Tax Data Series

Tangible Personal Property Tax

Reduction in Value and Amount Reimbursed for the $10,000 Exemption, by County, Calendar Year 2008


The tangible personal property tax is a tax on businesses in Ohio.  The tangible personal property tax is being phased out between 2006 and 2009 as part of the tax changes contained in Amended Substitute House Bill 66, the two-year state budget bill for Fiscal Years 2006-2007.  The phase-out is accomplished by lowering the assessment percentage for all tangible personal property, including inventories.  For more details on the phase-out see http://tax.ohio.gov/divisions/personal_property/PPT_law_changes_070303.stm

The first $10,000 of otherwise taxable value for each company (RC 5709.01) is exempted.  Revenue foregone as a result of the $10,000 exemption is reimbursed by the state.  A phase-down of the reimbursement to local subdivisions for the revenues lost due to this exemption began in fiscal year 2004, with the reimbursements being totally eliminated starting in fiscal year 2010.  In fiscal year 2009, these reimbursements made to local governments were $15.3 million (16 percent of the fiscal year 2003 reimbursements).

The attached table shows the reduction in taxable value in each county resulting from the $10,000 tangible personal property tax exemption.  Also shown is the reduction in taxes charged for the local tangible personal property tax loss.  In tax year 2008, the total reduction in taxable value caused by the $10,000 tangible personal property tax exemption was approximately $300.9 million.  The total calculated amount of taxes charged that would have been levied on this property amounted to $24.9 million in 2008.

This year constitutes the last edition of the PD-16 table.  Beginning in tax year 2009, all tangible personal property of general (non-public utility) taxpayers is exempt from taxation, with the exception of telephone companies (whose property is exempt starting in tax year 2011).

The reductions in value shown on this table were compiled from abstracts filed by each of the 88 county auditors with the Ohio Department of Taxation, Tax Equalization Division.  The calculated reduction in taxes levied were derived from the same tax abstract data set.