1031 Exchanges and Title Insurance

A Number That Shapes More Than Your Tax Bill

Every Ohio property has an assessed value set by the county auditor, and that number does far more than determine an annual tax bill. It also plays a direct role in calculating the tax prorations that show up on your closing statement. A change in how auditors determine that value, such as under House Bill 124, which gives county auditors greater oversight of the sales information used in valuations, can ripple through to what buyers and sellers actually pay at the closing table.

How Tax Prorations Work at Closing

Because Ohio property taxes are typically paid roughly six months in arrears, and are calculated based on the auditor's valuation, sellers generally owe the buyer a credit at closing for taxes accrued during the time they owned the home but haven't yet paid. Getting this calculation right depends on accurate, up-to-date information about the auditor's assessed value and the applicable tax rate for that property.

• Prorations are typically calculated based on the most recent tax bill and the auditor's current valuation
• Sellers generally credit buyers for their share of taxes owed but not yet billed
• A pending reassessment or valuation appeal can complicate the proration calculation
• Errors in proration figures can lead to disputes discovered months after closing

Why Valuation Changes Matter for Buyers and Sellers

Ohio counties conduct periodic reappraisals, and a property's assessed value can shift significantly between a triennial update and the next full reappraisal, sometimes catching sellers off guard when tax prorations are calculated at closing. Buyers should also be aware that a home's post-sale tax bill may not match the seller's prior bill, since many counties reassess a property's value at or shortly after a sale based on the actual purchase price.

What to Watch for in Clark County and Beyond

Whether you're buying or selling in Clark County or anywhere else in Ohio, it's worth confirming the most recent auditor valuation and tax rate before closing, rather than assuming the number on an old tax bill is still accurate. This is especially important in areas experiencing rapid growth or recent reappraisals, where valuations can shift meaningfully from one year to the next.

• Ask your title company to confirm the current auditor valuation before finalizing prorations
• Check whether a reassessment or valuation appeal is pending on the property
• Understand that your post-purchase tax bill may differ from the seller's prior bill
• Budget for the possibility of a supplemental or adjusted tax bill after closing

How a Title Company Helps Get Prorations Right

An experienced title company pulls current auditor and treasurer information as part of the closing process to make sure tax prorations are calculated accurately, reducing the chance of a dispute or an unexpected bill down the road. If you have questions about how your property's valuation could affect an upcoming closing, your title company is a good place to start.