Property Tax

Property taxes are calculated by computing the taxable (or assessed) value of the property.  To do this, the market value of the property is multiplied by 35%.   

Next the appropriate tax rate is applied.  Class I (residential and agricultural) properties have a different tax rate than Class II (commercial and industrial) properties.

Below is a sample calculation of a residential property with a market value of $100,000.

*In the illustration above, the effective tax rate is expressed as a decimal (1 mill = .001)

 
Tax rates are established annually by the Licking County Auditor’s Office and are then approved by the Ohio Department of Taxation.  Below are the approved tax rates for calendar year 2023 (collected in 2024).

There are two different types of tax rates - voted and effective.  The reason for this difference in tax rates is due to House Bill 920, which is an Ohio law that was passed in 1976 as a way to protect property owners against unvoted increases in taxes.  HB 920 requires a calculation to reduce the effective tax rate that is applied to property owners so that as their property value increases over time (due to reappraisal/update), the amount of taxes owed remains the same.

HB 920 is the reason why the effective tax rate is significantly less than the original voted rate.  It is also the reason why most school districts across the state have to pass new property tax levies every few years in order to increase their revenue to keep up with inflation.  The only increase in property tax revenue that school districts receive is on inside millage (unvoted millage permitted by the Constitution of the State of Ohio) and new construction.  

Below is an illustration of the impact of HB 920 (assuming a 10% increase in values from 2022 to 2023).

Impact on District:

In 2019, the full voted tax rate was reduced when the classroom facilities levy and permanent improvement levy expired.  These levies were not renewed as part of the implementation of the income tax levy.