| Summer 2007 |
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TaxAdvisor
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Expanded Homestead Exemption
On June 30, 2007, the Governor signed into law House Bill 119. Little noted
at the time, the Bill includes an expansion of the Homestead Exemption. In the
past, those age 65 and over or disabled were allowed an exemption (reduction) on
their real property tax bills if their gross income did not exceed $26,200. The
expanded exemption allows those of any income level an exemption.
The Expanded Homestead Exemption allows senior citizens and
permanently disabled Ohioans to exempt $25,000 of the market value of their home
from all local property taxes. For example, if your home is worth $100,000 it
would be taxed as if it were worth only $75,000. Real property is taxed on 35%
of its value so only $8,750 is truly exempt from tax. Depending on property tax
rates, rollbacks, and reductions in your home jurisdiction the actual tax saved
will vary but, should be around $400. This exemption is limited to the
'homestead' which is defined by Ohio law as "an owner's dwelling and up to one
acre of land."
The Homestead Exemption starts with tax bills payable in 2008. The following
are eligible for the exemption:
- Anyone who is at least 65 years old during 2007. If one of the principal
owners of the property is 65 (or disabled) and that home is that person's
principal residence, the owners spouse does not need to meet the requirements
also.
- Anyone who is totally and permanently disabled as of January 1, 2007 as
certified by a licensed physician or psychologist, or a state or federal
agency.
- Anyone who is the surviving spouse of a person who was receiving the
previous Homestead Exemption at the time of death and where the surviving
spouse was at least 59 years old on the date of death.
To qualify, an Ohio resident also must own and occupy a home as their
principal place of residence as of January 1, 2007 for real property. For
individuals who own more than one home, the principal place of residence is the
home where the person is registered to vote and the person's place of residence
for income tax purposes.
The application form DTE 105A-Temporary must be completed and filed with your
local county auditor. If you are a Summit County resident, we have attached the
application form for your convenience. If you do not reside in Summit County,
the application form is available from the county auditor's office or from the
Ohio Department of Taxation's website (tax.ohio.gov).
Applications for the new Homestead Exemption must be received by the
auditor's office no later than October 1, 2007. If you miss the deadline you may
still apply starting January 8th, 2008 for exemption on the bills payable in
2008. Currently, the application cannot be filed electronically but, that may
eventually change.
If you would like us to fill out the exemption application for you or have
any questions, please feel free to contact one of our tax professionals for
assistance.
If you have any questions or would like additional information regarding this
Client Advisor, please contact your engagement Partner/Manager or contact
Michael Hydell at 330-762-9785 or email him at
michael@bobermarkey.com.
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