LIMA, Ohio (WLIO) — Just before Christmas, Ohio lawmakers gave property owners an early gift in the form of property tax reform. The changes could eventually lower tax bills, but residents will need to be patient before seeing the impact.
Five bills signed into law by Gov. Mike DeWine on Dec. 19 are designed to reduce property taxes statewide. The new laws are scheduled to take effect in March.
Allen County Auditor Rachael Gilroy said first-half property tax bills will be mailed soon, but residents should not expect immediate changes. Adjustments from the reforms will not be reflected until the second-half tax bills are issued later in the year.
“Please pay that first half bill. And then after that first half bill is processed, the State Department of Taxation will work with all the county auditors to get new rates into place and will recalculate taxes so that for the second half tax bills, people will actually see that reform," says Rachael Gilroy, Allen County Auditor.
Lawmakers also approved an increase in the owner-occupancy credit, raising it from 2.5% to more than 15% over the next four years. Gilroy encouraged eligible homeowners to apply for the Homestead exemption, which could provide additional savings.
Property owners may also see relief through changes in how school district millage is calculated.
“The biggest impacts fall under House Bill 186 and that involves some school reform and how inside millage is calculated. That's going to cap inside millage at inflation instead of these huge increases we have been seeing. So once that cap goes into effect, which we will see on those second half taxes, and going forward, itself will reduce property tax for almost every individual,” adds Gilroy.
The new laws further expand the authority of county budget commissions, allowing them to review and potentially lower millage rates for political subdivisions if tax revenues exceed budgetary needs.
“Those such as libraries, schools, townships, developmental disabilities, the park district to make sure, as we review those budgets, that they submit, that the levies that they draw in are appropriate for what their budget is and what Their needs are, and if, if we need to have discussions, it grants budget commissions the authority to have those discussions and potentially lower those levies,” says Gilroy.
To see the complete interview with Gilroy discussing additional changes aimed at providing tax relief, click on the video below.
