Possible Tax Relief for Ohio Long-term Leased Real Estate

Posted on Posted in Long Term Lease, Tax Relief

Terraza 8 LLC v. Franklin County Board of Revision, 217-Ohio-4415, June 22, 2017 ruled on the issue of the change in the Ohio Statute when it comes to how to value a property encumbered with a long-term lease when a sale is involved.

The Ohio Supreme Court ruled that the Leased Fee dynamics “could” override the actual sales price if it could be shown that the “value as if unencumbered” was different from that indicated by the sales price.

There are certain caveats that apply when it comes to the “proof” that is required, but overall, this is a BIG win for taxpayers where long-term lease rates have badly distorted the sales price from what it would be without that long-term lease in effect.

Roger A. Sours, MAI CCIM and Sharon G. Buie, MAI objectively appraise real estate for tax appeal issues for area school boards and property owners.

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