Summit County is the first county in Ohio to offer taxpayers the Real Estate Discount Program (R.E.D. Program), which is a partnership between taxpayers and government. This program provides the citizens of Summit County with a method of budgeting their semi-annual tax payments. Further, taxpayers are able to share in the interest revenues generated from those early payments in the form of a discount credit, which reduces their semi-annual tax bill. This is an opportunity to participate in government and directly benefit from that participation. Summit County is proud to offer its taxpayers this one of a kind program which is not offered in any of the other 87 counties in Ohio.
Eligibility
All property owners qualify. The property does not have
to be owner occupied, but legal owner or authorized agent must sign an
agreement for each parcel enrolled prior to making the prepayments. Real estate taxes
must be current (no delinquencies or unpaid taxes) to participate in the program.
Enrollment
There are two enrollment cycles, July 1 through August 15 for the
first half tax collection and January 1 through February 15 for the
second half tax collection.
Procedure
Payments are determined by dividing the current half taxes by 6. The
taxpayer will receive 5 of the 6 coupons immediately after receipt of
the signed agreement. The taxpayer may choose to pay each coupon
monthly, pay the total of all 5 coupons at one time or stagger the
payments over the collection cycle. Payments to the discount program can
never exceed the total of all 5 coupons.
The 6th coupon is a "balance due bill", which will indicate current taxes, show prepayments and the discount credit earned. The coupon must be paid by the date indicated to avoid any statutory penalties.
Discount Credit
The calculation of the discount credit is based on
the average portfolio yield earned by the county for that investment
cycle, the amount of payments received and the length of time the
payments are invested. Taxpayers can earn a maximum of 5 months interest
per tax collection. (February through June and August through December).
Simple interest is used and rates are subject to market conditions.
Forfeiture of Discount Credit
- Transfer of property ownership prior to close of discount cycle.
- Death of taxpayer (only if surviving owner wishes money to be released).
- Final balance due bill is not paid by due date indicated on statement.
- Refund of prepayment moneys by the discretion of the Fiscal Officer.
EXAMPLE OF CREDIT CALCULATION
MONTHLY PAYMENTS
- Semi-annual taxes $1300 divided by 6
- Payment of $220 made 1st day of each month
- County's 4.5% interest rate for investment period
| Date | Payment | Days | Invested Earnings |
| Feb.1 | $220.00 | 150 | $4.13 |
| Mar. 1 | $220.00 | 122 | $3.36 |
| Apr. 1 | $220.00 | 91 | $2.50 |
| May 1 | $220.00 | 61 | $1.68 |
| June 1 | $220.00 | 30 | $0.83 |
| TOTAL EARNINGS (half year) | $12.50 | ||
Full Allowable Payment
- Semi-annual taxes $1300 divided by 6
- Payment of $1100 made on Feb. 1
- County's 3.56% interest rate for investment period
| Date | Payment | Days | Invested Earnings |
| Feb.1 | $1100.00 | 150 | $20.63 |
| TOTAL EARNINGS (half year) | $20.63 | ||
It is easy to see that the larger the
initial payment, the greater the discount credit. This is true
throughout the payment period. If the taxpayer makes larger payments in
the early months, the discount credit is increased. Using the above
data, if the taxpayer increases payment to $440 in February and March,
makes the $220 payment in April and pays nothing in May and June, the
total discount earnings would increase to $17.46. You decide the payment
amount and time of payment. Easy and profitable.
(Above calculations are approximate
earnings for program participation.)
This is an Optional Program
- To sign up for Real Estate Discount (RED) Click Here