Rep. Troy introduces bill updating tax program

Ohio Rep. Dan Troy, D-Willowick, has introduced a bill that would update the state’s Homestead Tax Exemption program.

The exemption allows low-income citizens and totally disabled Ohioans to reduce their property tax bills by “shielding some of the market value of their homes from taxation,” according to the Ohio Department of Taxation. The exemption takes the form of a credit on property tax bills.

It currently allows qualifying homeowners to exempt up to $25,000 of the market value of their homes from all local property taxes.

“For example, through the homestead exemption, a home with a market value of $100,000 is billed as if it is worth $75,000,” according to the Ohio Department of Taxation.

The Ohio Department of Taxation stated that the amount of savings varies from location to location, but in 2015 qualified Ohio homeowners saved an average of about $495 per taxpayer.

According to a news release from Troy’s office, his bill makes three notable changes to the current law:

• Increases the income amount at or below which a homeowner can apply for the homestead tax exemption from $34,200 to $37,500

• Increases the taxable property value exemption from $25,000 to $31,200

• Indexes the property value exempted so that it is annually adjusted for inflation.

“By updating the eligibility threshold for the Homestead Tax Exemption program, and increasing the exemption, we will help our needy Ohioans and those with disabilities reduce their property tax burden and save them dollars often needed for other essential necessities,” Troy said in a statement.

Troy said Ohio’s homestead tax exemption was first introduced in 1971 and hasn’t always been updated and adjusted for increases in the cost of living.

“This is a modest proposal, and I certainly wouldn’t object if my colleagues wish to increase the proposal limits, that will bring some needed relief to our senior citizens on lower fixed incomes that want to stay in their homes,” Troy said in a statement. “As our state’s population rapidly ages, property tax reform and relief should be one of our foremost public policy objectives.”

The legislation, House Bill 207, has been referred to the Ohio House Ways and Means committee.

Troy