The state confirmed Nix’s increases for 13 of 22 taxing districts and recommended higher hikes in nine of the largest jurisdictions.
“The tax increases emanating from these value increases will be crushing to some taxpayers, while others will be able to manage it,” Nix said. “We see this as a collective problem and we’ll need a collective solution. I’m not just talking about the lawmakers and residents I’m talking about local officials, that includes cities, townships and school districts looking at their budgets.”
The largest confirmed increase is 48% for 666 parcels in Lemon Twp. and the lowest is 24% in Milford Twp. with 2,012 parcels. Middletown is the largest taxing district where the increase is set at an average of 40% for 17,454 parcels. Nix is still haggling with the state over the hikes in the areas with the largest populations.
On the commercial side, she said the state has approved a 19.6% value increase on industrial property and 8.83% for commercial, for an overall increase of 12.9%.
Nix is floating an idea to all of the tax bodies to hold the line on spending next year and asking them to eschew the windfall the huge value increases will bring to their coffers. She estimated if the county commissioners did not collect the overall average 39% increase, there would be a savings of about $40 per home “but it is very dependent on the value of the home.”
“We’re going to request that the local officials stick to their 2023 level of funding from their local tax levies and not accept the increased inside millage,” Nix said. “It won’t be a panacea, but it would show good faith because some people simply cannot pay these increased bills that are going to come from these value increases.”
Hamilton’s increase is pending — Nix recommended a 34.8% jump, and the state says 36%. Based on the state’s increase Finance Director Dave Jones calculated residents would pay $34.69 annually on a $100,000 home. Every taxing district is required to file a tax budget in July, which is a preliminary estimate of revenues and expenses.
“We did not figure an increase in the tax budget,” he said. “If council decides to move forward with the proposal, it will not have a material impact on the city.”
The commissioners gave taxpayers an $18.5 million tax rollback last year that saved about $67 per $100,000 in assessed value. Commissioner Don Dixon said it is worth considering a repeat.
“I think it’s something to consider, I think we have to use every tool we’ve got,” Dixon said. “I want to look at all of our options and make sure it’s the biggest bang for our buck and doesn’t cause undo hardships on any other entities.”
When the commissioners voted on the rollback for last year Commissioner Cindy Carpenter voiced concerns that not everyone in the county is a homeowner and they need to be fair. She reiterated the concern about this proposal.
“We want to do what’s right but it’s just going to be levels of review, not a gut reaction to say we don’t like it,” Carpenter said. “We need levels of review before we are able to know what the proper amount is, to give the credit or discount to the individual property owners, because at some levels an increase is likely fair.”
Commissioner T.C. Rogers could not be reached for comment.
Middletown is going to be one of the hardest hit with the value increase because they have the highest tax rates and the school district has hit the 20-mill floor. Property value increases don’t automatically translate to property tax hikes to the same degree. Nix’s Real Estate Director Mike Stein estimated in Middletown property taxes will increase 27% to 30% per $100,000 in value.
Middletown Councilman Zack Ferrell told the Journal-News previously “Our citizens live paycheck to paycheck. This is the difference between Ramen noodles and a healthy dinner.”
He said the city only collects a fraction of property taxes — cities rely heavily on income taxes to provide services — but he believes the Nix’s proposal merits consideration.
“As one council member I would definitely be open to discussing that,” Ferrell said. “I think we need to try to get money back into our people’s pockets as best as possible, unless we absolutely need the money. But I also think can the schools, MidPointe Library and the county, can they also help match us in that.”
Ohio law provides special protection for school funding. It provides a minimum millage level for school districts, or floor, that rates cannot fall below. Once a district’s total current expense millage is reduced to 20 mills it cannot be reduced any further, so tax revenues grow as property values increase. Nix said eight of the 10 school districts are at the floor, only Fairfield and Lakota haven’t reached it.
Since the law treats school funding differently, Lakota Schools Treasurer Adam Zink said he’d have to study the matter.
“We would have to get legal opinion and look into whatever options we have available to us, because we’re all part of community,” Zink said. “We want to do right by the community the best we can, but we don’t know what we can and can’t do.”
West Chester Twp. is another place where Nix is still negotiating the increase with the state. She originally submitted a 35% hike and the state countered with 39%. Township Finance Director Ken Keim calculated the increase will bring an extra $780,000 to the general fund and $772,000 for roads and bridges.
Trustee Mark Welch told the Journal-News “the devil’s in the details” but he is certainly willing to ponder Nix’s challenge.
“I really need to know the facts and whether or not this is just putting a patch on something and the chickens are going to come home to roost,” Welch said. “We may be delaying it a year but you’re going to have the same weeping and gnashing of teeth, all you did was maybe put it off a year.”
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