At last week’s meeting, the school board approved a resolution encouraging the legislature to enhance the Homestead Exemption, which was rolled back in 2013.
The Homestead Exemption allows low-income senior citizens to reduce their property tax bills by shielding some of the market value of their homes from taxation. The exemption, which takes the form of a credit on property tax bills, allows qualifying homeowners to exempt up to $25,000 of the market value of their homes from all local property taxes. For example, through the homestead exemption, a home with a market value of $100,000 is billed as if it is worth $75,000.
Since school districts in Ohio are funded primarily through property tax, with no opportunity for funding growth as inflation impacts costs, operating levies are needed every so many years to ensure school districts have the funds they need to operate. This can be a significant hardship for those on a fixed income. The Homestead Exemption is one way to provide some relief to seniors as they work to make ends meet.