Homestead Exemption Law Allows Seniors to Save on Property Taxes
If you are age 65 or older, don’t miss your opportunity to be grandfathered in to the homestead exemption law to save money every year on your property taxes.
The homestead exemption, which began in 2007, provides a savings on property tax to senior citizens and permanently and totally disabled Ohioans. The exemption, which takes the form of a credit on property tax bills, allows qualifying homeowners to exempt $25,000 of the market value of their home from all local property taxes. For example, through the homestead exemption, a home with a market value of $125,000 would be billed as if it is worth $100,000.
In June 2013, Governor Kasich signed a new law that the homestead exemption on real estate property taxes will revert to a means-based test. Basically, it will be determined based on a person’s annual income. Beginning in 2014, if your income exceeds $30,000 you can’t apply for this benefit, however if you apply before the law takes effect, you will NOT lose your exemption due to a high income level.
Therefore a great opportunity exists to apply for the homestead exemption before the change in the new law. You should submit this application as soon as possible to your County Auditor in order to receive the exemption under the current law and be “grandfathered” going forward.
All Ohio homeowners must meet the following criteria to apply for the homestead exemption:
- Own and occupy a home in Ohio as your principal place of residents on January 1, 2013 AND
- Are 65 years of age by December 31, 2013, OR
- Are certified totally and permanently disabled as of January 1, 2013, OR
- The surviving spouse of a qualified homeowner who was at least 59 years old at the date of the spouse’s death.
Talk to your lawyer to learn more about the homestead exemption and see if you qualify. They will be able to walk you through the application criteria and assist with applying for this tax credit. This is a wonderful opportunity to save money every year on your property taxes!