Cleveland Heights property tax rate?

Question

Hello,I’m new to RE investing and looking for my first investment property. I’m considering a triplex in Cleveland Heights, OH 44118. If purchase price is $300K, can you please help me understand what the property tax rate would be? From the Cuyahoga County tax estimator, when I select Cleveland Heights (I see 2 of them), the estimated tax is either $9,270 or $12,090.

https://fiscalofficer.cuyahoga...

Can you confirm if this is accurate? Is the tax based on purchase price or a different assessed value?

thank you!

John Koster · Answer

RE taxes in Ohio are based on the municipality, not the state.   Cleveland Heights has a different rate than Lakewood, which is different from Parma, which is different from Cleveland proper etc,... Recently Cleveland Heights has been in the 3.6-3.8% of value range.

Jacob Repreza · Answer

I would suggest just going to this website

https://myplace.cuyahogacounty...

Kelly Chun · Answer

@David M.

Thanks! Sent you a message.

David M. · Answer

@Kelly Chun

Take a look at my linked post in my post above...  You need to understand how property taxes are determined from the assessed values.  It varies by state if not by region as there are different systems.  I have no idea how Hawaii does theirs.

I'd be happy to chat to talk this through.  good luck.

Kelly Chun · Answer

@Maria Palmiano Are we saying that property tax estimator you initially posted isn't very accurate then? I also noticed it states that for the estimate the owner-occupied credit is assumed.

I've been looking at the cuyahoga county website that @Jacob Repreza posted.

https://myplace.cuyahogacounty.us/MainPage

I see the value history for each tax year but still not quite sure how to use this to estimate taxes. This PDF on the county website lists tax rates for each municipality. Do I just apply the tax as percentage of market to the tax value listed?

https://treasurer.cuyahogacounty.us/pdf_treasurer/en-US/LevyImpacts.pdf

Thanks in advance for any help you can provide!

James Wise · Answer

Cleveland Heights property tax rates along with all of the property tax rates for the rest of the Cleveland market can be found in The Ultimate Guide to Grading Cleveland Neighborhoods.

Maria Palmiano · Answer

@Andrew Weiner very insightful, thank you!

Andrew Weiner · Answer

The municipalities in the area are challenging the assessed values if they are significantly different than the purchase price.  I have seen several instances of this recently with direct challenges outside of the regular county reassessment.  You might not pay those tax rates in year one or two but there is a good chance the values will be raised to the purchase price or the school district can directly so they boost their income.  As for the balanced budgets, that is only for the portion of taxes that are for levies, there is a base tax rate for city and school taxes that is not capped.

Maria Palmiano · Answer

@John Koster thank you, this is consistent with what I expected. Appreciate your input

David M. · Answer

@Maria Palmiano

Well... I certainly can't speak for your tax assessor...

See a prior post of my explaining these types of tax systems:

https://www.biggerpockets.com/...

That being said, he didn't tell you anything wrong, necessarily.  Your estimate just may not be that accurate.  If the full reassessment is is in 2024, so is the update scheduled for 2021 completed?  The OH pamphlet said they set it at 35% of market value.  Look at other taxes and assessment on other properties; does that seem to jive?

Again, with an ad valorem system, their tax rate should fluctuate yearly to meet a balanced budget.  If the ratables double, the tax rate just halves...  I've seen the percentage of market value before in some other midwest-type state (KY or TN??????) and they had different percentages (all less than 50%) depending on the type of zone (e.g. residential, commercial, farm, vacant).  I can see that helping to adjust who pays a greater/lesser share.

Hope that helps.  Good luck.

Cleveland Heights property tax rate?

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