OCCO reception brings together CCAO members, state policymakers to discuss key county priorities
 
The Ohio Council of County Officials held its annual legislative reception this week at the Ohio Statehouse atrium, bringing together hundreds of county elected officials with state lawmakers and state executive officials. CCAO was well represented at the event, with commissioners, county council members and executives from across the state.
 
CCAO would like to thank Governor Mike DeWine and First Lady Fran DeWine for their attendance at the reception and taking the time to speak with so many CCAO members. Their investment of time into the state-county partnership is truly appreciated. CCAO also thanks OBM Director Kim Murnieks for providing remarks to attendees on the many investments made into the state-county partnership in recent years. Also attending the reception were many members of the Ohio House and Senate. CCAO is grateful for their attendance and engagement with CCAO members.
 
CCAO members had much to discuss with lawmakers during the reception. County priorities included:
 

• Opposition to House Bill 488. HB 488 seeks to allow judges to acquire outside legal counsel with less involvement from county commissioners and the county prosecutor. CCAO is opposed to this legislation which reduces local checks and balances. CCAO recently sent out a legislative alert on this bill to its membership.

• Continued support for state capital funding for county jails. Counties strongly urge the General Assembly to continue and expand capital funding for county jails as part of the upcoming state capital budget.

• Remove unfunded mandates. CCAO strongly opposed unfunded mandates places on county government. Of particular interest to counties is the looming second primary election. This election, created by events entirely outside counties’ control, will cost counties between $20 to $25 million. CCAO asks that the state fully fund these costs.

• Preserving county revenue streams. The sales tax is the lifeblood of county government. Continued exemptions and carveouts to the sales tax base further erode this critical county revenue source. CCAO asks that the sales tax base be kept broad, free from further exemptions.

• Showing thanks for recent successes. The past several years have brought significant advances in the state-county partnership. Investments in indigent defense reimbursement, children’s services, jail funding, water and sewer grants, demolition and brownfield remediation grants, broadband expansion and more have all been significant victories which are worth celebrating and are much appreciated.

House Bill 126 amends law governing valuation challenges
 
The Conference Committee report for House Bill 126, sponsored by Rep. Derek Merrin, was approved by the House (61-35) and Senate (24-8) on Wednesday and will be sent to the Governor for his review. CCAO was opposed to the Senate version of the legislation, which prohibited school boards and all other political subdivisions from filing property tax challenges for property they do not own. The Conference Committee report reflected a compromise that removes the authority of school boards and other political subdivisions to challenge the valuation of residential property but allows challenges to commercial property under certain circumstances. The legislation also makes significant changes to the process that is used to initiate challenges in the Board of Revision (BOR) process. The amendments apply to challenges filed for tax year 2022 and after. 
 
Procedurally, if the school board is filing an “original challenge” (i.e., not a counter-complaint) to a property it does not own, it must adopt a resolution authorizing the complaint for each property it wishes to challenge after providing notice by certified mail to the property owner. Alternatively, notice may be provided by regular mail if electronic notification is also sent. 
 
The Board of Revision may accept the complaint only (1) if the property was sold in an arm’s length sale in the year before the tax lien date for the tax year for which the complaint is to be filed, and (2) the sale price was at least 10% higher than the auditor’s true value and exceeds the value by least $500,000. The “filing threshold” of $500,000 will be adjusted for inflation each year. 
 
The legislation also prohibits the use of a settlement agreement between a school board and a property owner that requires the use of payments to the school board in return for the board ending its challenge at the BOR. This prohibition applies to agreements that might be entered into after the bill’s effective date. 
 
Other changes made by the bill include:
 

• The political subdivision may not appeal a BOR decision to the Board of Tax Appeals for property that it does not own. 
• The BOR is not required to notify a board of education that a property owner has filed a complaint. 
• A board of education may file a counter-complaint only in cases involving overvaluation or incorrect valuation of at least $17,500 in taxable value. The cases may be filed without first adopting a resolution.  
• The BOR must dismiss a complaint made through an original challenge if it has not made a decision within one year after the complaint was filed.    

 
Members with questions should contact Jon Honeck, jhoneck@ccao.org, 614-220-7982.