The Property Tax Refund Act seeks to provide financial relief to homeowners and renters whose property taxes or a portion of their rent exceed five percent of their income by establishing a refundable income tax credit or rebate. The bill amends sections 5747.08 and 5747.98 of the Revised Code and introduces a new section, 5747.87, which outlines eligibility criteria and definitions for the credit. Key definitions include "eligible claimant," who must occupy a homestead for at least six months and meet specific income thresholds, and "qualifying homestead," which refers to dwellings not fully exempt from property taxation.

In addition to the new credit for property taxes or rent-equivalent taxes, the bill expands the definition of "total household resources" to include lottery winnings, government payments, and various insurance benefits. It establishes a maximum household resource limit of $100,000 for eligibility and specifies the order in which taxpayers must claim credits against their aggregate tax liability. The act aims to alleviate the financial burden on low- to moderate-income households by adjusting credit or rebate limits annually based on economic indicators, thereby enhancing support for those facing high property tax burdens.

Statutes affected:
As Introduced: 5747.08, 5747.98