Property taxes will rise 4-12% next year as values soar 34%, county auditor says

Montgomery County property owners get notice of updated values in coming weeks; appeal process follows



Montgomery County Auditor Karl Keith announced Thursday that 96% of residential parcels in the county will see their taxable value increase after this year’s revaluation, meaning most people will see some increase in their property tax bill in 2024.

Residential values countywide are projected to increase an average of 34%. But how this impacts taxes varies from home to home. Keith said a 34% increase in value on a $100,000 home equates to a 4-6% increase in taxes for most of the county. But in some areas, taxes could spike 10-12%, he said.

The increases are because of the county’s red-hot housing market in recent years, just before this year’s update of property values, which is mandated to occur every three years. Commercial property values are projected to increase an average of 12%.

“Our analysis of residential and commercial sales has determined that property values in Montgomery County have grown a whopping $8.5 billion. That amount represents a 30% increase, the highest percentage increase in our county’s history,” said Keith.

Because of the idiosyncrasies of how property taxes are calculated, the actual impact on property owners will vary based on the taxing district people live in and their personal circumstances. Property owners will receive a notice of their tentative values in late July or early August.

The auditor’s office will offer informal reviews via Zoom in August and September where property owners will have an opportunity to question or challenge the values. Values will be finalized at the end of the year, and the first tax bill with the new values will be due in February.

The city of Dayton is an example of a taxing district that could see property taxes spike 10-12% because its voter-approved charter millage fluctuates more with property value changes than things like voted school levies do.

Jan Lepore-Jentleson, executive director of East End Community Services, said the tax increase comes on top of rising costs of everything else squeezing area residents.

“For renters, it’s going to add more pressure because those property tax assessments are going to get passed on to them, and our renters are really struggling now as we all know,” she said. “That could be really devastating for families because wages are not going up that fast.”

Once values are assessed, the county auditor will determine tax rates. This will include lowering the tax rate for most levies, which are designed to collect a specific amount of money and will be adjusted downward based on value increases and new construction.

Taxes that aren’t adjusted include charter millage. Another jurisdiction that will see taxes rise more than average is the Miamisburg school district, because tax rates there have been lowered as much as allowed under state law.

Increased taxes also means increased revenue for some local governments. The auditor’s office later this month will release numbers to local taxing jurisdictions on how they may be impacted.

“An increase in property values will provide much-needed relief as the district navigates its financial challenges,” Miamisburg City Schools Superintendent Laura Blessing recently told the Dayton Daily News. “The proposed property tax increases could provide the district the opportunity to postpone a new-money levy, benefiting taxpayers.”

Montgomery County Treasurer John McManus said his office offers a prepayment program that might help some homeowners avoid the shock of a large tax bill. His office will send out tens of thousands of mailers this summer to raise awareness of the program, which allows taxpayers to spread payments over the year instead of two large payments, he said.

“We really like this program,” McManus said. “It allows folks to better stay on track and to really budget in a more effective way. We want to expand this program as much as possible.”

Keith said in addition to the total value increases, the volume of home sales in recent years broke historic records. There were 10,520 valid sales in 2022 and 12,762 in 2021, compared to previous records in the 7,000 range.

“I have run out of words to describe the local real estate market,” Keith said.

Staff writer Sydney Dawes contributed to this report.

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