Thursday, December 29, 2016

Stealth Tax Increase (reissue)

Our state legislature and governor have made a great deal of noise about cutting state tax rates in order to attract businesses to Ohio.
In the meantime Ohio home owners are seeing a significant tax increase during this same period.
Two property tax increases will shift the tax burden from the state to the local residents

I submit for the readers consideration two changes in the rules.

a. Let's say for example, that Wilmington decides that, due to other state revenue reductions coupled with a harsh winter, a 5 mill street repair levy will be placed on the November ballot.
Previously this levy would have cost the owner of a residence valued at $150,000, $229.69 per year in new property taxes. Under the new rules the bill for the same residence is now $262.50 per year. The amount the city receives stays the same but the $32.81 difference that the state used to pay now falls to the home owner.

b. In the past senior homeowners that have paid full property taxes for most of their lifetime received a significant reduction in property taxes upon reaching their 65th birthday regardless of income. That same $150,000 residence, at the Wilmington tax district rate, saves the owner an estimated $300.00 per year. That savings was also made up by the state and local revenue did not change.
Under the new rules if the household income of the owners exceeds $30,000 per year the savings will no longer be granted to new seniors.
Note: Those seniors already receiving the exemption prior to the rule change will not be effected.

In the two examples cited, the state saves a total of $333.00 and the home owner picks up the deficit. When added to the $75 in state sales tax increase, that our sample residents paid on an auto purchase this year, it starts to affect their quality of life.

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