Open Source: Where do your property taxes go?

MOUNT VERNON — When Knox Pages invited readers to submit questions for the Republican primary races earlier this year, several posed the question, “Where do property taxes go?”

Gambier resident Eric Helt recently got more specific, asking how much extra money will come in because of the increase in property values stemming from the recent reappraisal.

He also wanted to know how the county will spend that additional money.

Now that the first-half property taxes have come in for 2023, we have real-time numbers to use. Here’s how it breaks down.

Gross receipts

Revenue comes in through taxes on real property (real estate), both ag/residential and commercial/industrial, delinquent real property, and personal property.

Taxes were due Feb. 16. Gross assessment was $60,911,534. However, residents can reduce their bills through credits. Credits include owner-occupancy, the homestead exemption, and non-business credit.

Credits totaled $4.7 million. Subtracting the $4.7M from $60.9M leaves $56.2 million available to distribute.

The Ohio Revised Code requires a percentage of tax receipts to go to various county departments. For example, the treasurer’s and prosecutor’s offices each get 2.5% of the delinquent taxes collected to help offset collection costs.

Similarly, the board of elections receives a percentage to offset election expenses. These deductions totaled $1.35 million.

Subtracting the $1.35 in ORC fees leaves $54.848 million to distribute throughout the county.

As a recap:

Gross assessment $60.9M

Minus credits $4.7M

Minus ORC fees $1.35M

Available $54.85M

Property taxes distribution

Property taxes fund schools, park districts, and many other things. Some of the money goes into the county’s general fund.

The total each property owner pays differs based on home value and levies in their location, such as school districts.

The February tax receipts available for distribution after deducting credits and required fees total $54,848,842. Here’s where that money went:

•Schools: $34.64 million (66%)

•Countywide levies: $6.13M (12%)

•Townships: $3.46M (6%)

•Municipalities: $2.057M (4%)

•Special assessments (fire/EMS/library): $3.822M (7%)

•County general fund: $4.01M (7%)

A review of your tax bill shows a personalized breakdown of how your taxes are calculated and where they go.

County general fund

Land values increased $625,820,280 in 2023. County administrator Jason Booth estimates the increased value will bring $1.5 million to $2 million more into the general fund.

In answer to Helt’s question about how the county will spend the additional money, Booth said the first million will go to cover the deficit in the 2024 budget.

When calculating the 2024 appropriations, the commissioners allocated $1 million to Job & Family Services for children’s services. Booth noted at the time that more might be needed.

Booth said the remaining $500,000 to $1 million would go to the general fund to offset any additional children’s services shortfalls, building maintenance projects, and potential justice-related expenses.

It could also go to cover other general fund budget shortfalls, such as a reduction in sales tax (which is currently down about $100,000 this year) or other unforeseen revenue reductions. 

Below is a breakdown of the 2024 expense appropriations.