Owner Occupancy Tax Reduction

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Owner Occupancy Tax Reduction

The owner-occupancy credit is a 2 1/2% reduction in the taxes charged by qualified levies. The reduction is applied against real property taxes as well as manufactured home taxes on any manufactured or mobile home on which a manufactured home tax is assessed. A “homestead” is a dwelling or a manufactured or mobile home taxed as real property that is owned and occupied as a home. See R.C. 323.151(A)(1).

To receive the owner-occupancy tax reduction, you must own and occupy your home as your principal place of residence (domicile) on January 1 of the year for which you file for the reduction. A homeowner and spouse are entitled to this homestead tax reduction on only one home in Ohio, unless they can establish that they are domiciled separately.  A person may claim only one principal place of residence. Your principal place of residence is typically determined by such things as where you are registered to vote and/or where you declare residency for income tax purposes.

Definition of Owner:

An owner is defined as:

  • an individual named on the deed,
  • a purchaser under a land installment contract,
  • a life tenant under a life estate,
  • a mortgagor (borrower) for an outstanding mortgage,
  • trustee of a trust with the right to live in the property,
  • the settler, under a revocable or irrevocable inter vivos trust, holding title to a homestead occupied by the settler as a right under the trust,
  • a stockholder in a qualified housing cooperative.

Property that is owned by a corporation, partnership, limited liability company or other legal entity does not qualify for the exemption.

The  tax reduction applies only to the home site and the home itself.
It does not apply to:

  • Detached buildings
  • Excess acreage more than one acre
  • Rental homes
  • Apartments
  • Homes occupied by someone other than the owner
  • Homes owned by corporations, partnerships, associations, or groups
  • Homes within a unit used primarily for retail, commercial, or other non-residential purposes
  • Older manufactured or mobile homes taxed under the depreciation method

How to check the current status of your property:
To determine if you are already receiving the reduction, you may look for “owner occupancy credit” in the calculation section of your tax bill or check the “Annual Tax Breakdown” tab after locating your property under “Real Estate Property Search” on the Auditor’s web site.  Of course, you may also contact the Shelby County Auditor or the Shelby County Treasurer for assistance.

How to apply:
To obtain an owner-occupancy tax reduction application for an owner-occupied home Click here to Download Form DTE 105C or contact the Shelby County Auditor’s Office.

Where to file:
The completed application should be delivered or mailed to
Shelby County Auditor
Annex Building
129 E. Court St.  3rd Floor
Sidney, OH   45365

Once application is made and approved, it is not necessary to re-file every year as long as ownership status and residency by owner remain the same.  If either of these facts change, contact the Auditor’s Office.