OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 263 Bill Analysis
135th General Assembly
Click here for H.B. 263’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Isaacsohn and Hall
Effective date:
Eliza Bauler-O'Grady, Attorney
SUMMARY
 Freezes the amount of taxes owed on homes owned by qualifying longtime
homeowners, with the state reimbursing local taxing units for the cost of the resulting
tax reduction from the GRF.
DETAILED ANALYSIS
Property tax freeze for certain homeowners
The bill authorizes a property tax reduction for certain homeowners, including owners
of manufactured or mobile homes. To qualify, homeowners must meet the following
requirements: (1) the homeowner must be at least 70 years old, (2) the homeowner must have
continuously lived in their homestead or manufactured or mobile home for at least ten years,
(3) the homeowner’s total income must be less than or equal to $70,000 per year, and (4) the
county auditor’s appraised value of the homeowner’s home must be less than $1 million. The
$70,000 income threshold increases each year based on the annual increase to the Gross
Domestic Product (GDP) deflator, which is a broad measurement of inflation. This is the same
inflation index used to adjust the income threshold and amount of the homestead exemption.
The bill essentially freezes the taxes due on a qualifying homeowner’s property by
authorizing a tax reduction equal to the amount of taxes due for the current tax year minus the
amount of property taxes due for the tax year that preceded the year in which the homeowner
was first approved for the reduction.1 For example, if a homeowner first qualifies for the
reduction in tax year 2024, the homeowner’s taxes will be frozen at their 2023 levels. For tax
year 2024, their reduction would equal the amount of property taxes owed for tax year 2024
minus the amount of property taxes owed for tax year 2023. If the homeowner qualifies for the
1 R.C. 323.152(C) and R.C. 4503.0612(B) and (C).
September 29, 2023
Office of Research and Drafting LSC Legislative Budget Office
homestead exemption as well as the bill’s property tax freeze, then the homestead exemption
applies first and reduces the amount owed and the taxes owed are frozen at that reduced
amount.2
The bill requires the state to reimburse local taxing units for tax reductions resulting
from the property tax freeze in the same manner and to the same extent as the state
reimburses them for the homestead exemption.3
Homeowner application
To receive the reduction the homeowner must file an application with the county
auditor of the county in which the property is located. With their application, the homeowner
must include documentation that sufficiently proves that they meet all the requirements to
receive the reduction.4
Application date
The tax reduction would apply beginning in the tax year ending after the bill’s 90-day
effective date for real property and the tax year beginning after that date for manufactured or
mobile homes. (The difference accounts for the fact that property taxes are paid one year in
arrears, while manufactured and mobile home taxes are paid in the current year.)5
HISTORY
Action Date
Introduced 09-12-23
ANHB0263IN-135/ar
2 R.C. 323.152, 323.158, 4503.06, 4503.067, 4503.069, 4503.0610, and 4503.0612.
3 R.C. 4503.068; R.C. 323.156, not in the bill.
4 R.C. 323.153 and 4503.066.
5 Section 3.
P a g e |2 H.B. 263
As Introduced


Statutes affected:
As Introduced: 323.152, 323.153, 323.158, 4503.06, 4503.066, 4503.067, 4503.068, 4503.069, 4503.0610