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CELINA - A group of county auditors from across northwest Ohio this week called for state legislators to support property tax relief efforts, narrowing their focus to four key proposals.
Among those who convened in Bowling Green to draw attention to what they believe are meaningful ways to reduce property tax burdens faced by residents across the state was Mercer County Auditor Jeff Larmore.
The County Auditors' Association of Ohio is advocating for the expansion of the homestead program, the elimination of the non-business credit and expansion of the owner occupancy credit, removing the 20-mill floor for school districts, and the creation of "a menu of targeted relief" to protect low- and moderate-income residents.
While the idea of doing away with the 20-mill floor may be an uphill battle, with resistance likely from school officials who may benefit from increased revenue when property valuations rise, Larmore believes the other proposals could be enacted with minimal blowback.
"I support everything that the auditors association is saying in here," Larmore told The Daily Standard, pointing to a news release outlining the proposals. "I think it's common sense, it's an easy thing to implement, and a lot of these things have not been adjusted for literally years. Just go back in and adjust things and give people instant relief."
Unlike other interest groups, though, the CAAO has to act as its own lobbyist - and that of property owners, Larmore insisted, underscoring the importance of holding such high-profile events to get the word out and influence others. CAAO has also joined a coalition with Ohio Realtors and the Ohio Chamber of Commerce to amplify their message, he noted.
"I think it's just important that they (state legislators) really listen to some of these folks with expertise. These auditors live and breathe this stuff every day," Larmore said, noting that the voice of the County Treasurers Association of Ohio is just as vital. "They could help these legislators write good policies, I think."
Total real estate taxes to be collected in Mercer County this year for tax year 2024 will be about $65 million, very close to the total for last year's billing cycle for tax year 2023, according to treasurer Dave Wolters.
But that may not be of much consolation to residential property owners, who on average saw a tax increase of 25% to 30% last year based on a 2023 reappraisal that determined new real estate valuation.
Here's an example of how that reappraisal affected tax burdens: A 1,625-
square-foot-home with three bedrooms and 11/2 bathrooms built in 1974 in Celina saw
its ap-praised value rise from $119,500.00 in 2022 to $206,900 in 2023. Its assessed value increased from $41,830.00 in 2022 to $72,420.00 2023.
Its property taxes spiked from $1,493.88 in 2022 to $2,496.80 in 2023, then dipped to $2,469.64 in 2024. The latter figure represents a 126.92% increase since 2019.
Overall, U.S. median home values increased 67% in five years, according to CAAO.
"Out of our 88 counties, we've got some really good auditors that actually go and testify, and we've been trying to tell these folks (state legislators), 'If you really want to do property tax relief, these are the things you need to do … making these changes here," Larmore said.
The homestead program exempts taxes on the first $28,000 of property valuation for individuals 65 and older or homeowners who are permanently and totally disabled who have an adjust gross income of $40,000 or less.
"We're proposing increasing both the valuation that would be exempt from the property taxes and the income threshold so that more individuals can qualify for the program," Larmore said. "This will allow some of the most vulnerable Ohioans to stay in their homes like the older people."
The exemption amount, according to CAAO, was adjusted in 2023 for the first time since 2007. Hence, from 2007 to 2023, the costs of homeownership rose while the exemption remaining unchanged, steadily diminishing the value of the benefit.
CAAO proposes eliminating the non-business credit and expanding the owner occupancy credit. Levies passed prior to 2013 currently receive a 10% reduction on all residential and agricultural properties, and an additional 2.5% reduction if the property owner resides in the home as their primary residence, according to CAAO.
CAAO claimed the discounts have been diminishing since then Gov. John Kasich rolled them back in 2013, purportedly leading to reduced savings to property owners as new levies have passed.
Eliminating the non-business credit and passing those savings on to homeowners would reduce the burden of homeowners who live and work in the community, CAAO asserted.
"If you do away with that 10% then you can raise the 2.5% for the people that you really want to help," Larmore said.
On most property tax levies, the tax rate decreases when property values increase. CAAO said this protects taxpayers from large tax increases caused by large valuation increases. One exception to that protection is a mechanism in state law that guarantees school districts receive a minimum of 20 mills of taxes.
After a school district reaches this "20-mill floor," when property values increase, the tax rate cannot be adjusted downward. This causes taxes to increase one-to-one with values on those school levies, according to the release.
Were it not for this guarantee, all public schools in Mercer County,would have dropped below 20 mills. Of Ohio's 615 school districts, more than 460 are at or near the 20-mill floor, according to CAAO.
When property values increase dramatically, property owners can see larges swings in their property tax bills. As a result of the most recent valuation increases, many school districts in Ohio operating at the floor received revenue increases in excess of 20%, according to CAAO.
CAAO proposed removing the 20-mill cap and changing the growth to be adjusted with inflation, enabling schools to continue receiving funding for increased costs, but without burdening taxpayers.
Larmore agreed the 20-mill floor is "the elephant in the room."
"It has to be addressed sooner or later, in my opinion," He said. "Make it fair. It's important schools do get the funding they need."
CAAO advocates for the creation of new tax relief programs aimed at protecting low- and moderate-income Ohioans. Among the ideas pitched are tax deferrals, income tax credits or abatements based on a long-term resident's inability to afford their rising property tax burden.
"The last time that comprehensive property tax reform was undertaken was in the 1970s," Wood County Auditor Matthew Oestreich said in a statement. "We are far overdue for updates and with the ever-increasing burden on property taxpayers, we cannot wait any longer."
