This is a state-wide program, administered by County Auditors under rules established by the Ohio Legislature and the Ohio Department of Taxation. This allows senior citizens (65 or older) as well as permanently and totally disabled homeowners to reduce their real estate taxes by the amount equal to the taxes that would otherwise be charged on $25,000 of the market value of an eligible taxpayer’s homestead or residence. The homestead may include up to one acre of land. Under the changes made by the Ohio Legislature and beginning with applications for tax year 2014, new participants in the program will be subject to an income test to be eligible. The exemption will only be available to those homeowners with household incomes not exceeding $30,500 in Ohio Adjusted Gross Income for the preceding year.
EXISTING HOMESTEAD RECIPIENTS WILL CONTINUE TO RECEIVE THE HOMESTEAD EXEMPTION CREDIT WITHOUT BEING SUBJECT TO THE INCOME TEST!
The homestead exemption is “portable” under the new law, meaning that an individual currently receiving the homestead exemption will continue to receive the exemption and will continue to be exempt from the income test even if the individual sells an existing residence and purchases a new residence anywhere in Ohio. The homestead exemption is associated with the individual eligible for the homestead exemption and not a particular residence.
IN ORDER TO BE EXEMPT FROM THE INCOME TEST, THE HOMEOWNER MUST EITHER RECEIVE OR BE ELIGIBLE TO RECEIVE THE HOMESTEAD EXEMPTION CREDIT FOR TAX YEAR 2013. Eligible homeowners must have qualified as an applicant for 2013, OR apply as a late applicant for 2013 between the first Monday in January 2014 and the first Monday of June 2014 to secure the homestead exemption for 2013.
Eligible homeowners may apply for the Homestead Exemption with their county auditor. The application form is available from all county auditors, online on the Ohio Department of Taxation website, or by contacting the Ohio Department of Taxation at 800-282-1780. The application form can also be found on our website on the forms page located here.
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To receive the increased exemption under the bill, a homeowner must be a veteran of the United States armed forces, reserves, or National Guard who was honorably discharged with a service-connected total and permanent disability certified by the United States Department of Veterans Affairs or other federal agency. When applying for the exemption, the veteran must provide written confirmation of the disability from the federal government.