Property values and taxes are up this year in Greater Cincinnati and people are pointing fingers.
Who is responsible?
It’s the result of voter choices, schools and market forces. In other words, it’s you − or at least your neighbors and local schoolchildren.
Here’s what you should know about the jump in property values and property taxes.
How much did property values and taxes go up?
Each property is different. On average in Hamilton County, property values increased 28% while total taxes increased about 12%, according to the latest figures released by the Hamilton County auditor.
In Butler County, north of Cincinnati, property values soared 37% and the property taxes increased on average 13%. East of Cincinnati in Clermont County, property values rose 30% and taxes went up 17% on average, according to the county auditor.
Those were the three counties in the Cincinnati region up for reappraisal in 2023. Warren County properties will get reappraised this year.
How different is it from neighborhood to neighborhood?
No town or neighborhood is alike, with a wide variation of property values and taxes.
In many cases, areas where property values were historically lower saw the largest increases. Wealthier neighborhoods didn’t vary as much. Taxes also depended on what levies voters approved in the area.
You can look at how your neighborhood or municipality fared on the Hamilton County auditor’s site.
Why did property values jump so much?
The booming housing market sparked a historic rise in property values across Ohio. That led to sticker shock among homeowners in Hamilton, Butler and Clermont counties this past summer when they received their new tentative assessments from the county auditors.
During the previous reappraisal in Hamilton County three years earlier in 2020, taxes jumped 6% overall compared to a 12% increase in property values.
What is a reappraisal?
County auditors conduct a full reappraisal of properties every six years for tax purposes and update each appraisal every three years based on market data. The 2023 appraisal in Hamilton County is the full reappraisal, which includes the auditor’s staff viewing the outside of properties as well as using market data.
Does political party play a role?
Ohio Republican Party Chairman and Green Township resident Alex Triantafilou has repeatedly blamed Democrats.
“Here’s a homeowner making the point that soaring Democrat-led appraisals coupled with HUGE Democratic property tax increases have gouged homeowners,” Triantafilou tweeted. “Shame on the Democrats and what they’ve done to middle-class taxpayers in Hamilton County.”
In reality, it’s not a Democrat or Republican issue.
Property values and taxes soared both in counties controlled by Democrats and counties controlled by Republicans. For instance, Hamilton County government is controlled by Democrats and Butler and Clermont counties are controlled by Republicans. All three saw large increases.
Where does the money go?
The largest portion of most property tax bills in the region goes toward school districts, often accounting for more than half the tax bill. In Clermont County, schools will account for 58% of all the property tax revenue this year, according to figures from the auditor.
Smaller percentages of the tax bill go to the county and local governments and, depending on where you live, park districts, zoos, libraries and other services.
What role do property values play?
Property value increases accounted for some of the increase in taxes but not all. That’s because state law limits most property taxes to bring in a set amount. So a tax levy could be set to bring in, for example, $10 million a year. If property values go down, homeowners would see their tax rates rise to pay for it. If property values go up, homeowners would see their tax rates decline.
For instance, in Hamilton County, the levy that pays for the Cincinnati Zoo & Botanical Garden brings in $7 million annually. That means no matter how much more property is worth, the levy will still just bring in $7 million. So the more valuable Hamilton County property becomes, the lower the zoo tax rate for the individual property.
What is a 20-mill school district?
Properties in some school districts are impacted more than others. These are the ones with a higher floor of minimum taxes that aren’t voted on by taxpayers, known as a 20-mill floor.
Mills are the measurement by which Ohio governments calculate levies. They’re one-thousandth of a dollar or $1 for every $1,000 of assessed value. A home is taxed on 35% of the appraised value.
The state constitution divided millage into two categories: inside and outside.
The idea was local governments needed a certain amount to function, so your first 10 mills on your tax bill aren’t voted upon and can’t be taken away. It’s the inside amount homeowners would always have to pay. Outside millage, on the other hand, is what voters approve through levies.
Because inside millage isn’t tied to a fixed revenue total, it fluctuates more with increased home value
In some areas, certain school districts have a 20-mill floor that goes up and down with taxes. In those areas, property valuations can have a bigger impact.
That floor for school districts accounted for 73% of the increased property taxes in Butler County, according to auditor Nancy Nix.
In Hamilton County, you can find where your tax money goes on the auditor’s website by typing in your address in the property search and then clicking the tax distribution link.
Who raised the taxes?
Voters decide on tax increases. Hamilton County voters approved six countywide property tax increases in the past six years, including this past November when a tax hike for the public library succeeded. This is in addition to local property taxes for schools and cities.
School districts, counties, municipalities, townships, park districts, libraries and other special service districts can put property tax levies on the ballot for voter approval.
“Each community makes choices about what’s important to them,” said Hamilton County Auditor Brigid Kelly. “When voters decide whether or not to pass levies, those are decisions made by people in those communities. That has an impact.”
For instance, the property taxes in Republican-run Green Township for the Ohio Republican chairman, Triantafilou, went up 12.5%, according to the auditor’s website. Of the $512 in additional property taxes he’s paying this year, 85% came from the local school district, which accounts for a little more than half of his total tax bill.
What role do state lawmakers play?
Kelly, a Democrat, has also put some of the blame on the Republican-controlled Ohio General Assembly, which sets policy on how many entities are funded, particularly schools.
The Ohio Supreme Court in 1997 found unconstitutional the overreliance of school districts on property taxes. The legislature has yet to address this.
“The legislature is tasked at fixing that,” Kelly said.
What have some areas done to give taxpayers relief?
County commissioners sometimes vote against an agency’s attempt at putting a tax increase on the ballot, as the Hamilton County commissioners did in 2023 with the zoo.
The Butler County commissioners voted to reduce its portion of the property taxes by $6 million. For the property owner, this tax break reduced the bill by $15.40 per $100,000.
West Chester, Fairfield and Liberty townships, the city of Middletown and village of Seven Mile in Butler County also gave property tax breaks worth between $9.63 per $100,000 to $14 per $100,000.
In Hamilton County, the auditor said she wasn’t aware of any municipalities offering similar tax breaks.
The Butler County auditor has also lowered the rates of nine school districts to provide a total of $22 million in relief, according to Nix. State law gives budget commissions, which are chaired by the county auditor and made up of the auditor, one commissioner and the county treasurer, the authority to review the budgets of taxing authorities and adjust their rates.
Nix, in the press release, said her office “annually reviews school finances and discusses fund balances with school treasurers in an effort to balance a district’s needs while safeguarding taxpayers.”
How can you challenge the appraisal?
If you disagree with your property’s final value, you can file a complaint with the Hamilton County Board of Revision from Jan. 1 through March 31, 2024. The Hamilton County Auditor’s Board of Revision site lists the process and types of evidence needed for homeowners to make their case.
Tax bills are due Feb. 5.
You can check your property’s value and taxes owed by typing your address into the property search field of the Hamilton County auditor’s website.
