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Sub. H. B. No. 138 As Enrolled
(130th General Assembly)
(Substitute House Bill Number 138)
AN ACT
To amend sections 5703.02, 5717.01, 5717.011,
5717.02, and 5717.04 and to enact sections
5703.021 and 5717.031 of the Revised Code to make
changes to the law governing the Board of Tax
Appeals, including authorizing a small claims
docket within the Board, requiring the Board to
adopt rules to manage appeals and operate a
mediation program, requiring the Board to receive
notices of appeal and statutory transcripts
electronically, providing pleading standards for
appeals to the Board, and expressly authorizing
the Board to consider motions.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 5703.02, 5717.01, 5717.011, 5717.02,
and 5717.04 be amended and sections 5703.021 and 5717.031 of the
Revised Code be enacted to read as follows:
Sec. 5703.02. There is hereby created the board of tax
appeals, which shall exercise the following powers and perform the
following duties:
(A) Exercise the authority provided by law to hear and
determine all appeals of questions of law and fact arising under
the tax laws of this state in appeals from decisions, orders,
determinations, or actions of any tax administrative agency
established by the law of this state, including but not limited to
appeals from:
(1) Actions of county budget commissions;
(2) Decisions of county boards of revision;
(3) Actions of any assessing officer or other public official
under the tax laws of this state;
(4) Final determinations by the tax commissioner of any
preliminary, amended, or final tax assessments, reassessments,
valuations, determinations, findings, computations, or orders made
by him the tax commissioner;
(5) Adoption and promulgation of rules of the tax
commissioner.
(B) Appoint a secretary of the board of tax appeals, who
shall serve in the unclassified civil service at the pleasure of
the board, and any other employees as are necessary in the
exercise of the powers and the performance of the duties and
functions that the board is by law authorized and required to
exercise, and prescribe the duties of all employees, and to fix
their compensation as provided by law;
(C) Maintain a journal, which shall be open to public
inspection and in which the secretary shall keep a record of all
of the proceedings and the vote of each of its members upon every
action taken by it;
(D) Adopt and promulgate, in the manner provided by section
5703.14 of the Revised Code, and enforce all rules relating to the
procedure of the board in hearing appeals it has the authority or
duty to hear, and to the procedure of officers or employees whom
the board may appoint; provided that section 5703.13 of the
Revised Code shall apply to and govern the procedure of the board.
Such rules shall include, but need not be limited to, the
following:
(1) Rules governing the creation and implementation of a
mediation program, including procedures for requesting, requiring
participation in, objecting to, and conducting a mediation;
(2) Rules requiring the tax commissioner, county boards of
revision, and municipal boards of appeal created under section
718.11 of the Revised Code to electronically file any transcript
required to be filed with the board of tax appeals, and
instructions and procedures for the electronic filing of such
transcripts.
(3) Rules establishing procedures to control and manage
appeals filed with the board. The procedures shall include, but
not be limited to, the establishment of a case management schedule
that shall include expected dates related to discovery deadlines,
disclosure of evidence, pre-hearing motions, and the hearing, and
other case management issues considered appropriate.
Sec. 5703.021. (A) There is hereby established a small claims
docket within the board of tax appeals.
(B) An appeal may be filed with the board of tax appeals and
assigned to the small claims docket as authorized under division
(C) of this section, provided the appeal is either of the
following:
(1) Commenced under section 5717.01 of the Revised Code in
which the property at issue qualifies for the partial tax
exemption described in section 319.302 of the Revised Code; or
(2) Commenced under section 5717.011 or 5717.02 of the
Revised Code when the amount in controversy claimed by the
taxpayer does not exceed ten thousand dollars exclusive of
interest and penalty. The board by rule may modify the
jurisdictional dollar threshold for cases qualifying for the small
claims docket.
(C)(1) An appeal may be assigned to the small claims docket
only if either of the following applies:
(a) The appellant is one or more taxpayers that requests
assignment of the appeal to the small claims docket;
(b) The appellant is not a taxpayer, and the appellant files
with the notice of appeal a written statement from every taxpayer
that is a party to the appeal stating that each such taxpayer
consents to the appeal being assigned to the small claims docket.
(2) After an appeal is assigned to the small claims docket or
the regular docket, the board may reassign the case to the regular
docket or the small claims docket, respectively, only with the
written consent of all the parties or as authorized under division
(D) of this section.
(D) Notwithstanding division (B) of this section, the board
shall reassign an appeal initially assigned to the small claims
docket to the regular docket upon the request of a party that is a
taxpayer, when the appeal presents an issue of public or great
general interest or presents a constitutional issue, or when the
board determines that the appeal does not meet the requirements of
division (B) of this section.
(E) The board shall adopt rules to implement procedures to
provide informal review of the taxpayers' appeals in the small
claims docket, which may include telephonic hearings.
(F) A decision or order for an appeal assigned to the small
claims docket shall be conclusive as to all parties and may not be
appealed, and shall be recorded in the journal required by
division (C) of section 5703.02 of the Revised Code, but such a
decision or order shall not be considered as precedent in any
other case, hearing, or proceeding.
(G) The appearance of an attorney at law licensed to practice
law in this state on behalf of any party to an appeal assigned to
the small claims docket is permitted but not required. A person
other than a natural person, which is a real party in interest as
taxpayer or claimant, or an entity that may participate by
statute, may commence such an appeal or appear through an attorney
at law licensed to practice law in this state. Such an
organization may, through any bona fide officer, partner, member,
trustee, or salaried employee, file and present its claim or
defense in any appeal assigned to the small claims docket,
provided the organization does not, in the absence of
representation by an attorney at law licensed to practice law in
this state, engage in cross-examination, argument, or other acts
of advocacy. The board may provide by rule for additional
guidelines applicable to practice before the board.
Sec. 5717.01. An appeal from a decision of a county board of
revision may be taken to the board of tax appeals within thirty
days after notice of the decision of the county board of revision
is mailed as provided in division (A) of section 5715.20 of the
Revised Code. Such an appeal may be taken by the county auditor,
the tax commissioner, or any board, legislative authority, public
official, or taxpayer authorized by section 5715.19 of the Revised
Code to file complaints against valuations or assessments with the
auditor. Such appeal shall be taken by the filing of a notice of
appeal, in person or by certified mail, express mail, facsimile
transmission, electronic transmission, or
by authorized delivery
service, with the board of tax appeals and with the county board
of revision. If notice of appeal is filed by certified mail,
express mail, or authorized delivery service as provided in
section 5703.056 of the Revised Code, the date of the United
States postmark placed on the sender's receipt by the postal
service or the date of receipt recorded by the authorized delivery
service shall be treated as the date of filing. If notice of
appeal is filed by facsimile transmission or electronic
transmission, the date and time the notice is received by the
board shall be the date and time reflected on a timestamp provided
by the board's electronic system, and the appeal shall be
considered filed with the board on the date reflected on that
timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date
the notice is received by the board. Upon receipt of such notice
of appeal such county board of revision shall by certified mail
notify all persons thereof who were parties to the proceeding
before such county board of revision, and shall file proof of such
notice with the board of tax appeals. The county board of revision
shall thereupon certify to the board of tax appeals a transcript
of the record of the proceedings of the county board of revision
pertaining to the original complaint, and all evidence offered in
connection therewith. Such appeal may be heard by the board of tax
appeals at its offices in Columbus or in the county where the
property is listed for taxation, or the board of tax appeals may
cause its examiners to conduct such hearing and to report to it
their findings for affirmation or rejection. An appeal may proceed
pursuant to section 5703.021 of the Revised Code on the small
claims docket if the appeal qualifies under that section.
The board of tax appeals may order the appeal to be heard on
the record and the evidence certified to it by the county board of
revision, or it may order the hearing of additional evidence, and
it may make such investigation concerning the appeal as it deems
proper.
Sec. 5717.011. (A) As used in this chapter, "tax
administrator" has the same meaning as in section 718.01 of the
Revised Code.
(B) Appeals from a municipal board of appeal created under
section 718.11 of the Revised Code may be taken by the taxpayer or
the tax administrator to the board of tax appeals or may be taken
by the taxpayer or the tax administrator to a court of common
pleas as otherwise provided by law. If the taxpayer or the tax
administrator elects to make an appeal to the board of tax appeals
or court of common pleas, and subject to section 5703.021 of the
Revised Code with respect to appeals assigned to the small claims
docket, the appeal shall be taken by the filing of a notice of
appeal with the board of tax appeals or court of common pleas, the
municipal board of appeal, and the opposing party. The notice of
appeal shall be filed within sixty days after the day the
appellant receives notice of the decision issued under section
718.11 of the Revised Code. The An appeal filed with a court of
common pleas is governed by the Rules of Civil Procedure and other
rules of practice and procedure applicable to civil actions. For
an appeal filed with the board of tax appeals, the notice of
appeal may be filed in person or by certified mail, express mail,
facsimile transmission, electronic transmission, or by authorized
delivery service as provided in section 5703.056 of the Revised
Code. If the notice of appeal is filed by certified mail, express
mail, or authorized delivery service as provided in section
5703.056 of the Revised Code, the date of the United States
postmark placed on the sender's receipt by the postal service or
the date of receipt recorded by the authorized delivery service
shall be treated as the date of filing with the board. If notice
of appeal is filed by facsimile transmission or electronic
transmission, the date and time the notice is received by the
board shall be the date and time reflected on a timestamp provided
by the board's electronic system, and the appeal shall be
considered filed with the board on the date reflected on that
timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date
the notice is received by the board. The notice of appeal shall
have attached thereto and incorporated therein by reference a true
copy of the decision issued under section 718.11 of the Revised
Code and shall specify the errors therein complained of, but
failure to attach a copy of such notice and incorporate it by
reference in the notice of appeal does not invalidate the appeal.
(C) A notice of appeal for an appeal filed with the board of
tax appeals shall contain a short and plain statement of the
claimed errors in the decision of the municipal board of appeal
showing that the appellant is entitled to relief and a demand for
the relief to which the appellant claims to be entitled. An
appellant may amend the notice of appeal once as a matter of
course within sixty days after the certification of the
transcript. Otherwise, an appellant may amend the notice of appeal
only after receiving leave of the board or the written consent of
each adverse party. Leave of the board shall be freely given when
justice so requires.
(D) Upon the filing of a notice of appeal with the board of
tax appeals, the municipal board of appeal shall certify to the
board of tax appeals a transcript of the record of the proceedings
before it, together with all evidence considered by it in
connection therewith. Such appeals may be heard by the board at
its office in Columbus or in the county where the appellant
resides, or it may cause its examiners to conduct such hearings
and to report to it their findings for affirmation or rejection.
The board may order the appeal to be heard upon the record and the
evidence certified to it by the administrator, but upon the
application of any interested party the board shall order the
hearing of additional evidence, and the board may make such
investigation concerning the appeal as it considers proper. An
appeal may proceed pursuant to section 5703.021 of the Revised
Code on the small claims docket if the appeals qualifies under
that section.
(D)(E) If an issue being appealed under this section is
addressed in a municipal corporation's ordinance or regulation,
the tax administrator, upon the request of the board of tax
appeals, shall provide a copy of the ordinance or regulation to
the board of tax appeals.
Sec. 5717.02. (A) Except as otherwise provided by law,
appeals from final determinations by the tax commissioner of any
preliminary, amended, or final tax assessments, reassessments,
valuations, determinations, findings, computations, or orders made
by the commissioner may be taken to the board of tax appeals by
the taxpayer, by the person to whom notice of the tax assessment,
reassessment, valuation, determination, finding, computation, or
order by the commissioner is required by law to be given, by the
director of budget and management if the revenues affected by that
decision would accrue primarily to the state treasury, or by the
county auditors of the counties to the undivided general tax funds
of which the revenues affected by that decision would primarily
accrue. Appeals from the redetermination by the director of
development services under division (B) of section 5709.64 or
division (A) of section 5709.66 of the Revised Code may be taken
to the board of tax appeals by the enterprise to which notice of
the redetermination is required by law to be given. Appeals from a
decision of the tax commissioner or county auditor concerning an
application for a property tax exemption may be taken to the board
of tax appeals by the applicant or by a school district that filed
a statement concerning that application under division (C) of
section 5715.27 of the Revised Code. Appeals from a
redetermination by the director of job and family services under
section 5733.42 of the Revised Code may be taken by the person to
which the notice of the redetermination is required by law to be
given under that section.
(B) The appeals shall be taken by the filing of a notice of
appeal with the board, and with the tax commissioner if the tax
commissioner's action is the subject of the appeal, with the
county auditor if the county auditor's action is the subject of
the appeal, with the director of development services if that
director's action is the subject of the appeal, or with the
director of job and family services if that director's action is
the subject of the appeal. The notice of appeal shall be filed
within sixty days after service of the notice of the tax
assessment, reassessment, valuation, determination, finding,
computation, or order by the commissioner, property tax exemption
determination by the commissioner or the county auditor, or
redetermination by the director has been given as provided in
section 5703.37, 5709.64, 5709.66, or 5733.42 of the Revised Code.
The notice of appeal may be filed in person or by certified mail,
express mail, facsimile transmission, electronic transmission or
by authorized delivery service. If the notice of appeal is filed
by certified mail, express mail, or authorized delivery service as
provided in section 5703.056 of the Revised Code, the date of the
United States postmark placed on the sender's receipt by the
postal service or the date of receipt recorded by the authorized
delivery service shall be treated as the date of filing. If notice
of appeal is filed by facsimile transmission or electronic
transmission, the date and time the notice is received by the
board shall be the date and time reflected on a timestamp provided
by the board's electronic system, and the appeal shall be
considered filed with the board on the date reflected on that
timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date
the notice is received by the board. The notice of appeal shall
have attached to it and incorporated in it by reference a true
copy of the notice sent by the commissioner, county auditor, or
director to the taxpayer, enterprise, or other person of the final
determination or redetermination complained of, and shall also
specify the errors therein complained of, but failure to attach a
copy of that notice and to incorporate it by reference in the
notice of appeal does not invalidate the appeal.
(C) A notice of appeal shall contain a short and plain
statement of the claimed errors in the determination or
redetermination of the tax commissioner, county auditor, or
director showing that the appellant is entitled to relief and a
demand for the relief to which the appellant claims to be
entitled. An appellant may amend the notice of appeal once as a
matter of course within sixty days after the certification of the
transcript. Otherwise, an appellant may amend the notice of appeal
only after receiving leave of the board or the written consent of
each adverse party. Leave of the board shall be freely given when
justice so requires.
(D) Upon the filing of a notice of appeal, the tax
commissioner, county auditor, or the director, as appropriate,
shall certify to the board a transcript of the record of the
proceedings before the commissioner, auditor, or director,
together with all evidence considered by the commissioner,
auditor, or director in connection with the proceedings. Those
appeals or applications may be heard by the board at its office in
Columbus or in the county where the appellant resides, or it may
cause its examiners to conduct the hearings and to report to it
their findings for affirmation or rejection.
(D)(E) The board may order the appeal to be heard upon the
record and the evidence certified to it by the commissioner,
county auditor, or director, but upon the application of any
interested party the board shall order the hearing of additional
evidence, and it may make an investigation concerning the appeal
that it considers proper.
An appeal may proceed pursuant to
section 5703.021 of the Revised Code on the small claims docket if
the appeal qualifies under that section.
Sec. 5717.031. The board of tax appeals may consider and
decide motions, including, but not limited to, motions in limine,
before the board makes a decision on any matter.
Sec. 5717.04. The This section does not apply to any
decision and order of the board made pursuant to section 5703.021
of the Revised Code. Any such decision and order shall be
conclusive upon all parties and may not be appealed.
The proceeding to obtain a reversal, vacation, or
modification of a decision of the board of tax appeals shall be by
appeal to the supreme court or the court of appeals for the county
in which the property taxed is situate or in which the taxpayer
resides. If the taxpayer is a corporation, then the proceeding to
obtain such reversal, vacation, or modification shall be by appeal
to the supreme court or to the court of appeals for the county in
which the property taxed is situate, or the county of residence of
the agent for service of process, tax notices, or demands, or the
county in which the corporation has its principal place of
business. In all other instances, the proceeding to obtain such
reversal, vacation, or modification shall be by appeal to the
court of appeals for Franklin county.
Appeals from decisions of the board determining appeals from
decisions of county boards of revision may be instituted by any of
the persons who were parties to the appeal before the board of tax
appeals, by the person in whose name the property involved in the
appeal is listed or sought to be listed, if such person was not a
party to the appeal before the board of tax appeals, or by the
county auditor of the county in which the property involved in the
appeal is located.
Appeals from decisions of the board of tax appeals
determining appeals from final determinations by the tax
commissioner of any preliminary, amended, or final tax
assessments, reassessments, valuations, determinations, findings,
computations, or orders made by the commissioner may be instituted
by any of the persons who were parties to the appeal or
application before the board, by the person in whose name the
property is listed or sought to be listed, if the decision
appealed from determines the valuation or liability of property
for taxation and if any such person was not a party to the appeal
or application before the board, by the taxpayer or any other
person to whom the decision of the board appealed from was by law
required to be sent, by the director of budget and management if
the revenue affected by the decision of the board appealed from
would accrue primarily to the state treasury, by the county
auditor of the county to the undivided general tax funds of which
the revenues affected by the decision of the board appealed from
would primarily accrue, or by the tax commissioner.
Appeals from decisions of the board upon all other appeals or
applications filed with and determined by the board may be
instituted by any of the persons who were parties to such appeal
or application before the board, by any persons to whom the
decision of the board appealed from was by law required to be
sent, or by any other person to whom the board sent the decision
appealed from, as authorized by section 5717.03 of the Revised
Code.
Such appeals shall be taken within thirty days after the date
of the entry of the decision of the board on the journal of its
proceedings, as provided by such section, by the filing by
appellant of a notice of appeal with the court to which the appeal
is taken and the board. If a timely notice of appeal is filed by a
party, any other party may file a notice of appeal within ten days
of the date on which the first notice of appeal was filed or
within the time otherwise prescribed in this section, whichever is
later. A notice of appeal shall set forth the decision of the
board appealed from and the errors therein complained of. Proof of
the filing of such notice with the board shall be filed with the
court to which the appeal is being taken. The court in which
notice of appeal is first filed shall have exclusive jurisdiction
of the appeal.
In all such appeals the tax commissioner or all persons to
whom the decision of the board appealed from is required by such
section to be sent, other than the appellant, shall be made
appellees. Unless waived, notice of the appeal shall be served
upon all appellees by certified mail. The prosecuting attorney
shall represent the county auditor in any such appeal in which the
auditor is a party.
The board, upon written demand filed by an appellant, shall
within thirty days after the filing of such demand file with the
court to which the appeal is being taken a certified transcript of
the record of the proceedings of the board pertaining to the
decision complained of and the evidence considered by the board in
making such decision.
If upon hearing and consideration of such record and evidence
the court decides that the decision of the board appealed from is
reasonable and lawful it shall affirm the same, but if the court
decides that such decision of the board is unreasonable or
unlawful, the court shall reverse and vacate the decision or
modify it and enter final judgment in accordance with such
modification.
The clerk of the court shall certify the judgment of the
court to the board, which shall certify such judgment to such
public officials or take such other action in connection therewith
as is required to give effect to the decision. The "taxpayer"
includes any person required to return any property for taxation.
Any party to the appeal shall have the right to appeal from
the judgment of the court of appeals on questions of law, as in
other cases.
SECTION 2. That existing sections 5703.02, 5717.01, 5717.011,
5717.02, and 5717.04 of the Revised Code are hereby repealed.
SECTION 3. The amendment by this act of division (D)(2) of
section 5703.02 of the Revised Code takes effect January 1, 2015.
SECTION 4. Any rule adopted by the Board of Tax Appeals under
division (D)(3) of section 5703.02 of the Revised Code shall apply
to appeals filed with the Board on or after January 1, 2015.
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