By 1808Delaware
Delaware County Auditor George Kaitsa has released a fact sheet about the upcoming property revaluations and their expected impact on Delaware County property taxes.
Here is an overview of that release:
Property Value Increase ≠ Property Tax Increase
Despite popular belief, a rise in property values does not equate to a direct, proportionate increase in property taxes. A 35% hike in property values does not guarantee a 35% escalation in taxes. The Tax Reduction Factor, a key element in property tax calculation, curtails the impact of value hikes by lowering the tax rate for voted levies.
The application of this factor differs based on the location of the homes. For instance, homes within the Olentangy Local School District, witnessing a 35% surge in home values, will only experience an approximate 4% increment in property taxes.
However, school districts at the 20-mill floor, like Big Walnut Local Schools, Buckeye Valley Local Schools, and Delaware City Schools, will have tax increases surpassing 4% following a 35% augmentation in property values, as the Tax Reduction Factor cannot offset these increases.
Delaware County’s Dependency on Property Taxes
Contrary to the common misconception, Delaware County does not rely heavily on property taxes to balance its General Fund budget. The county receives a meager 1.7% of all collected property taxes, while the majority, 74.6%, goes to Schools and the Career Center.
Other distributions include:
- Levy Agencies: 10.4%
- Townships & Corporations: 9.6%
- TIF Districts: 3.7%
County-wide Property Value Increase Comparison
Comparing the expected percentage increase in property values, Delaware County is projected to see a rise of 33% to 35% in 2023, consistent with other counties in the reappraisal or triennial update cycle. Other counties like Franklin County and Madison County will see an increase of 36%, while Knox County anticipates a 40% hike. Clermont County is projected to experience the state’s highest increase, at 43%.
Authority and Role of the County Auditor
The County Auditor doesn’t independently decide the timing or method of appraising properties in Delaware County. Instead, an order from the Tax Commissioners of Ohio mandates the reappraisal or a triennial update, following specific legal requirements as per the Ohio Revised Code and Ohio Administrative Code.
As County Auditor, Kaitsa clarifies his role is not to collect property taxes but to establish property values based primarily on the recent sale prices of properties, in accordance with reappraisal standards set by the Ohio Department of Taxation. Property taxes are determined by the voters, not by the County Auditor.
How the Tax Reduction Factor Works
Under current law, the voted property tax levy should generate the same amount of property tax revenue after a reappraisal as before. The Tax Reduction Factor decreases the voted tax rate to offset an increase in property value after a reappraisal.
For instance, if a home value rises from $100,000 to $150,000 after a reappraisal, the tax reduction factor reduces the tax rate to keep the property tax constant.
2023 Reappraisal for Delaware County
Tyler Technologies, a specialist in mass appraisals, is set to conduct the 2023 reappraisal for Delaware County. Once approved by the Ohio Department of Taxation, all property owners will receive notification of their current and proposed tentative values based on the reappraisal.
In October, the County Auditor’s office will conduct informal hearings, allowing property owners to discuss their property’s value. Property owners can submit information related to their property’s value for appraisal adjustments. Final values will be established in November, after which property owners unsatisfied with the outcome can file a Property Valuation Complaint with the Delaware County Board of Revision.
Click HERE to read his “Facts & Fiction” informational release.
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