Reappraisal

How does the recent property tax revaluation impact revenues?

Property reappraisals occur every 6 years in Clermont County, with a less detailed "update" done in the middle of that cycle (so an update happens 3 years after each full reappraisal). For example, there was a full reappraisal in 2020, and an update is scheduled for 2023.

The county auditor's office determines the assessed value of each property during the reappraisal or update. The assessed value is their opinion of what the property would sell for on the open market (the appraised value). The taxable value of a property is set at 35% of the assessed/appraised value. This taxable value is what the property tax bills are calculated from.

All types of property are reappraised - residential, agricultural, commercial and industrial. The changes in value can differ between these classes. For example, in 2020, home values went up 13.9% while commercial property only increased 1.9%.

As property values go up (or down) during a reappraisal, the total amount of taxes collected changes proportionally. However, individual tax bills may not change by the same percentage, due to various credits and rollbacks applied to residential properties. The reappraisal itself doesn't change the tax rates (millage). Those rates are set by voter-approved levies. But the reappraisal does change the total tax base those rates apply to, changing the total amount of money collected. In other words, reappraisals update the county's record of what each property is worth, which then determines how much each property owner pays, and how much total money is collected.

The 2020 reappraisal increased overall property values in Clermont County by $164.6 million or 11.8%, including both residential/agricultural (Class I) and commercial/industrial (Class II) properties. Reappraisal in 2023 was estimated to increase Class I residential/agricultural values by 23% and Class II commercial/industrial by 2%, for an overall increase of $303.9 million or 18.89%. 

Since local property taxes make up over 63% of the district's revenue, these increases in assessed property values provide a boost to revenue for the West Clermont’s overall operating budget. The tax base growth from reappraisals is a key factor supporting the district's financial forecast.