OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 43 Final Analysis
135th General Assembly
Click here for S.B. 43’s Fiscal Note
Primary Sponsor: Sen. Brenner
Effective date: October 27, 2023
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Extends the homestead exemption for the surviving spouse of a disabled veteran to
spouses of a disabled veteran who dies before receiving a qualifying disability rating.
DETAILED ANALYSIS
Homestead exemption for disabled veteran surviving spouse
Continuing law authorizes an enhanced homestead exemption for disabled veterans and
their surviving spouses. The act expands the situations in which a surviving spouse may qualify
for this exemption.
Under continuing law, certain individuals are eligible to claim a property tax credit for
their residence, or “homestead.” Generally, this “homestead exemption” equals the taxes that
would be charged on up to $25,000 of the fair market value of a home, indexed to increase with
inflation starting in tax year 2024, owned by a homeowner who is 65 or older, permanently and
totally disabled, or at least 59 years old and the surviving spouse of an individual who
previously received the exemption. The credit essentially exempts $25,000 of the value of a
homestead from property taxes.
A special enhanced exemption of $50,000, similarly indexed to increase with inflation
starting in tax year 2024, is available for the homesteads of military veterans who are, pursuant
to a rating given by the U.S. Department of Veterans Affairs, totally disabled. If the disabled
veteran dies, the veteran’s surviving spouse may continue to claim this exemption until the
spouse dies or remarries.
Under former law, a surviving spouse could only claim the exemption if the disabled
veteran received a total disability rating and qualified for exemption before the veteran’s
death. The act allows a surviving spouse to claim the exemption if the veteran dies before
August 8, 2023
Office of Research and Drafting LSC Legislative Budget Office
receiving a total disability rating. In such a case, the surviving spouse may claim the enhanced
exemption beginning for the first full tax year following receipt of the total disability rating. 1 So,
for example, if a deceased veteran receives a total disability rating on July 14, 2023, the
exemption would first apply for tax year 2024. Similar to surviving spouses eligible for the
current enhanced exemption, the spouse continues to receive the exemption until the spouse
dies or remarries.
As with the existing homestead exemptions, the state will reimburse local governments
for any revenue loss arising from the expanded exemption.2
The act applies to tax year 2023, in the case of real property, and to tax year 2024, in the
case of homes subject to the manufactured home tax. The difference in application is
accounted for by the fact that manufactured home tax is payable on a current year basis,
whereas property tax is payable in arrears.3
HISTORY
Action Date
Introduced 01-31-23
Reported, S. Ways & Means 03-07-23
Passed Senate (31-0) 03-29-23
Reported, H. Ways & Means 05-24-23
Passed House (97-0) 06-30-23
23-ANSB0043EN-135/ks
1 R.C. 323.151, 323.152, 323.153, 4503.064, 4503.065, and 4503.066.
2 R.C. 323.156 and 4503.068, not in the act.
3 Section 3.
P a g e |2 S.B. 43
Final Analysis


Statutes affected:
As Introduced: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066
As Reported By Senate Committee: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066
As Passed By Senate: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066
As Reported By House Committee: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066
As Passed By House: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066
As Enrolled: 323.151, 323.152, 323.153, 4503.064, 4503.065, 4503.066