Taxpayers feeling the pain

Property owners across Ohio are feeling the pain with record-high property tax bills and are looking for help to ease their burden. Ohio's County Auditors are often blamed for higher property taxes from increased property values and voter-approved levies. In the journey for tax relief, county auditors are actually the property owners' best friends and are here to help the Ohio Legislature pass meaningful policy reform. The effect on schools A county auditor's duties are specifically outlined in Ohio statute, meaning we can only perform the duties the Ohio Legislature has given us the ability and permission to perform. This would include three-year property value update cycles; less and less meaningful homestead and owner-occupancy savings for seniors and property owners; current agricultural use values; and votes millage with schools are all changes to state law that have had a direct impact on taxpayers. With that said, school districts are guaranteed a rate of 20 mills to cover general fund and current expenses. This millage includes the school's portion of 10 inside mills shared between all entities within a specific area. Certain levies are excluded from the 20-mill guarantee calculation — pertaining to bond, emergency and permanent improvement — even if a portion of the inside millage is designated as a permanent improvement. Revenue and taxes change directly with the value for the inside millage. House Bill 920 reduces effective tax rates due for reappraisal in most levies until a school district reaches the 20-mill floor in which the taxes for many levies will increase proportionally to value. Inside millage revenue will decrease if property values are reduced whereas the 20-mill levies will experience an increased effective rate if property values fall to ensure revenues do not fall until those levies reach their voted rate. The county auditor does not set tax rates. Our role is to fairly and equitably value property. We apply the exemptions, credits, abatements and tax rates that are approved by the Ohio Legislature and you, the voters. Loss of money County auditors have been warning legislators for years that funding decisions being made at the state level are increasing the local property taxpayer burden, which pays for essential services that impact the day-to-day life of our citizens. Ohio local governments were previously supported by a wide variety of tax dollars through state revenue: • The tangible personal property tax was abolished without replacing those dollars, which meant, at the local level, new tax levies were needed to make up the difference. • The local government fund, which was a portion of the state general fund used heavily by townships and others, has been reduced by more than 50%, meaning new levies make up the difference. • The removal of the Medicaid Managed Care Organization sales tax, again, without replacing those dollars used by local entities for basic services provided to the taxpayers they serve, by the state has forced additional operating levies to make up the difference. The list could go on and on, however, the point is simple: Ohio property owners now have a much higher portion of the financial burden to pave our roads, fund our police, teach our kids, and provide the basic services you need. What can be done? Voters have approved levy after levy to keep services going — and now, with a record-breaking real estate market, the consequences of these actions have created a perfect storm for taxpayers. This is not to mention the growing number of exemptions, abatements and state-approved discounts for property taxpayers, which lead to higher rates for other property owners. County auditors have shared ideas and policy reforms to help address the strong need for changes to the property tax system in Ohio. We are grateful for the opportunity to work with the Ohio Legislative Leaders through the joint committee on property tax review and reform to make a meaningful difference for our property owners.