No one worked harder for property tax relief last year than our Butler County lawmakers. Senator George Lang and Rep. Thomas Hall were both successful in passing legislation out of their respective chambers. Unfortunately, Senate and House leadership could not come to an agreement. The clock ran out in December; thus, no property tax relief is forthcoming for 2024 tax payments.
Credit: Nick Graham
Credit: Nick Graham
The property taxation system in Ohio is extremely difficult to understand, as there are numerous variables in the calculations. House Bill 920, passed almost 50 years ago, aimed to keep inflationary increases in property values from increasing voted taxes, by reducing tax rates so that levies passed collect the same amount every year. Yet, there is a clause in the Bill that provides extra protection to school districts at the “20 mill floor.” Once a school district is at the 20-mill floor, rates no longer reduce, and as values increase, taxes proportionately increase as well.
Eight of Butler County’s ten school districts are at the 20-mill floor. Only Lakota and Fairfield school districts are not. This fact alone is resulting in great disparity of tax increases among Butler County taxpayers. Based on a 37% median value increase, those living in Lakota and Fairfield school districts are seeing their tax bills increase 4-6% on average. Some taxpayers in those districts may even notice their tax bill decreasing if their value did not increase as significantly.
Based on a 37% median value increase, those residents in the other eight school districts are seeing tax increases of 18-24%. In addition, residents in Reily and Ross Townships are seeing tax bill increases of 24-28% due to levies passed in November.
Why the disparity? Why aren’t Lakota and Fairfield at the 20-mill floor? In general, whether a district is at the 20-mill floor depends on the type and number of levies passed by voters. Lakota and Fairfield school districts have passed more “current expense” type levies in recent years, while some school districts have passed more emergency and substitute levies that allow the district to remain at the 20-mill floor. However, as values continue to increase and effective tax rates decline, Lakota and Fairfield are both moving closer to the floor. It is advantageous for a school district to be at the 20-mill floor because of the increased revenue in an inflationary market, without the accompanying downside in a deflationary market. The 20-mill floor also allows school districts to avoid running new levies.
Thankfully, Ohio lawmakers are working on property tax relief. Butler County Senator George Lang is on the 10-person committee seeking ways to lessen the plight of our residential homeowners, especially those in districts at the 20-mill floor. Our office has offered other alternatives for reducing the tax burden, including vastly improving the Homestead Exemption or capping the amount taxes can increase year over year. There is also a growing problem of more property being exempted from property tax through the use of abatements and exemptions, which further erodes the tax base for residents.
The Butler County Auditor’s website ButlerCountyAuditor.org offers an abundance of information pertaining to tax values, rates, and tax bill calculations. Taxpayers are now able to see what their tax bill will be (tax bill due date is February 29, 2024). Our website offers a 7-page document of “Frequently Asked Questions” for those seeking more information. The Auditor’s Office has several certified appraisers on staff who can talk residents through their tax bill by calling 513-887-3154. Or anyone can email the office by clicking on the “Contact Us” tab at the top of our website. Our office strives to be a resource of information for all residents, especially during these difficult financial times.
Nancy Nix was appointed Butler County Auditor on Feb. 2, 2023 by the county GOP Central Committee. Prior to serving as Auditor, Nix was Butler County Treasurer for nearly 16 years and served on Middletown City Council from 2002-2005.
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