Portage property values to jump 30% or more because of state-mandated reappraisal

Next year, property owners in Portage County can expect to see their property values jump by an average of 30% to 35% as part of the reappraisal process that happens every six years.

Portage County Auditor Matt Kelly addressed Streetsboro City Council recently about the revaluation of properties in Portage County, and the schedule of events for those who want to challenge the new value.

He estimated that Portage County property owners are expected to see a 30% to 35% increase, which is similar to valuations being seen across the state, where increases are ranging between 28% and 41%.

He said he's been making the rounds of local government meetings, and recently spread the word at the July 4 parade in Aurora.

"I'm trying to get ahead of this so the citizens of Portage County know what's coming," he said.

Why are properties being reappraised?

Ohio law requires Ohio’s 88 counties to reset the value of all properties every three years. The new values determine the portion that individual property owners and entire communities pay to fund school districts, libraries, drug addiction and mental health programs, zoos, metro parks, local governments and more.

This year, Portage County is undergoing a comprehensive sexennial (or six-year) update, which is based not only on property sales data but a physical check of every agricultural, residential and commercial property in the county. Last year, neighboring Summit County went through a triennial (or three-year) update, which was based solely on a year's worth of sales data.

Kelly stressed that a 30% increase in value doesn't necessarily translate to an 30% increase in taxes, and "about half of that is a rule of thumb."

"It is sticker shock," he said. "When people hear that their valuation is going up 30%, they think their taxes are going up by 30%. It's not a dollar-for-dollar value."

What is the reappraisal process?

Later this month and continuing into August, property owners will receive notices from the county stating their new valuation.

Informal hearings will take place in August and September. Property owners will need to make an appointment to meet with an assessor to discuss their valuation and anything that may be wrong. Informal community meetings also are expected to be announced soon.

Between October and December, final values will be sent to the state for approval and tax rate calculation.

The filing period for formal complaints through the Board of Revision is January through the end of March. In these complaints, property owners can formally contest new valuations.

Why are property values increasing?

Cheryl Wood, a Realtor with Remax Pathway in Kent, said the real estate market had been struggling for years to recover from a crash in the market, which drastically lowered home values for years.

"It took until 2017 for values to come up to what they would have, had they increased by 3 to 3½% a year," she said.

But because of the COVID-19 pandemic, interest rates plummeted. At the same time, a shortage of houses on the market meant that multiple buyers were offering more than sellers were asking.

"A large amount of buyers were looking for houses that weren't there," she said. "They were throwing out offers that were higher than asking."

The resulting shortage of affordable houses tended to hurt first-time homeowners. She said she's also hearing that there's a shortage of rentals, putting those people in a double bind.

Interest rates have been increasing, she said, and housing stock is just starting to come up, which is stabilizing the market, Wood said.

Streetsboro mayor asks how much taxes will increase for property owners

Mayor Glenn Broska questioned how much of an increase voters will actually see, noting that voted levies cannot collect more money just because property values go up.

"So realistically, we have a tax rate of 72 mills," Broska said, adding that about 20 mills of that is "inside millage," or non-voted taxes. "I can see the tax rate going up on that. But on 52 mills, we should not see an increase in taxes."

Kelly said it depends on each taxing district on what the impact will be on each community, and there are a number of factors that affect taxes for each property owner.

"I can give you better numbers, and even more so once the numbers come back officially," he said.

Kelly said he's expecting "a lot of phone calls" and hopes hundreds of people will come to the informal hearings but "that's what I signed up for."

He encourged residents to talk to their legislators and urge them to find another way to generate tax revenue.

"Let's make it a little bit simpler," he said. "Let's not hammer the property owner every single time."

Reporter Diane Smith can be reached at 330-298-1139 or dsmith@recordpub.com.

This article originally appeared on Record-Courier: Portage property values to jump 30% or more because of state-mandated reappraisal