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'It's terrifying': Hamilton County property owners plead with commissioners amid historic tax increase

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Housing
Posted at 10:20 PM, Feb 01, 2024
and last updated 2024-02-01 22:56:51-05

CINCINNATI — First-half tax bills in Hamilton County are due next week and the impending date is putting stress and strain on many as property owners come to terms with historic price hikes.

From homeowners young and old to landlords desperate to keep rents low, dozens packed the Hamilton County Commissioners meeting Thursday to voice their frustrations and concerns.

"When we received our new tax bill we were in shock and disbelief — how could this be?" Northside homeowner Tina Gutierrez said to the board. "It is unfair and unjust to expect and already financially strapped homeowner to bear the burden of a $500 (tax) appraisal which would probably not yield different results in this already inflated real estate market."

The Greater Cincinnati region was up for property reappraisal in 2023. In Hamilton County, property values increased an average of 28% while property taxes rose by an average of 10.4%. Those numbers are due to a combination of several factors including a booming housing market, school districts and new levies, Hamilton County Treasurer Jill Schiller said.

The exact increases vary by neighborhood. Areas with historically lower property values saw the biggest increases while wealthier neighborhoods saw lower increases. Some areas didn't change at all.

"My social security income is $719 and now I and most of the people in my neighborhood — well there are four houses on social security — but most of my neighborhood lives paycheck to paycheck and now we have to get another $500 together in two weeks," Jeneene Brengelman said. "I mean it's just terrifying."

The 78-year-old single mom has lived in her Westwood home for 40 years and said her property value increased 100%.

"It is just unconscionable in a neighborhood like mine," she said. "Come down to my street. It's just crazy."

Brengelman said her disabled son's home value also increased 100% while his taxes were raised 12-fold.

Several landlords also signed up for their two minutes to speak. Chip Brown lives in Northside and said he's worried about the ripple effect his higher taxes will have on renters.

"I have my own house which just went up 135% in my taxes. I also over the years have purchased a couple rental properties in Northside, they've also gone up over 100% and I have a house that I just sold recently in Bond Hill that went up over 200% in the taxes," he said. "I've always tried to keep my rents affordable for the people that have been in there. I tend to have tenants that stay for 10-15 years because I usually don't raise rents on them on a regular basis. I'm not sure how I cannot increase their rents because this is just a huge increase to my expenses and I am going to have to do that."

Brown also pointed out the disparity among neighborhood valuations. While Northside and several west side communities saw substantial increases, he said his friend who lives in a million-dollar home in Mt. Lookout had his taxes lowered.

Fellow Northside resident Sarah Wolf wanted answers from commissioners as she put a certain contract in focus. She first spoke to WCPO Wednesday about her home now valued at $700,000 when less than 5 years ago it was valued at $215,000. Her taxes more than doubled to $15,000.

"The (Hamilton County) auditor didn't even do these valuations. The county hired an East Coast-based government solutions company to the tune of $5.9 million taxpayer dollars," Wolf said. "We have the contract and we're going through it now."

The county auditor's staff is tasked with conducting full reappraisals every six years for tax purposes. WCPO obtained a copy of the county's 347-page contract with Lexur Appraisal Services, which is a division of Lexur Enterprises, Inc. The appraisal company has offices in Findlay, Dayton and Columbus.

Lexur conducted reappraisals of all real property in Hamilton County, except for commercial, industrial, residential and exempt properties in Cincinnati's Central Business District. The auditor's office valued those properties.

"From street to street it just doesn't make any sense how some people are getting whacked while others are unscathed, and that's what we would really like you to look into," Wolf told the board.

Commissioners said ultimately the increases are out of their hands, though they're looking for solutions. Valuations are mandated by the State Auditor.

"I want to be very clear that this is a very important issue to me and I am trying to figure out what else can we do," Commission President Alicia Reece said. "Your state legislators, both in the House and the Senate — and the governor — they control this law about having values reassessed every six years and how they are evaluated."

Reese said the county is facing several issues preventing any impactful local mitigation of the high valuations.

Millage set by schools, libraries, parks and other municipalities and townships is not controlled by the board. Levies passed by voters also factor in while most property taxes fund school districts, which pull in between 40-60% of the bill.

The county does control how much money funds certain county services such as services for seniors, abused and neglected children and mental health services.

Reece said if there is any change to the current way valuations are done, there must be change in state law.

"This board has been working and we have a meeting coming up with the state delegation — all the state legislators from this area — and one of the things I said I want to put on there is the property taxes, particularly for senior citizens," Reece said.

Long-term solutions could also come with changes to the current tax abatement program, Reece said.

"You come in with something new, you don't pay any taxes and the people that's been there 30, 40 years, you're paying prime prices," she said. "I've been researching some about reverse abatements or letting abatements hit the whole street but that would take home rule. These are long-term things," Reece said.

In the short term, Reece said there could be financial help for some property owners.

Two years ago, the board allocated $5 million to the 513 Relief Fund for residents who needed help paying their back taxes. That account is now sitting at a little less than $1 million.

"That might be able to help somebody," Reece said. "We try and help anybody that we can."

You can apply for the federal money here.

The Hamilton County Treasurer's Office also offers a delinquency payment plan. If property owners cannot pay the bill by February 5, they are encouraged to call after the due date to set up a plan that will allow the bill to be paid in five installments over a two and a half year period.

Homeowners who think their home valuation was miscalculated have another avenue they can take. If your home's taxes jumped more than the homes around it, there's an appeal process available.