First, if you have specific questions regarding the value of your property, please visit the county auditor’s website.
You probably know that property taxes are very complex and no one person or entity controls the process. There are more than a dozen entities throughout the state and county that play a pivotal role in property taxation, and no one person can increase or decrease your taxes. This page is meant to provide the following information to residents:
In addition to the information provided on this page, as well as your tax bill, which you can find by searching for your property here, the Treasurer’s office is hosting three forums in the next month. The purpose is to provide a more detailed and visual explanation of property taxes and review available options to provide relief to residents. We are interested in hearing your voice to learn more about how best to serve you. We hope to see you sometime soon at one of the following dates and times. Be sure to RSVP to treasurer@eriecounty.oh.gov or call us at (419) 627-7701.
Caleb Stidham, Erie County Treasurer
Ohio Constitution: The Ohio Constitution authorizes property taxation and allows for up to 10 mills of unvoted property taxation. Ten mills equates to $350 per year for a home with Auditor's appraisal of $100,000.
Ohio General Assembly: The Ohio legislature is responsible for creating laws to govern the property taxation system in Ohio. The system of voted upon levies, property tax reduction factors, tax credits, and much more are governed by the Ohio Revised Code, which is written by state law and passed by the legislature.
County Auditor: The County Auditor is responsible for administering the system for appraising and assessing each property in their respective counties for property tax purposes. The Auditor works under guidelines from the Ohio Department of Taxation, Division of Tax Equalization to calculate tax rates as determined by the Constitutional ten mills, along with additional tax levies authorized by voters.
The Auditor also administers the three tax credits (owner occupancy, non-business, and the homestead exemption) authorized in state law, as well as special assessments, which can be added to your tax bill by a political subdivision for charges such as ditch assessments, improvements levies such as street paving, curbs, lighting, sidewalks, etc.
Treasurer: The County Treasurer is responsible for the collection of real estate taxes semi-annually based upon the assessed value and effective rate of each parcel. The Treasurer is responsible, in consultation with the county prosecutor, for pursuing delinquent property taxes through various means, including foreclosure.
Schools: The overwhelming majority of property taxes paid go to school districts. School districts are funded in a joint system of local property taxation and state funding. In addition to collecting some of the inflationary Constitutional ten mills, various exceptions in state law exist to evade the protections of HB 920, which created non-inflationary property taxes (see more below). Most of the increased amount one may owe this year will go to his/her school district.
Other taxing entities: Various other entities can receive property taxes. They include the county, cities, townships, villages, the Board of Development Disabilities, the ADAMHS Board, Serving our Seniors, EHOVE, etc.
Let’s start by providing an understanding of how taxes are calculated. The base equation is as follows:
The assessed value is 35% of the appraised value of your property. The tax rate is determined by the tax levies that are voted upon in your taxing jurisdiction added to the ten mills authorized by the Ohio Constitution. One mill is one dollar owed for every $1,000 of assessed value.
For example, let’s look at an example 5 mill levy on a $100,000 appraised home:
The county’s revaluation process is overseen by the county auditor. Questions regarding the new value of your property can be directed to Auditor’s office at (419) 627-7746. You can also reach out to the Auditor’s office if you have any questions about tax credits available to taxpayers.
As a result of the stated mandated revaluation process, we are seeing significant increases in value that can lead to increased tax burdens. However, it’s vital to understand that a percentage increase in value usually doesn’t equate into the same percentage increase in taxes owed. The State of Ohio introduced mechanisms to mitigate the inflationary nature of real estate taxes in the 1970s.
Prior to House Bill (HB) 920 passed in 1976, an increase in the value of property would lead to a proportional increase in the amount of taxes owed. The system created by the State of Ohio allows for most levies voted upon by the citizens to be anti-inflationary. It differentiates between two forms of millage: inside and outside mills.
The ten mills authorized by the Ohio Constitution act as inside millage. Inside millage is inflationary. For an example, let’s assume our sample property’s value increases 25% from an appraised value of $100,000 to $125,000. How much would that change what is owed on our 5 mill levy?
HB 920 created outside millage to be anti-inflationary. In the [Assessed Value x Tax Rate = Taxes Owed] equation, HB 920 requires a reduction factor be applied to keep the [Taxes Owed] the same even as the [Assessed Value] increases. The only way to do this is to reduce the tax rate. Therefore, as the value of a property increases, the effective rate on outside millage reduces to keep the taxes owed the same.
Assuming all properties in a jurisdiction increase the same percentage amount, the amount owed would not change. The $175.00 owed pre-revaluation is frozen. The rate would decrease to offset the increase in the value.
The reality of HB 920 is meaningful to many taxpayer in Ohio. The mechanisms created in HB 920 should mitigate the vast majority of inflationary increases for most taxpayers. However, to make the system even more complex, the Ohio General Assembly created various exceptions to HB 920 that has created substantial problems for the majority of Ohioans.
Certain taxing entities, namely schools, have an ability to evade the reduction factors established in HB 920 by reaching what is known as the 20 mill floor. This floor allows school districts to collect large, unvoted tax increases when property values rise as they are doing now. Not all schools are at the 20 mill floor, but a majority in Ohio are.
In addition to the erosion of HB 920 protections, there is another significant factor in property taxes going up for some. The amount one owes on outside (anti-inflationary) levies will partially depend on how their value moved compared to others in their same taxing jurisdiction.
Let’s take an example. If a property owner in the City of Sandusky has their property value increase 10%, but the value of the community as a whole goes up 30%, that owner’s obligation on outside millage levies will decrease. This will likely cause their property taxes to go slightly down. But for an owner whose value goes up 50%, their value will likely go up significantly in taxes owed on those levies.
It’s helpful to think about outside levies as a pie. The pie as a whole doesn’t significantly grow or shrink; BUT everyone’s slice of the pie (amount they owe) will grow or shrink depending on the value of their property.
This is important for those who have seen significant jumps in their value due to a recent purchase or market trends in their neighborhood. It’s also an important factor in areas where the AIRBNB market is having an impact on property values.
Unfortunately, most taxpayers will see some increase in taxes and the amount will be substantial for some. State legislators are working to identify ways of reforming Ohio’s property tax system to reduce the burdens of revaluations on residents. Senator Theresa Gavarone and Representative DJ Swearingen have been in close contact with local officials in pursuit of a more functional and fair property tax system.
As your Treasurer, I have been steadfast in working with our local taxing entities to reduce tax rates where possible. In August of 2024, the Erie County Commissioners voted to request a 100% suspension of real estate taxes for calendar year 2025. We expect that this will save residents more than $7 million next year. Other entities followed the county’s lead in reducing taxes in a voluntary manner.
But we know that the burdens on families throughout the county and believe you deserve a better understanding of why you are being asked to pay more.
My office will be holding various forums in the months of January and February to better inform taxpayers about how real estate taxes are calculated. We are eager to hear your feedback of how our property system is impacting families and individuals across our county. These property tax discussions, hosted by Treasurer Caleb Stidham, will take place on the following:
Please RSVP for these forums by calling the Treasurer’s office at (419) 627-7701 or emailing us at treasurer@eriecounty.oh.gov.
Additionally, Serving our Seniors is partnering with Caleb to host various presentations on real estate tax calculations at the following dates:
Those interested in attending can RSVP with Serving our Seniors at (419) 624-1856.
The community deserves a conversation about how our property tax system can work better for taxpayers. We hope to facilitate that conversation in the coming months and years. The only way to create change at the state and local level is work together to understand our challenges and advocate for commons sense solutions.
We understand the challenges that many in our community will face with the increasing property tax burden next year. My commitment will be to always represent taxpayers. We look forward to seeing you at one of our forums. If you have any questions, or if we can be of assistance, please call our office at (419) 627-7701 or email us at treasurer@eriecounty.oh.gov.