PROPERTY TAX RELIEF:  Number of Real Property Homestead Exemptions Granted, Average Reduction in Taxes and Total Reduction in Taxes, by County, Tax Year 2011

 

Homestead exemption property tax reductions are granted to homeowners who are at least 65 years of age; permanently and totally disabled; or to surviving spouses at least 59 years of age if the deceased had previously received the exemption.

Prior to tax year 2007, eligibility for the exemption was limited to taxpayers who earned $26,200 or less annually and adjusted for inflation, with benefits tiered according to income. However, starting with the 2007 tax year (taxes due in 2008), income tests and tiered benefits were no longer applied (although homeowners that received a higher credit under the program that existed in tax year 2006 continued to receive that year’s credit). Instead, each qualified homeowner receiveed a credit equal to the taxes that would otherwise be charged on the first $25,000 of true value (meaning, $8,750 in taxable value) of the homestead. In effect, the homestead exemption shielded $25,000 of the true value of an eligible homestead from property taxation. Under current law (calendar year 2014), eligibility for new exemptions is limited to qualifying taxpayers (by age) with Ohio adjusted gross income of $30,500 or less; the income threshold will be annually adjusted for inflation.

The table shows the number of homestead exemptions granted, the average reduction in property taxes, and the total reduction property taxes in each county. The data presented in the table were compiled from a survey of county auditors conducted by the Ohio Department of Taxation.

Based on survey results, it is estimated that a total of 870,568 real property homestead exemptions were granted; the average reduction in taxes was $460 per homestead; and the total reduction in real property taxes was $400,098,653. Four counties (Fayette, Morgan, Ottawa and Perry) did not submit tax year 2011 data for this report; previous year’s information was used in place.  

In comparison to tax year 2010, the number of homestead exemptions granted increased by 1.9%, the average reduction in property taxes increased by 2.5%, and the total reduction in property taxes increased by 5.6%.

Cuyahoga County had the greatest number of homeowners receiving this tax reduction (99,822) and the largest total reduction in taxes ($59.5 million). Noble County had the least number of homeowners receiving this tax reduction (1,169) and the least total reduction in taxes ($325,252).

The figures in the first column of this table were compiled through a survey of county auditors conducted by the Ohio Department of Taxation.  The data in the third column are from the distribution records of the Revenue Accounting Division of the Ohio Department of Taxation.  This column shows the actual amounts reimbursed to each county for the reduction in real property taxes attributable to the homestead exemption, including reimbursements for refunds issued by the county to taxpayers that filed "late" applications for the tax year 2011 homestead exemption.  Calculated administrative fees of $12,002,960 paid to the county auditors are excluded from Table HE-1.