Measure to reduce tax impact of property value increases yanked from state budget

More than 30% valued increase recommended by state for Montgomery, Greene counties
Montgomery County property values are expected to increase by more than 30%, this summer per recommendation by the Ohio Taxing Department, as the area continues to see a record-setting pace in its housing market JIM NOELKER/STAFF

Credit: JIM NOELKER

Credit: JIM NOELKER

Montgomery County property values are expected to increase by more than 30%, this summer per recommendation by the Ohio Taxing Department, as the area continues to see a record-setting pace in its housing market JIM NOELKER/STAFF

Ohio lawmakers removed from the final state budget an initiative to change the rules about property valuations ahead of local counties’ regularly scheduled assessment expected to lead to historic increases in taxable property values this year.

The Ohio Department of Taxation’s recommended value increases could see property valuations spike an average of more than 30% for residential homes after revaluations this year in Montgomery and Greene counties.

Concerned about an average 42% spike projected there, Butler County officials convinced state lawmakers to add a measure to the proposed budget that would opt for a three-year average for county auditors to use as they reassess property. The measure was added to the Senate budget proposal but removed in conference committee before the final budget was signed this week by Ohio Gov. Mike DeWine.

“Across our district, state and nation, homeowners are faced with skyrocketing property values, which in turn can lead to drastic increases in their property taxes,” said Sen. George Lang, R-West Chester Twp., who along with Rep. Thomas Hall, R-Madison Twp., pushed for the policy.

“Many are unprepared or unable to afford these sudden spikes and deserve protection. This was a provision I fought hard to include, and I am incredibly frustrated that local officials and state legislators have chosen to side with the government over the taxpayer,” Lang said.

While it was removed from the budget, the proposal still exists as a proposed House bill. The The Ohio Homeowners Relief Act has had three hearings in the House Ways and Means Committee, where it was supported by Butler County officials and Ohio REALTORS. It is opposed by the County Auditors Association of Ohio.

Projected historic increases in Montgomery and Greene counties will impact some taxing districts more than others because of the way property taxes are structured, local county auditor’s office leaders said.

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Under Ohio law, property in all counties is reappraised in cycles every six years, with property values updated every third year based on recent sales. The state’s recommendation is a guideline for county auditors as they estimate taxable values based on sales from 2022.

For some homes, an uptick in value could result in a change in property tax bills totaling hundreds of dollars. But Larry Hartlaub, Montgomery County Auditor’s Office finance director, said a value increase is not a one-for-one change.

“It depends on many relative things. Some people may see an increase in value and a decrease in taxes,” he said.