Tax Data Series

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 2004 (for Tax Year 2003)

State law (Revised Code Section 319.302) requires county auditors to reduce all real property taxes charged by 10 percent. In addition, Section 323.152(B) further reduction of 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 2004 (tax year 2003), a homestead exemption is granted for owner-occupants whose total income does not exceed $24,700.

Local governments are fully reimbursed from the state general revenue fund for these tax reductions. The Department of Education reimburses the schools 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 two 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 2004, the Departments of Taxation and Education together reimbursed local governments a total of $1,266.2 million, including $1,047.9 million for the 10 percent rollback, $68.8 million for the homestead exemption (including $798,462 for late-filers), and $149.6 million for the 2.5 percent rollback (including $185,104 for late-filers). Additionally, $4.4 million was paid by the Departments of Taxation and Education to county auditors for administering the homestead exemption ($1.4 million) and 2.5 percent rollback ($3.0 million). These administration payments are excluded from the table.