The property taxes you pay in Summit County fall into two categories: There are those voters get to approve and those the county can assess without your vote.

Now, the county is asking to change that dynamic. If voters approve Issue 2 on their Nov. 4 general election ballot, they will eliminate the unvoted-on tax and replace it with one approved at the ballot box.

Without a vote, state law lets the county tax up to 1% of the value of a property. Taxes are often expressed in mills or millage, and the portion of property tax that the county collects, but that isn’t approved by voters, is called the inside millage.

Summit County residents pay 2.2 mills in county taxes they haven’t voted on. For an owner-occupied home with a value of $100,000 (assessed value is $35,000), that’s currently the equivalent of $67.38 a year. 

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But as property values rise, taxes rise, too.

Now, voters in Summit County have the option to weigh in on those taxes they otherwise have no say in. If they approve Issue 2, which would eliminate the unvoted-on inside millage and replace it with what’s known as charter millage, they’ll set up a mechanism to keep taxes from spiking when property values do. And they’ll no longer be taxed at the county government level without a vote.

Proposal would limit increases to 3% a year

If voters approve the change, they’ll cap that new tax, the charter millage, at the 2.2-mill level that property owners are currently paying. 

As values rise, and new construction brings additional value to the county, the 2.2-mill rate could fall. That’s because the proposal also caps the increase in collections at 3% a year — so growth that outpaces that level would result in a reduction in the millage rate to meet that 3% maximum.

If values fall, the county wouldn’t be able to raise taxes by more than 3% annually, up to the 2.2-mill cap, and could see a decrease in collections. But the county would be forced to reduce its tax rate if values jump, as they have in recent years, said Brian Nelsen, the chief of staff for Summit County Executive Ilene Shapiro.

“To continue to see 20% growth on what’s really unrealized gains for property owners is not fair,” Nelsen said in explaining why the issue was proposed. “We feel it’s the right thing to do.”

Nelsen said the inside millage doesn’t reflect a large portion of most residents’ tax bills, but the county can give residents more control over it through a vote. And as the state legislature considers property tax relief measures, Nelsen said the county thought it made sense for them to do so as well.

If passed, the new tax rate would be part of the county’s charter — meaning that it wouldn’t matter who county leadership was; the taxing mechanism wouldn’t change. 

The county currently gets about $41 million from the tax, money that is used to fund public safety and other services. 

Now, if property values rise 20%, collections would follow suit — bringing an additional $8.2 million into the county coffers. If the proposal passes, the increases would be limited to 3% — bringing in $1.2 million instead. 

And if the tax rate is already at its peak of 2.2 mills, the rate would decrease or stay constant, depending on how property values change.

The change would provide budgetary continuity, Nelsen said, and keep tax collections from increasing or decreasing too quickly.

“This inside millage piece is vitally important to the operating budget,” he said. “The need to protect it for us is extremely important.”

Looking for more election news and information? Find the latest information on our Election Day blog.

Proposal would also change rules for new tax votes

If the proposal passes in November, it would then go back to County Council for approval and would go into effect for next year’s tax bills.

The limits would mean the government could continue to collect more money as values rise, but runaway increases for property owners would be limited.

“It’s responsible property tax reform,” Nelsen said.

Additionally, the charter amendment would change the rules for how many votes it would take to change sales taxes from their current 0.5% level or other taxes, like property conveyance or tag taxes, that require a vote from county leaders.

Now, it takes a simple majority, but the new rules would mean 60% of Summit County Council members, plus the County Executive, would need to agree to make a change.

The higher threshold is designed to protect taxpayers and limit tax increases, Nelsen said.

Here’s the formula to calculate the Summit County property taxes on an owner-occupied residence: 

(2.2 mills/1,000) X assessed value X .875 = 

(The .875 multiplier is the combined reduction factor used for residential, owner-occupied properties in Ohio. It accounts for two separate state-funded credits that are applied to older, qualified tax levies.)

If a property isn’t owner-occupied, don’t multiply by .875 because the state isn’t picking up a portion of the taxes.

Note: 1 mill equals $1 in tax for every $1,000 in assessed value.

Economics of Akron Reporter (she/her)
Arielle is a Northeast Ohio native with more than 20 years of reporting experience in Cleveland, Atlanta and Detroit. She joined Signal Akron as its founding education reporter, where she covered Akron Public Schools and the University of Akron.
As the economics of Akron reporter, Arielle will cover topics including housing, economic development and job availability. Through her reporting, she aims to help Akron residents understand the economic issues that are affecting their ability to live full lives in the city, and highlight information that can help residents make decisions. Arielle values diverse voices in her reporting and seeks to write about under-covered issues and groups.