I am asked on "How does that homestead exemption work" on a regular basis. Twice in the last 3 days buyers in Lorain County, Ohio asked me if they would qualify. Here is the info copied and pasted from the Lorain County Auditor's website.
To go directly to the website visit:
The Homestead Exemption program allows qualifying Lorain County residents to shield some of the market value of their home from taxation. The Exemption, which takes the form of a credit on property tax bills, allows qualifying homeowners a homestead reduction in taxes equal to the taxes on $25,000 of the county auditor’s market value of their home from all local property taxes. For example, through the Homestead Exemption, a home with a county auditor’s market value of $100,000 would be billed as if it is valued at $75,000. The tax savings vary by taxing district, but is typically $400-$450 annually.
Under the Disabled Veteran – Enhanced Exemption, disabled veterans who qualify are entitled to a homestead reduction in taxes equal to the taxes on $50,000 of the auditor’s market value of their home.
Who qualifies for the Homestead Exemption?
- Homeowners over the age of 65
- Homeowners, under the age of 65, who are permanently and totally disabled
- Military veterans with a 100% service-connected disability rating
- Homeowners already receiving the Homestead Exemption, who have recently changed residences
Homeowners over the age of 65:
- Must not have a total household Ohio Adjusted Gross Income over $31,000 per year. (Ohio adjusted gross income includes the owner and the owner's spouse)
- Must be age 65 or older during the year you apply.
- Must own your home or manufactured home as primary place of residence as of January 1 in year of application.
- Must provide proof of age and current residency by submitting a photocopy of photo ID such as driver's license or State of Ohio ID card.
- Must provide a copy of State of Ohio taxes (1040/1040A)
- If you did not file a tax return, an income worksheet must be filed. Click here to dowload DTE 105H
Homestead Exemption Application DTE 105A- Homestead Exemption application form for those over 65 years of age or permanently and totally disabled under age 65. Enrollment dates for new applicants and late filers will be from the first Monday in January thru the first Monday in June.
Homeowners, under the age of 65, who are permanently and totally disabled:
- Must not have a total household Ohio Adjusted Gross Income over $31,000 per year if applying in 2015. (Ohio adjusted gross income includes the owner and the owner's spouse)
- Must be permanently and totally disabled.
- Must own your home or manufactured home as primary place of residence as of January 1 in year of application.
- Must provide proof of current residency by submitting a photocopy of photo ID such as driver's license or State of Ohio ID card.
- Must provide a copy of State of Ohio taxes (1040/1040A).
- Must provide documentation of disability (see application for acceptable forms of documentation). The documentation must include the date you were declared disabled.
Homestead Exemption Application DTE 105E- Homestead Exemption application form for those under 65 years of age, who are permanently and totally disabled. Enrollment dates for new applicants and late filers will be from the first Monday in January thru the first Monday in June.
Military veterans who are evaluated at 100% disability from a service-connected disability
- Must own your home or manufactured home as primary place of residence as of January 1 in year of application.
- Must provide proof of current residency by submitting a photocopy of photo ID such as driver's license or State of Ohio ID card.
- Must submit a letter from the Veteran’s Administration (VA) stating that your Service Connected Disability Rating is 100%. The documentation must include the date you were declared disabled.
Please note, the VA issues two types of disability ratings - A permanent total disability rating for compensation purposes and also a service-connected. Only the rating of the level of service-connected disability can be used to determine eligibility for the enhanced exemption. If you do not qualify under the Veterans Enhanced Exemption, you may still qualify for the traditional Homestead Exemption.
Homestead Exemption Application DTE 105I- Homestead Exemption application form for military veterans evaluated with a 100% disability from a service-connected disability. Enrollment dates for new applicants and late filers will be from the first Monday in January thru the first Monday in June.
Homeowners, already receiving Homestead Exemption, who have recently changed residences:
- Must be currently receiving the Homestead Exemption on a residential property in the state of Ohio.
- If you were enrolled in the Homestead Exemption prior to tax year 2014, you may keep the exemption under the previous guidelines. You will not be subject to a means test if you change residences.
Homestead Exemption addendum for homeowners currently receiving Homestead Exemption, who have recently changed residences. Enrollment dates for new applicants and late filers will be from the first Monday in January thru the first Monday in June.
