Ohio House Passes $190 Million Homestead Exemption Expansion

COLUMBUS – The Ohio House overwhelmingly passed House Bill 274, which aims to enhance the Homestead Exemption for long-term homeowners, announced State Representatives Jamie Callender (R-Concord) and Daniel Troy (D-Willowick). The legislation would create a third enhanced property tax credit for certain long-term homeowners of $50,000.

Currently, Ohio offers a general homestead exemption and two enhanced exemptions. The general exemption exempts $26,000 of a home’s value from taxation for homeowners aged 65 or older, permanently disabled, or surviving spouses aged 59 or older, provided their modified adjusted gross income does not exceed $38,600. 

Enhanced exemptions include:

Disabled Veterans Exemption: Up to $52,300 for veterans who are totally disabled and their surviving spouses.
Public Service Officer Exemption: Up to $52,300 for peace officers, firefighters, or emergency responders who die or sustain fatal injuries in the line of duty.
Neither of these enhanced exemptions has an income limit.

HB 274 would create a third enhancement, providing a $50,000 exemption for homeowners who meet the general exemption’s income criteria and have continuously owned and occupied their home for 20 or more consecutive years. This benefit would also extend to surviving spouses. The is projected to deliver $190 million in property tax relief for qualifying homeowners.

“Many older Ohioans who have owned their homes for decades are now faced with unsustainable property tax bills,” said Callender. “This legislation gives relief to seniors so they can stay in their homes and enjoy their golden years without the need to sell or return to the workforce”. 

“This is a step in the right direction, but we need to do a heck of a lot more. As we know, progress is slow,” said Rep. Troy. “This does not go as far as I would like it to go, and I am already coordinating with my colleagues on both sides of the aisle to provide more targeted property tax relief in our next term in the Ohio General Assembly.”

HB 274 now awaits additional hearings and a vote in the Ohio Senate.