In our last story, we discussed the constitutional requirements of Ohio’s property tax system. As you remember, all land must be valued at its true value in money, except for property that can be valued using the Current Agricultural Use Value (CAUV) formula. Once the value of the property is established, the taxable value can be determined.

Tax rates can also be a source of confusion. In Ohio, property tax rates are expressed in terms of millage. One mill is equal to 1/1,000 of a dollar or $0.001. When reviewing your tax bill, you will see the tax rate expressed as a number, such as “75.55.” To determine what your taxes are from this rate, you would actually multiply the taxable value (appraised value x .35) by 0.07555.

There are two types of millage under Ohio’s property tax system: the so-called “inside mills” and “outside” or voted millage. Inside millage is so named because it is inside the purview of the Ohio Constitution to charge this amount on the tax bill. The Ohio Constitution states that property taxes shall be assessed at no more than 1 percent of value, unless otherwise approved by the electorate or provided for in a city charter. This means that the Ohio Constitution allows for the first 10 mills (or 1 percent) of property taxes on your tax bill without any prior approval or restrictions. These inside mills are distributed generally among your local governments.

“Outside” millage, or voted millage, is just that — millage that had to be approved by the voters before it could be applied to the tax bill. Any levies or bond issues that you have seen presented on your ballot, if approved, are part of the outside millage on your tax bill. This distinction will be additionally important when we discuss the House Bill 920 reduction factors that limit tax rates.

Leah Curtis is Ohio Farm Bureau’s director of agricultural law.

Note: The attached Heat Map graphic is the average gross tax millage rates on residential and agricultural properties, by county, for taxes collected for 2013. OFBF graphic based on data from the Ohio Department of Taxation. The statewide average is 91.71.

Attachments

OhioHeatMap.jpg

Attachments

HeatMapLegend.jpg

I'm eternally grateful for the support Ohio Farm Bureau scholarships provided in helping me turn my dreams into reality.
Bethany Starlin's avatar
Bethany Starlin

Hocking County Farm Bureau

Available scholarships
I see the value and need to be engaged in the community I live in, to be a part of the decision-making process and to volunteer with organizations that help make our community better.
Matt Aultman's avatar
Matt Aultman

Darke County Farm Bureau

Leadership development
With not growing up on a farm, I’d say I was a late bloomer to agriculture. I feel so fortunate that I found the agriculture industry. There are so many opportunities for growth.
Jenna Gregorich's avatar
Jenna Gregorich

Coshocton County Farm Bureau

Growing our Generation
Labor has always been an issue, mainly because we are a seasonal operation. So that's a challenge finding somebody who only wants to work three months out of a year, sometimes up to six months.
Mandy Way's avatar
Mandy Way

Way Farms

Business Solutions
Farm Bureau involvement has taught me how to grow my professional and leadership experience outside of the workforce and how to do that in a community-centric way.
Jaclyn De Candio's avatar
Jaclyn De Candio

Clark County Farm Bureau

Young Ag Professionals program
If it wasn't for Farm Bureau, I personally, along with many others, would not have had the opportunity to meet with our representatives face to face in Washington.
Austin Heil's avatar
Austin Heil

Hardin County Farm Bureau

Washington, D.C. Leadership Experience
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
Mary Smallsreed's avatar
Mary Smallsreed

Trumbull County Farm Bureau

Advocacy
Suggested Tags: