County debates tax value with state

Developments are sparking a rise in agricultural property values.
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
LISBON -- Columbiana County and the state are about $200 million apart in their estimates of the taxable value of all the county's real estate.
County Auditor Nancy Milliken released figures on the gap Wednesday.
She wants to negotiate with the Ohio Department of Taxation to get the figures closer to what she says is correct.
The current taxable value of real estate in the county is $3.6 billion -- which is 35 percent of the total value.
Reappraisal
The county has completed its mandatory six-year reappraisal required by state law. The county figures say the value has risen to $4 billion.
But Milliken says the state -- which has not formally set its value -- is estimating the new value at $4.2 billion.
The state is required to use sales figures as the measuring stick from 2001-2003. Milliken says the state is emphasizing real estate sales during 2003 when sales increased.
Milliken also hopes the state will calculate property values based on 90 percent of their appraised value. Cuyahoga County successfully sued the state to use 90 percent of the taxable value to calculate taxes, rather 100 percent. That's based on the idea that two appraisers would be within 10 percent of each other on appraising a given property and either could be correct.
"I want to keep the numbers low for the people," Milliken said.
She said she believed "county residents cannot afford or accept increases of the magnitude suggested by the state."
Without such reductions, property owners may be looking at sharp tax increases.
Differences
There are no across-the-board tax increases in the reappraisal. There are 55 taxing districts in the county, each with different property values and tax rates, and each property is evaluated during the reappraisal.
But Milliken said the state's overall estimate would increase agriculture values countywide by 36 percent. Milliken is arguing for 13 percent.
Tentative state figures call for a 17 percent increase for commercial property and a 19.8 percent in commercial property. The county is arguing for 11.5 percent and 7 percent, respectively.
The state also is proposing a 17 percent decrease in the value of industrial properties. Milliken wants no decrease.
Agricultural property sales are up as farmland has been sold for more than its appraised value for commercial and residential developments, the auditor's office said.
But the lower estimates for industrial property don't reflect a collapse in the county's industrial base, the office said. Only a few industrial properties were sold recently for prices lower than their values.
When the state sets the new rates, Milliken plans to hold a series of meetings throughout the county to explain them and individual bills to property owners.
wilkinson@vindy.com