The Ohio Department of Taxation is recommending a hike of roughly 37% on average for residential property and 13% for commercial property in Montgomery County as the county works to update its taxable value after years that saw a red-hot housing market.
The state is recommending an increase for Greene County property owners of 32% for its residential property. Of the other recommended increases among Ohio counties last week, eight were in the 30% range, two each in the 20% and 40% ranges.
Montgomery County Auditor Karl Keith said the increase is more than he has seen in more than two decades as county auditor. But he wasn’t surprised.
“Ohio is a market value state,” Keith said. “They’re looking at the same data that we’re looking at.”
Property in all counties is reappraised every six years, with property values updated every third year based on sales data. The Ohio Department of Taxation issued letters to more than a dozen counties in the region with recommendations for property values during its triennial update.
“There may be some variation as we go forward, but certainly it tells us that the state is seeing the same thing we’re seeing: that the market is at a record-setting pace. Not just here, but pretty much all over the state,” Keith said.
2021 and 2022 were healthy market years for residences in the county, Keith said. Last year saw 10,500 homes sold, falling slightly short of breaking the record high the year before: 12,000 residences.
The recommended value spike does not mean all houses in the county will see an increase in value of 37%.
“The old real estate maxim applies here: what’s the driving force behind price on real estate? Location, location, location,” Keith said. “It really depends on the neighborhood you’re in and what’s going on in that market. 37% is an average: some are going to see higher, and some will see lower.”
It also doesn’t mean residents will see a 37% increase in their taxes.
“The Ohio Constitution has measures in place that prevent large increases in property values from causing large increases in taxes,” said Keith. “Some property owners may see their tax bill increase, but others will see theirs stay about the same or even decrease.”
The auditor’s office is still in the process of estimating value changes at the property and city level. The county will report tentative values for individual neighborhoods by Memorial Day. Homeowners will receive written notices of the tentative value of their properties, and they can schedule informal reviews with the office to request and make a case for adjustments. The office will then send off its final values to the state. Once the auditor’s office has approval of these final values, it will mail out notices of the final new values to property owners.
Homeowners will have access to file formal appeals with the Board of Revision between Jan. 1 to March 31, 2024.
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