Property Tax Experts
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For taxpayers who
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
In 2005, the statewide average “gross” millage rate was 85.24 mills on residential and
agricultural real property; and the statewide average “effective” millage rate on all real
property was 55.18 mills. The difference between the gross and effective rate is due to
the tax reduction factors, which generally prevent increases in voted taxes when the
valuation of existing real property is increased.
Homestead Exemption:
Property tax reductions are granted to qualified low-income homeowners who are at
least 65 years of age or are permanently and totally disabled or to surviving spouses at
least 59 years of age if the deceased spouse had previously received the exemption.
The reduction is equal to the gross millage rate multiplied by the reduction in taxable
value shown in the
following schedule (for tax year 2006):
Total Income of Reduce Taxable Owner and Spouse Value by the Lesser of:
Since tax year 2000, the income brackets have been indexed for inflation. Beginning with tax year
2002, the dollar amount reductions in taxable value are also indexed annually for inflation.
Homestead Exemption Example
The example below illustrates the computation of homestead exemption property tax
relief for tax year 2006. For this example, assume that a senior citizen homeowner has
the following characteristics:
Since the homeowner is in the $13,401- $19,700 income bracket, the reduction
in taxable value equals the lesser of $3,400 or 60 percent of taxable value. Since 60
percent of $17,500 is $10,500, the reduction in taxable value used to calculate this
exemption is $3,400. The tax savings equals the $3,400 reduction in taxable value
multiplied by the 50-mill tax rate, or $170. Like all other real property taxpayers, the
senior citizen homeowner in the example is entitled to a tax reduction factor which is
applied against the property tax (assume a 15 percent reduction). Also, the homeowner
is granted a 12.5 percent tax reduction (10 percent and 2.5 percent property tax
rollbacks), which is reimbursed to the local governments from the state’s General
Revenue Fund. When these are considered, the computation of net property tax due is
shown below:
Property tax before any reductions $17,500 taxable value x 50 mills =$875.00
Subtract tax reduction factor ($875 x 15%) - 131.25
Net taxes levied after tax reduction factor = $743.75
Subtract 12.5% rollback (.125 x $743.75) - 92.97
Net taxes before homestead = $650.78
Subtract homestead exemption ($ 3,400 x 50 mills) - 170.00
Net property tax due = $480.78
agricultural real property; and the statewide average “effective” millage rate on all real
property was 55.18 mills. The difference between the gross and effective rate is due to
the tax reduction factors, which generally prevent increases in voted taxes when the
valuation of existing real property is increased.
Homestead Exemption:
Property tax reductions are granted to qualified low-income homeowners who are at
least 65 years of age or are permanently and totally disabled or to surviving spouses at
least 59 years of age if the deceased spouse had previously received the exemption.
The reduction is equal to the gross millage rate multiplied by the reduction in taxable
value shown in the
following schedule (for tax year 2006):
Total Income of Reduce Taxable Owner and Spouse Value by the Lesser of:
- $13,400 or less $5,500 or 75%
- More than $13,400 but not more than $19,700 $3,400 or 60%
- More than $19,700 but not more than $26,200 $1,100 or 25%
- More than $26,200 -0-
Since tax year 2000, the income brackets have been indexed for inflation. Beginning with tax year
2002, the dollar amount reductions in taxable value are also indexed annually for inflation.
Homestead Exemption Example
The example below illustrates the computation of homestead exemption property tax
relief for tax year 2006. For this example, assume that a senior citizen homeowner has
the following characteristics:
- Total income of $15,000, consisting of $5,000 in wages, $5,000 in social
security and $5,000 in dividends. - A home with a market value of $50,000 and a taxable value of $17,500 (taxable
value = 35 percent of market value). - A local property tax rate of 50 mills (gross rate before tax reduction factors).
Since the homeowner is in the $13,401- $19,700 income bracket, the reduction
in taxable value equals the lesser of $3,400 or 60 percent of taxable value. Since 60
percent of $17,500 is $10,500, the reduction in taxable value used to calculate this
exemption is $3,400. The tax savings equals the $3,400 reduction in taxable value
multiplied by the 50-mill tax rate, or $170. Like all other real property taxpayers, the
senior citizen homeowner in the example is entitled to a tax reduction factor which is
applied against the property tax (assume a 15 percent reduction). Also, the homeowner
is granted a 12.5 percent tax reduction (10 percent and 2.5 percent property tax
rollbacks), which is reimbursed to the local governments from the state’s General
Revenue Fund. When these are considered, the computation of net property tax due is
shown below:
Property tax before any reductions $17,500 taxable value x 50 mills =$875.00
Subtract tax reduction factor ($875 x 15%) - 131.25
Net taxes levied after tax reduction factor = $743.75
Subtract 12.5% rollback (.125 x $743.75) - 92.97
Net taxes before homestead = $650.78
Subtract homestead exemption ($ 3,400 x 50 mills) - 170.00
Net property tax due = $480.78
In Ohio Property taxed is assessed at 35% of it's market value
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