Property Tax Alert: Ohio

November 2005

The board of revision (BOR) correctly factored in the impending vacancy of property leased as office space when it valued the subject property for Ohio property tax purposes, even though the property was fully leased as of the tax lien date. The taxpayer's major tenant had publicly announced its intention to vacate the property by the end of the year, leaving the property nearly vacant. The school district objected to the resulting lower appraised value but failed to present any supporting evidence as to why the old value should be retained. The taxpayer supplied the BOR with competent and probative evidence using the income approach to value and presented testimony demonstrating that a potential buyer would need to consider the impact of the impending vacancy.

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