Primary homeowners who believe they were mistakenly taxed on the full assessed value of their homes must prove the county made a mistake according to a new Summit County Tax Abatement Ordinance passed Wednesday night by the county council.
Primary homeowners in Summit County only pay property taxes on 55 percent of their home’s value. Second-home owners pay taxes on 100 percent of their home’s value. The current property tax rate for the Basin is $902 per $100,000 assessed property value. Therefore the difference between the tax bill on a $400,000 primary home and a second home of the same value is about $1,500.
Historically, the Summit County Commission did not hear property tax appeals unless they were based on a mistake the county made. The current county council recently decided to hear all property tax appeals. They have heard 11 since August and have 15 more scheduled to appear before them.
“They opened the floodgates,” said Summit County Assessor Steve Martin. “I think they realized they had to draw a line otherwise they would be hearing four or five appeals every meeting.”
The council ruled on the side of the resident on eight out of the eleven appeals they heard recently, refunding approximately $38,000 total, according to Martin.
“Our policy was always to only refund property taxes if it was a mistake on the county’s part,” said Councilmember David Ure. “We are just making it official so that everyone knows what is taking place and the reasoning behind our decisions.”
If a resident forgot to file for a primary residence exemption or was unaware of the need to notify the assessor’s office upon changing from secondary to primary residence, that is not enough reason to receive a tax refund according to the council’s ordinance. If it can be proven the county made a mistake in a resident’s property tax rate, the tax recapture will only go back a maximum of five years.
“We elected you guys to listen to your constituents, if you pass blanket policies then you aren’t doing what we elected you to do,” said Cynthia Pearson. “A lot of people are really hurting right now in the construction business who own more than one home and now you guys are just going to say ‘oh well it is your fault’.”
“The schools are also hurting, so is the fire department, and that is who we would be taking this money away from if we refund everyone who made a mistake,” responded Councilmember John Hanrahan.
Approximately 60 percent of the money from property taxes goes to the school districts, according to Martin. The fire districts, recreation districts, and special service districts also depend on property tax revenues.
The council assured Pearson and others at the meeting they would still be willing to hear appeals that fit the new criteria.
After some residents expressed dissatisfaction with the assessor’s website and how to find information on what classifies as a primary residence, the council advised Martin to make the page more user-friendly and provide all necessary forms.
For more information on tax ordinances visit www.summitcounty.org/assessor.