Tax Millage and Levies

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1 Tax Millage and Levies Jill Thompson Athens County Auditor September 12,

2 2 Property Tax Millage Rates Effective tax rates for each of Ohio s counties are applied to two categories of property The rates are expressed in mills, and include levies by all jurisdictions for property located in each county

3 3 What are the categories? Class I o Residential and Agricultural property Class II o Utility Real (Public Utility), o Commercial, Mineral, and Industrial Property

4 4 What is a Mill? A mill is equivalent to $1 per $1000 of taxable value. One mill cost a property owner $1.00 for every $1,000 of taxable (assessed) value.

5 5 What is a Jurisdiction? School District County Municipality Township Other Taxing District

6 6 Fair Market Value (Appraised) The most probable price each property would be estimated to sell for in an open market between a willing buyer and willing seller. For purposes of real estate taxes, the county auditor determines the market value of all the real property.

7 7 Taxable Value (Assessed) The taxable (assessed) value is set by the Tax Commissioner and is currently 35% of market (appraised) value. ORC , % Total Real Property Value 35% Taxable Non- Taxable

8 Types of Millage Inside Outside 8

9 9 Inside Millage The Ohio Constitution prohibits governmental units from levying property tax that, in the aggregate, exceed 1% of true (appraised or market) value, unless approved by the voters This is known in state law as the 10-mill limitation or non-voted millage ORC , ,

10 10 Outside Millage Outside millage is any millage outside the 10-mill limitation that is provided by the Constitution of the State of Ohio This millage is placed before the voters and requires a majority vote Also referred to as voted millage ORC

11 Purposes of Tax Levies The Ohio Revised Code specifies the purposes of tax levies that are permissible in accordance with law. 11

12 12 Purposes of Tax Levies In Athens County, the Auditor maintains a tax duplicate by subdivision. The tax duplicate is organized by political subdivision and includes: Levy year, Description, tax rate, type, date voted, tax levy years and calendar year expiration.

13 13 ATHENS COUNTY DUPLICATE FOR TAX YEAR 2011 TOWNSHIPS Levy Inside/ Date Levied for Expires Year Description Tax Rate Type Voted Voted Tax Years Calendar Year The Best Township General Fund 0.50 n/a Inside n/a Continuing Continuing Road and Bridge (Excluding Any Village) 1.60 n/a Inside n/a Continuing Continuing 1994 Cemetery (Including Any Village) 1.00 Renewal Voted November 3, to Fire (Excluding Any Village) 1.00 Renewal Voted November 6, to Road Maintenance (Excluding Any Village) 2.00 Renewal Voted November 2, to Total The Best Township Millage 6.10 Levy Expires Calendar Year 2012 Levy Expires Calendar Year 2013 Expiring Levy has already been renewed or replaced

14 14 Purposes of Tax Levies Secretary of State website: Ohio Ballot Questions and Issues Handbook (link): sofficials/electoffpubs/general.aspx Appendix A

15 15 Ohio Ballot Questions and Issues Handbook: Appendix A

16 16 Ohio Ballot Questions and Issues Handbook: Appendix A

17 Types of Tax Levies Renewal Replacement Additional 17

18 18 General Types of Tax Levies Memo from Ohio Department of Taxation, Division of Equalization updated annually Renewal and Replacement of Property Tax Levies Available on the website for the Ohio Department of Taxation /county_auditor_bulletins.stm

19 Ohio Department of Taxation 19

20 20 General Types of Tax Levies Renewal Levy (ORC ) o Continue to collect revenue at the same level as the previous tax year (Renewal) o If approved, will not result in a tax increase for property owners o Will not generate any additional revenue for the taxing jurisdiction o Effective rate will decrease (increase) as property values appreciate (depreciate).

21 21 General Types of Tax Levies Replacement Levy (ORC ) o Replaces the current tax levy o If approved, will result in a tax increase for property owners o Will generate additional revenue for the taxing jurisdiction o Effective rate will become the full rate.*

22 22 General Types of Tax Levies Additional Levy o A new tax levy o If approved, will result in a tax increase for property owners and, o Additional tax revenue for the taxing jurisdiction

23 23 General Types of Tax Levies Existing tax levies may generally be renewed or replaced: o At the same rate as before o With an increase o With a decrease o Some levies may be combined when replaced

24 Placing a tax levy on the ballot Step by step instructions Deadlines 24

either: A Certificate of Estimated Property Tax Revenue (DTE

25 25 Placing a tax levy on the ballot Step 1: The taxing authority must pass a Resolution requesting the county auditor prepare either: A Certificate of Estimated Property Tax Revenue (DTE 140R), or A Certificate of Estimated Property Tax Millage Rate (DTE 140M)

26 26 Placing a tax levy on the ballot Step 1: Forms

27 27 Placing a tax levy on the ballot Step 1: Forms

28 28 Step 1: The Resolution must include: 1. Levy description and purpose 2. Including or excluding jurisdictions 3. Ohio Revised Code Section and letter (ORC _ ) 4. Type: Renewal, Replacement or Additional 5. Tax Year and Calendar Year the tax levy should begin 6. Specify which election and the date of the election. (Primary, Special, or General) 7. Amount of millage or dollars to be generated.

29 29 Placing a tax levy on the ballot Step 2: The County Auditor will prepare the Certificate requested in Step 1, and mail it back to the taxing authority within ten days. (ORC (B))

30 30 Placing a tax levy on the ballot Step 3: The Certificate prepared by the County Auditor must be accepted by the taxing authority in a public meeting and recorded in the minutes.

31 31 Placing a tax levy on the ballot Step 4: The taxing authority must: Complete the "Resolution Declaring it Necessary to Levy a Tax in Excess of the Ten Mill Limitation Approve and sign the Resolution in a public meeting Link to form: uditoradvisory/resolution%20for%20tax%20levy. pdf

32 32 Placing a tax levy on the ballot Step 4:

33 33 Placing a tax levy on the ballot Step 5: The taxing authority must file with the Board of Elections prior to the statutory deadline: Certificate prepared by the County Auditor The "Resolution Declaring it Necessary to Levy a Tax in Excess of the Ten Mill Limitation

34 34 Deadline to place a tax levy on the ballot Secretary of State Elections & Voting Elections Calendar 2012 Ohio Election Calendar ns.aspx#electcal

35 35 Deadline to place a tax levy on the ballot

36 36 Deadline to place a tax levy on the ballot Local questions and issues for general election, must be certified to or filed with the Board of Elections by 4 p.m. 90 days before an election ORC , , Plan to file ahead of schedule so there is time to make corrections if necessary

37 Estimating Tax Revenue How to calculate estimated revenue based on millage 37

38 38 How does the county auditor arrive at a revenue estimate? Example 1: o The Best Township renew or replace a current tax levy that is scheduled to expire: o Fire Protection Levy, 1.00 Mill, 5-Years

39 39 How does the county auditor arrive at an estimate (Renewal)? The Best Township Tax Valuation - TY 2012 Tax Rates Agr/Res $ 18,600,000 Full Rate: Com/Ind/Min $ 2,900,000 Class 1: (Agr/Res) Util Real $ 20,100 Class 2: (Com/Min/Ind) Util Personal $ 6,900,000 Total: $ 28,420,100

40 40 How does the auditor arrive at an estimate (Renewal)? Agr/Res Value is taxed at Class 1 Effective Rate: $ 13, = $18,600,000 x.001 x Com/Min/Ind and Utility Real is taxed at Class 2 Effective Rate: $ 2, = ($2,900, ,100) x.001 x Utility Personal is taxed at Full Rate: $ 6, = $6,900,000 x 1.00 x.001

41 41 How does the county auditor arrive at an estimate (Renewal)? $ 13, Agr/Res $ 2, Com/Min/Ind and Utility Real $ 6, Utility Personal $ 22, Reduce for a 5% Estimated Delinquency Collection: $ 21, = $22, x.95

42 42 How does the auditor arrive at an estimate (Replacement)? Total Valuation: $ 28, = $28,420,100 x.001 x 1.00 Reduce for a 5% Estimated Delinquency Collection: $ 26, = $28, x.95

43 43 9/12/2012 The Best Township 2002 Fire Protection RENEWAL Excluding Any Village 11/6/2012 Fire Protection 1.00 RENEWAL Renewal 11/6/ (I) Full Rate Tax Year Eff Rate A Eff Rate B $ 40, Market $ 100, Market $ 14, Assessed $ 35, Assessed Tax Dollars Generated $ 9.00 Tax/Yr $ Tax/Yr $21,399 REPLACEMENT 11/6/2012 Fire Protection 1.00 REPLACEMENT Full Rate Tax Year Eff Rate A Eff Rate B $ 40, Market $ 100, Market $ 14, Assessed $ 35, Assessed Tax Dollars Generated $ Tax/Yr $ Tax/Yr $26,999 $5, Difference $ 3.60 $ 9.01 TAX VALUATION 2011 (TAX YEAR 2010) Est. 5% Delq. Agr-Res 18,600,000 17,670,000 Other & Util. Real 2,920,100 2,774,095 Utility Personal* 6,900,000 6,555,000 Subtotal: 28,420,100 26,999,095

44 Questions? 44

45 45 Thank you! Jill Thompson Athens County Auditor

Property Tax Levy Law. Mike Sobul, CFO/Treasurer, Granville EVSD Consultant, Public Finance Resources, Inc. OSBA Capital Conference November 11, 2013

Property Tax Levy Law. Mike Sobul, CFO/Treasurer, Granville EVSD Consultant, Public Finance Resources, Inc. OSBA Capital Conference November 11, 2013 Property Tax Levy Law Mike Sobul, CFO/Treasurer, Granville EVSD Consultant, Public Finance Resources, Inc. OSBA Capital Conference November 11, 2013 Constitutional Restrictions * O. Const. Art. XII, Sec.