Cuyahoga County property values ​​soar in first mass revaluation since pandemic

CLEVELAND — Pete Rivera has owned his Tremont home for decades. From his porch, he watches real estate prices rise as new homes and apartments go up on surrounding streets.

“The value of the neighborhood is increasing more and more. … Taxes are also rising, rising, rising,” he said on Monday.

Now Rivera, 73, is one of thousands of homeowners in Northeast Ohio waiting for their properties to be reassessed – and preparing for possible tax increases.

Cuyahoga County just started sending out letters about a mass reassessment, a state-mandated process that occurs every six years. Across the county, property values ​​have increased by an average of 32 percent compared to what is reflected in county tax records today.

Property taxes, however, will rise far less dramatically. Ohio uses a complicated formula to calculate taxes that go to schools and, to a lesser extent, local governments, libraries and other public entities.

“The increase in value does not mean that your taxes will increase by the same amount. They will only increase by a fraction – if at all,” emphasized Michael Chambers, Cuyahoga County treasurer.

Rivera will likely see a boost in a hot market. Other homeowners will see more modest tax increases or even tax cuts, depending on where they live.

Cuyahoga County

In Cleveland, the average home value increased 49 percent, according to a recent county analysis. Homes that appreciate below average should expect lower tax bills, Chambers said. Homes that appreciate above average will face higher tax bills next year.

Countywide, prices rose the most in East Cleveland, an impoverished suburb that has yet to recover from the Great Recession and housing crisis of 2008. The county says the median home value there rose 67 percent – from $31,200 to $52,300.

Hunting Valley, an affluent village on the East Side, saw the smallest change, at just 15 percent. But that’s a jump in value of more than $196,000. According to the county, the average home there is worth more than $1.5 million.

These numbers are not yet set in stone, as the county is still waiting for approval from the state, but the numbers are unlikely to change much.

And Chambers did not want to wait for government approval to inform homeowners – and give them an early opportunity to fight back.

“If you don’t agree with that value or can’t sell your house at that price, I’d like to know why,” he said. “If you can sell it for more, that’s fine. You don’t have to tell me. But the bottom line is, I want to be fair to you, the taxpayer.”

Why your property tax bill may be higher (and what you can do about it)

The county will accept informal appeals until August 30. Homeowners can mail the documents, drop them off at the county administration building downtown, or submit their appeals online.

Taxpayers can learn more about the process at town meetings in Cleveland, Highland Hills and Parma in late July and early August.

Chambers said officials would respond to informal appeals in November or December.

A formal appeals process before the Cuyahoga County Board of Auditors will begin in January. The county expects tens of thousands of appeals.

Homeowners won’t receive their new property tax bills in the mail until early January, but they can get an idea of ​​how much they’ll have to pay using a calculator on the county’s website. However, this tool doesn’t take into account school levies and other tax increases that will be voted on in November.

For example, a homeowner in Cleveland whose property value increases from $68,100 to $101,000 could expect a tax increase of about $300, according to the calculator. However, this does not take into account the planned operating tax of 8.6 per thousand for the Cleveland Metropolitan School District.

Six other nearby counties — Erie, Huron, Lake, Lorain, Portage and Stark — are completing a similar reassessment process. And home prices are rising across the state, driven by a tight housing market where buyer demand still far exceeds supply.

“During Covid, we’ve seen massive sales and … offers without inspection, cash and things like that,” Chambers said. “That has slowed down, but prices haven’t gone down. They’re continuing to go up. So, frankly, it continues to spiral out of control. That’s having a pretty big impact on our residents.”

Take a close look at your property taxes, as they are likely to increase.

State lawmakers have proposed a slew of bills to mitigate the impact of rising property taxes, especially for older homeowners like Rivera. But no significant proposal has made it through the General Assembly.

Chambers and Cuyahoga County Treasurer Brad Cromes said they are working on a proposal to provide tax relief for older homeowners.

The program would provide money to eligible households to pay current and delinquent taxes. And it would have a much higher income limit than the federal homeownership exemption, a tax break for very low-income retirees.

“I don’t want to go into too much detail,” Chambers said, noting that the proposal must be approved by the Cuyahoga County Council. “We have a long way to go on that. But we’ll know more in the fall. And we think Cuyahoga County will take action since the state isn’t taking any action.”

For now, he advised eligible homeowners to make sure they take advantage of the property tax exemption and homeownership tax credit for their primary residence.

Bob Fenner/News 5

Ten years ago, Rivera’s property taxes were less than $1,600 a year. Today, they are over $4,200. And he expects another increase.

“I’m a pensioner. I’m a senior citizen. Sometimes it’s hard to afford it,” he says of the tax payments on his house, a duplex that he shares with his wife, son, daughter-in-law and grandson.

He just paid his taxes for the second half of 2023, a bill that was due in mid-July.

“We do it every year,” Rivera said, “but it’s hard.”

Real estate websites like Zillow and Redfin estimate the value of his property at $250,000 to $300,000. That’s five to six times what he and his wife paid in 2000 when they bought the house from a relative.

But Rivera has no interest in selling his assets and leaving his quiet part of town.

“No, no,” he said. “I’m happy where I am.”