We have to admit we were shocked to when we compared the Lake County average property taxes against the State of Ohio averages. Let us first define the word “median” since it is different than average.
Median Definition: “denoting or relating to a value or quantity lying at the midpoint of a frequency distribution of observed values or quantities, such that there is an equal probability of falling above or below it.” (LFC Comment: In other words, right in the middle.)
In a previous article, we reported the following property tax statistics for the State of Ohio:
State of Ohio #39th highest out of 51 (Including District of Columbia)
Average Real Estate Effective Tax Rate: 1.57%
Average Median Home Value: $135,100
Average Tax on Avg. Median Home Value: $2,124
Average Annual Taxes on Home Valued at $194,000: $3,042
Here are statistics based on the 2018 Lake County Median Home Values, Tax Rates, and Annual Property Tax by Taxing District as provided by the Lake County Auditor’s office:
For comparison purposes here are the 2018 Lake County averages:
Average Tax Rate: 2.00%
Average Median Home Value is $153,645
Average Tax on Avg. Median Home Value: $3,072
Average Property Taxes on a Home Valued at $194,000: $3,880
What does this mean to the average taxpayer?
Lake County is paying $948 more in annual taxes than the average taxpayer in the State of Ohio. [$3,072 – $2,124] That is as a result of the higher tax rate and higher median home value.
If we apply the State average effective tax rate to our median home value our annual tax would be $2,412 [$153,645 x 1.57%] Therefore, we are paying $660 more each year on average [$3,072 – $2,412}, which is 27.4% [$660 / $2,412]or [$153,645 x (2.0% – 1.57%)] higher than the State average effective tax rate.
The remaining ~$288 increase is due to the higher property values. [($153,645 – $135,100) x 1.57%]
Are you still with me? Now that we have totally confused everyone, you can determine how your home compares to the averages by looking at this chart below. You will need to know your taxing district. Ok, who out there does not know their taxing district?
We will say it again, if property taxes continue to increase, we are on a path to price seniors and those living on fixed incomes out of their homes. We are also starting to realize that property taxes are also going to be a stumbling block for younger generations as they select where they want to start to raise a family.