OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 274 Bill Analysis
135th General Assembly
Click here for H.B. 274’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Mathews and Dell’Aquila
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Establishes an enhanced homestead exemption for certain long-term homeowners who
qualify for the general homestead exemption.
 Reimburses local taxing authorities from the GRF for forgone revenue resulting from the
new enhanced exemption.
DETAILED ANALYSIS
Homestead exemptions
The bill expands a property tax credit available on the homestead of certain qualifying
individuals. Under current law, this “homestead exemption” equals the taxes that would be
charged on up to $25,000 of the fair market value of a home owned by a person who is 65 years
of age or older, permanently and totally disabled, or at least 59 years old and the surviving
spouse of an individual who previously received the exemption (referred to in this analysis as
the “general homestead exemption”). The credit essentially exempts $25,000 of the value of a
homestead from taxation.
Also under current law, special “enhanced” exemptions of $50,000 are available for the
homesteads of military veterans who are totally disabled and their surviving spouses (referred
to in this analysis as the “disabled veteran exemption”) and for surviving spouses of peace
officers, firefighters, or other emergency responders who die in the line of duty or by an injury
or illness sustained in the line of duty (referred to in this analysis as the “public service officer
exemption”).
All three current homestead exemptions also apply to manufactured and mobile homes,
regardless of whether they are taxed as real property or taxed under the manufactured home
tax. They also apply to housing cooperatives, though the requirement for the individual to own
the home does not apply in that context. Under recently enacted law, the $25,000 and $50,000
exemption amounts are indexed to increase with inflation, beginning in tax year 2023.
November 8, 2023
Office of Research and Drafting LSC Legislative Budget Office
Homeowners who first receive the general homestead exemption for tax year 2014 or
later (or tax year 2015 for homeowners who pay the manufactured home tax) must have an
Ohio modified adjusted gross income of $36,100 or less, as computed for state income tax
purposes (including all business income and excluding Social Security and disability benefits).
Under continuing law, this income limit is increased each year to adjust for inflation.
Homeowners who received the general homestead exemption before 2014 are not subject to
the income limit, and no income limit applies to the disabled veteran exemption or public
service officer exemption.
Long-term owner homestead exemption
The bill establishes a third enhanced homestead exemption of $50,000 for long-term
homeowners. To qualify, a person must satisfy the criteria for the general homestead
exemption, including meeting the income limit, and also have continuously owned and
occupied the homestead or manufactured home for 20 or more consecutive years. This
enhanced exemption also extends to the homeowner’s surviving spouse until the spouse
remarries, provided the spouse meets the income limit for the general homestead exemption.1
As with all current homestead exemptions, local taxing units are reimbursed by the state for the
reduction in property tax revenue that results from the bill’s enhanced homestead exemption.
The reimbursement is paid from the GRF semiannually or annually.2 Unlike the existing
homestead exemptions, the $50,000 exemption amount is not indexed to increase with
inflation.
The new enhanced homestead exemption applies beginning in tax year 2023 for real
property and tax year 2024 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.)3
HISTORY
Action Date
Introduced 09-18-23
ANHB0274IN-135/ts
1 R.C. 323.152(A)(4), 323.153, 4503.065(F), and 4503.066.
2 R.C. 323.156 and 4503.068, not in the bill.
3 Section 3.
P a g e |2 H.B. 274
As Introduced