Pickerington Area Taxpayers Alliance

Real Estate Values Pt 2

If the state would then tie the inflation rate with the property value rate of increase each year we might find a formula that would help the schools in their roller coaster ride for operating monies each year.

For the last few years our inflation rate has been below 3% however the value of the new homes in some areas has increased by 6% or more. Real Estate values are set by market forces. More buyers than sellers then the R.E. market values tend to increase. More sellers than buyers the markets values tend to decrease. My point here is that the changing value of one?’s home may not follow the changing operating expenses of the school system. I would think that the operating expenses of the school system would be closer to the rate of inflation.

What happens if the inflation rate is 3% and the real estate values decreases? With our present system the schools continue to receive the same amount (in dollars) until the district property was reappraised on the six year cycle. The Executive Director of the Columbus Board of Realtors spoke at the Pickerington City Council meeting Tuesday and he stated very different figures between the City of Pickerington property value increases and that of the Township. Obviously then the actions of local governments within a school district can have an affect on the income to the school system through it?’s policies and how they affect property values and property value appreciations.

HB 920, I believe, would need to require that Ohio Counties reappraise their Real Estate value every year. These appraisals would be tied to the inflation rate. If the inflation rate is higher that the property rate increase for any given year then the county would go with the new property rate value. If the inflation rate for a given year is lower than the property value increase then we use the inflation rate of increase on the property. If the real estate property value decreased then the property value would remain the same for tax purposes until the six year cycle.

However I think a post card should be sent to each property owner every year to let them know how they did with inflation and how their property values stacked up with other owners in the school district. This might add extra pressure on local politicians if their policies are affecting property values.

Real Estate Value pt 3

There is another problem that Dr. Rigelman failed to mention. Here again it is with Property Tax collections. If I have a vacant lot that I start to build on in July of 2002 and I finish building my home and move into the property on January 2, 2003 then for the entire year of 2002 I pay Real Estate Tax based on the (35% assessed) value of that building lot. I then live in a house for the entire year of 2003 and I still only pay R.E. taxes based on the value of the building lot. I continue to live in the house for the entire year of 2004 and I still only pay real estate taxes based on the value of the building lot. Why you ask? Well the property doesn?’t go on the tax rolls as a completed house until the December 31st, 2003. On July 1st 2004 I complete my first half of the year (tax wise) in a completed home. The county then bills me in February of 2005 or my mortgage company the taxes for the first half of 2004.

If I have a couple of kids in the school system then they have attended school for a half year of 2003 and I am paying taxes on my lot. They attend the 2003/2004 school year and I still only pay my R.E. taxes based on the value of the lot. My kids then attend school for the entire 2004/2005 school year and I get my first HALF tax bill near the very end of that school year. So the school system has educated these children for two and a half years only receiving tax money based on the value of building lots. The city of Pickerington as of July 18th has issued 197 building permits. I believe the township has a similar amount. Please correct me if I am wrong with the township number.

Pro-rated that out to a two year cycle and we have nearly a thousand students attending PLSD schools and the house they are living in is only paying taxes based on the value of the building lot. In the City of Pickerington alone we have probably 800 homes in this category. Now if it costs the school $7,000 per pupil then 800 of these pupils from these new builds are putting us all in a deep hole. For those of you mathematically challenged that is $5.6 MILLION. How short is the operating budget Dr. Rigelman?


I believe if builders are going to come into our school district and build homes and these new homes will cause a $5 million burden on our tax payers we should find some way to collect those taxes in real time instead of the two and a half year delay we currently have. With the current technology we could almost bill the Real Estate taxes monthly. (Ed will hate me for these statements) So in the above example I would have been paying my taxes directly to the county at the end of February 2003 and each month there after.


I BELIEVE THE VERY BEST WAY TO FUND OUR SCHOOLS IS THROUGH REAL ESTATE TAXES. TO DO SO FAIRLY WE MUST USE THE TECHNOLEGY AVAILABLE TO US.

920 hurts and helps

I agree with your views about the difficulty living within the HB 920 rules and it's challenge to you as a board member. YET I also support this law for the simple fact that it is the only way citizens have in this state to ultimately control how much they pay to educate their students and it is also a noose to hang school boards who do not remain coginizant of the needs and abilities of the taxpayers to pay for such systems.

I have relatives in states who have no such law on the books and their taxes are astronomical to pay for schools compared to ours.

Their school boards just vote in whatever they need to support programs and the tax is levied upon the citizens with the only recourse to replace the school board members. The tax increases with inflation and valuation increases. Granted they have some of the best schools in the country. The Ohio system is so screwed up it will never be fair or equitable.

For better or worse

Lisa,

I agree with you. For better or worse, House Bill 920 both assures voters a continual say on school taxes and requires school boards to go back on the ballot for operating millage over and over again. These are two sides of the same coin. As long as voters understand the latter, I agree with you that there is virtue in the former.

By Bruce Rigelman