Tax Data Series

Real Estate and Public Utility Tangible Property Taxes

Real Estate and Public Utility Tangible Property Taxes
Gross Taxes Levied, Taxes Charged, and Value of Property by Class of Property and City, Calendar Year 1986 (1987 Collections)

Taxes charged (after reduction factors) on all real estate and on public utility tangible property within cities by all local governments in Ohio for calendar year 1986 (1987 collection) were $2,329,042,978 on a total assessed value of $46,507,839,095. The gross amount of real estate and public utility tangible personal property taxes levied (before reduction factors) reported on abstracts filed by the county auditors was $2,999,020,293.

Applying the percentage reductions required by Section 319.301 of the Ohio Revised Code to this gross amount yelds the net figure for taxes charged of $2,329,042,978. Separate percentage reductions were applied to the two classes of real property: the combined value of residential and agricultural property and the combined value of commercial, industrial, mineral, and public utility property. As shown in the table, these percentage reductions do not apply to public utility tangible personal property taxes.

The "taxes charged" figure is prior to any reduction of real estate taxes resulting from the 10 percent rollback for all real property, 2.5 percent rollback for residential real property, or homestead exemption. These reductions are fully reimbursed to local governments from the State General Revenue Fund and are not technically reductions in "taxes levied".

Real Property taxes are reduced directly through a "composite tax reduction factor". Calculation of taxes levied after tax reduction factors involves two main steps.

Step One:

The Ohio Department of Taxation certifies to each county auditor tax reduction factors to be applied to each tax levy for each of the two classes of property. The tax reduction factors are calculated to eliminate the effect of increases in the valuation of existing real property in a taxing unit (school district, county, municipality, etc) on voted taxes.

Step Two

The Ohio Department of Taxation, then, calculates a composite reduction factor to be applied to individual tax bills in a taxing district for each taxing district in the county. (A taxing district may be generally defined as a geographical area in which the total rate is uniform throughout.) To compute the composite tax reduction factors, the Department of Taxation uses the reduction factors for each taxing unit within a taxing district and multiplies them by the relative weights of each levy effective in the taxing district.