MOUNT VERNON — Low-income seniors will see some property tax relief when they get their tax assessment next year. However, relief for seniors means county agencies will receive less funding.
Ohio House Bill 96, the state’s operating budget for Fiscal Years 2026 and 2027, allows county Boards of Commissioners to create a homestead exemption at the county level.
The county commissioners voted on Thursday to create that exemption.
State Homestead Exemptions Qualifications
Standard exemption:
•Homeowners who are 65 years of age and older or who are totally and permanently disabled.
•Household income less than $40,000.
•Individuals who received the homestead exemption before 2014 do not have to meet the income requirement.
Enhanced exemption:
•Military veterans who are totally disabled.
•Homes of spouses of first responders who died in the line of duty.
•No income requirement.
“Everyone’s been talking about how we can give relief to those seniors who own their properties and who are struggling to pay those taxes, which would be those that are struggling with their income,” Commissioner Bill Pursel said. “I believe all three of us [commissioners] are expressing that concern. That’s why we wanted to be able to do this.”
The county exemption “piggybacks” onto the state exemption. For example, if the state exemption is $80, qualified property owners would receive an additional $80 exemption from the county.
“In essence, we would double what the state does,” Pursel said.
The homestead exemption reduces the taxable (assessed) value of one’s property by a set amount. There are two types of state homestead exemptions for qualifying individuals: standard and enhanced.
For FY 2026, the standard exemption is $28,000 in taxable property value. For enhanced exemptions, the amount is $56,000.
Both amounts are indexed to inflation in future years.
County agencies take a hit
The county homestead exemption takes effect with tax year 2025, so it would be reflected on tax bills that property owners pay in 2026.
Currently, the state reimburses local entities for revenue lost due to the state homestead exemption.
In 2025, Knox County’s reimbursement was $270,679.36.
However, the state will not reimburse counties for revenue lost due to the county exemption. That means local agencies will receive approximately $270,679.36 less in funding in 2026.
The county’s general fund will take the biggest hit, losing $115,008.
Other organizations receiving less money include Knox DD, Knox Public Health, the parks district, senior citizens through the senior levy, children’s services, and the Mental Health and Recovery Board.
Under state law, commissioners have until Oct. 31 to decide whether to offer the piggyback exemption. However, County Auditor Sarah Thorne needs to know by Oct. 24 to meet her tax assessment schedule.
Thursday was the commissioners’ last meeting before Thorne’s deadline.
Pursel said there has been confusion as to what commissioners can do and when it would take effect.
“That’s part of what was going on behind the scenes as to why we really hadn’t done this sooner,” he said.
