Permanent Improvement Levy - Permanent improvement levies are for projects and equipment that have a useful life of five years or more. New roofs, renovations, and school buses are examples of assets that fall into this category. It can be for a limited amount of time or continuing.
Fiscal Year – The fiscal year for a school runs from July 1 until June 30. As an example, Fiscal Year (FY) 2015 would be July 1, 2014 until June 30, 2015.
Real Estate Taxes - This is a tax levied on land and buildings located within the school district. Individuals and businesses pay this tax on the property they own. Two key components in calculating real estate taxes are the taxable or assessed value (market value x 35%) of the property and the millage rate.
Market Value - The market value is the estimated sales value of the property. For purposes of real estate taxes, the county auditor determines the market value of all of the property in the county. The county auditor then calculates the taxable/assessed value for each property.
Taxable/Assessed Value - Taxable value and assessed value are different terminologies for the same thing.
The taxable value is determined by taking 35% of the market value of the property. For example, a home that would have a market value of $100,000 would have a taxable value of $35,000.
Re-appraisal and Triennial Update - The county auditor is responsible for assigning a market value for all of the individual properties in the county. Every six years the county auditor appraises all of the properties to determine their market value. This is re-appraisal. Every three years, the county auditor does an update of the market values based on home sales. This is Triennial update.
Mills - Property tax rates are computed in mills. A mill is 1/1000 or .001. One mill cost a property owner $1.00 for every $1,000 of taxable value.
Effective Millage - Effective millage is the millage rate that is actually levied on property. Once a levy is voted in, a school district cannot collect any additional money due to valuation increases from reappraisal or triennial update on that levy. As property values increase, the millage rate on that voted levy is decreased so that the levy generates the same amount of money. This reduced millage rate is referred to as effective millage. The only way school districts get any additional money on voted millage is from new construction or from having their millage reduced to the minimum amount allowed by law (20 mill floor).
Homestead Exemption - The homestead exemption allows senior citizens and permanently and totally disabled Ohioans to reduce their property taxes by exempting $25,000 of the market value of their home from all local property taxes.
To qualify, an Ohio resident must be at least 65 years old or be totally and permanently disabled and own and occupy a home as their principal place of residence. For individuals who own more than one home, the principal place of residence is the home where the person is registered to vote and the person's place of residence for income tax purposes.
Applications for the exemptions are available at the county auditor's office.