Opportunity for Ohio to Save Money
Newly elected Ohio Governor Ted Strickland has proposed expanding the state's means-tested homestead exemption by eliminating the exemption's current income limits. This year, the homestead exemption is only available for seniors and the disabled with incomes less than $27,000; the benefit of the exemption decreases as incomes grow closer to $27,000. Governor Strickland's plan would provide a blanket property tax exemption for the first $25,000 of a property's market value for elderly and disabled homeowners at all income levels. This week, Policy Matters Ohio and the Institute on Taxation and Economic Policy teamed up to analyze the impact of the Governor's proposal and also to offer less expensive alternatives that provide targeted tax relief - instead of simply providing an exemption that goes to everyone regardless of their need. By targeting property tax relief to select homeowners, Ohio could save $118 million annually. To read the full Policy Matters Ohio report click here.
