Property Revaluation Question and Answer
Under Ohio law, 2023 is a year for County Auditors in our area to reappraise or update property values. Changes to property values can mean changes to property taxes that homeowners pay. Loveland City School District is committed to fiscal responsibility and clear communication with our stakeholders. To that end, we are answering questions about how changes to property values will impact homeowners and the revenue the District receives.
Question: Will the 4.9 mill Loveland City School District operating levy approved by voters in May 2023 cost more if my property increases in value?
Answer: No. The cost of the 4.9 mill Loveland City School District operating levy approved by voters in May 2023 is based on the value of your property at the time the levy was approved. The levy was calculated to cost an additional $172 per year for every $100,000 in property value, and that cost was based on the property value in May 2023 - not the new valuation.
House Bill 920, passed in 1976, limits the growth of property taxes by reducing the “effective millage” of levies. Reducing the effective millage ensures that the property owner pays the same amount they did the year before. In other words, as property values increase, the tax rate or effective millage decreases. With property values increasing in our area, the 4.9 mill Loveland City School District operating levy approved by voters in May 2023 will be reduced to a lower rate to ensure that it does not cost homeowners more than the amount stated at the time it was approved.
Question: What are unvoted levies or “inside millage?"
Answer: Under Ohio law, a portion of property taxes are collected through unvoted levies. Unvoted levies are sometimes called “inside mills” because the collection of these taxes is established by the Ohio Constitution or “inside” the law. The cost of unvoted levies, or inside millage, does increase when property values increase. By law, Loveland City School District receives 4.56 mills in unvoted levies, which amounts to $159.60 per year for every $100,000 of appraised property value.
Question: Will Loveland City School District see additional tax revenue because of rising property values?
Answer: Yes, but only on a small part of the total property taxes that fund the district. Voted levies are subject to House Bill 920, which reduces the “effective millage” of levies to ensure that the property owner pays the same amount they did the year before. That means the effective millage of the voted levies that fund Loveland City School District will be reduced to ensure they generate the same amount of revenue for the District.
There are also unvoted levies, sometimes referred to as “inside mills.” These are known as “inside mills” because they were established by, or are “inside” the Ohio Constitution. Because of that, they are not subject to House Bill 920. That means the millage stays consistent, and the funds generated by unvoted levies will increase when property values increase.
Most areas of the State of Ohio have ten mills of unvoted levies, which are divided among political jurisdictions like cities, townships, and schools. By law, Loveland City School District receives 4.56 mills in unvoted levies, which amounts to $159.60 per year for every $100,000 of property value. When property values increase, the amount property owners pay for unvoted levies or inside mills will increase proportionately. For example, if a property valued at $100,000 is reappraised to be valued at $135,000, that is a 35% increase. The “inside mills” that Loveland City School District receives from that property would also increase by 35% or by $55.86 per year.
Unvoted levies, or inside mills, make less than 10% of the funding the District receives. If property values in the Loveland City School District increase by an average of 35%, that would mean an increase in District revenue of approximately $1.4 million per year.
Question: How does the change in property values impact the long-term financial outlook of Loveland City School District?
Answer: There are several factors to consider, including the overall property value increase, assumptions that have already been made, and the potential for changes to state law.
The best information we have currently is that property values will increase by approximately 35% across the Loveland City School District. If that is the case, the District would receive approximately $1.4 million per year in additional revenue from unvoted levies, also known as inside mills.
Every year, Loveland City School District files a five-year forecast, which tracks historical revenue and expenditures for the district, and forecasts what future revenues and expenditures are likely to be. Our most recent five-year forecast assumed property values would increase by 12.5% during the reappraisal process. Using that assumption, a projected increase in revenue from inside mills of approximately $400,000 was already included in our Five-year Forecast. If property values increase by 35%, as we currently believe, that would mean approximately $1 million more than projected. While that is a substantial amount of money, it is a 2% variation in the district’s $52 million annual budget.
Question: I don’t agree with my new property valuation. Who can I talk to?
Answer: Loveland City School District plays no role in determining property values. If you have questions about how property values are calculated, please contact your County Auditor.
Hamilton County Auditor
Clermont County Auditor
Warren County Auditor
Ohio lawmakers are considering changes to how property values are calculated during the reappraisal process. If those changes are enacted, the projections for overall property value increases could also change, which could have an impact on property taxes for both homeowners and the Loveland City School District.