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.
Paul
Hunter
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