Tax Data Series

Manufactured Homes

Real Estate Taxes on Manufactured Homes: Ten Percent and Two & One Half Percent Rollbacks, and Homestead Exemption, by County, Distributed during Calendar Year 2008 (for Tax Year 2008)

In Ohio, manufactured and mobile homes are subject to one of three different possible property tax treatments: the manufactured home tax using a depreciation schedule; the manufactured home tax that is like the real property tax; or the real property tax. Table PD-2 pertains to the last method of taxation: i.e., manufactured homes that are taxed as real property. (Refer to Table HE-2 for data on homestead exemptions granted to owners of manufactured homes that are taxed under the two other methods of taxation.)

A manufactured home that acquired situs in Ohio on or after January 1, 2000, or was transferred on or after that same date, must be included on the real property tax list if it meets three conditions. The three conditions are: (a) the home is affixed to a permanent foundation; (b) the home is located on land owned by the owner of the home; and (c) the certificate of title was inactivated by the clerk of court of common pleas that issued it (once the first two conditions are met, the owner must surrender title to the county auditor, who delivers it to the clerk to be inactivated). In addition, a manufactured home that acquired situs in Ohio before January 1, 2000, or was last transferred before that same date, is included on the real property tax list if it meets the same conditions listed above and if several other requirements are met, including the filing of an election by the owner to have the home taxed as real property.

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. Lastly, real property homestead exemption property tax reductions are granted to homeowners who are at least 65 years of age; permanently and totally disabled; or to surviving spouses at least 59 years of age if the deceased had previously received the exemption. 

Prior to tax year 2007, eligibility for the homestead exemption was limited to taxpayers who earned $26,200 or less, with benefits tiered according to income.  However, starting with the 2007 tax year (taxes due 2008), income tests and tiered benefits no longer apply (although homeowners that received a higher credit under the program that existed in tax year 2006 will continue to receive that year’s credit). Instead, each qualified homeowner received a credit equal to the taxes that would otherwise be charged on up to $25,000 of the true value (meaning, $8,750 in taxable value) of the homestead. In effect, the homestead exemption shields up to $25,000 of the true value of an eligible homestead from property taxation.

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-2 indicates that during calendar year 2008, the Departments of Taxation and Education together reimbursed local governments a total of $8.4 million including $2.6 million for the 10 percent rollback, $5.3 million for the homestead exemption (including $126,531 for late-filers), and $0.4 million for the 2.5 percent rollback (including $446 for late-filers).  Additionally, $115,678 was paid by the Departments of Taxation and Education to county auditors for administering the homestead exemption ($106,916) and 2.5 percent rollback ($8,762). These administration payments are excluded from the table.