Navigating Real Property Taxes in Hamilton County, Ohio: Unveiling the Reappraisal Process

As we provide an overview of the intricacies of real property taxes in Hamilton County, Ohio, recent insights from Hamilton County Auditor Brigid Kelly shed light on the 2023 Real Property Reappraisal. In this blog post, we’ll integrate Auditor Kelly’s guidance and discuss how real property taxes are calculated, emphasizing the nuanced relationship between property values and tax obligations.

The Reappraisal Process: please pay attention!

The State of Ohio mandates that County Auditors conduct a full reappraisal of all real property parcels every six years, with statistical updates every three years. This year, Hamilton County undergoes a comprehensive reappraisal, aiming to align real property values with current market conditions. However, certified values from the State of Ohio Department of Taxation are still pending for Hamilton County. As an owner of real property, you have until March 31^st to appeal your new valuation. If you miss this time window, not all is lost. You can appeal next year (by March 31^st) and if successful, your new valuation will be effective for 2 years (not the 3 years that would have been the case had you not procrastinated).

Factors Influencing Tax Revenue: it’s all about payees and distributions!

Communities can boost tax revenue through many factors such as new construction and expanding the pool of taxable properties. Voter-approved real property tax increases or levies also play a significant role in shaping tax rates. It’s important to recognize that voted levies can impact taxes, and Ohio law provides reduction factors for these levies. These reduction factors aim to adjust taxes on existing properties to maintain revenue consistency.

Real Property Values and Millage Rates and Tax Calculations… oh my!

Real property taxes are intricately linked to real property values. That said, an increase in fair market value of your real property doesn’t necessarily lead to a direct increase in real property taxes. The relationship is far more complex than that; after all, we’re talking about money from multiple sources and for many varied needs and wants so it has to be a little more veiled and complex, doesn’t it? Without over complicating things, to calculate real property taxes, the assessed value of a property is multiplied by the total millage rate (i.e, the confusing part), which includes rates from various taxing authorities.

Balancing Tax Adjustments: sounds easy but it isn’t!

The intricacies of tax calculations involve adjusting taxes on existing properties based on new market values. Reduction factors come into play to balance the impact of changing property values, ensuring that the tax revenue generated remains stable compared to the previous year. This mechanism helps mitigate the direct correlation between property value changes and tax fluctuations.

So where do my real property tax dollars go?

If you’re an owner of real property, you likely have questions concerning how your check made payable to the county treasurer is disbursed. Take Mount Lookout for example, just over 60% of the real estate taxes are disbursed to the City of Cincinnati school district. The remainder, and in no particular order, the City of Cincinnati receives about 19%; Children Services, Developmental Disabilities, and the County General fund collectively receive about 11%; and the remaining 10% or so is distributed to the Park District, Public Library, Mental Health Levy, HLTH/Hospital Care for Indigent, Senior Services, Family Services, Zoo, etc. The actual distribution of your real estate tax dollars will be different depending on the location of your real property with the County.

Conclusion:

Understanding the reappraisal process and the factors influencing tax calculations provides property owners with valuable insights. Hamilton County Auditor Brigid Kelly’s guidance emphasizes the multifaceted nature of the relationship between real property values and real estate taxes. By understanding these details, county residents can navigate the evolving landscape of real property taxes with a clearer understanding of the broader factors at play.

Would you like a deeper dive? Do you have questions? Do you live in Hamilton County or Clermont County or Butler County or Warren County? Would you like comparable sales information? Do you want the Form DTE1 to start this process?

If you answered YES to any or all of these questions, please send an email to ogle.annett@cbrealty.com and I will help address your questions and comments.

In the meantime… here’s to an awesome 2024… notwithstanding a deeper reach into your tax pockets.