OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 378 Bill Analysis
135th General Assembly
Click here for H.B. 378’s Fiscal Note
Version: As Passed by the House
Primary Sponsors: Reps. Lorenz and Santucci
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Creates an enhanced homestead exemption for the surviving spouses of uniformed
service members killed in the line of duty equal to all taxes imposed on the homestead.
 Continues the exemption until the surviving spouse dies, remarries, or cohabitates with
another unrelated person.
 Reimburses local taxing units for the resulting reduction in taxes in the same manner as
other homestead exemptions.
 Provides a temporary period for a municipality or community improvement corporation
to apply for an exemption from property taxation and abatement of unpaid taxes,
penalties, and interest on certain property.
DETAILED ANALYSIS
Homestead exemption: gold star spouses
Continuing law provides a property tax credit for the residence, or “homestead,” of
certain qualifying individuals. The standard “homestead exemption” equals the taxes that
would be charged on up to $26,200, adjusted for inflation, of the true value of a home owned
by a homeowner 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.
(“True value” is the appraised fair market value.) This standard exemption is means-tested, so
only homeowners with household income below a certain threshold ($38,600 for tax year 2024)
may qualify for the exemption. A special “enhanced” exemption of $52,300, also adjusted for
inflation, is available for the home of (1) an honorably discharged veteran of the armed forces
with a total disability or the veteran’s surviving spouse and (2) a surviving spouse of an
emergency responder who died in the line of duty.
The bill creates an additional enhanced exemption for the surviving spouse of a
uniformed service member killed in the line of duty equal to all of the current year’s taxes
June 13, 2024
Office of Research and Drafting LSC Legislative Budget Office
assessed against the spouse’s homestead. In essence, the enhanced exemption completely
exempts such a surviving spouse’s home from taxation. The exemption continues until the
spouse dies, remarries, or cohabitates with another person that does not share a common
ancestor with the surviving spouse (“consanguinity”). This is unlike the enhanced exemptions
for the surviving spouse of a disabled veteran or an emergency responder, which only
terminate when the spouse either dies or remarries. The bill’s exemption extends to members
of the uniformed services, which includes the branches of the armed forces along with the
National Oceanic and Atmospheric Administration and the Public Health Service. Like the other
enhanced exemptions, the bill’s exemption does not require the surviving spouse to earn below
a certain income to qualify. The exemption does not apply to the surviving spouse of a
dishonorably discharged uniformed service member.
Similar to all other homestead exemptions, the bill’s enhanced exemption applies to
manufactured and mobile homes regardless of whether they are taxed as real property or
subject to the manufactured home tax. Also similar to other homestead exemptions, the
enhanced exemption does not exempt the homestead from special assessments.1
Application requirements
As with all current homestead exemptions, a surviving spouse must apply to the county
auditor to qualify for the exemption. The applicant must include with this initial application a
copy of the service member’s U.S. Department of Defense form DD-1300 Report of Casualty or
other federal documentation showing the service member was killed in the line of duty. After
this initial application, no further application is needed to maintain the exemption, but the
auditor must be notified if the homestead no longer qualifies for the bill’s exemption.2 (This
notification is required under continuing law to report ineligibility for all current homestead
exemptions.)
Reimbursement of local taxing units
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.3
Application date
The enhanced homestead exemption for surviving spouses begins to apply for tax years
ending after the bill’s effective date or, in the case of homes that are subject to the
manufactured home tax, tax years commencing after that date. The difference in application is
1 R.C. 323.151, 323.152, 4503.064, and 4503.065.
2 R.C. 323.153 and 4503.066.
3 R.C. 323.156 and 4503.068, not in the bill.
P a g e |2 H.B. 378
As Passed by the House
Office of Research and Drafting LSC Legislative Budget Office
accounted for by the fact that manufactured home tax is payable on a current-year basis,
whereas property tax is payable in arrears.4
Tax abatement
The bill establishes a temporary procedure by which a municipal corporation or
community improvement corporation (CIC) that acquired property during certain periods may
apply for a tax exemption for the property and abatement of any unpaid taxes, penalties, and
interest attributable to the property from before the municipality or CIC acquired it.
There are two types of properties covered by the bill. First are those acquired by the
municipality or CIC between certain dates in February 2000, January 2006, January 2008, and
April 2013. Second are parcels that were created by subdividing, between certain dates in
August 2004 and January 2008, an existing parcel that was previously acquired by a
municipality between certain dates in December 1999, March 2002, and January 2008.
The application for exemption and abatement must be filed with the Tax Commissioner
within 12 months after the bill’s 90-day effective date.
Continuing law generally only allows a tax exemption if the property in question is
exempt from taxation on the tax lien date, which is January 1 each year, and all taxes, penalties,
and interest have been paid in full before the property was acquired by the exempt user.5
HISTORY
Action Date
Introduced 01-16-24
Reported, H. Ways & Means 06-10-24
Passed House (90-1) 06-12-24
ANHB0378PH-135/ts
4 Section 3.
5 Section 4; R.C. 5713.08, not in the bill.
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As Passed by the House


Statutes affected:
As Introduced: 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