Question

1.) What is the total property tax bill for your house in Ohio with a market value of $125,000? Note the following and show your calculations in the space below:

 You are eligible for the $25,000 homestead exemption

 The city in which you live has a millage rate of 70.

 Don’t forget residential taxable value is 35% of assessed value in Ohio!

Assuming the exact same scenario as above;

2.) Research online to identify a proposed levy (present or past) that would impact property taxes. The levy can be in any state over the last 5 years BUT still assume the scenario in Q1 for the sake of simplicity/practice. Identify:

A. The source:

B. A summary of the issue (location, proponents, why pursuing), 100-250 words:

C. The proposed levy’s impact on property taxes:

D. How the levy would impact YOUR property taxes for the property in Q1:

Answer 1

Answer :

(1) : Assessed Value = Market Value x 35% =

= $125,000 x 35%

= $43,750 .

Current Real Estate Tax = (Assessed Value-Homestead Exemption) x Millage Rate/1000

= ($43,750-25,000)*70/1000

= $1312.50

(2) :

(A) : Source of Proposed Levy is the laws, rates and strategies of Calculation proposed by Department of Taxation, Ohio .

(B) : According to the source, the millage rates in each country of the state can be Different. Further, the actual residential tax value is 35% of the taxable value . So if we take the instance of Harrison .County of Ohio State, at that point the property taxes will be low as underneath:

Assessed Value = Market Value x 35%

= $125,000 x 35%

= $43,750

Current Real Estate Tax = (Assessed Value-Homestead Exemption) x Millage Rate/1000

= ($43,750-25,000) x 60/1000

= $1,125

The property tax rate is very low, due to Millage rate being low. Harrison County has been given the status of special tax county .

(C) :

Impact on Property Taxes = Tax calculated under A- tax calculated under B

= $1,312.50 - 1,125

= $187.50

(D) :

Impact in terms of tax rates will be as below -

= Average Tax Rate in A - Average Tax Rate in B

= 1,312.50 - 1,125 /1,25,000

=0.0015 * 100

= 0.15 %