Posted: 1:00 p.m. Thursday, July 4, 2013
By Matt Sanctis
BUTLER COUNTY —
What the changes mean for you:
Included in the state budget are changes to the homestead exemption that will limit the tax break to residents with a gross income of less than $30,000 annually. The exemption was previously available to all homeowners older than 65 regardless of income, as well as for homeowners who are permanently disabled. It allows qualifying homeowners to exempt $25,000 of the market value of their home from all local property taxes. Residents who already receive the exemption will be continue to receive the tax cut and will not be affected. Typically, the exemption is valued between $300 and $400 a year, according to local auditors.
State legislators are also ending a long-standing practice of paying 12.5 percent of local levy costs for new and replacement levies that pass, beginning in November. Previously, the state provided a 10 percent rollback for all real property that was not intended primarily for business activity, as well as a 2.5 percent rollback for all owner-occupied homes. The rollbacks meant many residents paid about 12.5 percent less for local property tax levies, which the state reimbursed to local governments and schools. The change will affect new and replacement levies beginning with those that pass on Nov. 5 this year. Renewal levies and those levies already on the books will not be affected.