The Property Tax Refund Act aims to provide financial relief to homeowners and renters by offering a refundable income tax credit or rebate for those whose property taxes or a portion of their rent exceed five percent of their income. The bill amends sections 5747.08 and 5747.98 of the Revised Code and enacts a new section, 5747.87, which outlines eligibility criteria and definitions such as "eligible claimant," "gross rent," and "qualifying homestead." These definitions clarify the conditions under which individuals can apply for the credit based on their residency and income levels, thereby targeting support to low- and moderate-income households.

In addition to establishing the credit, the bill introduces provisions for calculating the credit or rebate based on total household resources, with specific income tier limits. It defines terms like "property tax due," "rent-equivalent tax paid," and outlines the calculation methods for determining eligibility. The act also includes a list of income sources exempt from total household resources, such as lottery winnings and certain government payments, and specifies that only one eligible claimant per homestead can receive the credit. Furthermore, it streamlines the claiming process by repealing existing sections of the Revised Code that are replaced by the new provisions, ensuring that the legislation remains relevant and effective in providing tax relief.

Statutes affected:
As Introduced: 5747.08, 5747.98