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.