(A Program to be enacted 1/1/2020; Proposed by City Council Candidate Robert E. McRae CPA)
The RRHC will provide property tax relief to retirees, and protect them from 15-20% annual increases in their property tax bills due to rising property values during their retirement years.
Under this proposed program, homeowners who already qualify for the Ohio Homestead property tax credit will receive an additional tax rebate from the city of Rocky River.
The credit will be calculated as follows:
Appraised property values will be “frozen” at the date the taxpayer becomes eligible for the Ohio homestead credit. Approximately 2,000 resident homeowners are projected to be eligible.
A taxpayer’s adjusted tax bill will be recalculated, using the frozen appraised rate. As a result, RRHC participants will not experience any property taxes increases during their retirement years, as long as they continue to own their home.
The RRHC participant will receive a tax rebate check once per year, to refund the overpayment. The overpayment will be reduced to represent only the portion of a taxpayer’s real estate bill collected for Rocky River city taxes (approximately 21% of the total)
A typical RRHC participant will receive a refund of approximately $250 per year on a home appraised at $200,000 at age 65 but $250,000 presently
The RRHC will be tax neutral to the City, .The $500,000 annual decrease in city property tax revenues will be paid for through stricter enforcement of the appraisal appeals process. Fewer valuation reduction appeals will be granted.