Thomas, Daniels introduce Homestead and Owner Occupancy Overhaul Act

COLUMBUS - State Representatives David Thomas (R-Jefferson) and Jack Daniels (R-New Franklin) introduced legislation Tuesday to overhaul the homestead and owner occupancy credit program for Ohio’s seniors, disabled property owners, disabled veterans, and homeowners. 

“This is long overdue and needed action on the property tax front,” said Daniels. “There is so much work to be done but this is a good first step for those who most need relief.”

The legislation would fundamentally change how the homestead and owner occupancy credits are done according to Thomas and greatly increase relief to those eligible. 

The Homestead and Owner Occupancy Overhaul Act would change the exemption for the homestead credit from value removed off the property to a flat credit amount given to eligible property owners. On average, this new credit would double the amount of savings to property owners moving the traditional homestead amount of credit to the lesser of $750 or the amount of school tax assessed to the property and $1,500 for the enhanced disabled veteran homestead. 

“This change is vital because currently homestead folks are actually losing credit amount each year as the value taken off the property increases less than the tax rate applied to it decreases,” explained Thomas. “By having a flat amount that increases with inflation, we will be sure that seniors will not lose savings and will be guaranteed to see that savings increased.”

The current homestead program is reimbursed 100% by the State of Ohio to local government entities. “The reimbursement of homestead costs state taxpayers nearly $1 billion and that is just not sustainable,” said Daniels. 

According to Thomas, this legislation would alter the reimbursement to 50% in an effort to share in the cost of easing the burden on property tax payers. 

The other change this introduced legislation would create is to enhance the owner occupancy credit which currently reimburses local entities for some levies at 2.5% of the cost saving homeowners on average between $40 and $100. The legislation would increase this credit to a flat $750 for those who own their home and occupy it as a primary residence. “This gives direct help to those who need it most and we would also share in the burden of the cost of this program by 50% with local entities,” said Thomas. 

The growing property tax burden has been at the forefront of legislators and taxpayers minds over the past several years as growing home values and lower direct state aid has set the stage for record breaking tax increases. Members of the legislature participated in the 2024 Property Tax Review and Study Committee which presented a long list of recommendations for legislation to aid property taxpayers including the homestead credit. 

“This is just the first of many bills to be soon introduced to overhaul, reform, change, and improve our property tax system," said Thomas. “There is a clear mandate for changes from our voters and we will deliver.” 

Thomas, a former Austinburg Township Fiscal Officer and Ashtabula County Auditor, and Daniels, a former Portage Lakes Career Center School Board member and New Franklin City councilman, both say they are preparing several strong bills on property taxes and tax reform for consideration before the Ohio Legislature this year. 

They will join other members of the Legislature working on tax reform this year. “This will be a team effort, and we know action is needed before the next round of Revaluations and unvoted increases,” said Daniels. “One of my favorite proposals that will be introduced soon by another Representative is a tax deferral bill. Hopefully, that is shared soon.”