To amend sections 319.302, 323.152, 323.153, 323.156, 323.158, 5747.85, and 5747.98 and to enact section 5747.25 of the Revised Code to modify property tax reductions for nonbusiness and owner-occupied property, to authorize a refundable income tax credit for renters, and to name this act the Ohio Homeowner Relief Act
HB881, titled the Ohio Homeowner Relief Act, would revise Ohio’s property tax reduction system for certain nonbusiness and owner-occupied properties and create a new refundable state income tax credit for renters. The bill changes the homestead-style property tax reductions in Chapter 323 by adjusting how reductions are calculated for qualifying homesteads and manufactured or mobile homes, including a phased reduction schedule for residential property intended primarily for residential activity and a separate reduction for farming property. It also preserves and updates existing relief provisions for seniors, disabled persons, disabled veterans, and surviving spouses of disabled veterans and public service officers killed in the line of duty.
The bill would also add a new refundable $600 income tax credit for taxpayers who are tenants during the taxable year, and it would place that credit in the state’s credit ordering rules so it is claimed after most other credits. In addition, HB881 would expand tax-favored homeownership savings accounts by allowing deductions for contributions, interest, and employer contributions tied to eligible home purchase costs, subject to contribution limits and program-period rules. The bill’s effective-date provisions apply the property tax changes to future tax years and the renter credit to taxable years beginning on or after the effective date.
HB881 would amend several sections of the Revised Code governing property tax relief and income tax administration, including sections 319.302, 323.152, 323.153, 323.156, 323.158, 5747.85, and 5747.98, and it would enact new section 5747.25. Its practical effect would be to alter the calculation and administration of property tax reductions for qualifying homesteads and manufactured homes, require county auditors and treasurers to administer the revised exemptions and reimbursements, and authorize counties to adopt additional local partial exemptions in some cases. It would also create a new refundable renter credit and expand deductions related to homeownership savings accounts, affecting taxpayers, landlords indirectly through tenant relief, and county and state tax administration.
Because the bill was introduced and referred to the House Ways and Means Committee with no recorded votes or committee testimony in the provided materials, there is no formal voting record to gauge support or opposition. The bill’s title and structure suggest a generally pro-relief, pro-homeownership policy approach, aimed at reducing housing-related tax burdens for homeowners and renters alike. The available context does not show organized public sentiment, but the measure appears designed to appeal to taxpayers facing rising housing costs.
The main policy tension in HB881 is fiscal: it would reduce property tax collections for qualifying residential and farming property while also creating a refundable renter credit, which could affect state and local revenues. Another point of potential contention is distributional fairness, since the bill provides direct relief to homeowners and renters but may shift the burden to other taxpayers or local governments if revenue is not replaced. The phased reduction for residential property, the new renter credit, and the expanded homeownership savings account deductions could also prompt debate over whether the bill is broad-based relief or targeted assistance, but no specific objections or amendments are recorded in the provided context.