The bill amends sections 323.152 and 4503.065 of the Revised Code to revise the calculation and eligibility criteria for the homestead exemption in Ohio. It changes the income threshold for eligibility from "thirty thousand dollars" to the "ninetieth percentile of household modified adjusted gross income of all Ohio residents." The method for calculating tax reductions is also updated, moving from a fixed dollar amount to a percentage of the taxable property value based on the applicant's income percentile. A new table is introduced to determine exemption percentages, ranging from 20% for those at or below 50% of the income threshold to 4% for those at or below 90%.

Additionally, the bill requires the tax commissioner to adjust reduction amounts annually based on the gross domestic product deflator, ensuring that these reductions remain aligned with economic changes. It clarifies that the reductions apply to various individuals, including disabled veterans and surviving spouses of public service officers killed in the line of duty, while explicitly stating that these reductions do not apply to special assessments or respread assessments against the homestead. The bill also introduces a new income percentile-based reduction system for tax reductions related to manufactured and mobile homes, replacing the previous fixed dollar amount with a percentage of the home's cost or market value, and repeals redundant sections of the Revised Code. These changes will take effect for tax years ending on or after the bill's effective date.

Statutes affected:
As Introduced: 323.152, 4503.065