The News Herald (Willoughby, OH)
Auditor announces support for HB 439
Action would adjust homestead exemption annually to rate of inflation
Lake County Auditor Christopher A. Galloway this week announced his support for House Bill 439 introduced by state Rep. Jason Stephens, R-Kitts Hill, which would adjust the homestead exemption annually to the rate of inflation.
According to the legislature, the homestead exemption allows low-income senior citizens and disabled veterans to reduce their property tax burden by lowering the market value of their homes for tax purposes.
However, Ohio’s Homestead Exemption does not currently adjust for inflation. It has remained the same dollar amount for many years.
Galloway said the homestead exemption’s real value has lost 20 percent to inflation since it was fixed at $25,000 in 2007.
“Adjusting it annually to inflation will provide for relief for seniors,” Galloway added. “At a time when county agencies are working hard to keep senior citizens independent, this legislation will be a big help. Property tax should never be the reason someone cannot stay in their home. I call upon the legislature to pass this important legislation.”
The bill requires the amount of each homestead exemption to be adjusted for inflation each year. Under current law, the exemption equals the taxes that would be charged on up to $25,000 of the true value of the home owned by a qualifying individual.
The legislation is designed to increase the amount of the homestead exemption every year by the same rate of inflation in current law used to calculate the income eligibility of the homestead exemption.
According to the bill, the adjustment each year will be relatively small, but for those who are most disadvantaged by inflation, such as those living on a fixed income, the benefit, over time, will be significant.
The Legislative Committee of the County Auditors’ Association of Ohio also recently voted to support House Bill 439 by improving the law.
“I have seen first-hand the relief the homestead exemption provides for senior citizens and disabled veteran homeowners,” Galloway said. “This bill will provide additional assistance, is easy to administer and would have no impact on school or other local government funding.”
House Bill 439 is currently in the Ohio House Ways and Means Committee.