Hamilton County officials are considering ways to reduce property taxes through measures recently approved by the state.
House Bill 96 allows counties to provide additional relief to homeowners by doubling two existing state property tax exemptions.
One is the homestead exemption, which applies to people over age 65 or with permanent disabilities making less than $40,000 a year. It reduces the taxable value of their property by $28,000. The other is the owner-occupancy credit, which provides a credit of up to 2.5% on property taxes for homeowners who own and occupy their primary residence.
County Administrator Jeff Aluotto presented to County Commissioners Tuesday about the possible property tax breaks.
He says implementing both would cost the county’s general fund more than $1.5 million a year. Voted levies, like children’s or disability services, would lose a total $5.6 million in revenue annually, and all other taxing jurisdictions, including school districts, would lose about $34 million.
“Any revenue lost due to the current homestead or owner occupancy credit is currently reimbursed by the state. That would not be the case under the piggyback options under House Bill 96,” Aluotto said.
He says that could mean reductions in some county services.
Property tax savings for homeowners would vary depending on taxing jurisdiction, Aluotto says.
A $160,000 home with a current total tax bill of $2,851 would see $670 in additional tax exemption benefit annually through the “piggyback” homestead exemption, plus $46 through the “piggyback” owner occupancy credit.
Aluotto says reducing inside millage, or taxes that don’t require residents’ votes, is another possibility for providing property tax relief.
Commissioners have until Oct. 31 to take action on these property tax relief measures for the 2025 tax year.
Commissioners disagree on how to provide relief
While Hamilton County Commissioners agree they want to provide property tax relief for residents, they haven't come to a conclusion on how that should be done.
Commission President Denise Driehaus says she worries about the cost of expanding existing exemptions for the county.
“We don't act in a vacuum here,” Driehaus said. “I'm very frustrated because I want to do something. But were we to do this as a county, the impacts go way, way down through all of these other jurisdictions that have levies, to the tune of over $34 million, and then our own levies.”
Driehaus says she thinks it's the state's responsibility to take action.
Commissioner Alicia Reece says she agrees the state should be held accountable, but she wants the county to provide relief to homeowners in the meantime. She says she’s open to doubling the homestead exemption and reducing inside millage.
"We definitely have to do something — there's no doubt about that," said Commission Vice President Stephanie Summerow Dumas, adding she would like to see relief for all property owners, not just certain groups like seniors.
Butler County Commissioners approved two property tax reduction measures last month: reducing inside millage and doubling the homestead exemption.
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