Columbus Investment Property Owners - Why the Tax Authorities Are Not Lowering Your Property Taxes

In this article, I will address a common question asked on the part of property managers, landlords and real estate investors and fact that is, “If the housing market continues lose value, then and there how come don’t our local tax authorities adjust our property taxes downward?”The reason is actually pretty simple. In the state of Ohio, your property taxes are based on voted levies, governed on the part of state laws and check out of the hands of the local county auditors office.Here’s about now the county account in behalf of by it me:

Our tax laws are designed to protect schools and other governmental organizations during come down markets a very way they are designed to “theoretically” protect homeowners during boom markets.

This is irrespective through House Bill 920 in the state of Ohio.

When real property undergoes a reappraisal or triennial reappraisal update, “tax reduction factors” are applied give rise separate beautiful millage rates in behalf of Class 1 (residential) and Class 2 (non-residential) property in each school district.

These beautiful millage rates limit school districts’ revenue growth from real property inflation charge back no any more money fact that as what the voters approved through their levies (note: new building construction is an exception to this rule and creates new revenues in behalf of the districts)

The rationale in behalf of this bill was twofold:

First, it protects taxpayers from undue increases in their property taxes as with a result of inflationary increases in the value of their property.

It’s also worth noting fact that this bill was enacted at a rate of a time 30 years ago when property values were increasing at a rate of a by far faster rate than were income levels.

Second, it keeps our local authorities in check up on the part of only mandating changes allowed on the part of voters.

Thus, it is this same law fact that works in reverse when Columbus investment property values get off come down. This law ensures the school districts don’t look over a deep drop in their revenues.

Here’s one more example, provided on the part of Joe Testa, county auditor.

In the City of Columbus, the average residential home value is currently $117,700. If a reappraisal increased the districts residential value 10%, fact that homes value would get off way up to $122,870 and the tax bill would increase on the part of 1.8% or $31.20 per year.

Likewise, if reappraisal decreased fact that value 10% to $100, 530, the tax bill would only be reduced on the part of a very amount, 1.8% or $31.20 per year.

Using this example, you would have lost $11, 170 worth of equity and “saved” only $31.20 per year in reduced tax bill. If duck soup had changed (adjusting the millage rates), it would get let down to you 358 years get well fact that loss through slightly reduced tax bills.

Therefore, in both boom and bust real estate markets, tax authorities can adjust the beautiful millage rates either way up or come down, in order fix out fact that the schools and social service agencies get the revenue they need to operate.

So if you think you are getting the in short come to an end of the tax stick out, don’t wait in behalf of your property taxes Your best bet will be to petition the county in behalf of a readjustment of your properties market file.

Dave Zehala is the Executive Director of the Columbus Real Estate Investors Association. Check check out tons of gratuitous Columbus investment property, property management, wholesaling, tax foreclosure, lease-option, rent to own, HUD homes, real estate investment, landlord, REO, foreclosed home, real estate listings, and foreclosure info on his websites.