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State of Ohio Property Taxes


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State Tax Summary
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The state of Ohio names the real property tax Property Tax. The official value standard states that full and true value in money is “an arm’s length sale between a willing seller and a willing buyer within a reasonable length of time. However, the sale price in an arm’s length transaction should not be considered the true value of the property subsequent to the sale if (a) the property loses value due to some casualty or (b) an improvement if added to the property.” Ohio statues, as amended.

Last year, Governor Ted Strickland signed into law a new, expanded homestead exemption that provides additional property tax relief to qualified senior citizens and permanently and totally disabled Ohioans. Previously, most senior citizens and disabled Ohioans were excluded from the Homestead Exemption because of income tests. The new exemption offers eligible homeowners, regardless of income, the opportunity to shield up to $25,000 of the market value of their homestead (a dwelling and up to one acre of land) from property taxation. For example, if a home is valued at $100,000, the property tax will generally be billed as if the home were valued at $75,000. Seniors must apply with their local county auditor, which saves about $400 per year. County auditors will accept applications from Jan 8 through June 2, 2008. <http://tax.ohio.gov/divisions/communications/homestead_exemption_information.stm> Every year the county auditor files a Property tax rate abstract with the Ohio Department of Taxation, Tax Equalization Division and publishes online. This abstract contains tax rates for 614 school districts in Ohio. Each school district has an aggregate rate by levy for Class I, residential and agricultural real property, and Class II, commercial and industrial real property. For any questions, send an email to <tax_analysis@tax.state.oh.us> The property tax is levied on the market value. Real and personal property is taxed by local taxing entities. In addition, local entities may levy three additional ad valorem taxes and the state government may levy three additional ad valorem taxes. Local entities may authorize eight different types of taxes instead of ad valorem property taxes. Some of the different types of taxes were created to reduce taxes on individuals as an economic development tool. Personal exemptions are for homeowners, renters, seniors, those with disabilities and veterans. Municipalities may grant exemptions for blind persons, solar, wind powered, and wood heating energy system exemptions. There is no personal property tax. Cemeteries, hospitals, government, religious, charitable, and educational property are exempt. A property owner has five levels of appeal available to protest a valuation notice. The Chicago Area Service Center (ASC) provides tax service for Ohio. There are also tax payer service centers in Akron, Cincinnati, Cleveland, Columbus, Dayton, Toledo, Youngstown, and Zanesville, Ohio.

Contents

Responsible agency

  • State of Ohio Department of Taxation
  • Division of Tax Equalization
  • PO Box 530
  • Columbus, Ohio 43266-0030
  • Voice (614) 466-5744
  • FAX (614) 466-8654

Property tax calendar

  • Assessment date January 1
  • Valuation Notice Date Notices are sent annually.
  • Appeal Deadline

30 days from date of mailing of notice or June 31

  • Bill Payment Date

There are two bill due dates: December 31 and June 30. Taxes are collected in even installment amounts and a one time additional charge may be assessed on either of the two installments. Most counties release bills late and apply to the state for an extension. The earliest due date for the first installment has been January 20.

Property tax rates and dates

  • Annual assessment of real property Yes
  • Classification of property Residential land is Class I and assessed at 35%.
  • Collections Taxes are collected one year in arrears from September 1 through August 30.
  • Fiscal year January 1 through December 31.
  • Level of government responsible for assessment County,City, Town
  • Reassessment cycle Every 6 years
  • Tax Calculation Rate True Market Value x 35% = Assessed Value.

Residential Exemptions

Exemption claims must be filed to receive exemption from specially treated property. An exemption will reduce the local assessed value of property and a credit will reduce the amount of tax due. In 2008 applications must be filed from January 8 through June 2, 2008.

  • Homestead reduction

Homestead property tax reductions are for low-income seniors at least 65 years of age or persons totally disabled, or surviving spouses at least 59 years of age if the deceased had received the reduction. The homestead property tax reduction is also for handicapped and disabled persons. A residence of a legally blind, deaf or severely hearing impaired person may be exempt for $15,000 of a homestead appraised value. Home improvement values to accommodate a persons with disabilities may be exempt by the local tax authority.

  • Total income and Reduced taxable value

The reduction is the gross mileage rate times the reduction in tax value in these amounts: Less than $6500 will reduce taxable value by $5000 or 75% of taxable value $6500 to $11,500 will reduce taxable value by $3000 or 60% of taxable value $11,500 to $16,500 will reduce taxable value by $1000 or 25% of taxable value

  • Seniors

An application may be approved for a qualified low-income senior citizen, aged 65 and older, who resided in Ohio. Exemption amounts vary for age groups but cannot be less than $5000. Previously, most senior citizens and disabled Ohioans were excluded from the Homestead Exemption because of income tests. The new exemption offers eligible homeowners, regardless of income, the opportunity to shield up to $25,000 of the market value of their homestead (a dwelling and up to one acre of land) from property taxation. For example, if a home is valued at $100,000, the property tax will generally be billed as if the home were valued at $75,000. <http://tax.ohio.gov/divisions/communications/homestead_exemption_information.stm>

  • Veterans

An application may be approved for an honorably discharged disabled veteran in a principal residence that requires adapted housing because of disability and the adaptations were acquired with assistance from the Veterans Administration. Veterans may received a property tax credit or rebate on their residential property. This credit is allowed to the surviving spouse.

Commercial Exemptions

  • Agriculture Personal property exemption

Farm land, forest, and open lands are valued on basis of current use. A land owner that meets a test of public benefit, but does not meet the criteria for an open-space exemption, may apply for a discretionary easement to a local entity for a term of 10 or more years in exchange for property taxed at values equal with open-space usage.

  • Conservation property

A taxpayer must file a declaration with the local county assessor to claim an exemption for a seawall, jetty, groin or dike for the control or prevention of flooding or erosion caused by waters and apply for exemption that is not greater than the assessment for open-space land. Assessment provisions excludes developed land.

  • Pollution control property

A taxpayer must file a declaration to exempt property used exclusively for water or air pollution control. The Tax Commissioner and locaauthoritieses may provide financial incentives for voluntary cleanup of propertcontaminateded with hazardous materials.

  • Rehabilitation district

Local governments may grant abatements and establish obsolete property rehabilitation districts for rehabilitated commercial property and commercial housing property located in historic districts.

  • Urban and enterprise zones

Local governments may grant exemption from real property and tangible personal property tax to businesses to encourage development in decaying urban areas for jobs and enterprise zones.

Tax Collector and Officials

Tax assessors in Ohio are elected to four year terms; there are no education requirements, nspecialal education and no certification is required. County property tax maps are mandatory and equalization is mandatory. The state ratio studies are accessible to the public. The county treasurer is the ex-officio collector in all counties. County Assessors maintain and set property valuations. The County Auditor certifies property valuations. The County Treasurer collects current and delinquent property tax.

Forms

Specific deduction claim forms are available from the Department of Revenue online and guidelines are at <http://tax.ohio.gov/divisions/personal_property/documents/TPP_Guidelines.pdf>

Forms due dates

Applications for deductions against real property must be filed with an affidavit to the local tax collector in Ohio and must be filled again if the property changes owners. All deductions for real property require ownership must be recorded as of January 1 of the assessment year for taxes payable the following year. Manufactured and mobile homes, on private land, must be owned by January 1 to be eligible for the deductions to be applied to the tax bill for that year and is taxed as real property.

State assessor's manual

Ohio does not publish a state issued manual.

How property tax determined

Residential property and land is assessed at 35% of market value and the assessor determines the fair market value. The assessor may use one of three methods.

  • Cost Approach

At current labor and material prices, estimate how much it would take to replace the property with one similar to it. Use this method when there are no sales of comparable properties.

  • Income Approach

For an apartment or office building, estimate how much income the property can produce.

  • Market Approach

Use other comparable properties that have sold recently, determine the most probable sales price of the subject property.

Appeal Procedure

All administrative appeals must be exhausted before appealing for a judicial review. The taxpayer must pay current property tax under protest before any appeal to a court. Ohio has a published Taxpayer’s Bill of Rights http://tax.ohio.gov/divisions/communications/publications/documents/TaxpayersBillofRights.pdf A problem resolution officer is available for taxpayers as liaisonon between the department of taxation and the homeowner.

  • Problem Resolution Officer
  • Ohio Department of Taxation
  • PO Box 530
  • Columbus, Ohio 43216-0530
  • (614) 466-0832


  • First

Try to resolve the problem in a formal meeting with a written complaint against the valuation to the County Auditor or tax assessor. The period to file is from January through March. The complaint will be heard by the County Board of Revision (BOR).

  • Second

Next, if not satisfied with the formal meeting, file a formal appeal with the State Board of Tax Appeals within 30 days. A copy of the appeal must also be filed with the Board of Revision.

  • Third

If not satisfied, appeal in writing to the County Court of Common Pleas, instead of filing with the State Board of Tax Appeals. A copy of the appeal must also be filed with the Board of Revision.

  • Fourth

If not satisfied, appeal in writing to the Court of Appeals in the county where property is located.

  • Fifth

If not satisfied, appeal in writing to the Ohio Supreme Court. This must be filed within 30 days after a decision of the Board of Tax Appeals or the Court of Common Pleas has been recorded.

Additional tax classifications

  • Agricultural property tax

Land with current use is Class II and assessed at 35% of true value.

  • Commercial property tax

Commercial is Class IV and industrial land is Class III and assessed at 35% of true value.

  • Mineral property tax

Mineral property is Class V and assessed at 35% of true value.

  • Personal property tax

Business personal Property is Class VI.

Additional tax bills and charges

  • Construction Work in Progress

Local cities and towns may adopt provisions to collect taxes for properties that physically changed in value, and compute assessed value for partial payment as of January 1. Valuation for property tax is based on value or percentage of completion as of January 1 of the tax year.

  • Corrected bill

When an error is found on the original tax statement or when property owners go before the Board of Review, resulting in tax increases or decreases, a correct bill is issued when the corrections are made. Corrected bills are also issued when levy rates are wrong, the house is on the wrong tax lot and for homeowner exemption.

  • Delinquent taxes

Delinquent balances are applied to subsequent bills. A taxpayer may apply to have late charges, interest and property taxes canceled due to undue hardship or property damaged by a casualty loss event . No notices are sent for delinquent taxes in Ohio.

  • Mobile homes

If the land and the mobile home are owned by the same person, then the mobile home is assessed as real property for property taxes. Valuation notices are sent in January every 6 years.

  • Penalty and Interest charges

Interest is 10% penalty on each year; and assessed for each installment. If tax payments are delinquent, then payments on current taxes are not accepted.

Current Legislation and Pending Issues

A taxpayer’s expenditure report for 2008 and 2009 is online at <http://www.obm.ohio.gov/budget/operating/executive/0809/bb0809_book2.pdf.

References





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