The Butler County, Ohio Auditor has recently announced that it is required to make State Mandated Adjustments to the 2020 and 2021 tax years to reflect an increase in value to certain properties which means an increase in taxes for those years. The increase is for property in Fairfield Township, West Chester Township, the city of Fairfield and the city of Hamilton. The Board of Tax Appeals (BTA) issued an order in the valuation appeal made by Butler County Auditor Roger Reynolds and finds that the increases the Tax Commissioner sought during the 2020 reappraisal must be met. The 2020 Mandated Adjustments are now showing on the Butler County Auditors site in the tax bill section and 2021 adjustments will soon be added. So, even though all 2020 and 2021 taxes may have been previously paid in full, affected properties will owe additional amounts for those tax years.
While this adjustment will be a likely frustration for all affected property owners, newer buyers will understandably be upset. This is especially the case for those who did not even own their affected property in 2020 or 2021. Most purchase contracts, including the Dayton and Cincinnati Board of Realtors Contract, provides that taxes are to be prorated based upon the most recently available tax information at the time of closing and, after closing, the Buyer is responsible for all future tax payments and assessments. For transactions that have not yet closed, past tax-year assessments that are available at the time of closing will usually be the responsibility of the Seller. Parties with pending transactions should review their contracts to confirm their understanding of how these will be handled at the time of closing.