CLEVELAND, Ohio — This year, only a small number of Ohio’s 88 counties chose to implement the state’s new “piggyback” property tax credits designed to help alleviate taxpayer strain after a significant rise in home prices during the pandemic.
Counties had until October 31 to decide whether to double the impact of these deductions for homeowners on their 2025 tax bills, which are set to be paid in 2026.
These tax credits have been around at the state level for quite some time, but in June, the state legislature enabled counties to expand these credits for qualifying individuals, such as seniors, those with disabilities, and primary homeowners.
Unlike the traditional versions of these credits, where the state covered the costs to protect funding for schools and health boards, this “piggyback” expansion would not include any backfilling. So, institutions like schools would likely end up with reduced funding.
The Homestead Exemption provides tax relief equivalent to the taxes on a home’s value of $28,000, with a higher threshold of $56,000 for veterans with disabilities. Meanwhile, the Owner Occupancy Credit generally offers a 2.5% property tax reduction for primary residents. With the new “piggyback” option in participating counties, that percentage could increase to 5%.
Most counties opted out of these tax relief measures, mainly because the revenue would benefit schools and other tax-supported entities. However, a few counties did decide to move forward with it.
According to the Ohio County Commissioners Association, the counties that have opted for the expanded homestead exemption include:
Counties that have adopted the expanded homestead exemption:
– Lake County
– Lorain County
– Medina County
– Knox County
– Holmes County
– Miami County
– Erie County
– Butler County
– Pickaway County
Counties that adopted expanded owner occupancy credits:
The following counties have approved the expansion of owner occupancy credits:
– Lake County
– Erie County
– Lorain County
– Richland County
Why some counties opted in and most opted out:
Counties that accepted the measures argued that homeowners urgently needed relief after home valuations soared during the pandemic housing boom. For example, Lake County commissioners reported that their tax bills are “exploding,” while Lorain County officials noted that the changes would help mitigate the impact of the 2023 property reassessment.
On the other hand, counties like Geauga and Cuyahoga opted out, mainly due to concerns about a lack of state reimbursements. In Cuyahoga, officials calculated that the credit could potentially remove around $60 million from local tax revenues. Conversely, Geauga leaders expressed that adopting the credits would compel them to cut taxes and services sooner than they would like.
