As Passed by the House

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 138

Representatives McClain, Letson 

Cosponsors: Representatives Amstutz, Adams, R., Anielski, Antonio, Ashford, Barborak, Beck, Blair, Blessing, Boose, Brenner, Brown, Buchy, Burkley, Butler, Carney, Celebrezze, Damschroder, Derickson, Dovilla, Duffey, Gonzales, Green, Grossman, Hackett, Hall, Huffman, Kunze, Landis, McGregor, Milkovich, O'Brien, Perales, Pillich, Rogers, Ruhl, Scherer, Schuring, Slesnick, Sprague, Stautberg, Stebelton, Szollosi, Terhar, Winburn, Young Speaker Batchelder 

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A BILL

To amend sections 5703.02, 5717.01, 5717.011,

1

5717.02, and 5717.04 and to enact sections

2

5703.021 and 5717.031 of the Revised Code to make

3

changes to the law governing the Board of Tax

4

Appeals, including authorizing a small claims

5

docket within the Board, requiring the Board to

6

adopt rules to manage appeals and operate a

7

mediation program, requiring the Board to receive

8

notices of appeal and statutory transcripts

9

electronically, providing pleading standards for

10

appeals to the Board, and expressly authorizing

11

the Board to consider motions.

12

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5703.02, 5717.01, 5717.011, 5717.02,	13
and 5717.04 be amended and sections 5703.021 and 5717.031 of the	14
Revised Code be enacted to read as follows:	15

Sec. 5703.02.  There is hereby created the board of tax	16
appeals, which shall exercise the following powers and perform the	17
following duties:	18

(A) Exercise the authority provided by law to hear and	19
determine all appeals of questions of law and fact arising under	20
the tax laws of this state in appeals from decisions, orders,	21
determinations, or actions of any tax administrative agency	22
established by the law of this state, including but not limited to	23
appeals from:	24

(1) Actions of county budget commissions;

25

(2) Decisions of county boards of revision;

26

(3) Actions of any assessing officer or other public official	27
under the tax laws of this state;	28

(4) Final determinations by the tax commissioner of any	29
preliminary, amended, or final tax assessments, reassessments,	30
valuations, determinations, findings, computations, or orders made	31
by himthe tax commissioner;	32

(5) Adoption and promulgation of rules of the tax	33
commissioner.	34

(B) Appoint a secretary of the board of tax appeals, who	35
shall serve in the unclassified civil service at the pleasure of	36
the board, and any other employees as are necessary in the	37
exercise of the powers and the performance of the duties and	38
functions that the board is by law authorized and required to	39
exercise, and prescribe the duties of all employees, and to fix	40
their compensation as provided by law;	41

(C) Maintain a journal, which shall be open to public	42
inspection and in which the secretary shall keep a record of all	43
of the proceedings and the vote of each of its members upon every	44
action taken by it;	45

(D) Adopt and promulgate, in the manner provided by section	46
5703.14 of the Revised Code, and enforce all rules relating to the	47
procedure of the board in hearing appeals it has the authority or	48
duty to hear, and to the procedure of officers or employees whom	49
the board may appoint; provided that section 5703.13 of the	50
Revised Code shall apply to and govern the procedure of the board.	51
Such rules shall include, but need not be limited to, the	52
following:	53

(1) Rules governing the creation and implementation of a	54
mediation program, including procedures for requesting, requiring	55
participation in, objecting to, and conducting a mediation;	56

(2) Rules requiring the tax commissioner, county boards of	57
revision, and municipal boards of appeal created under section	58
718.11 of the Revised Code to electronically file any transcript	59
required to be filed with the board of tax appeals, and	60
instructions and procedures for the electronic filing of such	61
transcripts.	62

(3) Rules establishing procedures to control and manage	63
appeals filed with the board. The procedures shall include, but	64
not be limited to, the establishment of a case management schedule	65
that shall include expected dates related to discovery deadlines,	66
disclosure of evidence, pre-hearing motions, and the hearing, and	67
other case management issues considered appropriate.	68

Sec. 5703.021. (A) There is hereby established a small claims	69
docket within the board of tax appeals.	70

(B) An appeal may be filed with the board of tax appeals and	71
assigned to the small claims docket as authorized under division	72
(C) of this section, provided the appeal is either of the	73
following:	74

(1) Commenced under section 5717.01 of the Revised Code in	75
which the property at issue qualifies for the partial tax	76
exemption described in section 319.302 of the Revised Code; or	77

(2) Commenced under section 5717.011 or 5717.02 of the	78
Revised Code when the amount in controversy claimed by the	79
taxpayer does not exceed ten thousand dollars exclusive of	80
interest and penalty. The board by rule may modify the	81
jurisdictional dollar threshold for cases qualifying for the small	82
claims docket.	83

(C)(1) An appeal may be assigned to the small claims docket	84
only if either of the following applies:	85

(a) The appellant is one or more taxpayers that requests	86
assignment of the appeal to the small claims docket;	87

(b) The appellant is not a taxpayer, and the appellant files	88
with the notice of appeal a written statement from every taxpayer	89
that is a party to the appeal stating that each such taxpayer	90
consents to the appeal being assigned to the small claims docket.	91

(2) After an appeal is assigned to the small claims docket or	92
the regular docket, the board may reassign the case to the regular	93
docket or the small claims docket, respectively, only with the	94
written consent of all the parties or as authorized under division	95
(D) of this section.	96

(D) Notwithstanding division (B) of this section, the board	97
shall reassign an appeal initially assigned to the small claims	98
docket to the regular docket upon the request of a party that is a	99
taxpayer, when the appeal presents an issue of public or great	100
general interest or presents a constitutional issue, or when the	101
board determines that the appeal does not meet the requirements of	102
division (B) of this section.	103

(E) The board shall adopt rules to implement procedures to	104
provide informal review of the taxpayers' appeals in the small	105
claims docket, which may include telephonic hearings.	106

(F) A decision or order for an appeal assigned to the small	107
claims docket shall be conclusive as to all parties and may not be	108
appealed, and shall be recorded in the journal required by	109
division (C) of section 5703.02 of the Revised Code, but such a	110
decision or order shall not be considered as precedent in any	111
other case, hearing, or proceeding.	112

(G) The appearance of an attorney at law licensed to practice	113
law in this state on behalf of any party to an appeal assigned to	114
the small claims docket is permitted but not required. A person	115
other than a natural person, which is a real party in interest as	116
taxpayer or claimant, or an entity that may participate by	117
statute, may commence such an appeal or appear through an attorney	118
at law licensed to practice law in this state. Such an	119
organization may, through any bona fide officer, partner, member,	120
trustee, or salaried employee, file and present its claim or	121
defense in any appeal assigned to the small claims docket,	122
provided the organization does not, in the absence of	123
representation by an attorney at law licensed to practice law in	124
this state, engage in cross-examination, argument, or other acts	125
of advocacy. The board may provide by rule for additional	126
guidelines applicable to practice before the board.	127

Sec. 5717.01.  An appeal from a decision of a county board of	128
revision may be taken to the board of tax appeals within thirty	129
days after notice of the decision of the county board of revision	130
is mailed as provided in division (A) of section 5715.20 of the	131
Revised Code. Such an appeal may be taken by the county auditor,	132
the tax commissioner, or any board, legislative authority, public	133
official, or taxpayer authorized by section 5715.19 of the Revised	134
Code to file complaints against valuations or assessments with the	135
auditor. Such appeal shall be taken by the filing of a notice of	136
appeal, in person or by certified mail, express mail, facsimile	137
transmission, electronic transmission, or by authorized delivery	138
service, with the board of tax appeals and with the county board	139
of revision. If notice of appeal is filed by certified mail,	140
express mail, or authorized delivery service as provided in	141
section 5703.056 of the Revised Code, the date of the United	142
States postmark placed on the sender's receipt by the postal	143
service or the date of receipt recorded by the authorized delivery	144
service shall be treated as the date of filing. If notice of	145
appeal is filed by facsimile transmission or electronic	146
transmission, the date and time the notice is received by the	147
board shall be the date and time reflected on a timestamp provided	148
by the board's electronic system, and the appeal shall be	149
considered filed with the board on the date reflected on that	150
timestamp. Any timestamp provided by another computer system or	151
electronic submission device shall not affect the time and date	152
the notice is received by the board. Upon receipt of such notice	153
of appeal such county board of revision shall by certified mail	154
notify all persons thereof who were parties to the proceeding	155
before such county board of revision, and shall file proof of such	156
notice with the board of tax appeals. The county board of revision	157
shall thereupon certify to the board of tax appeals a transcript	158
of the record of the proceedings of the county board of revision	159
pertaining to the original complaint, and all evidence offered in	160
connection therewith. Such appeal may be heard by the board of tax	161
appeals at its offices in Columbus or in the county where the	162
property is listed for taxation, or the board of tax appeals may	163
cause its examiners to conduct such hearing and to report to it	164
their findings for affirmation or rejection. An appeal may proceed	165
pursuant to section 5703.021 of the Revised Code on the small	166
claims docket if the appeal qualifies under that section.	167

The board of tax appeals may order the appeal to be heard on	168
the record and the evidence certified to it by the county board of	169
revision, or it may order the hearing of additional evidence, and	170
it may make such investigation concerning the appeal as it deems	171
proper.	172

Sec. 5717.011.  (A) As used in this chapter, "tax	173
administrator" has the same meaning as in section 718.01 of the	174
Revised Code.	175

(B) Appeals from a municipal board of appeal created under	176
section 718.11 of the Revised Code may be taken by the taxpayer or	177
the tax administrator to the board of tax appeals or may be taken	178
by the taxpayer or the tax administrator to a court of common	179
pleas as otherwise provided by law. If the taxpayer or the tax	180
administrator elects to make an appeal to the board of tax appeals	181
or court of common pleas, and subject to section 5703.021 of the	182
Revised Code with respect to appeals assigned to the small claims	183
docket, the appeal shall be taken by the filing of a notice of	184
appeal with the board of tax appeals or court of common pleas, the	185
municipal board of appeal, and the opposing party. The notice of	186
appeal shall be filed within sixty days after the day the	187
appellant receives notice of the decision issued under section	188
718.11 of the Revised Code. TheAn appeal filed with a court of	189
common pleas is governed by the Rules of Civil Procedure and other	190
rules of practice and procedure applicable to civil actions. For	191
an appeal filed with the board of tax appeals, the notice of	192
appeal may be filed in person or by certified mail, express mail,	193
facsimile transmission, electronic transmission, or by authorized	194
delivery service as provided in section 5703.056 of the Revised	195
Code. If the notice of appeal is filed by certified mail, express	196
mail, or authorized delivery service as provided in section	197
5703.056 of the Revised Code, the date of the United States	198
postmark placed on the sender's receipt by the postal service or	199
the date of receipt recorded by the authorized delivery service	200
shall be treated as the date of filing with the board. If notice	201
of appeal is filed by facsimile transmission or electronic	202
transmission, the date and time the notice is received by the	203
board shall be the date and time reflected on a timestamp provided	204
by the board's electronic system, and the appeal shall be	205
considered filed with the board on the date reflected on that	206
timestamp. Any timestamp provided by another computer system or	207
electronic submission device shall not affect the time and date	208
the notice is received by the board. The notice of appeal shall	209
have attached thereto and incorporated therein by reference a true	210
copy of the decision issued under section 718.11 of the Revised	211
Code and shall specify the errors therein complained of, but	212
failure to attach a copy of such notice and incorporate it by	213
reference in the notice of appeal does not invalidate the appeal.	214

(C) A notice of appeal for an appeal filed with the board of	215
tax appeals shall contain a short and plain statement of the	216
claimed errors in the decision of the municipal board of appeal	217
showing that the appellant is entitled to relief and a demand for	218
the relief to which the appellant claims to be entitled. An	219
appellant may amend the notice of appeal once as a matter of	220
course within sixty days after the certification of the	221
transcript. Otherwise, an appellant may amend the notice of appeal	222
only after receiving leave of the board or the written consent of	223
each adverse party. Leave of the board shall be freely given when	224
justice so requires.	225

(D) Upon the filing of a notice of appeal with the board of	226
tax appeals, the municipal board of appeal shall certify to the	227
board of tax appeals a transcript of the record of the proceedings	228
before it, together with all evidence considered by it in	229
connection therewith. Such appeals may be heard by the board at	230
its office in Columbus or in the county where the appellant	231
resides, or it may cause its examiners to conduct such hearings	232
and to report to it their findings for affirmation or rejection.	233
The board may order the appeal to be heard upon the record and the	234
evidence certified to it by the administrator, but upon the	235
application of any interested party the board shall order the	236
hearing of additional evidence, and the board may make such	237
investigation concerning the appeal as it considers proper. An	238
appeal may proceed pursuant to section 5703.021 of the Revised	239
Code on the small claims docket if the appeals qualifies under	240
that section.	241

(D)(E) If an issue being appealed under this section is	242
addressed in a municipal corporation's ordinance or regulation,	243
the tax administrator, upon the request of the board of tax	244
appeals, shall provide a copy of the ordinance or regulation to	245
the board of tax appeals.	246

Sec. 5717.02.  (A) Except as otherwise provided by law,	247
appeals from final determinations by the tax commissioner of any	248
preliminary, amended, or final tax assessments, reassessments,	249
valuations, determinations, findings, computations, or orders made	250
by the commissioner may be taken to the board of tax appeals by	251
the taxpayer, by the person to whom notice of the tax assessment,	252
reassessment, valuation, determination, finding, computation, or	253
order by the commissioner is required by law to be given, by the	254
director of budget and management if the revenues affected by that	255
decision would accrue primarily to the state treasury, or by the	256
county auditors of the counties to the undivided general tax funds	257
of which the revenues affected by that decision would primarily	258
accrue. Appeals from the redetermination by the director of	259
development services under division (B) of section 5709.64 or	260
division (A) of section 5709.66 of the Revised Code may be taken	261
to the board of tax appeals by the enterprise to which notice of	262
the redetermination is required by law to be given. Appeals from a	263
decision of the tax commissioner or county auditor concerning an	264
application for a property tax exemption may be taken to the board	265
of tax appeals by the applicant or by a school district that filed	266
a statement concerning that application under division (C) of	267
section 5715.27 of the Revised Code. Appeals from a	268
redetermination by the director of job and family services under	269
section 5733.42 of the Revised Code may be taken by the person to	270
which the notice of the redetermination is required by law to be	271
given under that section.	272

(B) The appeals shall be taken by the filing of a notice of	273
appeal with the board, and with the tax commissioner if the tax	274
commissioner's action is the subject of the appeal, with the	275
county auditor if the county auditor's action is the subject of	276
the appeal, with the director of development services if that	277
director's action is the subject of the appeal, or with the	278
director of job and family services if that director's action is	279
the subject of the appeal. The notice of appeal shall be filed	280
within sixty days after service of the notice of the tax	281
assessment, reassessment, valuation, determination, finding,	282
computation, or order by the commissioner, property tax exemption	283
determination by the commissioner or the county auditor, or	284
redetermination by the director has been given as provided in	285
section 5703.37, 5709.64, 5709.66, or 5733.42 of the Revised Code.	286
The notice of appeal may be filed in person or by certified mail,	287
express mail, facsimile transmission, electronic transmission or	288
by authorized delivery service. If the notice of appeal is filed	289
by certified mail, express mail, or authorized delivery service as	290
provided in section 5703.056 of the Revised Code, the date of the	291
United States postmark placed on the sender's receipt by the	292
postal service or the date of receipt recorded by the authorized	293
delivery service shall be treated as the date of filing. If notice	294
of appeal is filed by facsimile transmission or electronic	295
transmission, the date and time the notice is received by the	296
board shall be the date and time reflected on a timestamp provided	297
by the board's electronic system, and the appeal shall be	298
considered filed with the board on the date reflected on that	299
timestamp. Any timestamp provided by another computer system or	300
electronic submission device shall not affect the time and date	301
the notice is received by the board. The notice of appeal shall	302
have attached to it and incorporated in it by reference a true	303
copy of the notice sent by the commissioner, county auditor, or	304
director to the taxpayer, enterprise, or other person of the final	305
determination or redetermination complained of, and shall also	306
specify the errors therein complained of, but failure to attach a	307
copy of that notice and to incorporate it by reference in the	308
notice of appeal does not invalidate the appeal.	309

(C) A notice of appeal shall contain a short and plain	310
statement of the claimed errors in the determination or	311
redetermination of the tax commissioner, county auditor, or	312
director showing that the appellant is entitled to relief and a	313
demand for the relief to which the appellant claims to be	314
entitled. An appellant may amend the notice of appeal once as a	315
matter of course within sixty days after the certification of the	316
transcript. Otherwise, an appellant may amend the notice of appeal	317
only after receiving leave of the board or the written consent of	318
each adverse party. Leave of the board shall be freely given when	319
justice so requires.	320

(D) Upon the filing of a notice of appeal, the tax	321
commissioner, county auditor, or the director, as appropriate,	322
shall certify to the board a transcript of the record of the	323
proceedings before the commissioner, auditor, or director,	324
together with all evidence considered by the commissioner,	325
auditor, or director in connection with the proceedings. Those	326
appeals or applications may be heard by the board at its office in	327
Columbus or in the county where the appellant resides, or it may	328
cause its examiners to conduct the hearings and to report to it	329
their findings for affirmation or rejection.	330

(D)(E) The board may order the appeal to be heard upon the	331
record and the evidence certified to it by the commissioner,	332
county auditor, or director, but upon the application of any	333
interested party the board shall order the hearing of additional	334
evidence, and it may make an investigation concerning the appeal	335
that it considers proper. An appeal may proceed pursuant to	336
section 5703.021 of the Revised Code on the small claims docket if	337
the appeal qualifies under that section.	338

Sec. 5717.031.  The board of tax appeals may consider and	339
decide motions, including, but not limited to, motions in limine,	340
before the board makes a decision on any matter.	341

Sec. 5717.04. TheThis section does not apply to any	342
decision and order of the board made pursuant to section 5703.021	343
of the Revised Code. Any such decision and order shall be	344
conclusive upon all parties and may not be appealed.	345

The proceeding to obtain a reversal, vacation, or	346
modification of a decision of the board of tax appeals shall be by	347
appeal to the supreme court or the court of appeals for the county	348
in which the property taxed is situate or in which the taxpayer	349
resides. If the taxpayer is a corporation, then the proceeding to	350
obtain such reversal, vacation, or modification shall be by appeal	351
to the supreme court or to the court of appeals for the county in	352
which the property taxed is situate, or the county of residence of	353
the agent for service of process, tax notices, or demands, or the	354
county in which the corporation has its principal place of	355
business. In all other instances, the proceeding to obtain such	356
reversal, vacation, or modification shall be by appeal to the	357
court of appeals for Franklin county.	358

Appeals from decisions of the board determining appeals from	359
decisions of county boards of revision may be instituted by any of	360
the persons who were parties to the appeal before the board of tax	361
appeals, by the person in whose name the property involved in the	362
appeal is listed or sought to be listed, if such person was not a	363
party to the appeal before the board of tax appeals, or by the	364
county auditor of the county in which the property involved in the	365
appeal is located.	366

Appeals from decisions of the board of tax appeals	367
determining appeals from final determinations by the tax	368
commissioner of any preliminary, amended, or final tax	369
assessments, reassessments, valuations, determinations, findings,	370
computations, or orders made by the commissioner may be instituted	371
by any of the persons who were parties to the appeal or	372
application before the board, by the person in whose name the	373
property is listed or sought to be listed, if the decision	374
appealed from determines the valuation or liability of property	375
for taxation and if any such person was not a party to the appeal	376
or application before the board, by the taxpayer or any other	377
person to whom the decision of the board appealed from was by law	378
required to be sent, by the director of budget and management if	379
the revenue affected by the decision of the board appealed from	380
would accrue primarily to the state treasury, by the county	381
auditor of the county to the undivided general tax funds of which	382
the revenues affected by the decision of the board appealed from	383
would primarily accrue, or by the tax commissioner.	384

Appeals from decisions of the board upon all other appeals or	385
applications filed with and determined by the board may be	386
instituted by any of the persons who were parties to such appeal	387
or application before the board, by any persons to whom the	388
decision of the board appealed from was by law required to be	389
sent, or by any other person to whom the board sent the decision	390
appealed from, as authorized by section 5717.03 of the Revised	391
Code.	392

Such appeals shall be taken within thirty days after the date	393
of the entry of the decision of the board on the journal of its	394
proceedings, as provided by such section, by the filing by	395
appellant of a notice of appeal with the court to which the appeal	396
is taken and the board. If a timely notice of appeal is filed by a	397
party, any other party may file a notice of appeal within ten days	398
of the date on which the first notice of appeal was filed or	399
within the time otherwise prescribed in this section, whichever is	400
later. A notice of appeal shall set forth the decision of the	401
board appealed from and the errors therein complained of. Proof of	402
the filing of such notice with the board shall be filed with the	403
court to which the appeal is being taken. The court in which	404
notice of appeal is first filed shall have exclusive jurisdiction	405
of the appeal.	406

In all such appeals the tax commissioner or all persons to	407
whom the decision of the board appealed from is required by such	408
section to be sent, other than the appellant, shall be made	409
appellees. Unless waived, notice of the appeal shall be served	410
upon all appellees by certified mail. The prosecuting attorney	411
shall represent the county auditor in any such appeal in which the	412
auditor is a party.	413

The board, upon written demand filed by an appellant, shall	414
within thirty days after the filing of such demand file with the	415
court to which the appeal is being taken a certified transcript of	416
the record of the proceedings of the board pertaining to the	417
decision complained of and the evidence considered by the board in	418
making such decision.	419

If upon hearing and consideration of such record and evidence	420
the court decides that the decision of the board appealed from is	421
reasonable and lawful it shall affirm the same, but if the court	422
decides that such decision of the board is unreasonable or	423
unlawful, the court shall reverse and vacate the decision or	424
modify it and enter final judgment in accordance with such	425
modification.	426

The clerk of the court shall certify the judgment of the	427
court to the board, which shall certify such judgment to such	428
public officials or take such other action in connection therewith	429
as is required to give effect to the decision. The "taxpayer"	430
includes any person required to return any property for taxation.	431

Any party to the appeal shall have the right to appeal from	432
the judgment of the court of appeals on questions of law, as in	433
other cases.	434

Section 2. That existing sections 5703.02, 5717.01, 5717.011,	435
5717.02, and 5717.04 of the Revised Code are hereby repealed.	436

Section 3. The amendment by this act of division (D)(2) of	437
section 5703.02 of the Revised Code takes effect January 1, 2015.	438

Section 4. Any rule adopted by the Board of Tax Appeals under	439
division (D)(3) of section 5703.02 of the Revised Code shall apply	440
to appeals filed with the Board on or after January 1, 2015.	441