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In the State of Ohio, real estate taxes are based upon the appraised value of the property. Counties, cities, towns, villages, school districts, and special districts each raise money through real estate taxes. Governments can levy taxes upon land located within their jurisdiction. The money collected from taxes funds schools, pays for police and fire protection, maintains roads, and supports community services such as libraries and parks.
The County Auditor is responsible for determining a property's fair market value as part of the calculation process. Fair market value is the amount a buyer and seller would be willing to agree to in an arm's length transaction on the open market. The Auditor uses fair market value to determine a property's assessed value, which in Ohio amounts to 35% of the fair market value.
Property taxes are charged as "mills." One mill is one-thousandth of a dollar - this equates to one-tenth of a cent, or $0.001. All Ohio residents pay a base tax rate of 10 mills. This base rate comes from the Ohio Constitution and is meant to provide all governmental units with a base amount of operating revenue.
To arrive at the amount of property taxes a taxpayer owes, the Auditor multiples the property's assessed value by the total mill rate, and divides by 1,000. Expressed as an equation, the process looks something like this:
Fair Market Value × 35% = Assessed ValueExample: A home with a fair market value of $100,000 would have an assessed value of $35,000 ($100,000 × 0.35).
(Assessed Value × Mill Rate) ÷ 1000 = Base Property TaxExample: A home with a fair market value of $100,000 and an assessed value of $35,000 is subject to three property tax millages - the base rate of 10 mills, 10 mills of school taxes, and 10 mills of road taxes - for a total mill rate of 30 mills. Using the formula, the taxpayer owes a base property tax of $1,050 ($35,000 × 30) ÷ 1000 = $1,050.
Base Property Tax + Special Assessments = Total Property TaxIn addition to the base property tax, taxpayers may also be subject to special assessments. A special assessment is a property tax that can be added for certain special projects, like installing water lines, sewer lines, and stormwater runoff systems. The base property tax, and any additional special assessments, form the total property tax:
Total Property Tax - Reduction Credits = Property Tax OwedThe total property tax amount can be reduced by reduction credits, such as the Homestead Exemption program that is administrated by the Auditor's office.
Property Owners may qualify for tax reduction options through the Montgomery County Auditor's Office. View tax reductions.
You may contact the Montgomery County Auditor's office at 937-225-4326 or visit the Auditor's Property Search Website for more detailed information. After entering your parcel information and selecting the specific parcel you are researching, click on the Levy Distribution menu item.
Under Ohio law, property taxes are calculated annually by the Auditor.
The first half property tax due date for 2023 is February 17, 2023. The second half due date is July 14, 2023.
The Homestead Reduction Program is available to any property owner age 65 or older OR any property owner who is totally and permanently disabled. Only owner-occupied (your primary residence) properties are eligible for the reduction. View the Homestead page to find more information on this program.