purchase price or after a reassessment, which can make taxes jump unexpectedly. Before I buy, I always estimate taxes based on what the property is likely to be reassessed at rather than what's currently shown on the listing. If the numbers only work with today's tax bill, I assume the deal is probably too tight. It also helps to check with the county auditor to see if there are any exemptions that will fall off after the sale, since those can make a big difference too. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    My wife's actually from Ohio, so this hits close to home. Ohio law lets county auditors use the actual sale price as evidence of a property's true value for tax purposes, and it's common for the assessed value to get bumped up to reflect a recent sale price if it came in well above the prior assessment, that's usually what's behind the balloon you're seeing in year one. It's not automatic in every county, some are more aggressive about applying this than others, and it can also just be timing, Ohio counties do full reappraisals every 6 years with a 3-year update in between, so a scheduled reassessment can land the same year as your purchase too.

    Worth filing an appeal with the county Board of Revision if the new assessment genuinely doesn't reflect market value, that process exists specifically for this. Also keep in mind for tax purposes on your return, property tax is deductible in the year paid regardless of whether the assessment feels fair, so budget conservatively for a post-purchase bump rather than relying on the seller's prior tax bill when underwriting.

    Happy to connect!

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  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hey Michael,

    I'm not familiar enough with Ohio's property tax system to speak to the specifics, but in general it's worth reviewing your property tax assessment every year, especially after purchasing a home. In some areas, a sale can trigger a reassessment, and the assessed value doesn't always reflect the property's true market value.

    If you think the assessment is too high, look into the local appeal process. Having comparable sales, an independent appraisal, or other evidence to support your case can make a big difference.

    It may also be worth talking to a local real estate attorney or tax appeal specialist who's familiar with your county. They can usually tell you pretty quickly whether you have a strong case and if it's worth pursuing.

    All the best!

    1Reply
  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes
    1mo

    What you're running into is really common in Ohio. When you buy, the county auditor can treat your actual purchase price as evidence of the property's true value, so the assessed value gets bumped up to reflect what you just paid, and that's usually what makes the tax bill balloon in year one. It doesn't happen automatically in every county, some are more aggressive than others, and part of it can just be timing since Ohio does a full reappraisal every six years with an update around year three, so a scheduled reassessment can land the same year you close. If the new assessment genuinely doesn't reflect market value, you can challenge it by filing a complaint with your county Board of Revision, which is exactly what that process is for. And when you're underwriting, budget your taxes off your purchase price rather than the seller's old bill so the bump doesn't wreck your numbers. How it plays out really depends on your county and your specific facts, so it's worth running it by your own CPA or tax advisor.

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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1mo

    I would look to get a real estate attorney that appeals property taxes

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