As Introduced
136th General Assembly
Regular Session H. B. No. 40
2025-2026
Representatives Richardson, Dovilla
Cosponsors: Representatives Fischer, Miller, J., Brennan, Robb Blasdel, Hall, T.,
Williams, Lorenz, Deeter, Schmidt, Hiner, Daniels, Thomas, C., Lampton,
Klopfenstein, Willis, Click
A B I L L
To amend sections 323.152 and 4503.065 of the
Revised Code to increase the enhanced homestead
exemption for certain disabled veterans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 323.152 and 4503.065 of the
Revised Code be amended to read as follows:
Sec. 323.152. In addition to the reduction in taxes
required under section 319.302 of the Revised Code, taxes shall
be reduced as provided in divisions (A) and (B) of this section.
(A)(1)(a) Division (A)(1) of this section applies to any
of the following persons:
(i) A person who is permanently and totally disabled;
(ii) A person who is sixty-five years of age or older;
(iii) A person who is the surviving spouse of a deceased
person who was permanently and totally disabled or sixty-five
years of age or older and who applied and qualified for a
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 H. B. No. 40 Page 2
As Introduced
reduction in taxes under this division in the year of death,
provided the surviving spouse is at least fifty-nine but not
sixty-five or more years of age on the date the deceased spouse
dies.
(b) Real property taxes on a homestead owned and occupied,
or a homestead in a housing cooperative occupied, by a person to
whom division (A)(1) of this section applies shall be reduced
for each year for which an application for the reduction has
been approved. The reduction shall equal one of the following
amounts, as applicable to the person:
(i) If the person received a reduction under division (A)
(1) of this section for tax year 2006, the greater of the
reduction for that tax year or the amount computed under
division (A)(1)(c) of this section;
(ii) If the person received, for any homestead, a
reduction under division (A)(1) of this section for tax year
2013 or under division (A) of section 4503.065 of the Revised
Code for tax year 2014 or the person is the surviving spouse of
such a person and the surviving spouse is at least fifty-nine
years of age on the date the deceased spouse dies, the amount
computed under division (A)(1)(c) of this section.
(iii) If the person is not described in division (A)(1)(b)
(i) or (ii) of this section and the person's total income does
not exceed thirty thousand dollars, as adjusted under division
(A)(1)(d) of this section, the amount computed under division
(A)(1)(c) of this section.
(c) The amount of the reduction under division (A)(1)(c)
of this section equals the product of the following:
(i) Twenty-five thousand dollars of the true value of the
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44 H. B. No. 40 Page 3
As Introduced
property in money, as adjusted under division (A)(1)(d) of this
section;
(ii) The assessment percentage established by the tax
commissioner under division (B) of section 5715.01 of the
Revised Code, not to exceed thirty-five per cent;
(iii) The effective tax rate used to calculate the taxes
charged against the property for the current year, where
"effective tax rate" is defined as in section 323.08 of the
Revised Code;
(iv) The quantity equal to one minus the sum of the
percentage reductions in taxes received by the property for the
current tax year under section 319.302 of the Revised Code and
division (B) of section 323.152 of the Revised Code.
(d) The tax commissioner shall adjust the total income
threshold thresholds described in division divisions (A)(1)(b)
(iii) and (A)(2) and the reduction amounts described in
divisions (A)(1)(c)(i), (A)(2), and (A)(3) of this section by
completing the following calculations in September of each year:
(i) Determine the percentage increase in the gross
domestic product deflator determined by the bureau of economic
analysis of the United States department of commerce from the
first day of January of the preceding calendar year to the last
day of December of the preceding calendar year;
(ii) Multiply that percentage increase by the total income
threshold or reduction amount for the current tax year, as
applicable;
(iii) Add the resulting product to the total income
threshold or the reduction amount, as applicable, for the
current tax year;
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73 H. B. No. 40 Page 4
As Introduced
(iv) Round the resulting sum to the nearest multiple of
one hundred dollars.
The commissioner shall certify the amount resulting from
each adjustment to each county auditor not later than the first
day of December each year. The certified total income threshold
amount applies amounts apply to the following tax year for
persons described in division (A)(1)(b)(iii) or (A)(2) of this
section. The certified reduction amount applies to the following
tax year. The commissioner shall not make the applicable
adjustment in any calendar year in which the amount resulting
from the adjustment would be less than the total income
threshold or the reduction amount for the current tax year.
(2)(a) Real property taxes on a homestead owned and
occupied, or a homestead in a housing cooperative occupied, by a
disabled veteran shall be reduced for each year for which an
application for the reduction has been approved. The For a
disabled veteran whose total income exceeds one hundred twenty-
five thousand dollars, as adjusted under division (A)(1)(d) of
this section, the reduction shall equal the product obtained by
multiplying fifty thousand dollars of the true value of the
property in money, as adjusted under division (A)(1)(d) of this
section, by the amounts described in divisions (A)(1)(c)(ii) to
(iv) of this section. For a disabled veteran whose total income
does not exceed one hundred twenty-five thousand dollars, as
adjusted under division (A)(1)(d) of this section, the reduction
shall equal the product obtained by multiplying one hundred
thousand dollars of the true value of the property in money, as
adjusted under division (A)(1)(d) of this section, by the
amounts described in divisions (A)(1)(c)(ii) to (iv) of this
section. The reduction is in lieu of any reduction under section
323.158 of the Revised Code or division (A)(1), (2)(b), or (3)
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104 H. B. No. 40 Page 5
As Introduced
of this section. The reduction applies to only one homestead
owned and occupied by a disabled veteran.
(b) Real property taxes on a homestead owned and occupied,
or a homestead in a housing cooperative occupied, by the
surviving spouse of a disabled veteran shall be reduced for each
year an application for exemption is approved. The reduction
shall equal to the amount of the reduction authorized under
division (A)(2)(a) of this section , except that the amount shall
be determined based on the total income of the surviving spouse .
The reduction is in lieu of any reduction under section
323.158 of the Revised Code or division (A)(1), (2)(a), or (3)
of this section. The reduction applies to only one homestead
owned and occupied by the surviving spouse of a disabled
veteran. A homestead qualifies for a reduction in taxes under
division (A)(2)(b) of this section beginning in one of the
following tax years:
(i) For a surviving spouse described in division (L)(1) of
section 323.151 of the Revised Code, the year the disabled
veteran dies;
(ii) For a surviving spouse described in division (L)(2)
of section 323.151 of the Revised Code, the first year on the
first day of January of which the total disability rating
described in division (F) of that section has been received for
the deceased spouse.
In either case, the reduction shall continue through the
tax year in which the surviving spouse dies or remarries.
(3) Real property taxes on a homestead owned and occupied,
or a homestead in a housing cooperative occupied, by the
surviving spouse of a public service officer killed in the line
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133 H. B. No. 40 Page 6
As Introduced
of duty shall be reduced for each year for which an application
for the reduction has been approved. The reduction shall equal
the product obtained by multiplying fifty thousand dollars of
the true value of the property in money, as adjusted under
division (A)(1)(d) of this section, by the amounts described in
divisions (A)(1)(c)(ii) to (iv) of this section. The reduction
is in lieu of any reduction under section 323.158 of the Revised
Code or division (A)(1) or (2) of this section. The reduction
applies to only one homestead owned and occupied by such a
surviving spouse. A homestead qualifies for a reduction in taxes
under division (A)(3) of this section for the tax year in which
the public service officer dies through the tax year in which
the surviving spouse dies or remarries.
(B) To provide a partial exemption, real property taxes on
any homestead, and manufactured home taxes on any manufactured
or mobile home on which a manufactured home tax is assessed
pursuant to division (D)(2) of section 4503.06 of the Revised
Code, shall be reduced for each year for which an application
for the reduction has been approved. The amount of the reduction
shall equal two and one-half per cent of the amount of taxes to
be levied by qualifying levies on the homestead or the
manufactured or mobile home after applying section 319.301 of
the Revised Code. For the purposes of this division, "qualifying
levy" has the same meaning as in section 319.302 of the Revised
Code.
(C) The reductions granted by this section do not apply to
special assessments or respread of assessments levied against
the homestead, and if there is a transfer of ownership
subsequent to the filing of an application for a reduction in
taxes, such reductions are not forfeited for such year by virtue
of such transfer.
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164 H. B. No. 40 Page 7
As Introduced
(D) The reductions in taxable value referred to in this
section shall be applied solely as a factor for the purpose of
computing the reduction of taxes under this section and shall
not affect the total value of property in any subdivision or
taxing district as listed and assessed for taxation on the tax
lists and duplicates, or any direct or indirect limitations on
indebtedness of a subdivision or taxing district. If after
application of sections 5705.31 and 5705.32 of the Revised Code,
including the allocation of all levies within the ten-mill
limitation to debt charges to the extent therein provided, there
would be insufficient funds for payment of debt charges not
provided for by levies in excess of the ten-mill limitation, the
reduction of taxes provided for in sections 323.151 to 323.159
of the Revised Code shall be proportionately adjusted to the
extent necessary to provide such funds from levies within the
ten-mill limitation.
(E) No reduction shall be made on the taxes due on the
homestead of any person convicted of violating division (D) or
(E) of section 323.153 of the Revised Code for a period of three
years following the conviction.
Sec. 4503.065. (A)(1) Division (A) of this section applies
to any of the following persons:
(a) An individual who is permanently and totally disabled;
(b) An individual who is sixty-five years of age or older;
(c) An individual who is the surviving spouse of a
deceased person who was permanently and totally disabled or
sixty-five years of age or older and who applied and qualified
for a reduction in assessable value under this section in the
year of death, provided the surviving spouse is at least fifty-
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193 H. B. No. 40 Page 8
As Introduced
nine but not sixty-five or more years of age on the date the
deceased spouse dies.
(2) The manufactured home tax on a manufactured or mobile
home that is paid pursuant to division (C) of section 4503.06 of
the Revised Code and that is owned and occupied as a home by an
individual whose domicile is in this state and to whom this
section applies, shall be reduced for any tax year for which an
application for such reduction has been approved, provided the
individual did not acquire ownership from a person, other than
the individual's spouse, related by consanguinity or affinity
for the purpose of qualifying for the reduction. An owner
includes a settlor of a revocable or irrevocable inter vivos
trust holding the title to a manufactured or mobile home
occupied by the settlor as of right under the trust.
(a) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(2) of that section, the reduction shall equal one
of the following amounts, as applicable to the person:
(i) If the person received a reduction under this section
for tax year 2007, the greater of the reduction for that tax
year or the amount computed under division (A)(2)(b) of this
section;
(ii) If the person received, for any homestead, a
reduction under division (A) of this section for tax year 2014
or under division (A)(1) of section 323.152 of the Revised Code
for tax year 2013 or the person is the surviving spouse of such
a person and the surviving spouse is at least fifty-nine years
of age on the date the deceased spouse dies, the amount computed
under division (A)(2)(b) of this section.
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222 H. B. No. 40 Page 9
As Introduced
(iii) If the person is not described in division (A)(2)(a)
(i) or (ii) of this section and the person's total income does
not exceed thirty thousand dollars, as adjusted under division
(A)(2)(e) of this section, the amount computed under division
(A)(2)(b) of this section.
(b) The amount of the reduction under division (A)(2)(b)
of this section equals the product of the following:
(i) Twenty-five thousand dollars of the true value of the
property in money, as adjusted under division (A)(2)(e) of this
section;
(ii) The assessment percentage established by the tax
commissioner under division (B) of section 5715.01 of the
Revised Code, not to exceed thirty-five per cent;
(iii) The effective tax rate used to calculate the taxes
charged against the property for the current year, where
"effective tax rate" is defined as in section 323.08 of the
Revised Code;
(iv) The quantity equal to one minus the sum of the
percentage reductions in taxes received by the property for the
current tax year under section 319.302 of the Revised Code and
division (B) of section 323.152 of the Revised Code.
(c) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(1) of that section, the reduction shall equal one
of the following amounts, as applicable to the person:
(i) If the person received a reduction under this section
for tax year 2007, the greater of the reduction for that tax
year or the amount computed under division (A)(2)(d) of this
section;
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251 H. B. No. 40 Page 10
As Introduced
(ii) If the person received, for any homestead, a
reduction under division (A) of this section for tax year 2014
or under division (A)(1) of section 323.152 of the Revised Code
for tax year 2013 or the person is the surviving spouse of such
a person and the surviving spouse is at least fifty-nine years
of age on the date the deceased spouse dies, the amount computed
under division (A)(2)(d) of this section.
(iii) If the person is not described in division (A)(2)(c)
(i) or (ii) of this section and the person's total income does
not exceed thirty thousand dollars, as adjusted under division
(A)(2)(e) of this section, the amount computed under division
(A)(2)(d) of this section.
(d) The amount of the reduction under division (A)(2)(d)
of this section equals the product of the following:
(i) Twenty-five thousand dollars of the cost to the owner,
or the market value at the time of purchase, whichever is
greater, as those terms are used in division (D)(1) of section
4503.06 of the Revised Code, and as adjusted under division (A)
(2)(e) of this section;
(ii) The percentage from the appropriate schedule in
division (D)(1)(b) of section 4503.06 of the Revised Code;
(iii) The assessment percentage of forty per cent used in
division (D)(1)(b) of section 4503.06 of the Revised Code;
(iv) The tax rate of the taxing district in which the home
has its situs.
(e) The tax commissioner shall adjust the income threshold
described in divisions (A)(2)(a)(iii) and , (A)(2)(c)(iii), and
(B)(1) and the reduction amounts described in divisions (A)(2)
(b)(i), (A)(2)(d)(i), (B)(1), (B)(2), (C)(1), and (C)(2) of this
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280 H. B. No. 40 Page 11
As Introduced
section by completing the following calculations in September of
each year:
(i) Determine the percentage increase in the gross
domestic product deflator determined by the bureau of economic
analysis of the United States department of commerce from the
first day of January of the preceding calendar year to the last
day of December of the preceding calendar year;
(ii) Multiply that percentage increase by the total income
threshold or reduction amount for the ensuing tax year, as
applicable;
(iii) Add the resulting product to the total income
threshold or reduction amount, as applicable for the ensuing tax
year;
(iv) Round the resulting sum to the nearest multiple of
one hundred dollars.
The commissioner shall certify the amount resulting from
each adjustment to each county auditor not later than the first
day of December each year. The certified amount applies to the
second ensuing tax year. The commissioner shall not make the
applicable adjustment in any calendar year in which the amount
resulting from the adjustment would be less than the total
income threshold or the reduction amount for the ensuing tax
year.
(B)(1) The manufactured home tax levied pursuant to
division (C) of section 4503.06 of the Revised Code on a
manufactured or mobile home that is owned and occupied by a
disabled veteran shall be reduced for any tax year for which an
application for such reduction has been approved, provided the
disabled veteran did not acquire ownership from a person, other
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309 H. B. No. 40 Page 12
As Introduced
than the disabled veteran's spouse, related by consanguinity or
affinity for the purpose of qualifying for the reduction. An
owner includes an owner within the meaning of division (A)(2) of
this section.
For an owner whose total income does not exceed one
hundred twenty-five thousand dollars, as adjusted under division
(A)(2)(e) of this section, the reduction amount shall equal one
hundred thousand dollars, as adjusted under division (A)(2)(e)
of this section. For an owner whose total income exceeds one
hundred twenty-five thousand dollars, as adjusted under division
(A)(2)(e) of this section, the reduction amount shall equal
fifty thousand dollars, as adjusted under division (A)(2)(e) of
this section. The reduction shall be calculated as follows:
(a) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(2) of that section, the reduction shall equal the
product obtained by multiplying fifty thousand dollars the
applicable reduction amount of the true value of the property in
money, as adjusted under division (A)(2)(e) of this section, by
the amounts described in divisions (A)(2)(b)(ii) to (iv) of this
section.
(b) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(1) of that section, the reduction shall equal the
product obtained by multiplying fifty thousand dollars the
applicable reduction amount of the cost to the owner, or the
market value at the time of purchase, whichever is greater, as
those terms are used in division (D)(1) of section 4503.06 of
the Revised Code, as adjusted under division (A)(2)(e) of this
section, by the amounts described in divisions (A)(2)(d)(ii) to
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339 H. B. No. 40 Page 13
As Introduced
(iv) of this section.
The reduction is in lieu of any reduction under section
4503.0610 of the Revised Code or division (A), (B)(2), or (C) of
this section. The reduction applies to only one manufactured or
mobile home owned and occupied by a disabled veteran.
(2) The manufactured home tax levied pursuant to division
(C) of section 4503.06 of the Revised Code on a manufactured or
mobile home that is owned and occupied by the surviving spouse
of a disabled veteran shall be reduced for each tax year for
which an application for such reduction has been approved. The
reduction shall equal the amount of the reduction authorized
under division (B)(1)(a) or (b) of this section, as applicable ,
except that the amount shall be determined based on the total
income of the surviving spouse . An owner includes an owner
within the meaning of division (A)(2) of this section.
The reduction is in lieu of any reduction under section
4503.0610 of the Revised Code or division (A), (B)(1), or (C) of
this section. The reduction applies to only one manufactured or
mobile home owned and occupied by the surviving spouse of a
disabled veteran. A manufactured or mobile home qualifies for a
reduction in taxes under division (B)(2) of this section
beginning in one of the following tax years:
(a) For a surviving spouse described in division (H)(1) of
section 4503.064 of the Revised Code, the year the disabled
veteran dies;
(b) For a surviving spouse described in division (H)(2) of
section 4503.064 of the Revised Code, the first year on the
first day of January of which the total disability rating
described in division (F) of section 323.151 of the Revised Code
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368 H. B. No. 40 Page 14
As Introduced
has been received for the deceased spouse.
In either case, the reduction shall continue through the
tax year in which the surviving spouse dies or remarries.
(C) The manufactured home tax levied pursuant to division
(C) of section 4503.06 of the Revised Code on a manufactured or
mobile home that is owned and occupied by the surviving spouse
of a public service officer killed in the line of duty shall be
reduced for any tax year for which an application for such
reduction has been approved, provided the surviving spouse did
not acquire ownership from a person, other than the surviving
spouse's deceased public service officer spouse, related by
consanguinity or affinity for the purpose of qualifying for the
reduction. An owner includes an owner within the meaning of
division (A)(2) of this section.
(1) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(2) of that section, the reduction shall equal the
product obtained by multiplying fifty thousand dollars of the
true value of the property in money, as adjusted under division
(A)(2)(e) of this section, by the amounts described in divisions
(A)(2)(b)(ii) to (iv) of this section.
(2) For manufactured and mobile homes for which the tax
imposed by section 4503.06 of the Revised Code is computed under
division (D)(1) of that section, the reduction shall equal the
product obtained by multiplying fifty thousand dollars of the
cost to the owner, or the market value at the time of purchase,
whichever is greater, as those terms are used in division (D)(1)
of section 4503.06 of the Revised Code, as adjusted under
division (A)(2)(e) of this section, by the amounts described in
divisions (A)(2)(d)(ii) to (iv) of this section.
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398 H. B. No. 40 Page 15
As Introduced
The reduction is in lieu of any reduction under section
4503.0610 of the Revised Code or division (A) or (B) of this
section. The reduction applies to only one manufactured or
mobile home owned and occupied by such a surviving spouse. A
manufactured or mobile home qualifies for a reduction in taxes
under this division for the tax year in which the public service
officer dies through the tax year in which the surviving spouse
dies or remarries.
(D) If the owner or the spouse of the owner of a
manufactured or mobile home is eligible for a homestead
exemption on the land upon which the home is located, the
reduction to which the owner or spouse is entitled under this
section shall not exceed the difference between the reduction to
which the owner or spouse is entitled under division (A), (B),
or (C) of this section and the amount of the reduction under the
homestead exemption.
(E) No reduction shall be made with respect to the home of
any person convicted of violating division (C) or (D) of section
4503.066 of the Revised Code for a period of three years
following the conviction.
Section 2. That existing sections 323.152 and 4503.065 of
the Revised Code are hereby repealed.
Section 3. The amendment by this act of section 323.152 of
the Revised Code applies to tax year 2025 and every tax year
thereafter. The amendment by this act of section 4503.065 of the
Revised Code applies to tax year 2026 and every tax year
thereafter.
Section 4. The General Assembly, applying the principle
stated in division (B) of section 1.52 of the Revised Code that
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427 H. B. No. 40 Page 16
As Introduced
amendments are to be harmonized if reasonably capable of
simultaneous operation, finds that the following sections,
presented in this act as composites of the sections as amended
by the acts indicated, are the resulting versions of the
sections in effect prior to the effective date of the sections
as presented in this act:
Section 323.152 of the Revised Code amended by both H.B.
33 and S.B. 43 of the 135th General Assembly.
Section 4503.065 of the Revised Code amended by both H.B.
33 and S.B. 43 of the 135th General Assembly.
428
429
430
431
432
433
434
435
436
437