Manufactured Homes
Real Estate Taxes on Manufactured Homes: Ten Percent
and Two & One Half Percent Rollbacks, and Homestead
Exemption, by County, Distributed during Calendar Year 2006
(for Tax Year 2006)
In Ohio, owners of manufactured homes may elect to be taxed
under either the manufactured home tax (Ohio Revised Code
Section 4503.06) or real property tax if ownership was
acquired prior to January 1, 2000. The conditions to be
met for the home to be taxed as real property are: the home
is affixed to real property owned by the homeowner; the
manufactured home is on a permanent foundation; and the
certification of title is surrendered to the county auditor.
Furthermore, manufactured homes meeting the above conditions
are taxed as real property if the home was purchased on or
after January 1, 2000. If the home was purchased prior
to that date, and the home is taxed under the manufactured
home tax, it will be taxed as real property after it is sold.
Current state law (Revised Code Section 319.302) requires
each county auditor to reduce all real property taxes charged
by 10 percent. In addition, Section 323.152(B) requires the
county auditor to further reduce the real property tax on
owner-occupied property by 2.5 percent. Owner-occupants who
are age 65 or older or who are permanently and totally
disabled may qualify for an additional reduction in their
real property taxes by applying for a homestead exemption
under Section 323.152(A). In calendar year 2006 (tax
year 2006), a homestead exemption was granted for aged or
disabled owner-occupants whose total income did not exceed
$25,500.
Local governments are fully reimbursed from the state general
revenue fund for these tax reductions. The Department of
Education reimburses the schools for their share of the tax
reductions and the Tax Commissioner reimburses the counties,
townships, municipalities, and special taxing districts for
their shares of the tax reductions. The county auditor also
receives 2 percent of the amount reimbursed under Section
323.152 as payment for administering the homestead exemption
and 2.5 percent rollback.
Table PD-2 indicates that during calendar year 2006, the
Departments of Taxation and Education together reimbursed
local governments a total of $6.5 million including $2.4
million for the 10 percent rollback, $3.7 million for the
homestead exemption (including $32,681 for late-filers), and
$0.4 million for the 2.5 percent rollback (including $1,317
for late-filers). Additionally, $44,935 was paid by the
Departments of Taxation and Education to county auditors for
administering the homestead exemption ($37,000) and 2.5
percent rollback ($7,935). These administration payments are
excluded from the table.
Effective in tax year 2006 (distributions made in calendar
year 2006), the 10 percent rollback is applied to only real
property that is not intended primarily for use in a business
activity. Property qualifying for the 10% rollback
includes property subject to the following uses: farming;
leasing property for farming; occupying or holding or leasing
property improved with single-family, two-family, or
three-family dwellings; or vacant land that the county
auditor determines will be used for farming or to develop
single-family, two-family, or three-family dwellings.