Upcoming Property Tax Bills and Changes in Ohio
Treasurer Mike McNamara informed the Journal News that by the end of this month, 165,000 property tax bills, amounting to $739.4 million—including past due taxes and special assessments—will be mailed out, with payments required by February 26.
Since property taxes are paid locally, the bills will reflect taxes for the year 2025. There shouldn’t be a drastic hike because property values haven’t changed, but various local and state decisions could influence the final amounts.
Since 2020, the total taxes collected by McNamara’s office have risen by 25%. Some individuals have experienced large increases, while others haven’t seen any changes. The average rise from the last value adjustment in 2023 stands at 37%, prompting officials to consider a tax cut.
No Immediate Tax Credits from HB 186
House Bill 186, the most significant measure passed by legislators, took considerable time to become law, which means the tax credits associated with it won’t activate until later. This bill aims to limit future increases due to inflation, assisting homeowners burdened by rising bills from recent property value adjustments.
This initiative affects major school districts statewide that have been benefiting from increased taxes linked to mandatory real estate revaluations over recent years. According to Ohio law, once a school district’s total ongoing expenses are lowered to 20 mills, they can’t go down any further, leading to higher tax revenue as property values rise.
Residents in eight out of ten school districts in the county (excluding Fairfield and Lakota) that were at the 20-mil threshold during the 2023 reassessment will benefit from credits. However, Nix mentioned that calculating these credits can’t occur until additional state guidance is provided.
Focus on Accurate Tax Payments
Some county treasurers are suggesting that taxpayers avoid full upfront payments due to potential late deductions. McNamara, however, holds a different perspective as the credits remain uncalculated. He emphasized, “As Treasurers, our role is to deal with facts, not speculation. Currently, no state-mandated adjustments are in place, and we won’t advise taxpayers to alter their payment approach.” He added that if taxpayers pay their bills in full now and a reduction happens later, their accounts would adjust, leading to a refund of any excess.
Presently, the county commission has cut back half of the indoor payroll costs, which totals about $12.5 million. This change is projected to save taxpayers roughly $100 for every $100,000 of home value. However, two countywide taxes have been approved in the last couple of years for Mental Health and Addiction Recovery Services, as well as Senior Services, resulting in an additional $38 tax hike per $100,000 in property value. Essentially, this translates to a net saving of $62 per $100,000 for residents.
Those utilizing the Midpoint Library System will face an extra fee of $12 per $100,000, and Milford Township residents will encounter a tax increase of $22 per $100,000 due to a newly passed tax last year.
A recent change in state legislation has empowered county commissioners to effectively double the state-funded homestead exemption and 2.5% owner occupancy credit for eligible homeowners utilizing local funds.
Commissioners have taken advantage of the homestead exemption aspect of the new law, anticipating a total saving of about $7.7 million for roughly 18,000 eligible homeowners.
Additionally, HB 186 will elevate the 2.5% owner-occupancy credit to 15.38% over four years, gradually phasing out the 10% non-business credit applicable to one- to three-family homes, keeping agricultural property exempt. This provision is set to commence in the 2026 tax year, meaning taxpayers won’t see any relief until 2027.
Nix’s office projects that once fully implemented, tax savings could reach approximately $213 per $100,000.
While this year’s value-driven adjustments may offer some relief, the county is undergoing a six-year reassessment, during which all properties will be inspected and appropriately valued. Nix mentioned he’ll have a clearer picture in March regarding potential increases, which are expected to fall between 13% and 25%.
Nix expressed optimism about Congress’s recent actions to secure state tax relief, something local officials have been advocating for since 2023.
Looking ahead, Nix stated, “There will be a reassessment in 2026 followed by a tax increase in 2027, so this could benefit taxpayers. However, if the new property tax reform is put in place, the rise may not be as sharp as initially anticipated.”
For property owners who believe the auditor’s valuations are incorrect, there’s an option to appeal the value rather than the taxes. The deadline for filing an appeal with the revision committee is March 31, but homeowners can only appeal once during the three-year evaluation period. Forms for this process are available on Nix’s website and can be submitted electronically.
