Every property owner who resides in their own property is eligible for an owner-occupied 2 ½% reduction on their property tax bill. Homeowners must make application for this reduction. This is often taken care of at time of transfer of real estate. To receive the owner-occupied (2 ½%) tax reduction, you must own and occupy your home as your principal place of residence (domicile) on January 1 of the year you file for the reduction. A homeowner and spouse are entitled to this homestead tax reduction on only one home. The calculation is based on the Dwelling and up to one acre of land.
Beginning with tax year 2013, the 2 1/2 % reduction no longer applies to new levies enacted after the August 2013 election. These non-qualifying levies include additional levies, the increase portion of renewal with increase levies, and the full effective millage of replacement levies. Levies that will continue to qualify for application of the rollbacks are levies approved at or before the August 2013 election, inside and charter millage as they appear on the 2013 tax list, renewals of qualified levies, and the substitute of qualified school district emergency levies under Revised Code section 5705.199.
Owner-Occupied Tax Reduction Application
FILING DEADLINE NOTICE:
The Deadline to Back File, for the 2021 Tax Year, for the Owner-Occupied Credit Tax Rollback Program for Home Owners is December 31, 2022
How are real estate taxes calculated?
The steps outlined below show how a real estate tax bill is calculated. The calculations used in the example are for a $100,000 property for tax year 2016; Full tax rates and reduction factors can be found on the tax rate sheet.
In this example we used the rate and reduction factor from Wayne Twp. Wooster City, Wooster City School District. This example includes the Owner Occupied Credit reduction (owner occupied residence).
1. Determine the assessed value
Formula: (Appraised Value) x 35% = Assessed Value
Example: $100,000 x .35 = $35,000
2. Divide (Assessed Value) in half to Calculate Half-Year Tax Bill Amount.
Formula: (Appraised Value) / 2 = Assessed Value (For Half-Year Tax Bill Calculation)
Example: $35,000 / 2 = $17,500
3. Calculate the gross tax
Formula: (Assessed Value x (Full Rate) = Gross Tax (for Half-Year) / 1,000 (Per Thousand)
Example: $17,500 x 104.50 / 1,000 = $1,828.75
4. Calculate the reduction factor credit amount
Formula: (Gross Tax) x (Reduction Factor) = Credit
Example: $1,828.75 x .345182 = $631.25
5. Reduce the gross tax by the reduction factor credit amount
Formula: (Gross Tax) - (Reduction Factor Credit) = Adjusted Tax
Example: $1,828.75 - $631.25 = $1,197.50
6. Calculate the rollback credit amount
Formula: (Adjusted Tax) x (Rollback) = Non-Business Credit (formerly 10% Rollback Reduction)
Example: $1,197.50 x .094886 = $113.63
7. For "Owner-Occupied" Residential Properties, there is an additional Rollback.
Formula: (Adjusted Tax) x (Rollback) = Owner-Occupied Credit (formerly 2.5% Rollback Reduction)
Example: $1,197.50 x .023721 = $28.41
8. Reduce Adjusted Tax by Total Rollback for Half-Year Tax Amount.
(Non-Business Credit) + (Owner Occupied Credit) = Total Rollback Reduction
(Adjusted Tax Amount) - (Total Rollback Reduction) = Total Half-Year Tax Amount.
$113.63 + $28.41 = $142.04
$1,197.50 - $142.04 = $1,055.46
Half Year Tax Amount: $1,055.46 (Billed Semi-Annually)
Full Year Tax Amount: $2,110.92
If you have any further questions please call our office at: 330.287.5438