(Assessed Value x Mill Rate)/1000 = Base Property TaxĮxample: A home with a fair market value of $100,000 and an assessed value of $35,000 is subject to three property tax millages – the base rate of 10 mills, 10 mills of school taxes, and 10 mills of road taxes – for a total mill rate of 30 mills. Expressed as an equation, the process looks something like this:Įxample: A home with a fair market value of $100,000 would have an assessed value of $35,000 ($100,000 x 0.35). To arrive at the amount of property taxes a taxpayer owes, the Auditor multiples the property’s assessed value by the total mill rate, and divides by 1,000. The Auditor uses fair market value to determine a property’s assessed value, which in Ohio amounts to 35% of the fair market value. Fair market value is the amount a buyer and seller would be willing to agree to in an arm’s length transaction on the open market. The Auditor is also responsible for determining a property’s fair market value as part of the calculation process. This additional millage must be voted on and approved before being added to the property tax calculation. In addition to this base rate, voters can approve additional funds for roads, schools, libraries, and other important governmental services. This base rate comes from the Ohio Constitution, and is meant to provide all governmental units with a base amount of operating revenue. Property taxes are charged as “mills.” One mill is one-thousandth of a dollar – this equates to one-tenth of a cent, or $0.001.Īll Ohio residents pay a base tax rate of 10 mills. Under Ohio law, property tax rates are recalculated annually by the Auditor, and based on a number of different factors.
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