Historic property value jumps to lead to tax spikes for many central Ohio rural residents

Homeowners in several central Ohio counties, like those in Franklin County, are seeing sky-high jumps in property values this year.

But because of the way property taxes are calculated, those jumps are likely to cost those rural homeowners far more, according to several area county auditors.

Four central Ohio counties — Delaware, Licking, Madison and Pickaway — completed full property reappraisals this year, in addition to Franklin County, which reported a 41% jump in residential values.

More: Some Franklin County neighborhood property values triple. Where did they rise most?

All four found that residential values rose what is thought to be record amounts: 34% in Delaware; 36% in Licking; 32% in Madison; and 34% in Pickaway.

"As far as I know, this is an absolute record, certainly for as long as I've been around," said Delaware County Auditor George Kaitsa, who was appointed to the post in 2009 and elected to a full term the following year. His office sent out mailers recently informing county homeowners of their proposed new values under the countywide reappraisal.

Home appraisals are ultimately based on sales prices, which Kaitsa said rose on average from $448,350 in 2021 to $527,830 this year in Delaware County.

The jumps in appraisals will especially impact smaller, rural communities this year because of the way property taxes are calculated.

In larger school districts, such as most of those in Franklin County, the amount of tax mills levied on properties decreases to reflect rising property values.

But smaller school districts often hit a state law that prevents school districts from levying fewer than 20 mills. (One mill equals $1 in taxes for each $1,000 in assessed home value.) In those districts, the full 20 mills will be applied to all taxable value, including all the increased value, to prevent the millage from falling below the 20-mill floor.

As a result, homeowners in those districts are likely to feel far more of a pinch from this year's rising property values.

"When you're at the 20-mill floor you’ll feel the (appraised) value increase more," said Pickaway County Auditor Brad Washburn. "You will see a greater impact" on property taxes.

While not an issue in Franklin County, more than half of the state's 611 school districts are at the 20-mill floor.

In the four central Ohio counties undergoing reappraisals this year, 17 districts are at the 20-mill limit, according to the Ohio of Department of Taxation: Big Walnut, Buckeye Valley and Delaware City in Delaware County; Heath, Johnstown-Monroe, Lakewood, Licking Heights, Licking Valley, Newark, North Fork, Northridge, and Southwest Licking in Licking County; Jefferson Local, Jonathan Alder and London in Madison County; and Logan Elm and Teays Valley in Pickaway County.

In Delaware County's three larger school districts (Dublin, Olentangy and Westerville), Kaitsa said the 34% rise in home values will translate to about a 4% rise in taxes, independent of any approved levy increase. But in the county's three districts at the 20-mill floor, that same increase in home values will mean a 15% or 16% increase in property taxes, or an additional $1,100 or $1,200 a year on a home worth $400,000.

In Licking County, only the Granville Exempted School District is above the 20-mill floor, said Licking County Auditor Michael Smith.

"Most of the folks in Granville will see about a 10% increase, or maybe 10 to 15% increase, in taxes," Smith said. "If a school district is at that floor, instead of a 10% increase, they’re likely to see a 20%, maybe a 22% increase. It could even be more than that."

The difference for the owner of a $100,000 home could add up to $600 or $700 a year, Smith said.

"That’s real money," he noted.

Smith would like the Ohio General Assembly to eliminate the 20-mill floor.

"It would make a huge difference for those taxpayers," he said. "That’s the only way of saving property owners from huge spikes in property taxes."

Smith and other central Ohio auditors know homeowners are worried about what impact the valuations will have on their tax bills.

"Prices are going up on everything, and no one wants to see their taxes going up," said Madison County Auditor Jennifer Hunter, whose office notified property owners in August that they could look up their proposed appraised values online.

About 100 homeowners attended in-person sessions in Madison County to express concern about the new values, Hunter said. About 315 attended a recent Licking County session, Smith said.

When Pickaway County finishes valuing property in the Commercial Point area in a few weeks, the county will notify homeowners that they can look up their proposed new values on the auditor's website, said Washburn.

Auditors are quick to emphasize that they only set values, not tax policy, but some are joining the growing chorus of officials and politicians looking to provide property tax relief to stretched homeowners.

"I think there are some changes that are needed," Kaitsa said.

Among changes Kaitsa endorses: basing property values on a three-year average instead of the most recent year; allowing Ohio taxpayers to deduct property tax payments from state income tax; and increasing the eligibility and benefit of Ohio's homestead property tax exemption.

Homeowners won't learn exactly what their new values mean to their property taxes until they receive their tax bill the first of the year. There are property levies on the ballot in some places that could change the total millage a homeowner must pay taxes on.

jweiker@dispatch.com

@JimWeiker

This article originally appeared on The Columbus Dispatch: Central Ohio property value increase hurts rural residents