After reviewing our latest property tax bill, we thought we knew what every number meant and how to calculate each one. Alas, there were two items still on the bill that stumped us. You will see on your bill a “Homestead Value” and “Factors” in the middle of the page. We knew who to ask to get the answers…..Ms. Barbara Hogya of the Lake County Auditor’s office. She is extremely knowledgeable and very gracious with her time. She is a real asset to our community…….Here are her answers:
“The “homestead exemption” exempts $25,000 off the MARKET value of the home, the 8,750 is the 35% value, which is what you are taxed on.
Those “factors” are given to us by the state. The non-business credit used to be the 10% rollback, and the owner occupancy credit was the 2.5% homesite credit.
The taxpayer only paid 87.5% of the tax bill the state paid the other 12.5%. [10% + 2.5%]
The law changed starting with the November 2013 election…………and a NEW OR REPLACEMENT levy is not entitled to receive these rollbacks. The state does the calculation. I don’t know if I have anything that explains how they calculate those or not.
(LFC Comment: The State of Ohio also calculates the Tax Reduction Factor as covered by H.B. 920. This law was meant to eliminate any property tax increase due to increases in the property values. Thanks Barb you are awesome!)
(Note to all taxpayers: Just remember this age old axiom – Whatever the State gives to you – the State can take away. Life, liberty and the pursuit of happiness are not rights that the State gave to us, and they CANNOT take it away. They can try, but that is why the 2nd amendment is in our Constitution.)