In a case of first impression, the Ohio Supreme Court ruled 4-3 on August 20, 2024, that a county auditor is precluded from appealing the State Tax Commissioner’s final determination reiterating values agreed upon in a settlement agreement (Snodgrass v. Harris, Slip Opinion No. 2024-Ohio-3130). The majority opinion, written by Justice DeWine, gives priority to the statute authorizing the Tax Commissioner to achieve compromise—ending litigation—over a county auditor’s right to appeal a valuation determination, assuming no fraud, duress or error in reciting the compromise.
What happens next? The Appellant County Auditor has 10 calendar days from the date of the ruling to file a Motion for Reconsideration. If no such motion is filed, it is anticipated that the Tax Commissioner will issue a directive to the 13 affected county auditors to prepare tax bills for Nexus reflecting the settlement—back taxes on the unpaid portion and interest on the unpaid portion only. The interest rate is set annually by the State Department of Taxation. Preparation of the tax bills is estimated to take 30-45 days followed by a payment period. In the normal property tax situation, a taxpayer has 20 days from billing to pay.
Does the Nexus decision affect Rover? Not directly. Rover’s settlement discussions this summer hit an impasse, so its valuation case has been reactivated on the Supreme Court’s docket. However, the Nexus decision could provide some impetus for renewed settlement discussions should Rover’s case preparation indicate a weak chance of overturning the Board of Tax Appeals valuation decision favoring the conclusion of the Tax Commissioner’s expert witness.