Real Property
Real Estate Taxes: Real Property Tax Relief
10 Percent and 2.5 Percent Rollbacks, and Homestead
Exemption, by County, Distributed during Calendar Year
2001
State law (Revised Code Section 319.302) requires the 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). A homestead exemption is granted
for aged or disabled owner-occupants whose total income does
not exceed $23,700.
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-1 indicates that during calendar year 2001, the
Departments of Taxation and Education together reimbursed
local governments a total of $1,057.8 million, including
$869.7 million for the 10 percent rollback, $66.4 million for
the homestead exemption (including $1.2 million for
late-filers), and $121.7 million for the 2.5 percent rollback
(including $0.3 million for late-filers). Additionally, the
Departments of Taxation and Education paid $3.8 million to
county auditors for administering the homestead exemption
($1.3 million) and 2.5 percent rollback ($2.4 million). These
administration payments are excluded from the table.