Board of Revision Refers Commissioners’ “Bootleg” Form Submission to the Prosecutor
Board of Revision Meeting – July 17, 2024
Meeting Details: The Geauga County Board of Revision met in Regular Session on Wednesday, July 17, 2024 at 9:00 am in the Auditor’s Conference Room on the first floor of the Courthouse Annex at 231 Main Street, Chardon, Ohio. This meeting was in person with a virtual option via MS Teams. This observer attended virtually.
Agendas: Available through a request to Deputy Auditor Bonnie McKenzie at McKenzie@geauga.oh.gov
Board of Revision Members: The Board of Revision is composed of a County Commissioner, Auditor Charles Walder and Treasurer Christopher Hithcock. All members have designated representatives. See Board Attendance below.
Board of Revision Attendance:
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Caroline Mansfield, Chief Deputy Director, representing Treasurer Christopher Hitchcock
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Charles Walder, Auditor
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James Dvorak, County Commissioner (attended starting at 9:35 am)
Staff Attendance:
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Bonnie McKenzie - Deputy Auditor
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Pam McMahan - Fiscal Office Manager (virtual)
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Tim Severovich - Appraiser
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Alec Richmond - CAUV (Current Agricultural Use Valuation) Program
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Infinity Project Assessors Daniel Wilson and John Paventi
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Ron Leyde - Chief Deputy Auditor (virtual)
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IT personnel operating the video
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Frank Antenucci - Chief Deputy Administrator, Automatic Data Processing (ADP) (virtual)
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Kate Jacob McClain- Chief Compliance Officer, Auditor’s Office
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Linda Burhenne - Assistant County Administrator
Others Attending
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Nicholas J. Hanek from the law firm of Meyers, Roman, Friedberg & Lewis
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News reporter from Chagrin Valley Times (virtual)
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This observer
Minutes - After the Hearing portion of the meeting, the Board of Revision approved the minutes for the June 26, 2024 Board meeting. Minutes are available here when posted.
Background Information
Hearing Rules: Rules are available here, although it is stated that they are under revision. Information about the Board of Revision is available here. In general, a complaint for the current tax year must be received by the County Auditor on or before March 31 (or if a Sunday, April 1) of the following tax year.
Tax Consequence: If the taxpayer had already paid the taxes in question, any amount of reduction as a result of the decision of the Board of Revision would be remitted back to the taxpayer.
Description of Process: For each property listed, there is a statement of the current tax value and the requested value, after decrease. The property owner, if present, is sworn in and then invited to give testimony to describe the reasons for the request for a decrease in assessed value. For some cases, there could also be testimony by Tax Assessor Tim Severovich, a Geauga County employee. Mr. Severvich was present for the hearing and available to give testimony. There was one parcel that concerned an agricultural property, and CAUV (Current Agricultural Use Valuation) Program Supervisor Alec Richmond was there but did not testify.
Withdrawals: Property owners may withdraw from the process at any point without stating a reason. Observer Note: Reasons for withdrawing may include believing a reduction in assessed value will lower the actual resale value or concerns about the hearing process itself.
In many cases there is a decision made before the meeting, in which case it is listed on the Agenda as “Pass Through Accepted.”
Decisions of Board: It was announced that decisions by the Board of Revision can be appealed either to the Geauga County Common Pleas Court or to the Ohio Board of Tax Appeals. Decisions are mailed to property owners within 30 days by certified mail. In one case, a decision was made while the applicant was present.
Hearing
Order - Observer Note: The order that was stated in the agenda is not the order that was used during the hearing. In this report, the order that was used in the hearing will be followed.
Parcel # 11-714406 Geauga County Commissioners
Representing the County Commissioners was attorney Nicholas J. Hanek from the law firm of Meyers, Roman, Friedberg & Lewis. Assistant County Administrator Linda Burhenne was also present to give testimony.
Mr. Walder reviewed the history of this parcel, which is part of the Metzenbaum property. He said that in September 2023, Chester Township had filed a complaint alleging that the property should not be exempt. This was investigated by the Auditor, and it was decided that the complaint had merit and that changes to the property had not been reported as is required. Mr. Walder said the entire parcel is 34 + acres, and it was removed from the exempt list.
The Board of County Commissioners (BOCC) filed for a new exemption on December 31, 2023. In late March 2024, this matter was submitted to the State of Ohio Tax Commission. On March 28, 2024, BOCC filed a DTE-2 form signed by County Administrator Mr. Gerry Morgan. Reviewer Note: A DTE-2 form is used to file a “Complaint Against the Assessment of Real Property Other Than Market Value,” and property owners have the right to file this form if they disagree with the value of their property as assessed by the County Auditor’s Office. A blank version of this form is available here.
Auditor’s Office staff reviewed this DTE-2 submission, and on July 1, 2024, a letter was sent to the BOCC regarding the status of the submission. Mr. Walder explained that his office had started using a new software product during this time period and that, as a result of the conversion process, a clerical error caused penalties and interest to be applied in error.
A motion was made and passed that there was clerical error and then another motion was made and passed to remedy the error. Reviewer Note: After remedying this error, it was determined that the BOCC’s outstanding tax bill for this property was $659,577.18. Before this reduction, the taxes owed were approximately $771,000.
Mr. Walder said he did not know why a DTE-2 was used. He said DTE-2 is a form that is used to appeal the value of property, not interest and penalties or a clerical error. The correct form would have been the DTE-23A , which normally goes to the Treasurer. Mr. Walder said that 90% of Board of Revision hearings deal with this issue, and that this form (DTE-23A) is simpler than the DTE-2. Reviewer Note: The DTE-23A form is used to file an “Application for the Remission of Real Property and Manufactured Home Late-Payment Penalties,” and property owners can file this form with the County Treasurer to have penalties/interest charges for late payments reduced due to certain extenuating circumstances. A blank version of this form is available here.
Mr. Hanek said that this was moot since the Budget Commission had voted to remedy the clerical error.
Mr. Walder said that the DTE-2 was impermissibly modified from its original version, and he recommended that the Board of Revision notify the Prosecutor that the BOCC filed a “bootleg” DTE-2 form. He noted that it is a violation of law to alter a government form. Mr. Hanek said that it wasn’t in the notice that this was going to be discussed at the hearing today.
Mr. Walder said it was in the July 1 letter that was sent to the BOCC. He stated that the proper form should have been used. Mr. Walder said that “...someone chose to submit a form that was modified.”
Mr. Walder said he had checked with the Tax Commissioner to make sure that their office is not using the version of the DTE-2 form that had been supplied by Mr. Morgan, and the Tax Commissioner said, “That is not our form.”
Ms. Mansfield said that “I feel we need to know where this form came from. We never want this to happen again.”
Mr. Hanek said that the issue of the interest and penalties was resolved and the DTE-2 submission was therefore moot. He said, “This is blindsiding.”
At several points, exchanges were tense, but Mr. Hanek did not answer any questions about where the form was obtained or who might have changed it.
Mr. Hanek and Ms. Burhenne left the meeting.
The Board of Revision voted unanimously to approve a motion to refer this matter to the County Prosecutor “...for a possible willful violation of laws relating to the assessment of property taxation for which a penalty, either civil or criminal, is provided by law.”
Observer Note: Following this hearing, in response to a public records request, this observer received a copy of the memo that was sent to Prosecutor James Flaiz on July 22, 2024 in regard to this matter. It reads in part:
“Please be advised that on July 17, 2024, adhering to its obligation under R.C. 5715.43, The Geauga County Board of Revision (“BOR”) voted to notify you of a possible willful violation of laws relating to the assessment of property for taxation for which a penalty, either civil or criminal, is provided by law…. It is further required under R.C. 4113.52 regarding reporting potential fraud, this Notice is hereby also being sent to the Auditor of State as required by RC 117.103.
Mr. Walder describes in the memo the steps that were taken in regards to this matter and what transpired at the BOR hearing. The letter states:
“Auditor’s staff vetted the BOCC submitted “DTE-2” and determined that selection was added by someone altering an authentic DTE-2 form (herein attached as Exhibit B). The BOCC “DTE-2” was not the official DTE-2 form prescribed by the Tax Commissioner pursuant to Ohio law.
Later in the memo, Mr. Walder states:
“It is imperative - especially for public officials and their attorneys - to follow legal requirements and ensure the truthfulness of their statements. Modifications of and sworn-to falsehoods on official government forms cannot be tolerated by anyone, especially by those in positions of public trust.”
The letter was signed by Charles E Walder, Geauga County Auditor, Secretary Board of Revision.
A copy of the complete memo can be accessed here.
Commissioner Dvorak joined the other members of the Board of Revision at this point. The following parcels were then discussed, with property owners in attendance. It was announced (as stated above) that decisions would be communicated to applicants via certified mail.
Parcel # 11-388602 - Eric and Maureen Trantor - Mr. Trantor reported that he was not happy with the assessment and that no one had physically driven around or to his house. There were discussions with the two appraisers with the firm of Infinity who were involved with the county-wide assessment. They reported that in some cases with very long driveways they used drone footage. There were questions raised by Mr. Trantor about square footage (which were admittedly incorrect in the assessment and it was stated this will be corrected). Mr. Trantor explained that a shed that had been removed from the property. Mr. Trantor said that the assessed value of the property went up 60%. There was a discussion about methods of appraisal and comparisons in the neighborhood. The record will be corrected regarding a gazebo no longer on the property and the square footage will be recalculated. Any further changes will be made by the Board of Revision and communicated to the applicants.
Parcel # 21-176394 - Kirk and Denise Walker - There was testimony about the property and its proximity to the Best Sand operation. The owners stated that there is a lot of noise and sand is everywhere. They have cattle, and it is challenging for the cattle to be exposed to the sand and noise. When they purchased the property, the mine was not operating. The Walkers said that a spring-fed lake on the property now looks like mud. Mr. Walder asked if it was their testimony that the property was degraded, and they said yes. Mrs. Walker said that no one would want this property now.
Parcel # 21-164800 - Ronald and Susan Delisio - Owners were looking for a 18-20% reduction in assessed value. Mr. Delisio said that they have no amenities, live on a dirt road, and there is a mine at the end of the road. He said they have a two bedroom home, and their basement has water. Mr. Dvorak asked if they can access a common area on the Lake, and Mr. Delisio said no.
Parcel # 06-036800 - Robert and Jennifer Vojack - Mr. Vojack testified that there have been no upgrades to the property. He said they have a 30-year old roof and windows, but they are retired and don’t have the extra funds for the upkeep. He also said they have an old septic, and he was concerned about selling the property. There was a brief discussion about the fact that there are no longer any “point of sale” septic inspections. Observer Note: The point of sale inspections have stopped because there is now a rotating inspection system for all properties with septic in the county. Geauga Public Health is just starting with these inspections, in a program called Operation and Maintenance (O&M).
The County property inspector, Mr. Tim Severovich, testified that he believed there should be a reduction of $88,000.
Parcel # 01-118732 - Alan Lysle and Kelly Morgan - Ms. Morgan said that there was a 40% increase. She disputed the comparables that were used to establish the value of her property. The owner said that “We haven’t done any upgrades. I am asking that the comps be adjusted to be more like my home”.
Parcel 14-077900 - Albert and Penelope Speyer et al - The Speyers own the property with his parents. It is a group of parcels. Mr. Speyer said that some lots were changed to $400/lot but that others remained at $100/lot. He said he didn’t understand why some were raised in value. He said that these are all small parcels. There used to be a cottage but that is gone. There used to be a road but that was vacated. There is no sewer, no lights, no usable lots. He said it was swamp and water.
The Board of Revision agreed to lower all parcels to $100. Observer Note: This is the only case in which a decision was made during the hearing while the owner was present.
Parcel # 15-101992 - Michael and Nancy Bolden - Owners stated that they purchased the property six years ago for $90,000 and that it was dated then and is dated now - not upgraded. The property is now appraised for $217,600, and the owners are asking for a reduction to $120,000. Mr. Severovich stated that they cannot tell anything about the structural integrity of the house during a routine inspection. He said that homes in the Kenston school district with similar square footage and rooms would result in an assessment between $200,000 and $205,000.
This concluded the hearing portion.
All “Pass Throughs” were Accepted by the Board.
Minutes from June 26, 2024 (both morning and afternoon sessions) were accepted as noted above.
Remissions/Refunds of Late Payment Penalties - The Board of Revision approved remissions of late payment penalties due to reasonable cause and not willful neglect and based on the recommendation of the County Treasurer Christopher P Hitchcock.
Public Comment: There was no public comment
More Information and Posted Minutes: Available on Auditor website
Next Meeting: Wednesday, August 7, 2024 @ 9:00 am in the Auditor’s Conference Room at 231 Main Street, Chardon, Ohio.
Observer: Gail Roussey
Editor: Anne Ondrey
Reviewer: Sarah McGlone
Submitted: 07/23/2024
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