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
1990
State law (Section 319.302) requires the county auditor,
after application of the tax reduction factors (see
publication PD-23) in accordance with Section 319.301, to
reduce all real property taxes by 10 percent. In addition,
Section 323.152(B) requires the county auditor to further
reduce the real property tax on owner-occupied property an
additional 2.5 percent. Owner-occupants who are age 65 or
older or who are permanently and totally disabled may qualify
for further 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 if their total income does not exceed
$16,500.
Local governments are reimbursed in full 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 per Section
321.24(F) and Section 323.156. 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.
For tax year 1989, the Departments of Taxation and Education
together reimbursed local governments a total of $545.4.0
million, including $428.1 million for the 10 percent
rollback, $55.0 million for the homestead exemption, and
$60.1 million for the 2.5 percent rollback, and $2.3 million
paid to county auditors for administering the homestead
exemption and 2.5 percent rollback. The $545.4 million for
tax year 1989 is 6.3 percent greater than the total of $512.9
million for tax year 1988. These amounts are from records of
the Ohio Department of Taxation.