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 2006
(for Tax Year 2005)
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
2005), a homestead exemption is granted for aged or disabled
owner-occupants whose total income does not exceed $25,500.
Effective in tax year 2005 (distributions made in calendar
year 2006), the 10 percent rollback will be applied only to
real property that is not intended primarily for use in a
business activity. Qualifying property 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
holding vacant land that the county auditor determines will
be used for farming or to develop single-family, two-family,
or three-family dwellings.
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 2006, the
Departments of Taxation and Education together reimbursed
local governments a total of $1,137.3 million, including
$893.8 million for the 10 percent rollback, $70.5 million for
the homestead exemption (including $791,344 for late-filers),
and $173.0 million for the 2.5 percent rollback (including
$107,130 for late-filers). Additionally, $4.9 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 ($3.5 million). These
administration payments are excluded from the table.