Butler County commissioners last week set the wheels in motion for an increase in the county's tax assessment ratio.

An increase would give the county more tax-levying latitude without going to court for permission to raise the property tax rate beyond the state-mandated cap.

The county levies 30 mills of property tax on 75 percent of the 1969 market value of a given property. A formula is used to determine what the 1969 market value of a property would be.

The "75 percent portion" is what's known as the tax assessment ratio. The ratio was last changed in 1982, when it was increased from 33.3 percent to the current 75 percent.

State law sets a tax rate cap of 25 mills for general budgetary purposes. Butler County levies that millage rate plus an additional 5 mills for debt service, a special levy that is allowed by law.

Commissioners Chairman Dale Pinkerton said the alternatives to increasing the assessment ratio are to reassess all county properties at a cost of about $8 million, or go to court for an exception to the 25-mill cap.

Each of the county commissioners stressed their intent is not to raise taxes.

In fact, by law, the county is required to submit a revenue-neutral budget in the year following a change in the ratio. A revenue-neutral budget would include measures to offset the change in millage so that there would be no increase in money received by the government. If that budget is not adequate to cover planned expenses, the county could submit a revised spending plan that would call for a millage rate that would yield no more than a 5 percent increase in property tax revenues.

However, the commissioners said they have no intention of increasing residents' tax bills at all, at least in 2009. "They want this to be revenue neutral,'' said Ed Rupert, director of the county's tax assessment and property and revenue offices.

Mr. Rupert estimated that, if commissioners increase the assessment ratio, the millage rate would be reduced from 30 mills to 22.5 mills, including the county's debt service levy. To have the new rate and ratio take effect in 2009, the measure must be passed by commissioners before July.

While the changes must not net a windfall for the county in 2009, the county commissioners would be allowed to adjust taxes upward if they deem necessary in 2010.

Commissioners directed Mr. Rupert, Chief Clerk William O'Donnell and Solicitor Julie Graham to draft a detailed proposal for formal review. Mr. Pinkerton commented after the meeting that "this is something we need to do."

A volunteer committee appointed to review the 2008 budget recommended that an increase in the assessment ratio be considered.