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Old 11-17-2011, 05:38 PM
 
Location: Rochester, NY
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I've been looking around on Zillow.com for general home prices and value. They seem to vary wildly even within the same neighborhood. How has the housing market been doing down there?

How are the taxes structured? Are there websites besides Zillow that can get me the rates?
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Old 11-17-2011, 06:01 PM
 
Location: Mason, OH
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Property taxes in Ohio are based on 35% of what is called true market value. If a house's market value is $200,000 tax valuation is 35% of $200,000 or $70,000. This is multiplied times the tax rate per $1000 in a given jurisdiction. Tax rates can vary considerably, usually mostly affected by the schools and what levies have been voted in.

The housing market in general has been putrid the past few years. Many homes have dropped in value to the point where the mortgage is under water, that is more is owed on the house than it is worth. Under circumstances like loss of employment, many home owners have been forced into foreclosure. The number of foreclosures on the market has affected home values considerably. Sometimes the financial institution just wants out from under and will market the home cheap, even under its appraised value. But you have to be careful, people confronted with a foreclosure may let the home go to pot, and if it goes to auction you may not have adquate opportunity to view it and determine condition, particularly the interior. Some owners refuse to recognize the market changes and attempt to put a home up for sale at a price it appraised for or they paid for it several years ago. It may take months before they realize it is just not going to sell for that price in the current market.

Most counties in the Cincinnati area have a county auditor web site where you can look up specific properties by address, get the tax evaluation numbers and the property taxes levied. You can also see what the evaluation history has been over a period of years and whether the property taxes are currently paid up or in arrears. Frequently you can also see the most recent sales history for the property and what was paid if it has changed hands recently. Lot sizes, square footage of the house, liens and easements are also some of the useful information available in the property search. I highly recommend it before making any offer on a specfic propertry. It also can be useful for shedding some light on what appear to be varying property values in the same neighborhood.

Last edited by kjbrill; 11-17-2011 at 06:29 PM.. Reason: add content
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Old 11-19-2011, 08:35 AM
 
Location: Rochester, NY
1,293 posts, read 4,200,455 times
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^ Excellent information, thanks!

As far as the state and local taxes go, I've been doing some homework.


Based on a $50,000 income, living in Cincy:

State tax = $1078.70 + 4.109% based on the link below.
Local tax = 2.1%
yearly tax = $4,183.20

Welcome to the Ohio Department of Taxation (http://tax.ohio.gov/divisions/ohio_individual/individual/annual_tax_rates.stm - broken link)


In comparison to New York state with the same income:
State tax = 6.85%
yearly tax = $3,425

I always though NYS was higher in taxes? Unless I did something wrong with the math, that extra $1078.70 from the table looks a little odd?
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Old 11-19-2011, 09:11 AM
 
Location: Cincinnati near
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You are calculating incorrectly. The 4.109% only applies to the amount over 40,850. Assuming 50000 income, your tax would be:

$1078.70 + 0.04109*(50000-40850) + 0.021*50000 = $2504.67, significantly less than NY.
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Old 11-19-2011, 09:18 AM
 
Location: Mason, OH
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Quote:
Originally Posted by Chemistry_Guy View Post
You are calculating incorrectly. The 4.109% only applies to the amount over 40,850. Assuming 50000 income, your tax would be:

$1078.70 + 0.04109*(50000-40850) + 0.021*50000 = $2504.67, significantly less than NY.
I like guys who know how to do math.
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Old 11-19-2011, 11:14 AM
 
Location: Mason, OH
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Yes, I do like math, but Chemistry_Guy where did the 2.1% come from?

It is not so important as an example, but you do get a personal deduction of $1,600 per person in Ohio. So If you are married, the Ohio income tax on $50,000 in 2011 would be.

$1078.70 + 0.04109*(50000-40850-3200) = $1,323.19. If your NY tax of $3,425 is correct, Ohio is far less.
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Old 11-19-2011, 11:20 AM
 
Location: Cincinnati near
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In Cincinnati, there is a 2.1% local tax. I just used the numbers he gave.
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Old 11-19-2011, 12:02 PM
 
Location: Mason, OH
9,259 posts, read 13,363,536 times
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Quote:
Originally Posted by Chemistry_Guy View Post
In Cincinnati, there is a 2.1% local tax. I just used the numbers he gave.
I understand the local tax. But I thought he was mainly referencing the state tax. I think best way to present it back to him is.

Based on $50,000 income,
Ohio Income Tax = $1078.70 + 0.04109*(50000-40850-3200) = $1,323.19. (Married)
Ohio Income Tax = $1078.70 + 0.04109*(50000-40850-1600) = $1,388.93. (Single)
Local City Income tax = 50000 x .021 = $1,050 (Cincinnati)
Local City Income tax = 50000 x .0225 = $1,125 (Dayton)
Local City Income tax = 50000 x .0175 = $875 (Middletown)
Local City Income tax = 50000 x .015 = $750 (Monroe)

Don't forget, the Local City Income Tax is levied for either working there or living there. Where you work will collect their amount, usually via payroll deductions. Where you live, if different, you will have to file a return. Most, but not all, jurisdictions allow you to deduct the amount of local income tax paid to where you work from the amount owed where you live. You need to check the local income tax rate in both jurisdictions and whether they grant reductions for the amount paid another jurisdiction to see where you stand. Where I live has a 1% city income tax. Until recently, they only granted up to half where you worked, meaning you owed them 0.5% regardless. Recently it was voted to grant full value to where you work, so unless where you work has none or less than 1% local income tax you owe nothing to Mason.

Also recognize that only incorporated areas in Ohio can vote to levy a local or city income tax. Unincorporated areas such as townships only are prohibited from this. This is why you will see many pockets in Ohio of both business and residential development in townships only, as they avoid paying the local or city income tax. If you can both work and live in a township only area you can avoid the local income tax.

Last edited by kjbrill; 11-19-2011 at 12:28 PM.. Reason: add meaning
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Old 11-19-2011, 04:05 PM
 
Location: Rochester, NY
1,293 posts, read 4,200,455 times
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Thanks guys!
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Old 11-21-2011, 06:38 AM
 
Location: Rochester, NY
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So the $1600 tax credit, is that for being a homeowner, or do you get that automatically?
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