By JAN LARSON McLAUGHLIN
BG Independent News
The Wood County Auditor’s Office is expecting its phones to be ringing off the hook for the next few weeks.
Every six years, property owners in the county get the news about their land gaining or losing value. And every six years, there are people chomping at the bit to complain if their property values go up, and some years there are people very quiet when their property values go down.
This year, Wood County Auditor Matt Oestriech expects an earful.
Property values increased in all areas this year. The biggest jump was agricultural land which saw an average 77% increase. Residential properties in Bowling Green went up an average of 25%, while commercial increased 11% and industrial went up 6.5%.
The revaluations performed every six years look at the market rates of similar properties for residential, commercial and industrial. For ag land, the revaluations are based on the average production value – not market value for farmland in the Current Agricultural Use Value program, which is the vast majority of the nearly 315,000 acres of farmland in Wood County.
In the Bowling Green City School District, the uproar has already begun among some agricultural landowners saying their property taxes will go sky high – and they cannot afford the bond issue to build a new high school, planned for the November ballot.
Those concerns are unfounded and their calculations are untrue, according to Oestreich, Deputy Auditor Brian Jones, and Chief Deputy Auditor Julie Allison.
While the numbers go up and down, this process is nothing new. “They’ve been down this road before. It’s a state formula,” Oestreich said.
Every property is examined from the ground and the air to calculate the valuations.
“We spent two years doing this valuation. It’s not just throwing a dart,” Jones said. “We take considerable time doing our research.”
There are an estimated 130 agricultural soil types in Wood County, with the most valuable being Mermill and Millgrove loam, and the least valuable being Miami, which is often found in the northeast corner of the county where rocks lie just below the surface.
Two-thirds of the county and much of the rural area in the BG school district is Hoytville clay – which is a mid-level soil type for farming. It doesn’t tend to drain well, but it is very fertile, Jones said.
Hoytville clay acreage values went up “quite substantially,” by an average of 77%, from $1,970 to $3,490 per acre.
However, property owners in the BG school district will not see increases like that in their property taxes for bond issues, Oestreich explained.
“A value increase does not equal a tax increase,” Jones said.
The same goes for residential landowners.
“If their value goes up by 25%, their taxes are not going up 25%,” Jones added.
Bond issues – like that being sought for a new BG High School – are designed to raise a specific amount each year to pay off a building project. More is not collected when property values increase, Oestreich said.
Ohio legislation ensures that approximately the same amount is collected each year for the voted millage. Therefore, levy millage rates will be factored up or down by the Department of Taxation so that the total amount collected will remain consistent with the amount originally voted.
“This is an important concept to understand because the reappraisal law is designed to equalize all values among taxpayers, not to enhance revenue for the taxing authorities,” Oestreich said. “In other words, this is not a means of raising taxes or lowering taxes – it’s a rebalancing of the tax value burden among individual properties and classes.”
The field has already been leveled for ag acreage, by the valuation based on commodity prices and crop yields – not market value for the land.
This means owners of farmland are not taxed based on how much their property could sell for – as is done for residential, commercial and industrial land.
“The market value of these properties has skyrocketed,” Jones said.
Acres of farmland on the edge of Perrysburg – ripe for potential development – is calculated with the same production value as farmland down near Bloomdale.
“That’s what levels the playing field for farmers,” Oestreich said.
So the theory is, the more money that is brought by high commodity prices and great yields, the higher value of the property, and the greater income brought in by the farmers.
In Wood County, the prices and yields have been “good for many, many years,” Jones said.
Over the past two decades, the property values have gone up and down during the six-year valuations, and during the three-year adjustments according to sales.
“It ebbs and flows,” Jones said.
In 2002, the ag values were at the lowest – $340 an acre – in Wood County.
“They were paying next to nothing,” Jones said.
“It was dirt cheap,” Oestreich added.
Then in 2005, 2008, 2011 and 2014, the values doubled every three years, reaching $3,930 an acre. In 2017 and 2020, the values went down, bottoming out at $1,970.
This year’s increase will cause the ag acreage to be valued at $3,400 an acre.
“This will be the second highest it’s been in Wood County,” Oestreich said.
Residential property valuation also jumped higher than usual – with an increase of 3% a year being typical. And rental residential properties increased more than customary.
“We’ve seen apartments in particular go up,” Jones said.
Oestreich noted that property values are reviewed by neighborhood, so one parcel may increase more or less than the average due to location, desirability, and condition. An increase in value does not necessarily compute to a comparable increase in tax.
Home sales data from 2020, 2021 and 2022 were used to complete the 2023 revaluation. The increase in Wood County values represent a continuing trend of increasing sale prices since 2011.
“Wood County is a desirable place to live and prospective buyers are willing to pay higher prices in return for high-quality schools, lower taxes, and rural living,” Oestreich said. “The real estate market in Wood County has been very robust for the past several years. It’s certainly been a seller’s market. Homes are selling quickly, frequently with multiple offers, and oftentimes at or above the list price.”
The new 2023 values are available on the auditor’s real estate website at http://auditor.co.wood.oh.us. Through Sept. 29, property owners may review their property valuation during the open inspection period. Owners have the ability to appeal the new value but must provide evidence of a lower value. Evidence would include a recent appraisal, a list of comparable sales (generally three or more) from 2020-2022, a sale listing, or a market analysis from a realtor.
Property searches on the website can be done using the owner name, address, or parcel number. Once the property is found and selected, the previous tax value and new tax value will be shown in the valuation section. Property owners are encouraged to review all of the property characteristics to ensure accuracy. Comparable sales can be viewed and printed by selecting the Comp Search selection along the top row.
Property owners may schedule a review of their property value in person in the auditor’s office on the second floor of the county office building between the hours of 8:30 a.m. to 4:30 p.m. weekdays or by calling the office at 419-354-9173.
