Ohio Property Tax

Ohio property taxes are a significant aspect of the state’s fiscal landscape, impacting homeowners and local governments alike. The property tax system in Ohio is designed to fund essential public services, including education, infrastructure, and emergency services. Ohio property taxes are levied based on the assessed value of real estate, which is determined by county auditors. The assessed value is calculated as 35% of the property’s appraised market value. For example, if a home is appraised at $100,000, its assessed value for tax purposes would be $35,000. The actual tax bill is then computed by multiplying this assessed value by the effective tax rate set by local taxing authorities.

The Assessment Process

The assessment process in Ohio operates on a six-year cycle. Every six years, counties conduct a comprehensive reappraisal of all properties to ensure that property values reflect current market conditions. In the third year following a reappraisal, counties perform an interim update to adjust values as necessary. This cyclical approach helps maintain fairness in property taxation by aligning tax assessments with real estate market trends.

Effective Tax Rates and Levies

Ohio’s property tax system includes various types of levies that can affect the overall tax rate:

• Inside Levies: These are unvoted levies that automatically generate revenue for local governments.
• Fixed-Sum Levies: Voted on by residents, these levies generate a predetermined amount of revenue.
• Fixed-Rate Levies: Also voted on, these levies maintain a specific rate per mill (one mill equals $1 for every $1,000 of assessed value).

Due to House Bill 920 enacted in 1976, increases in property values do not automatically lead to proportional increases in property taxes. Instead, as property values rise, the effective tax rates are rolled back to prevent windfall revenues for local governments.

Recent Changes in Property Values

In recent years, many areas in Ohio have experienced significant increases in property values due to a booming real estate market. As counties prepare for the upcoming reappraisals scheduled for January 1, 2024, homeowners may notice substantial changes in their property tax bills. For instance, some counties have reported increases in assessed values by over 30%, which could lead to higher tax obligations unless adjustments are made.

Contesting Property Valuations

Homeowners who believe their property’s assessed value is inflated have the right to contest this valuation through their county’s Board of Revisions. This process allows taxpayers to present evidence supporting a lower valuation, potentially reducing their property tax liability. It’s essential for homeowners to stay informed about their property’s valuation and take action if they suspect discrepancies.

Property Tax Exemptions and Relief Programs

Ohio offers several exemptions and relief programs aimed at reducing the financial burden of property taxes on homeowners:

• Homestead Exemption: This program provides a reduction in taxable value for eligible homeowners aged 65 and older or those who are permanently disabled.
• Rollback Program: This initiative allows for a reduction in the effective tax rate for certain properties, ensuring that homeowners do not pay taxes on a portion of their property’s value.

These programs can significantly lower the amount owed in property taxes and provide much-needed relief to qualifying homeowners.

Navigating the landscape of Ohio property taxes can be complex due to the various factors influencing assessments and rates. Homeowners must understand how their properties are valued and what exemptions may be available to them. As property values continue to fluctuate, staying informed about changes and potential relief options is crucial for managing financial responsibilities effectively.