Lorain County commissioners double homestead and owner-occupied tax credits, shift millage to shore up general fund

The Lorain County Board of Commissioners voted unanimously Oct. 7 to double the county’s homestead exemption and owner-occupied tax credit and to ask the Lorain County Budget Commission to reallocate inside millage from bond retirement to the general fund.

Commissioner Marty Gallagher said the move is aimed at giving immediate relief to homeowners, particularly seniors and people with disabilities, who have faced sharp increases in property-tax bills following recent reappraisals. "The homestead exemption we are taking today and the owner occupied are targeted," Gallagher said. "They will help certain residents and citizens of Lorain County." Commissioner Dave Moore added the change reflects an effort to provide immediate financial relief while broader state and local discussions continue.

Why it matters: County officials said the measures will reduce tax burdens for qualifying homeowners in 2026 and also shift roughly $2 million in revenue from the county's debt service fund into the general fund to help cover an anticipated budget shortfall for 2026. Commissioners described the moves as legally permitted, temporary adjustments intended to blunt the effect of large valuation increases from recent reappraisals and to buy time while longer-term funding policy is debated at the state level.

What the board approved: The board approved (1) a permissive piggyback action to double the homestead exemption for qualifying seniors and disabled residents and (2) a countywide increase in the owner-occupied credit. Commissioners also asked the county budget commission to change the inside millage split so 1.4 mills flow to the general fund and 0.2 mills to the bond retirement fund, up from the prior 1.2/0.4 split.

Commissioners presented county data backing the change. The board said the county reimburses local taxing entities for homestead credits and that the county and many local entities still see net increases in collections after the change. Commissioners cited a $17.2 million annual homestead/owner-occupied tax credit currently reimbursed by the state and said roughly 19,550 homestead filers qualify under existing rules. Gallagher and Moore emphasized that the owner-occupied credit applies only to owner-occupied homes, not commercial or rental properties.

Board members cautioned the action is not a long-term solution to the property-tax issues arising from recent valuation changes. Commissioner Marty Gallagher noted state-level formulas — including levies repricing and the so-called 20-mill floor — contributed to the recent jump in tax bills and said broader statutory changes would be needed to avoid future large adjustments.

Votes at a glance: The board recorded yea votes from Commissioner Dave Moore, Commissioner Marty Gallagher and Commissioner Jeff Riddell on the homestead and owner-occupied credit resolution and on the inside-millage reallocation request. Other routine agenda votes approved investments, appropriations, transfers, the reading of minutes, adoption of an updated county personnel policy effective Nov. 7, 2025, certain salary and contract items (see "Actions"), and a professional-services agreement for engineering design. One contract for shredding services was withdrawn/held pending coordination with the Solid Waste Department and federal rules.

Implementation and next steps: The county will notify the Lorain County Budget Commission of the requested millage redistribution and advise the county auditor to apply the doubled credits for tax-year 2025 (payable in 2026) if timing and administrative requirements are met. County officials said they expect affected homeowners to see adjustments on 2026 tax bills if the schedule proceeds as described.

The board recessed into executive session at the end of the meeting to discuss personnel and potential litigation; no public votes were taken there.

Ending: Commissioners framed the measures as targeted, legally authorized steps to provide immediate homeowner relief and stabilize the county budget while urging state lawmakers to consider broader reforms to property-tax mechanisms.