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In this article I address a common question of property managers, landlords and real estate investors and that is, “if the housing market continues to lose value, why not our local tax authorities of our property taxes to set down? “The reason is actually very simple. In the state of Ohio, the inspector-based property tax voted to impose regulated by the laws of the State and the hands of the local county office. Here is how the province said, our tax laws should protect schools and other organizations during down markets the same way that protects the owners of houses and apartments “theoretical” during the market boom.

To do this, House Bill 920 in Ohio State Real Property. when subjected to a review or update prices “tax reduction factor” for class 1 (residential), are subject to review every three years to separate and create effective Millage class 2 (non-) residential property in each school district . This efficient school districts Millage rates limit growth in sales of real estate inflation is not getting more money through their duties, the voters approved it (Note: new building is an exception to this rule and create new revenue for districts ) the reasons for this law was twofold:

First, the taxpayer is protected from inappropriate increase property taxes due to an inflationary surge in the value of is property. It is also important to note, passed this law, at a time when property values ​​were much faster climbing, as income levels within 30 Years.

Second, keeps our local authorities in chess, the implementation can only make changes to the voters. Is say why it works when the values ​​of property investment valleys Columbus this law, in the opposite direction. This bill ensures that school districts is a huge drop in sales is not sample. Here is another example, Auditor. In the city of Columbus, provided by Joe Testa, county average residential home is currently $ 117,700. As an update to the districts of residential value would increase 10% to homes worth $ 122.870 and increase the tax liabilities of 1.8% or $ 31.20 per year. Also to deal with this value of 10% to $ 100, 530, cut taxes would be reduced only by the same amount, 1.8% or $ 31.20 per year.

In the example below, “but $ 11, 170 in value of equity and only $ 31.20 per year in reduced taxes” has been lost. If nothing has changed (adjusting Millage rates) would be the recovery of losses from a lower tax bills years. For 358 Therefore, to adjust prices in the real estate market boom and bust, tax authorities the effective Millage up or down, to ensure schools and social service agencies must use.

So income if you believe that the short end of the stick control that, pending their property taxes, file your county properties on the market for a redistribution of his best bet at the right of petition.

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