Ohio Supreme Court Issues "Show Cause" Order for Real Property Tax Exemption: Will Filings be Considered Practice of Law?

Mark A. Engel
Bricker & Eckler LLP
April 2006

The Ohio Supreme Court, on its own motion, is requesting that parties "show cause" why an appeal of an adverse final determination by the Ohio Department of Taxation with respect to a property tax exemption application should not be dismissed under its holdings in Sharon Village Ltd. v. Licking Cty. Bd. of Edu. (1997), 79 Ohio St.3d 479, Worthington City School Dist. Bd. of Edu. v. Franklin Cty. Bd. of Rev. (1999), 85 Ohio St.3d 156 and Performing Arts School of Metro. Toledo, Inc. v. Wilkins (2004), 104 Ohio St.3d 284. See First Baptist Church of Milford v. Wilkins (January 26, 2005), Case No. 2005-1683.

The first two cited cases impose jurisdictional limitations on the ability of the Department of Taxation to consider property tax valuation complaints, unless the complaints were prepared and filed by an attorney (or, an individual property owner). By citing these cases, the Court may be indicating that it also considers the preparation and filing of property tax exemption applications to be the practice of law, requiring that these applications also be prepared and filed by attorneys.

The other case, Performing Arts of Metropolitan Toledo, addresses the issue of whether a party who is not the owner of property has standing to file an exemption application. It is unclear from the order whether the Court is requesting that the parties brief this issue.

Any organization that has filed a property tax exemption application without the assistance of an attorney should monitor the status of this case. If the application seeks exemption from taxes from 2003 (which cannot be abated unless a valid application is filed before December 31, 2006), the organization should consider having an attorney re-file a protective application on its behalf before December 31 of this year.