Budget includes change that could lower property taxes for some Ohio homeowners
The new two-year state budget includes a change to the amount that certain Ohio homeowners can take off their home's value to lower their property taxes. But homeowners have to know about it to get it.
Ohio homeowners who have incomes under $36,100 and are over 65 or are disabled are eligible for the state's homestead tax exemption. Since 2007, such Ohioans have been able to reduce the taxable value of their homes by $25,000, and by $50,000 if they're disabled veterans. The new budget ties the homestead exemption to inflation, which Republican Ashtabula County Auditor David Thomas says will help as tax bills go up.
"We all know with increasing values that taxes are connected with that. But we also know that we don't have a value problem in Ohio. Better home values are good for all property owners, really," Thomas said. "We have a property tax problem in Ohio."
Democratic Lorain County Auditor Craig Snodgrass, who's the president of the County Auditors' Association of Ohio, said this is the first significant change to the homestead tax exemption amount since that $25,000 cap 16 years ago, before the housing crisis hit.
"As we know in recent years, we're looking at an increase of 30-40% in housing and so it hasn't quite kept up to that inflation area or the increases that we're seeing," Snodgrass said. "So this is definitely a good thing for our seniors, a great thing for our veterans, in something that is really long overdue."
Homeowners do have to apply for the homestead tax exemption, which is offset by the state. It'll cost $11 million next year and $28 million in 2025. The provision would be implemented next year, and would affect this year's property taxes.
There are bills introduced by lawmakers from both parties that would change and further increase the exemption.