Rep. Richardson’s subbill raises homestead exemption eligibility to $55,000 and splits cost with local governments
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Summary
The House Ways and Means Committee accepted a subbill to House Bill 261 that raises income eligibility for the homestead exemption to $55,000, allows counties to adopt a local homestead exemption, and directs the state to reimburse half the value of any locally adopted exemption (about $12,500 of a $25,000 exemption).
The House Ways and Means Committee on Monday accepted a subbill to House Bill 261 that would raise income eligibility for Ohio’s homestead exemption to $55,000 and authorize counties to adopt a local homestead exemption with the state reimbursing half the locally adopted value.
Representative Rebecca Richardson, who moved the amendment, said the change is aimed at giving seniors immediate relief from rising property-tax bills caused by sharply increasing home values. "Seniors deserve better in their golden years," Richardson said, arguing the measure protects homeowners on fixed incomes and shares the cost between local governments and the state.
The subbill preserves the current $25,000 exemption (adjusted for inflation) and increases the income threshold for eligibility to $55,000. Under the proposal, if a county adopts a local homestead exemption that mirrors the state exemption, the state would reimburse half of that local exemption — approximately $12,500 of a $25,000 exemption, adjusted for inflation — meaning a qualifying homeowner could shield up to $50,000 of home value if the county opts in.
Why it matters: advocates and sponsors said the change responds to rapid growth in parts of the state and mounting tax bills on long-time homeowners. Richardson cited constituents whose home values rose by 70–80 percent, producing substantial tax increases without corresponding income gains.
Committee discussion focused on fiscal tradeoffs. Ranking Member Troy pressed sponsors on the cost to the state, citing the bill’s fiscal note: roughly $92 million in the first year and $182 million in the second year, figures Richardson’s office confirmed during Q&A. Troy also asked why relatively few counties have used the local option created in the operating budget; sponsors said the subbill is intended to incentivize broader adoption by splitting the revenue impact.
Procedural details: Richardson moved to amend HB 261 with subbill L13608803; the amendment was accepted by the committee with no objection and the measure will proceed through the committee’s normal process.
Next steps: the committee recorded this as the first hearing on HB 261; sponsors said they will continue to refine technical details and to coordinate with county budget commissions about how to account for revenue shifts.