West Hamilton News

Senator Louis W. Blessing, III has introduced Senate Bill 215 in Columbus, aiming to modify the calculation and eligibility criteria for Ohio's homestead exemption on property taxes. The proposed bill seeks to offer a more flexible approach compared to the current law.

In his statement, Senator Blessing explained the core idea behind SB 215: "Instead of a dollar amount off your valuation, it reduces the taxes you pay by a percentage based on your income." He illustrated that if someone pays $6,000 annually in property taxes and their income is below the median, they would receive a 20% tax break. This percentage decreases as income rises until phasing out at around $104,000.

Senator Blessing pointed out several issues with the existing homestead exemption. "The exemption amount is not correlated well with need or even inflation," he noted. He criticized how it hasn't adjusted for real estate inflation or increased over years of lost value. Furthermore, he mentioned the "cliff effect" where those earning slightly above $40,000 receive no exemption while those earning less get full benefits.

Using an example where property taxes increase to $8,000 per year, Senator Blessing highlighted that under SB 215, benefits would rise proportionally to $1,600. Conversely, if taxes decrease due to economic downturns like a recession, benefits would also adjust downward but remain proportional.

Addressing income eligibility thresholds further, Senator Blessing provided another scenario: an individual making $100,000 annually could see savings of $320 on an $8,000 tax bill. Though this might seem minimal initially, he argued that over time as inflation impacts fixed incomes and property taxes rise, savings could significantly increase.

"This legislation targets those Ohioans who are most vulnerable to property tax spikes: poor and middle-class seniors on fixed incomes who are struggling to stay in their homes," said Senator Blessing. While acknowledging potential changes during legislative discussions, he expressed confidence in the bill's framework being superior to current law.

As of now, Senate Bill 215 awaits assignment to a committee for further hearings.