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
1993
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. Effective for tax year 1991 the surviving spouse of
a deceased person who applied and qualified for the homestead
exemption in the year of death is eligible to receive the
homestead exemption if (1) the surviving spouse was at least
age 59 but less than age 65 on the date the deceased spouse
died and (2) otherwise meets the homestead exemption
requirements.
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.
Table PD-1 indicates that for tax year 1992, the Departments
of Taxation and Education together reimbursed local
governments a total of $661.9 million, including $531.5
million for the 10 percent rollback, $52.5 million for the
homestead exemption, and $75.3 million for the 2.5 percent
rollback, and $2.6 million paid to county auditors for
administering the homestead exemption and 2.5 percent
rollback. The $661.9 million for tax year 1992 is 6.5 percent
greater than the total of $621.8 million for tax year 1991.
These amounts are from records of the Ohio Department of
Taxation.