How are property taxes assessed in Mt Lookout/Hyde Park? (Cincinnati: tax lien, sales)

[Chicago2Cinci]

Good afternoon, all!

I know in Mariemont they base your property taxes on the most recent home purchase price.

Do they do the same in Mt Lookout/Hyde Park? If not, can you please describe how property tax amounts are derived.

If the previous sale in Mt Lookout was $200k in 2003 and we are going to purchase the home for $400k in 2014 will the taxes double? Or is it based on sq.ft and lot size?

Thanks in advance!

[progmac]

Taxes will double. They assess the property at market value. They consider transactions within the last two or three years iirc. From their perspective, your purchase price of the home is a very good indication of value.

[Wilson513]

Originally Posted by Chicago2Cinci

Good afternoon, all!

I know in Mariemont they base your property taxes on the most recent home purchase price.

Do they do the same in Mt Lookout/Hyde Park? If not, can you please describe how property tax amounts are derived.

If the previous sale in Mt Lookout was $200k in 2003 and we are going to purchase the home for $400k in 2014 will the taxes double? Or is it based on sq.ft and lot size?

Thanks in advance!

They assess based on the sales price from a form the seller fills out at the closing called the Conveyance Fee. the seller pays the fee to convey but the Auditor uses that document to change the tax assessment. That process is the same in every place in Ohio.

The tax rate in Mariemont is 2.2% of value, Cincinnati is 2.0 % of value. Basically the same rate.

[Chicago2Cinci]

Thank you both, very helpful!

[Wilson513]

Come to Cincinnati and visit Hyde PArk and Mt. Lookout. Its a great time to be here. You can leave at 7am and be down here in time for lunch on Hyde Park Square.

Here is a video of my commute from the edge of Ault PArk to downtown Cincinnati at morning rush hour. There are a couple of gaps I took out so the total time is about 10 minutes not 6 minutes. Notice the absence of traffic:


https://www.youtube.com/watch?v=ScVYncKxQc8


https://www.youtube.com/watch?v=WHDtYiZ1D4I

[Sarah Perry]

For what it's worth, when we bought our house 15 years ago, they did not automatically change the assessed value. It was a fairly routine and simple procedure to have it changed, but we did have to file an appeal of the taxable value to have it reassessed down to what we paid.

[Wilson513]

The law on this has had some interesting twists and turns over the last decade. Historically, the recent sale price was simply a fact to be considered. Then, the Supreme Court ruled that the BOR was mandated to use the sales price if it was an arm's length bona fide sale. Then the legislature dialed it back so now it reads as follows:

In determining the true value of any tract, lot, or parcel of real estate under this section, if such tract, lot, or parcel has been the subject of an arm's length sale between a willing seller and a willing buyer within a reasonable length of time, either before or after the tax lien date, the auditor may consider the sale price of such tract, lot, or parcel to be the true value for taxation purposes.

So it is no longer mandatory. But, in practice it is always used.

[kjbrill]

The method for establishing property tax amounts is uniform throughout the state of Ohio. In each county, the county auditor is responsible for establishing the Real or Market Value of property. As indicated, the Market value is intended to be the value at which the property would sell.

The Tax Assessed Value is then calculated straight forward as 35% of the Market Value. The actual taxes are then calculated by multiplying the Assessed Value times the Tax Rate for the jurisdiction the property is located in. The Tax Rate is obtained by adding together several different rates for the jurisdiction, the largest usually being the tax rate for public schools.

The fact that tax levies are voted at separate times for different jurisdictions should be a significant factor for tax variances between them. But the most significant is probably the difference in Market Value. If a house is sold, the Sale Price should be a good indication of Market Value. For new property, the Sale Price will almost always be used to reflect Market Value. For older property this may vary depending on whether the auditor considers the property to reflect normal conditions for the neighborhood.

There is a procedure for contesting the Market Value placed on a property's records. But if you can see the Market Value is pretty close to the Sale Price, it is likely their will be little reason accepted for change.

[SalamanderSmile]

They only reassess every x years. So we bought in 2013 and paid a year on the previous owner's assessment and for 2015 they jacked it to our purchase price, just got the paper in the mail.

[kjbrill]

Originally Posted by SalamanderSmile

They only reassess every x years. So we bought in 2013 and paid a year on the previous owner's assessment and for 2015 they jacked it to our purchase price, just got the paper in the mail.

Actually Ohio Law specifies property will have a physical reevaluation every six years. This is a rather large task. Also, the law states in the midpoint, after 3 years, a percentage gain or drop of all property in a given area can be used to adjust the evaluation. Not all property in the state is evaluated at the same time. I find the requirement for a physical evaluation to be rather extreme, even though the interior of the house is excluded. I have seen the assessors coming through the neighborhood and it seems that are only making notes on each specific property, likely whether they see any significant differences from the existing records.

It does not surprise me that the assessed value is not immediately changed based on a sale, particularly if the Market Value and Sale Value did not differ much. Let it ride until the next reassessment period is due, since all property owners must be notified as to the new assessed value, changed or not.