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HB 881

Enact the Ohio Homeowner Relief Act

136th Legislature (2025-2026) Introduced by Sean Brennan and 6 co-sponsors

HB 881 broadens property tax relief for homeowners and adds a refundable $600 renter credit, while streamlining exemptions and consolidating relief provisions.

Referred to committee
#housingandrealproperty #landlordsandtenants #taxation
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Bill Summary · HB 881

Overview

House Bill 881 (HB 881) from the 136th Ohio General Assembly, sponsored by Representative Glassburn with multiple co-sponsors, proposes the Ohio Homeowner Relief Act. The measure aims to modify property tax reductions for nonbusiness and owner-occupied property, authorize a refundable renter income tax credit, and reorganize several tax relief provisions. It consolidates and updates several existing tax relief sections and creates a refundable renter credit (5747.25).

Main purpose and intent

  • Provide targeted property tax relief for homeowners and renters.
  • Streamline and codify partial exemptions and reductions for specific classes of property.
  • Introduce a refundable renter credit to improve relief for tenants.
  • Reposition and consolidate various tax credit administration provisions to improve administration and consistency.

Key provisions and changes

  • Real property tax reductions for nonbusiness and owner-occupied property:
    • Section 319.302 amendments create a framework for partial exemptions based on property use (farming vs. residential activity) and set the reduction percentages (ten percent for farming, seven-and-a-half percent for residential in the first year, with a two-and-a-half percentage-point cumulative reduction in each of the next two years; zero percent thereafter).
    • The reductions apply to qualifying parcels and manufactured/mobile homes, with rules guiding how reductions affect tax levies and debt charges. The reduction is designed to be budget-neutral with respect to debt and levy calculations and can be adjusted to ensure adequate debt payments.
    • County auditors must review parcels annually (as of January 1) to determine eligibility; tax commissioners can adopt implementing rules.
  • Expanded and adjusted homeowner relief via existing exemptions (323.152, 323.153, 323.156, 323.158):
    • Additional reductions for certain homeowners: permanently disabled, elderly (65+), surviving spouses of those who were disabled or elderly, disabled veterans, and surviving spouses of public service officers killed in the line of duty.
    • Reductions are calculated using a formula tied to true value, assessment percentage, effective tax rate, and remaining reduction after other reductions; annual adjustments are tied to GDP deflator and per-year thresholds.
    • New eligibility and documentation requirements (medical/agency verification) accompany disability-based reductions.
    • Disabled veteran and public service officer survivor provisions provide fixed-value multipliers and are treated as in-lieu of other exemptions.
  • Partial exemptions for homesteads and manufactured homes:
    • Board of county commissioners can authorize additional partial exemptions (up to 2.5% of taxes after applying 319.301), with timing rules for when the exemption first applies.
    • A separate stream (Section 323.158) allows specific counties with certain conditions to grant a fixed percentage reduction (and subsequent annual adjustments) as an additional relief layer.
    • Provisions cover how exemptions are distributed to taxing districts and how they interact with debt payments.
  • 5747.25 – Refundable renter credit:
    • Creates a refundable tax credit of $600 for tenants against the Ohio individual income tax liability, payable in the order specified by the Department of Taxation (5747.98).
    • If the credit exceeds the tax due, the excess is refunded.
  • Administrative and order-of-credit provisions:
    • 5747.98 sets the statutory order in which credits are applied to compute net tax liability, ensuring the renter credit or other credits are applied in a defined sequence.
  • Repeals and effective dates:
    • Repeals several existing sections and aligns effective dates for amended real property tax reductions and the new renter credit (taxable years beginning after the effective date).

Who is affected

  • Homeowners and homesteads (including veterans, disabled individuals, elderly, and surviving spouses) receive adjusted or enhanced reductions.
  • Renters eligible for a new refundable Ohio renter credit.
  • County auditors, county treasurers, and the Tax Commissioner, due to administrative changes and reporting requirements.
  • Local taxing districts, which receive redistributed revenue from tax reductions via certified adjustments.

Procedural and timeline aspects

  • Tax-year and assessment-year alignment: reductions depend on tax year timing and January 1 parcel reviews.
  • Annual GDP deflator-based adjustments occur each September for income thresholds and reductions.
  • County-specific resolutions and board actions govern the approval and timing of partial exemptions.
  • Implementation provisions specify dates for when sections apply (tax years after the effective date) and transition rules for manufactured homes.

Overall, HB 881 aims to broaden and structure property tax relief and introduce a renter-focused refundable credit, with careful attention to administration, debt service impact, and annual updates.

Compiled from official sources — confirm details with the bill’s official record.

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