Tax Data Series

REAL ESTATE TAXES ON MANUFACTURED HOMES: Ten Percent and Two & One Half Percent Reductions, and Homestead Exemptions, by County, Distributed during Calendar Year 2014 (for Tax Year 2014)

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 first two methods of taxation: i.e., manufactured homes that are taxed either under a depreciation schedule or like the real property tax (ORC 4503.06).

Current state law (Revised Code Section 319.302) requires each county auditor to reduce all property taxes charged by 10 percent on property not intended primarily for use in a business activity. In addition, Section 323.152(B) requires the county auditor to further reduce the property tax on owner-occupied property by 2.5 percent.

Lastly, homestead exemption property tax reductions are granted to homeowners who are at least 65 years of age; permanently and totally disabled; or surviving spouses at least 59 years of age if the deceased had previously received the exemption.  In tax year 2014, under this program, each qualified homeowner was eligible for 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. In calendar year 2014, eligibility for new exemptions is limited to qualifying taxpayers, by age, with Ohio adjusted gross income of $30,500 or less; the income threshold is annually adjusted for inflation.

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 payment for administering the programs: three percent for the homestead exemption and two percent for the 2.5 percent reductions.

Table PD-2 indicates that during calendar year 2014, the Departments of Taxation and Education together reimbursed local governments approximately $9.8 million including $2.9 million for the 10 percent credit reduction, $6.4 million for the homestead exemption (including $44,615 for late-filers), and $482,486 for the 2.5 percent credit reduction (including $66 for late-filers).  Additionally, $201,325 was paid by the Departments of Taxation and Education to county auditors for administering the homestead exemption ($191,676) and 2.5 percent credit reduction ($9,650). These administration payments are excluded from the table.