Tax Data Series

REAL ESTATE TAXES ON MANUFACTURED HOMES: Property Tax Relief, Ten Percent Non-Business Credit, Homestead Exemption Credit and Two and One-Half Percent Owner Occupied Credit Reductions Distributed during Calendar Year 2016 (for Tax Year 2016)

In Ohio, manufactured (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 ten 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 two and one half percent.

These credits are limited in that they do not apply to new levies or replacement levies passed after September 29, 2013; the credits only apply to existing and renewal property tax levies.

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 2015, eligibility for new exemptions began being limited to qualifying taxpayers (by age) with Ohio adjusted gross income of $31,000 or less; the income threshold is annually adjusted for inflation. The income threshold for tax year 2016 was $31,500.

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 owner-occupied two and one-half percent reductions.

Table PD-2 indicates that during calendar year 2016, the Departments of Taxation and Education together reimbursed local governments approximately $9.4 million including $2.8 million for the ten percent non-business credit, $6.1 million for the homestead exemption (including $55,761 for late-filers), and $462,310 for the two and one-half percent owner occupancy credit (including $180 for late-filers).  Additionally, $191,174 was paid by the Departments of Taxation and Education to county auditors for administering the homestead exemption ($181,928) and two and one-half percent owner occupancy credit ($9,246). These administration payments are excluded from the table.