Real Property Tax: Conveyance Fees Collected During Calendar Year 2014
Ohio Revised Code Section 319.54(G)(3) establishes a mandatory conveyance fee on the transfer of real property. The fee is charged on the value of the property that is transferred and expressed in mills; a mill is equivalent to one dollar per one thousand dollars of taxable value.
Ohio Revised Code Section 322.02 allows the board of county commissioners of each county to levy a permissive real property transfer fee: up to three dollars per one thousand dollars of value of real property transferred. In simple terms, both the mandatory fee and the permissive county fee (a combined maximum of 4 mills) apply to the selling price of real estate at the time of sale. The revenue from both the mandatory fee and the permissive fee is deposited in the general fund of the county--none of the revenue goes to the state.
Table PC-1 shows the revenues collected by each county from both the mandatory transfer fee and the permissive real property transfer fee. The data presented in the table were compiled from a survey of county auditors conducted by the Ohio Department of Taxation. Note: two counties (Gallia and Perry) did not submit calendar year 2014 data; previous year’s data were used.
In 2014, conveyance fees generated $116.0 million: $36.4 million mandatory fees and $79.6 million from the permissive fees. The number of conveyances on which the mandatory fees were collected ranged from 245 in Vinton County to 24,317 in Franklin County. The total mandatory conveyance fees collected by each county ranged from $17,630 in Vinton County to $5.7 million in Franklin County. The average mandatory conveyance fee collected by each county ranged from $69 in Adams County to $307 in Delaware County, with a statewide average of $158.
For those counties that charge both the mandatory and permissive fees (all excluding Ross county), the total collected, including both mandatory and permissive fees, ranged from $70,521 in Vinton County to $13.9 million in Cuyahoga County. The average total conveyance fee collected by each county ranged from $167 in Pike County to $939 in Delaware County, with a statewide average of $505.
Ohio Revised Code Section 319.54(G)(3) exempts certain conveyances from the mandatory transfer fee. During 2014, a total of 206,078 (47.3 percent of the total) transfer fee statements filed with the county auditors were exempted from the fee. The lowest percentage exempted was in Delaware County with 32.1 percent exempted. Jefferson County, with 61.6 percent, had the highest percentage exempted.