Why does property have to be assessed?
Ohio law, ORC §5713.01, mandates a visual appraisal of each parcel of property once every six years to ensure fair and equitable values. In addition to a reappraisal every six years, Ohio law also mandates a Triennial Update based on sales of real estate that has taken place in Montgomery County over the three years since the last reappraisal. The triennial update is done without on-site property visits. The Revaluation involves a visual inspection of all properties. The values set on properties in Montgomery County are used for taxing purposes.
Our property tax system is the basis for sharing the costs of government services such as public schools, police and fire protection. Other services funded by property taxes include human services, libraries, senior and elderly services, street improvements, roads and bridges, Sinclair Community College and the Career Technology Center.
What is a Revaluation?
In Ohio, county auditors are required to do a full general reappraisal/revaluation once in every six years. This process is called the Sexennial Reappraisal. The Auditor and his qualified appraiser are required to view and appraise every property in the county for this purpose. As this is mass appraisal, the process takes between two and two-and-a-half years to complete as there are about 253,550 parcels in Montgomery County.
On the third year in between reappraisals, each county auditor is required to perform a statistical analysis of the valid sales occurring within the prior three years and provide a percentage adjustment to equalize values of all properties in each given marketing neighborhood area. These adjustments help assure that equalization of value is maintained. This process is called the Triennial Update.
Other than the state mandated reappraisal or Triennial Update, each Auditor is charged with annual maintenance of properties which may have a change to their fair market value. Most often these changes are due to new construction, a change in the physical size or shape of the land, or a demolition or damage to a property.
Why do they take pictures of properties?
Image collection helps the appraiser determine fair and equitable property values and helps verify that information on the property record is correct. Digital photographs are also useful for emergency management recovery reports and for providing “before” photos to property owners in case of losses.
Image collection is scheduled for late summer through fall. All image collection is taken from the public right-of-way whenever possible. Project members may access driveways or private lanes only when necessary to obtain an unobstructed image from the van. At no time should a project member ask to enter your home.
How can I review my property information?
Visit www.mcrealestate.org to search for your property. If there is a discrepancy in your property information, or if you have questions, contact the Auditor's Office at 937-225-4326
How can my value change when I haven't done anything to my property?
During a Revaluation, property value changes can occur based on sales in your neighborhood area, as these sales create the real estate market. Property values and markets increase and decrease based on many factors beyond home improvements.
What will happen to my valuation if I improve my property?
Generally speaking, improvements that increase the market value of a property will increase the appraised value. The following are typical items that will increase the value of your property:
- Room additions
- New decks
- New outbuildings, such as garages
- Primarily improvements requiring a building permit
Conversely, if a property has been damaged or destroyed the market value is likely to decrease.
How will I know if my valuation is correct?
You should first try to decide for yourself what your property is worth. Look at area sales in your neighborhood area and compare values of similar homes in your neighborhood area. Our website at www.mcrealestate.org is an excellent source of information.
What should I do if I don't agree with the final valuation of my property?
Ohio law offers property owners the opportunity to appeal their property value by filing a complaint form with the Board of Revision from January through March of each year. Complaint forms may be found on our website, www.mcrealestate.org under the “Value Dispute” tab or you may call us at 937-496-6856. The Board of Revision will review all complaints filed.
The Board of Revision is a quasi-judicial body with a representative from the County Commissioners, the Treasurer's office, and the Auditor's office.
When will I know what my new valuation is?
Tentative Revaluation notices will be mailed mid- year 2020 with final values mailed at the end of the year. Taxes based on the new values will not be due until 2021.
Whom do I contact for additional information?
For additional information, contact the Montgomery County Auditor's Office online at www.mcrealestate.org or call us at 937-225-4326.
Fair Market Value – Fair market value is defined as the most probable price a willing buyer would pay and a willing seller would accept for a piece of property in an open market, not affected by undue circumstances, such as foreclosure, sheriff sale, short sale or HUD sale.
Assessed Value - Assessed value is the figure used to calculate the real estate tax bill. Assessed value is a percentage of the fair market value. In Ohio, assessed value equals 35% of the fair market value. For example, a home valued at $100,000 would be assessed at $35,000.
Millage - Literally, a mill means one thousandth. For tax purposes: each mill generates $1 of taxes for every $1,000 of assessed value.
Owner Occupancy Credit - is available to all owner-occupied residential properties in Ohio. Rental properties are not eligible for the reduction.
Homestead Exemption - provides a tax credit to homeowners who meet at least one of the following criteria and the income requirement: 1) 65 years of age or older; 2) permanently and totally disabled 3) surviving spouse (at least 59 years old on the date of the decedent's death) of a person receiving the homestead reduction in the year of his/her death. Applicants must own and occupy their home as their primary residence. Applications are available through www.mcrealestate.org or by calling 937-225-4341.
CAUV - CAUV or Current Agricultural Use Value is an application program providing property tax reductions on farmlands of ten acres or more devoted exclusively to agricultural use or for timberlands. The program is available for tracts of land that are less than ten acres, if the average yearly gross farm income for the past three years is at least $2,500 from agricultural products. Under the CAUV program, farmland is valued based on soil types rather than the "best and highest use".
Special Assessments – Special charges may be imposed on a property by various taxing authorities for services such as street lighting, curb and sidewalk improvements, waste collection and preservation of the aquifer, dams and waterways.
APC – Annual property charge for county waste transfer stations.
MCD/APS – Miami Conservancy District Aquifer Preservation Subdivision for aquifer preservation.
MCD/DSIF – Miami Conservancy District Dam Safety Initiative Fund for maintenance and upkeep of area dams and waterways.