While buying a home is one of the most exciting parts of most people’s lives, you may not feel thrilled about paying property taxes. Established in 1825 to fund public schools, property tax is Ohio’s oldest tax. Many citizens criticize this model because it tends to benefit schools in affluent areas to a greater degree than schools in poorer areas.
To relieve a portion of the tax burden for certain individuals, tax exemptions exist that prevent you from paying taxes on the full market value of your home. If you have concerns about public schools suffering as a result, do not worry. The state fully refunds schools for the money they would receive if you were to pay the tax in full.
We understand how tax exemptions work in Ohio and have helped many of our clients with their property taxes.
The homestead exemption
According to the Ohio Department of Taxation, the homestead exemption exists to help low-income seniors and people who are totally disabled. This exemption results in a credit on your property tax bill and may allow you to avoid tax on up to $25,000 of the market value of your property. Surviving spouses are also entitled to this exemption if the qualifying spouse passes away.
The Current Agricultural Use Value program
To support those who choose to farm commercially, Ohio has a program to help alleviate some of the tax on farmland. If you have been using your land for commercial agriculture for at least three years, you may be eligible for the CAUV program. If you are eligible for the program, you will pay tax on a figure that is usually well below the market value of your land. More information about this topic is available on our webpage.