 Property Tax: Who Gets What Many public entities are funded through property tax – from public schools and colleges to our local library and park district. Local government tax makes up a modest amount of the overall property tax bill. Unincorporated
Area – Homeowners
pay 18 percent of their property
tax to local government. In
return, they receive zoning,
road, fire, police and recreation
services. 
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HOW
PROPERTY
TAX WORKS
Your Property
Tax Bill
Your property tax bill is based on the value of your home, the number of mills that have been levied on your property, and a Reduction Factor.
Property Value
Property tax is based upon the Assessed
Value of your home and property,
which is 35 percent of its appraised
value. Properties are appraised
every three years by the county,
with a major reappraisal occurring
every six years. Factors that lower
property tax include:
• Owner-occupied
properties receive a 12.5 percent rollback
in taxes reimbursed by the state.
• Homeowners
who are 65 or older, or disabled,
are not required to pay taxes on
the first $25,000 of their home’s
value.
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Built
in Accountability
Township government is the most accountable form of local government because townships must return to voters when they wish to replace or renew property tax levies.  |
Tax Millage
The amount homeowners pay in property
tax is expressed in mills. One
mill equals one dollar per $1,000
of your home’s Assessed Value.
There are two types of millage,
inside and outside.
Inside Millage – Each
county can allot 10 mills of Inside
Millage, property tax that does not
require voter approval and that always
is based on the current assessed
value of property. Washington Township’s
share is:
• 2.35 mills for
roads
• .7 mills for
the general fund
Outside Millage – Anything over the allotted 10 mills must be approved by voters. Outside millage – also called voted millage – may be continuous, or of limited term.
Reduction Factor
Both continuous and limited-term
levies are “set in time,” meaning
that the amount a property tax
levy collects from real estate
can not increase beyond what was
received in the first year.
However, the amount that individual homeowners pay is recalculated every year because a Reduction Factor is applied. This is because, after a levy is passed, new homes and commercial establishments continue to be constructed. New construction brings more tax money into the township, which lowers the tax bill for existing property owners.
| Property
Tax & The
Economy Unemployment rates and problems in the mortgage market have had their impact on the Miami Valley. Fortunately, Washington Township has experienced a very small delinquent tax base, according to Montgomery County Treasurer Carolyn Rice. As of March 2008, only about $642,685 from 106 parcels was considered delinquent. About 26 percent of those were on delinquent payment plans. |
The amount by which taxes are lowered each year is called the Reduction Factor.
The only exception to this pattern takes place in the first year of new construction. In that year, the township can collect the full value of new construction, plus the original levied amount.
After that, the tax burden is recalculated to include new construction and the Reduction Factor is applied.
Replacement Levies
When limited-term levies expire,
the township asks citizens to vote
on replacement levies which allow
the township to again tax the full
value of property. Doing so helps
townships keep pace with inflation.