The homestead exemption provides a reduction in property taxes to qualified senior or disabled citizens, or a surviving spouse, on the dwelling that is that individual's principal place of residence and up to one acre of land of which an eligible individual is an owner. The reduction is equal to the taxes that would otherwise be charged on up to $25,000 of the market value of an eligible taxpayer's homestead.
House Bill 59, passed June 27, 2013, and effective September 29, 2013, has made significant changes to who will qualify for the Homestead exemption on a going-forward basis. New applicants for the 2014 tax year and thereafter are required to have Ohio Adjusted Gross Income below a certain threshold in order to receive a reduction.
Persons who qualified and received the reduction for tax year 2013 (collected in 2014) have been "grandfathered" and will not be affected by the changes.
In addition, Am Sub House Bill 85, effective September 11, 2014 created an additional classification for recipients who are veterans experiencing service-connected disabilities and their qualifying spouses. The reduction for veterans qualifying for this new classification is equal to the taxes that would otherwise be charged on up to $50,000 of the market value of an eligible taxpayer's homestead.