Sen. Schaeffer says bill would set strict timelines, increase transparency in tax appeals

Senator Schaeffer, sponsor of Senate Bill 359, told the Ohio Senate Ways and Means Committee that the proposal would update the state's taxpayer bill of rights by setting clearer timelines and improving transparency in tax disputes with the Ohio Department of Taxation and the Ohio Board of Tax Appeals.

"This legislation, also known as the update to the taxpayer bill of rights, will make much needed changes and reforms that benefit Ohio's taxpayers," Schaeffer said in sponsor testimony, outlining deadlines for scheduling hearings and aiming to ensure many refund-claim and reassessment cases are resolved within 12 months. He said the bill would stop new interest accrual on an assessment after one year if a case remains unresolved and would strengthen the role of problem-resolution officers to assist taxpayers with complaints.

The bill would also "extend timelines to pay back delinquent property taxes without penalty by 6 months, remove penalties for not filing a tax return when no tax is owed, [and] remove penalties for the first-time failure to report estimated taxes," Schaeffer said. He also cited a clarifying change intended for a sales-and-use tax exemption for certain automatic car washes and said taxpayers would be able to enter at least one delinquent tax contract with the Department of Taxation to resolve liabilities before certification or collection by the attorney general's office.

During committee questioning, Senator O'Brien raised concerns that tighter deadlines could trigger an "exponential" surge in appeals after property revaluations, noting revaluations often produce a large number of contested property valuations. Schaeffer acknowledged the point and said he has begun discussions with the Department of Taxation about budget and staffing needs, including "how few tax attorneys" are currently available to handle appeals, and that the department may need additional personnel if appeals increase.

Senator DeMora asked whether extending protections would reduce municipal revenue. Schaeffer responded that municipalities generally should not budget on penalties and interest, and that fewer penalties could indicate quicker, more efficient resolution of tax cases rather than a revenue shortfall.

The committee concluded the first hearing on Senate Bill 359 without a committee vote. Chairman Blessing closed the hearing and no further action was taken during this session.