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Staff Report

Senate Bill 306 unanimously passed the Ohio Senate today, May 22, meaning more Ohioans may receive property tax relief as part of the state's Homestead Exemption program. The bill's sponsor is Senator Bob Schuler, R-Sycamore Twp., who represents Warren County.

"Because of certain technicalities, many Ohioans, who are otherwise eligible for Homestead Exemption, have not been receiving the property tax relief it provides," said Schuler, who represents Warren County. "SB 306 addresses this issue and will provide assistance to all who qualify."

"It's essentially closing a loophole in previous legislation," said Warren County Auditor Nick Nelson. "The average savings would be between $300 to $400 for eligible property owners."

Nelson said that he knows of no specific cooperative housing unit in Warren County that would fall under the proposed expansion. However, he said that there are numerous people in the county that have irrevocable living trusts that will be able to take advantage of these savings if the resolution passes.

SB 306 received bipartisan support when it passed out of the Senate Ways and Means and Economic Development Committee earlier this week. After passing the Senate, it now moves to the Ohio House for further consideration.

Previously, Homestead Exemption allowed Ohio senior citizens age 65 or older and disabled Ohioans, who fit into certain income margins, to pay lower annual property taxes. Because the most recent state budget expanded these requirements, currently, all senior citizens and disabled residents, regardless of income, should benefit from the program. Despite this development, two particular groups of Ohioans still cannot receive property tax assistance with Homestead Exemption.

For example, a number of senior citizens and disabled Ohioans live in housing cooperatives, which function similarly to condominium complexes, according to Ohio Senate spokesperson Kelly Carey. In other words, each resident owns the deed to his or her own housing unit.

However, because current law only provides Homestead Exemption benefits to housing cooperatives consisting of 250 or more units, those who live in smaller complexes do not qualify for the program.

In an effort to extend this financial aid to more of those who need it, S.B. 306 redefines the term "housing cooperative" to include groups of two or more housing units. In addition, this legislation will allow creators of irrevocable living trusts, who formerly did not meet the criteria for Homestead Exemption, to participate in the program.

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