CLEVELAND, Ohio - The second half of property taxes are coming due this week, but 7% of homeowners have yet to pay the first half, according to the county's treasury.
Most of the county's 564,000 property owners are up to date on their tax payments, according to county data provided to cleveland.com and The Plain Dealer through a records request. They've paid over $1.5 billion in property taxes, which provide revenue for local schools, cities, villages, townships, libraries and various county-level services.
But 41,522 homeowners still owe almost $76 million in taxes for the first half of the year, data show. Those residents will now face the second half of the bill - with added late fees - due Thursday.
Meanwhile, the portion of the county budget that relies on those tax dollars to support health and human services faces further strain. County Budget Director Walter Parfejewiec had previously warned about a rise in unpaid property taxes contributing to a projected $19.2 million deficit in the county's Health and Human Services Levy reserves. "I've never seen delinquency to this level," he told council at the time.
The higher delinquency came after the countywide property reappraisal, which increased home values an average of 32%, resulting in higher tax bills for many. But County Treasurer Brad Cromes doesn't attribute delinquency solely to the new assessments.
He pointed to data showing that the overall percentage of late payments is unchanged from last year, when about 7% of homeowners also hadn't paid the first half of their bill. The dollar amount for those delinquencies, however, is "significantly higher" because of the higher appraisals, he noted, jumping from $56 million last year to $76 million this year.
Still, the county won't have a true picture of the impact until next week's deadline closes, and the county starts certifying delinquencies this fall, Cromes said.
"If nothing else changes, we are prepared for there to be an increase," he said, but "it's too soon to say at this point."
Ohio Gov. Mike DeWine has created a working group to assess property tax reforms as the debate over how to fix rising property taxes intensifies. DeWine has asked for recommendations by Sept. 30 on how to provide relief to homeowners and businesses while ensuring schools, police and other local services remain funded.
For residents struggling to make their payments now, Cromes advised they consider whether they're receiving all the tax breaks they may qualify for, like the homestead exemption, owner occupancy credit, or tax abatements, which can reduce their payments. He also recommended property owners call his office to discuss getting on a payment plan or participating in the county's taxpayer assistance program.
Residents, so far, haven't shown an increased interest in payment plans since the tax appraisal. County data showed about 2,476 owners getting on payment plans in the first half of last year, versus just 2,015 in the first half of this year. But Cromes expects the number to increase before the end of the year.
Payment plans help owners avoid paying additional interest while they're whittling down their debt, and can cut payments into more manageable chunks, spreading them out up to five years.
"We want to help people stay in their homes and reach financial stability," he said.
Residents can view their bills online using the MyPlace website or request a physical copy from the treasurer's office by calling 216-443-7400 and selecting option 1.
Bills must be paid online, in-person or via postmarked mail by July 17, to avoid penalty. To accommodate in-person payments, the treasurer’s office will extend hours on two days: