Why Butler Twnship taxes are through the roof? (Dayton, Warren: for sale, 2015)

[SUCHACRISIS]

Anyone know what the reason for this is?

We have found a few homes we might like in Butler Township, but their property taxes are ungodly high. I know montgomery county is high in general, but Butler adds 1k+ to those taxes. It probably explains why Butler houses for sale have sat on the market so long, no one wants to go bankrupt trying to pay the govt.

[hensleya1]

Originally Posted by SUCHACRISIS

Anyone know what the reason for this is?

We have found a few homes we might like in Butler Township, but their property taxes are ungodly high. I know montgomery county is high in general, but Butler adds 1k+ to those taxes. It probably explains why Butler houses for sale have sat on the market so long, no one wants to go bankrupt trying to pay the govt.

You've answered your own question.

Montgomery County has the second highest property tax rate out of 88 Ohio counties on residential properties. And of commercial and industrial properties, it has the dubious distinction of being the single highest (beating out even Cuyahoga County).

http://www.mcrealestate.org/pdffiles...xrate_2014.pdf

3.2 mills already subsidizes Sinclair (soon to be 4.2), another 13-15 mills or so goes to a human services levy, a few more to parks.... you get the idea. Keep in mind these are 2015's numbers: with the Sinclair levy passing all countywide taxes will be higher still next year. It looks like your effective rate is going to be either 91 or 106 mills - I assume you're in the 106 area (which will be 107 next year).

A back of the hand (read: in my head) calculation on a house worth $150,000 should yield an annual property tax bill in the $4,200-$4,500 range.

It's no coincidence that Montgomery County struggles to retain population while all the others nearby are growing. The problem is that you've got a giant black hole located in the center of Montgomery County called Dayton, with its tens of thousands of low-income residents, who pay little or no in taxes but demand an outsized portion of local services. You guessed correctly who gets to pay for it... suburban residents.

***

If property taxes are an issue, give some serious thought to moving to one of the neighboring counties: Miami County to the north, Greene County to the east, and Warren County to the south. All of them have nice affordable suburbs with low crime rate, good schools, and good highway access. You'll have the added bonus of enjoying a lower sales tax rate, as well.

[SUCHACRISIS]

Originally Posted by hensleya1

You've answered your own question.

Montgomery County has the second highest property tax rate out of 88 Ohio counties on residential properties. And of commercial and industrial properties, it has the dubious distinction of being the single highest (beating out even Cuyahoga County).

http://www.mcrealestate.org/pdffiles...xrate_2014.pdf

3.2 mills already subsidizes Sinclair (soon to be 4.2), another 13-15 mills or so goes to a human services levy, a few more to parks.... you get the idea. Keep in mind these are 2015's numbers: with the Sinclair levy passing all countywide taxes will be higher still next year. It looks like your effective rate is going to be either 91 or 106 mills - I assume you're in the 106 area (which will be 107 next year).

A back of the hand (read: in my head) calculation on a house worth $150,000 should yield an annual property tax bill in the $4,200-$4,500 range.

It's no coincidence that Montgomery County struggles to retain population while all the others nearby are growing. The problem is that you've got a giant black hole located in the center of Montgomery County called Dayton, with its tens of thousands of low-income residents, who pay little or no in taxes but demand an outsized portion of local services. You guessed correctly who gets to pay for it... suburban residents.

***

If property taxes are an issue, give some serious thought to moving to one of the neighboring counties: Miami County to the north, Greene County to the east, and Warren County to the south. All of them have nice affordable suburbs with low crime rate, good schools, and good highway access. You'll have the added bonus of enjoying a lower sales tax rate, as well.

But the discrepancy is even inside of Montgomery County. Vandalia, for instance, on a house that's 120k average 2kish. Butler is barely under 4k. That's a huge difference.

Also, Miami county was our top priority(Tipp City, mainly) but there is just nothing for sale worth buying there right now. So we started looking just a tad south in Vandalia\Butler areas when I discovered how ridiculous Butler was. I wouldn't say property taxes are an 'issue' per say, but when you can easily save 1000+ a year and not pay 300/month on taxes its almost a no brainer.

[SWOH]

^Are you sure that is correct? Butler Twp. should have lower taxes than the city of Vandalia.

EDIT - you're right. Here's two houses being offered at $135k, one in Vandalia and one in Butler Twp.

Vandalia House Property Taxes = $1731/yr
http://www.zillow.com/homes/for_sale...zm/0_mmm/1_fr/

Butler Twp. House Property Taxes: $2731/yr
http://www.zillow.com/homes/for_sale...zm/0_mmm/1_fr/

[wrightflyer]

Without knowing specifics on how municipal services (fire, EMS, police, streets, parks, etc.) are set up between the City of Vandalia and Butler Township, its hard to say why the difference. My guess is the lack of income tax that Vandalia residents pay for at least some of those services.

For example, Vandalia residents may have their own fire department that the township also uses. While townships residents aren't being taxed for the fire department in income, they are making up for it in property taxes. That's a very crude, elementary and probably bad example, but it sort of gets the point across as to why.

Vandalia and its township also have a number of municipal services that other places don't have. A rec center, decent schools, parks, good roads, a decent police/fire/EMS services. I doubt the taxes are much different when compared to those in Centerville/Washington Township.

[floater]

For example, Vandalia residents may have their own fire department that the township also uses. While townships residents aren't being taxed for the fire department in income, they are making up for it in property taxes. That's a very crude, elementary and probably bad example, but it sort of gets the point across as to why.

FTR, Butler Township has its own fire department, which has to cover a much wider area than Vandalia's. It probably also spends a goodly amount of money on lawyers to prevent annexations.

Also, townships can't charge income taxes. FTR: Vandalia has one of the higher income tax rates in the area (2%). And between cities, I do find a tendency for counter-compensate.

Hensleya is right that Montgomery County is very expensive.

A 2012 comparison - there is a more recent one, but I couldn't find it off hand.
A more recent one - behind a paywall