Property values – and some property taxes – continue rising in Lorain County, said county Auditor Craig Snodgrass.
On Jan. 25, Snodgrass had his latest news conference with the presentation “Fair & Equitable: The Valuation of Lorain County,” a review of the changes to property values for 2021.
Last year was a record year for valid “arm’s length” sales of homes, with property transfers approaching 9,000 and real estate conveyance fees about $7.3 million, according to the auditor’s figures.
As a result, property values are increasing, with values around much of the county going up 15 percent to 20 percent.
In meetings last year, some residents have claimed the county auditor was taking advantage or exploiting the novel coronavirus pandemic, Snodgrass said.
That is not true, he said.
“This is all fact, this is what’s happening,” Snodgrass said. “These are the sales, and by law, I have to follow this.”
The auditor’s figures confirm other indicators people are buying or building homes and moving into Lorain County, he said.
“It’s countywide, this desire to move, to live in Lorain County,” Snodgrass said. “It’s not just the cities that are the hot spot, not just the villages.
“I mean, it’s the county, and these numbers show that, they prove it.”
Triennial update
Lorain County property values will have a triennial update for tax year 2021.
It is the three-year evaluation of, and changes to, property values based on sales from the three years earlier, or 2018, 2019 and 2020.
“This is partially why people’s values have gone up so much,” Snodgrass said.
The Ohio Department of Taxation wants to keep the auditor’s assessed values at about 95 percent of the market values, he said.
As property sale prices increased, that ratio has changed for Lorain County’s cities, villages and townships, especially in 2021.
The auditor’s assessed values were lower than the actual sales prices.
Last year, the Ohio Taxation Department estimated Lorain County should have an average county-wide value increase of 16 percent, which put the auditor’s assessed values up to about 93 percent of the market values, Snodgrass said.
There is a shortage of available homes for sale.
Building material costs are up, which affects new construction and additions and improvements to existing homes, Snodgrass said.
That has pushed up home prices, and low interest rates make it cheap to borrow money, he said.
“There’s a lot of things factored in, but it is driving the market,” Snodgrass said.
In the neighborhoods
Lorain County has about 145,000 residential properties divided into 600 neighborhoods with comparable properties, Snodgrass said.
Taxpayers sometimes use examples of what a neighbor is paying for property taxes, but that is not always a valid comparison for property values, he said.
“Each property has its own story, each property is unique,” Snodgrass said.
In the townships and villages, values generally increased.
For example, in Eaton Township, the values went up 7.4 percent to 37.2 percent.
In the village of Grafton, values went up 17.2 percent to 25.4 percent, according to the auditor’s figures.
The cities of Amherst, Avon and Avon Lake had a few examples of neighborhood values decreasing.
For example, Avon Lake neighborhood values changed from minus 5.2 percent, up to 32.2 percent.
Inside millage
Each community has inside millage, or property taxes guaranteed in Ohio law.
Revenue from inside millage increases or decreases when property values change, Snodgrass said.
The amounts can be substantial.
This year, rising property values mean Columbia Township will get more than $100,000 in new revenue, according to the auditor’s figures.
Cities of Avon Lake and Lorain will receive more than $500,000 from inside millage due to property values.
North Ridgeville City Schools will get more than $1.1 million in new revenue from inside millage and rising property values, Snodgrass said.
Property taxes will go up due to the inside millage, but taxpayers should know the money goes to pay for local government services, he said.
Property taxes
When property values go up, property taxes do not automatically increase by the same percentage, Snodgrass said.
The taxes are calculated based on the property values and millage, which can change when a levy expires or voters approve a new one.
The largest dollar change in recent month is in North Ridgeville, where voters approved a .81-mill levy to raise $12.5 million for a new police station.
Auditor at home
Each neighborhood has an average change of property values. If a single property value changes at a rate lower than the average, there is a chance the owner will pay the same rate as last year or see a decrease.
That happened to Snodgrass’ home on the west side of Lorain. Its value rose from $259,130 in 2020 to $286,340 last year, or about 10.5 percent.
That percentage was lower than the neighborhood average, so his annual property tax bill dropped from $4,853 to $4,751, or about 2 percent, according to the auditor’s figures.
File an appeal
Residents who disagree with their property valuation, can appeal to the Lorain County Board of Revision until March 31.
Anyone who appeals, needs evidence to substantiate why the value is in error, Snodgrass said.
That could be a formal appraisal or a recent sale, he said.
“It’s not coming in to argue about how much you’re paying in taxes,” Snodgrass said.
That is determined by processes in state laws, he said.
Snodgrass’ full presentation and more information are available at: www.loraincounty.com/auditor or by calling 440-329-5207.
