Representatives Troy and Hall Introduce Legislation to Updates Ohio's Homestead Exemption Law

COLUMBUS — State Representatives Daniel Troy (D-Willowick) and Thomas Hall (R-Madison Twp.) today introduced House Bill (HB) 103 to update Ohio’s Homestead Tax Exemption program.

“I am glad to join with Representative Hall in a bi-partisan effort to address this critical issue. By updating the eligibility threshold and increasing the amount of the exemption, we will be helping our older Ohioans and those with disabilities reduce their property tax burden and save them dollars often needed for other essential necessities,” said Rep. Troy.

The homestead exemption, which reduces property taxes for lower-income Ohioans 65 years or older, was first approved by Ohio voters in a 1970 constitutional amendment. In 2007, the General Assembly temporarily expanded the program to include all homeowners who were either 65 and older or permanently and totally disabled, regardless of their income. Also, the tiered benefits eligibility, which spelled out differing deductible amounts, was replaced with a fixed deductibility of $25,000 in value.

In the 2013 budget bill, which took effect in 2014, eligibility for the exemption was returned to an income limit of $30,000 or less to qualify for the $25,000 reduction. Those receiving it regardless of income from 2008-2013 were grandfathered in and continue to receive that reduction. In 2024, to adjust for inflation, the income limit was increased to $38,600 or less to receive a $26,200 reduction.

Since the homestead exemption program has not been adequately updated and adjusted for increases in the cost of living over its 50-year history, Reps. Troy and Hall set out to make a notable change to this law.

“The slight adjustment made to this program by the last General Assembly did not accurately address the skyrocketing property tax increases of recent years. House Bill 103 would adjust the $26,200 of true value reduction, which has only been minimally changed since 2007, to $50,000 and would also index the reduction for inflationary increase every year. The current income eligibility of $38,600 a year would be increased to $45,000 and would also be indexed from that point on for annual adjustments,” said Rep. Troy.

“We will continue fighting for property tax relief and reform in Ohio and this is another step in the process of doing just that,” said Rep. Hall. “This legislation will ensure Ohioans are able to age in their homes without worry.”

Rep. Troy noted that his proposal is modest, fiscally responsible, and can be afforded out of the current state revenues. The proposal is targeted to bring some needed relief to older Ohioans and disabled citizens on lower fixed incomes that want to stay in their homes.

“As our state’s population rapidly ages, property tax reform and relief should probably be one of our foremost public policy objectives. Ohio can surely afford to help our older citizens who have contributed so much over their lives for the common good and welfare of our state,” said Rep. Troy.