Ohio homestead exemption sees changes

VW County Auditor’s information

The new state budget has made significant changes to the Homestead Tax Reduction Law. This real estate tax reduction saves Van Wert County taxpayers between $274.40 and $398.44 per year on their real estate taxes.

Changes include “means” testing for both age-qualified and disability-qualified applicants that will require proof of income before the application is approved for those who have less than $30,500 for 2014 Ohio adjusted gross income (OAGI). The limit will change annually.

There is a “grandfather” clause in the law that is allowing anyone who qualifies for the 2013 tax year to be accepted without income verification. This grandfather status is portable, meaning it follows taxpayers if they should move to another home, even if it is in another county. To fall within this category, taxpayers must either already be receiving the homestead reduction on a property or qualify as a late application by:

Owning and living in a home as of January 1, 2013, and at the time the late application is being filed

Being 65 years of age any time during 2013 or being certified as totally and permanently disabled as of January 1, 2013.

Completing and submitting a late homestead application between January 7 and June 2.

Grandfathered applicants must show proof of age or disability.  If a taxpayer qualifies for a late file application, he or she must file during the 2014 application period or a year’s worth of tax reduction will be lost and income limits will be applied.

If the age, disability, or occupancy requirements are not achieved until 2014, application may be completed and submitted during the same period (January 7-June 2) and with proper proof of age and income. When applying, those filing a 2014 income tax return must present a copy of the signed federal and state returns at the time of the application. Proof of income will be needed for the applicant and applicant’s spouse.  If an income tax return is not filed, a mock return form will be required for income verification.

It is important that those taxpayers who qualify under the grandfather clause be made aware of this and apply properly so as not to lose this reduction. Those who have family members or friends who may fall in this category should share this article with them.