Understanding Property Taxes & the Proposed Levy

When discussing the cost of a proposed levy, we often see the phrase “Based on $100,000 market value”. Issue 4 will generate $35/100,000 property value.

Many believe this to be the current market value – the amount you can probably get when you sell your home. But real estate taxes are based on the Auditor’s “Total Market Value”, which is the value of the land plus the value of the improvements (i.e. house, garage, pool, etc.) to the land. Property taxes in Sugarcreek Township are calculated based on the tax assessed value, which is often lower than the actual market value due to property tax exemptions such as the homestead or senior exemption.

In Sugarcreek Township, the average Auditor’s Total Market Value for a single-family home is approximately $400,000. The Issue 4 is for an additional 1 mill. One mill is one-thousandth of a dollar. The formula the County Auditor uses for figuring costs is based on home value:

$100,000 x 0.35 x tax rate ÷ by 1000.

So, a 1 mill levy will cost taxpayers $35 per $100,000 home value.