Your Home, Your Value

1
Your Home, Your Value

• A simplified approach to understanding your
  countys home valuation process.

Presented by Rhonda Eddy, Allen County Auditor
2
Why Reappraise?

• Ohio Constitution requires real property to be
  appraised at market value
• Ohio Constitution also requires real property to
  be taxed by uniform rule. all taxpayers
  receiving a service must pay the same rate of
  taxation for that purpose.
• Counties revalue according to a schedule set by
  the Department of Taxation.

3
2009 REAPPRAISAL COUNTIES

• ALLEN
• SANDUSKY
• COSHOCTON
• VINTON
• GUERNSEY

4
2009 UPDATE COUNTIES

• BELMONT HURON
• BROWN JEFFERSON
• CRAWFORD LAKE
• CUYAHOGA LORAIN
• ERIE LUCAS
• FAYETTE MORGAN
• HIGHLAND MUSKINGHAM
• OTTAWA PORTAGE
• STARK WILLIAMS
• WARREN

5
Understanding the home valuation process

1. Collection
2. Analysis
3. Setting
4. Feedback
5. Review
6. Finalization
6
1. Collection

• Reappraisals happen every six years
• Orders to reappraise issued two years prior to
  the scheduled reappraisal.
• We have been working on the reappraisal since
  2007.
• Reappraisal requires that each property must be
  viewed by the auditor or his representative.
• Ensures land and improvements are correctly noted
  for tax purposes.
• County Auditor may contract for the services of a
  professional appraisal firm
• Firm must register with the Tax Commissioner
  before a contract can be signed.
• Registration is for disclosure purposes

7
2. Analysis

• Establish neighborhood boundaries
• Reviews historic trends and actual sales over
  last three years
• Determine estimated
• fair market value of properties.

8
(No Transcript)
9
3. Setting

• Market value is the price that would be paid by a
  willing seller to a willing buyer.
• Determination includes analysis of property
  sales, rental income, and other economic factors.
  
• Ohio requires full disclosure of sales
  prices to facilitate the assessment of real
  property.
• Mechanism is Conveyance Fee and Transfer Tax.

10
4. Feedback

• Notices are mailed upon completion of property
  valuations
• All records are made available for public
  inspection.
• Face-to-face meeting with an appraiser and/or
  county representative to discuss their valuation.

11
5. Review

• DTE reviews the proposed values and conducts a
  sales ratio study.
• Compares sales from the year preceding the tax
  lien date to the proposed values.
• Sales have been screened for validity.
• Questionable sales are removed from the study.
• DTE also compares aggregate value changes by
  class with changes in the value of properties
  considered in the ratio study.

12
5. Review (cont)

• If values meet required levels, an entry will be
  issued accepting the values listed on the
  tentative abstract.
• If values do not meet required levels, DTE will
  contact the county to discuss required
  adjustments.
• The Tax Commissioner may order the the necessary
  changes if no agreement can be reached.

13
6. Finalization

• Values are aproved by DTE.
• Tax Rates are set by DTE.
• Tax bills are printed.
• Taxpayer has right to file for a Board of
  Revision Hearing. 1st Monday in Jan to March
  31st, 2010.

14
How do I provide feedback to my county auditor?

• Some homeowners may wonder when it is
  appropriate to provide feedback about
• their valuation.
• Some of the questions to consider are
• 1. Have we missed something when your home was
  reviewed that might change your
• valuation?
• 2. Would you sell your home for the current
  appraised value of the property?
• Homeowners who have questions or concerns about
  their valuation have the opportunity to provide
  feedback to a county representative to discuss
  their valuation and request that changes be made.
• Property owners can appeal informally or
  formally. The informal hearings allow homeowners
  to meet with the appraiser and correct any
  mistakes or raise any questions. This informal
  process saves you time and money by not filing a
  formal appeal although the formal appeal route
  can serve their needs as well. Either avenue
  leads to fair play for property owners.

15
What are your responsibilities as a homeowner?

• 1. Understand the process by reviewing the
  materials available to you or visiting our web
  site for more information.
• 2. Report any changes or discrepancies to
• your auditor since your last valuation.
• 3. Provide feedback to your auditor about
• your valuation to ensure its accuracy.

16
How does my valuation affect my taxes?
TAXES

• Two primary components make up a property tax
  bill
• 1. The first component includes the various tax
  rates, which are requested by taxing authorities,
  such as school districts, park districts,
  townships, villages and city councils and
  approved by the voters.
• 2 .The second component is the assessed value of
  ones property.
• A third component may include special
  assessments submitted from municipalities,
  townships and counties.

17
Basic Taxation Formula

• (Base x Rate) - Credit Tax
• The tax base is appraised value
• The tax rate is expressed in mills
• 1 mill 1.00 per 1,000 of taxable value
• Examples of tax credits include reduction factors
  and rollbacks

18
Where does your tax money go?

• 72 School Districts
• 13 Townships/ Municipalities
• 1 Park District
• 5 County General Fund
• 5 MRDD
• 1 Tri-County Mental Health
• 2 Children Services
• 1 Senior Services

19
How is the Tax Rate Determined?

• Most mills are approved by voters
• Some mills are levied without voter approval
• this is called inside or unvoted millage.

• Average tax rate is well over 50 mills, so most
  rates have been approved by voters.
• Inside millage cannot exceed 10 mills as it is
  applied to any individual property.

20
Tax Reductions

• The Department of Taxation reviews the levies and
  valuations each year to adjust the effective rate
  so that an entity cannot receive more than they
  should per the voted millage or set amount.

21
Voted Levies

• Fixed Rate Levy Voter is voting on of mills
  that will be charged against value.
• (Police, Fire, Permanent Improvement, Current
  Expense levies).
• As values change the DTE changes the rates
  (effective rate) so that the entity will never
  receive more money than the first year the levy
  was collected. New construction is not included
  in the effective rates.
• Rate Value Amount

22
Voted Levies

• Fixed Sum Levy Voter is voting on set amount of
  money, no matter what the valuation. (Emergency
  Bonds levies for schools)
• As property values decrease or increase, the
  amount to be collected is spread out among all
  the property owners in that school district.
• Amount / Valuation Rate

23
Tax Credits Available

• Owner-occupancy
• Owner-occupied homesites are entitled to a 2.5
  tax rollback.
• Homestead Exemption
• Homeowners who are at least 65 years old or
  permanently disabled may be eligible for the
  Homestead Exemption.
• Agricultural Use Value Program (CAUV)
• The Current Agricultural Use Value program
  exists for eligible commercial agricultural
  property.
• Property damage
• Reporting damaged or destroyed property may
  reduce its appraised value.

24
Calculation of a Property Tax Bill
Market Value of Home 100,000
Taxable Value (35 of 100,000) 35,000
Effective Tax Rate (reduced tax rate) 42.87 Mills
Effective Tax (.04287 Mills X 35,000) 1,500.45
Subtotal (Before any tax credits) 1,500.45
10 Rollback (.1 X 1,500.45) -150.04
2 ½ Rollback (.025 X 1,500.45) -37.51

Net Tax Due 1,312.90
25

• The value of your home is related to the amount
  of tax you pay However. It is not a direct
  correlation of the taxes you pay.
• If your value drops 10, it doesnt mean your
  taxes drop 10. If your value increases 5, it
  doesnt mean your taxes increase 5.

26
For more information

• County web site
• www.allencountyohio.com/auditor
• Your home, your value web site
• www.YourHomeYourValue.org

Property valuation feedback [phone]
x8794 Rhonda Eddy, Allen County Auditor 301 N.
Main St, Room 105 Lima, OH 45801 [phone]
x8794 phone [phone] fax reddy_at_allencountyo
hio.com email