Eligible seniors and disabled veterans in Ohio could soon get property tax relief now that the Senate has approved the Ohio Homeowners Relief Act (House Bill 187). The Ohio property tax relief for seniors, if approved, will offer much-needed relief to some residents from property tax hikes. The Senate version, however, amends some of the provisions that the House passed in HB 187.
Ohio property tax relief for seniors: what is it?
Last week, the Senate passed HB 187, which would temporarily exempt older Ohioans from paying property taxes on the first $30,000 of their house’s value. Older Ohioans who earn $36,000 or less will qualify for the relief, while those who make up to $75,000 could qualify for partial relief.
Basically, the Ohio Homeowners Relief Act extends the Homestead exemption for older Ohioans, and for people with disabilities. Also, the bill temporarily increases the Homestead Exemption for disabled veterans from $50,000 to $60,000. The relief will be applied to the next three tax years.
In addition to offering Ohio property tax relief for seniors, the bill also carries a provision that modifies the authority of the state taxing department when it comes to reviewing county auditors’ proposed property values.
Currently, the state taxing department reviews the county auditors’ proposed property values and adjusts them to ensure they meet all the guidelines. If the bill is approved, the state taxing department will only be able to issue nonbinding recommendations.
The Ohio property tax relief for seniors is much needed as property values rise significantly across the state. For instance, property values, on average, are increasing 37% in Butler County and 34% in Montgomery County following recent triennial reviews. Similarly, Clermont County property values are estimated to increase by 43% using a one-year average.
How is the Senate version different from the House version?
Representative Adam Bird, the state representative for Clermont and Brown counties, cosponsored HB 187 in the Ohio House of Representatives with State Rep. Thomas Hall. HB 187 passed the Ohio House in a 58-26 vote in October. The Senate version prioritizes tax breaks for older homeowners rather than for all homeowners.
Moreover, to qualify for the Ohio property tax relief for seniors in the amended bill, a homeowner must be over 65 years old or permanently and totally disabled. Also, surviving spouses, at least 59 years old, can qualify for the relief if their spouse applied and qualified for the relief before their death.
The Senate version removes provisions that the House approved with regard to offering relief on other property taxes, such as CAUV (Current Agricultural Use Valuation). The House version temporarily adjusts CAUV calculations until 2026, thereby lowering the expected increase in the new CAUV value. The Senate version, however, doesn’t contain the CAUV language.
Now that the Senate has approved HB 187, the bill returns to the House of Representatives for approval on the amendments. Lawmakers will want to get the bill passed before the end of the legislative session on December 14.
