Ohio Property Taxes

The current 10% Rollback of Real Estate Taxes will not be allowed for real property used primarily in a business activity beginning in tax year 2005. The 2005 tax bills will start to be mailed in December, 2005. The budget bill specifically states that the following are not business activities and thus are still eligible for the 10% rollback: farming, leasing property for farming, leasing property with single-family, two-family, or three family dwellings, or holding land that will be used for farming or to develop single-family, two-family, or three-family dwellings.

The Personal Property Tax for personal property used in a trade or business will be phased out beginning in tax year 2006 and will be totally eliminated in 2009. All machinery and equipment that is first used by a taxpayer in manufacturing after 2004 is now exempt from taxation. Manufacturing Equipment includes machinery, equipment, tools, implements, patterns, jigs, dies, drawings and business fixtures used by a manufacturer (including property leased by a manufacturer). This does not include general office property. The budget bill provides that the exclusion from taxation of patterns, jigs, dies, and drawings that are held for use and not sale remains the same. A Manufacturing Facility is defined as a facility used for manufacturing, mining, refining, rectifying, or combining different materials with a view of making a gain or profit, including a portion of a facility to store or transport raw materials, work-in-process, or finished goods inventory, for the purpose of packaging, research, or testing for quality control, so long as manufacturing , mining, refining, rectifying, or combining is also performed at the facility. a manufacturing facility does not include any portion of a facility used primarily for making retail sales. All other personal property will be phased-out by using a listing % of 18.75% for 2006, 12.5% for 2007, 6.25% for 2008, and 0% for 2009 and thereafter.