Authorize tax credit or rebate for certain homeowners, renters
Legislative Analysis Report Authorize tax credit or rebate for certain homeowners, renters
1. Primary Purpose of the Bill
This bill intends to establish a refundable income tax credit or rebate for Ohio homeowners and renters whose property taxes or rent-equivalent taxes (calculated as 15% of rent) exceed 5% of their total household income. The program aims to provide financial relief to low- and middle-income residents burdened by high housing costs relative to their earnings.
TaxationHousing
2. Changes to Existing Law
ORC Sec. 5747.08 Adds the new property tax and rent-equivalent tax credit to the list of credits that can be claimed on individual income tax returns.
ORC Sec. 5747.87 Enacts a new section to establish the refundable property tax and rent-equivalent tax credit or rebate program, defining eligibility, calculation methods, limits, and inflation adjustments.
ORC Sec. 5747.98 Updates the statutory order in which taxpayers must claim income tax credits to include this new refundable property tax or rent-equivalent tax credit.
3. Key Information for Citizens
🗳️ What You Need to Know
- Homeowners can receive a tax credit or rebate if their property taxes exceed 5% of their total household income.
- Renters can receive a tax credit or rebate if 15% of their gross rent exceeds 5% of their total household income.
- To qualify, you must have lived in your home or rental unit for at least six months of the year, and your total household resources must not exceed $60,000 (adjusted annually for inflation).
- The credit or rebate is capped at $1,000 for the first year, with the cap adjusted for inflation in future years.
- Only one person per household can claim the credit or rebate.
- People who do not normally file state income tax returns can still apply for the rebate using a special form provided by the state.
4. Entities Affected
- Ohio homeowners with household incomes under $60,000
- Ohio renters with household incomes under $60,000
- Ohio Department of Taxation
5. Regulatory Impact & Enforcement
Agency Authority: The Ohio Tax Commissioner is authorized to prescribe application forms, adopt administrative rules, calculate annual inflation adjustments for income and credit limits, and publish annual home value and rent limits.
Penalties & Mandates: If a taxpayer receives a credit or rebate based on property taxes that turn out to be different from what they actually paid, they must report the difference on their next tax return and adjust their credit or pay back the difference.
Implementation Timeline: Applies to claim years ending on or after the effective date of the bill.
6. Estimated Fiscal Impact
State Revenue Impact
Not applicable
Local Government Impact
Not applicable
Implementation Costs
Not applicable
Net Annual Fiscal Effect
Not applicable
Policy doesn’t happen in a vacuum. Meet the representatives and senators who introduced this bill and are pushing it through the chamber. Click on any sponsor to see their district, party affiliation, and what other legislation they’ve championed this session.
Primary Sponsors
Louis W. Blessing, III
District
8
Chamber
Senate
Party
Republican
Hearcel F. Craig
District
15
Chamber
Senate
Party
Democrat
Co-Sponsors
Related Topics
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Education
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Elections & Voting
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Taxation & Finance
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Healthcare
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Transportation
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Business & Commerce
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Labor & Employment
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Agriculture
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Local Government
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Rent & Housing
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Family & Childcare Services
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Status Changes
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Governor |
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Referred to committee
Jan 29 2025
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Documents
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