Ohio property values have increased dramatically over the past several years. For Portage County, we are seeing an increase on average of about 33%. What does this mean? Well, you may have been surprised when you opened the letter from my office recently that showed a before value assessed in 2021 and then an after value from this year.
The state of Ohio mandates that all 88 counties must appraise the value of properties every six years, otherwise known as a sexennial appraisal. Auditors of each of Ohio’s 88 counties are responsible for this appraisal — also referred to as a revaluation. Portage County has just completed this appraisal process and the letters that property owners have received are the result and communication of this process.
Every county auditor knows that someone’s home is their most valuable asset and our role in this process is considered one of the most important responsibilities of a county auditor. If our homes are our most valuable asset or investment, we should be elated with an increase, right? We would be, except that property taxes correlate with our property value increase. That is the problem.
I have been in contact with auditors across the state that have already been through this process just like Portage County is today. The entire state is seeing similar increases in property values. In Portage County, the Auditor team has been to Q & A sessions at countless township trustee meetings, city council meetings, community organizational meetings, radio communications, event handouts, etc. We plan to continue this communication outreach going forward. This past week, we had a booth at the Portage County Randolph Fair in the Merchant Barn to address questions about property values as well as the many other things the Portage County Auditor office is responsible for. You will also see us at the Balloon A-Fair (booth with informational handouts) as well as the Kent State homecoming parade (informational handouts). We are doing this in service to you, our Portage County residents. We want you to have all the information you need to change this process for the better.
How did it get to this point? An increase in property values will directly affect property taxes — not on a dollar-for-dollar basis but there is a correlating effect. I have heard the concerns about this countless times at every community meeting I’ve been to. Property taxes come from levies that have been voted on and passed over the years.
Stark County Auditor and former President of the County Auditors’ Association of Ohio, Alan Harold, explains it very succinctly: “The formula for taxation in Ohio — commonly referred to as House Bill 920 — has been in place since the mid-1970s. Think in our country’s history of the time this bill was passed, a time of high inflation not dissimilar from what has been experienced in the past two years. House Bill 920, when enacted in 1976, was designed to keep property taxes from increasing at the same rate as property valuation increases. A small portion of a property tax bill — historically 15-20% — would rise and fall as the valuation change occurred. The bulk of the bill — that based on voted levies — would stay fairly flat. This was the effect of House Bill 920 and it has worked relatively well for the past 50 years. But its effectiveness in capping increases in property taxes with each reappraisal cycle has come to an end. It has come to an end largely due to changes in school levy choices, specifically emergency and substitute levies and shifts in permanent improvement levies, that fall outside the calculations as contemplated by House Bill 920. As a result, a super majority of schools across the state benefit from additional increases in revenue as a result of having their property tax millage fall below a certain guarantee, called the 20-mill floor. The 20-mill floor guarantees each school district 20 mills of operating millage, excluding emergency and substitute levies.”
Bottom line, our property tax structure is overly complicated, outdated and needs immediate change. School systems across Ohio, including Portage County, have had to manage with a funding process that was ruled unconstitutional in 1997 because it relies too heavily on property taxes.
I have been in constant contact with our Portage County state representatives. They are aware of the seriousness of this issue. Our state legislature can change this process for the benefit of all Ohioans. County auditors throughout the state are doing the same. The Homestead Exemption needs vastly improved, the unconstitutionality of our school funding formula needs addressed, and the 20-mill floor needs improved or changed dramatically. The burden that our Portage County Property owners have in funding our schools must be reduced.
We have received many calls and emails. We are working diligently to answer and/or return every call and email. Be patient — we will respond. I have personally reached out by phone call, email, and in face-to-face meetings at homes of those trying to navigate through this. The Portage County Auditor’s office team cares about this as much as you do.
We have also set up an appointment scheduling process for property value disputes. This was done to prevent waiting in long lines to talk to our appraisers. If you don’t get a chance to schedule an appointment now, no worries, you will have a chance to schedule a meeting during the Board of Revision period January through March.
To the many people who have contacted the Portage County Auditor’s office about this issue, we welcome the dialogue. However, I’m asking you to make a follow-up call to your state representatives and express your concern to change this process. The current system is not sustainable for any of us.
Matt Kelly is the Portage County Auditor.
