Do you want to save an average of $400 each year on residential property tax bills? Well, qualified homeowners, you'll be pleased to know that the Ohio State Legislature has expanded the Homestead Exemption Program. You will now receive an exemption of $25,000 on the appraised value of your home, regardless of your income.

The qualifications for the exemption are any Ohio resident homeowner who

• is at least 65 years old during 2007, or
• is totally and permanently disabled as of January 1, 2007 as certified by a licensed physician or psychologist or a state or federal agency, or
• is the surviving spouse of a person who was receiving the previous Homestead Exemption at the time of death and where the surviving spouse was at least 59 years old on the date of death.

You must be an Ohio resident and own and occupy the home as your principal place of residence as of Jan. 1, 2007 to qualify for the exemption.

Previously, most senior citizens and the disabled were excluded from the Homestead Exemption because of income tests. The new exemption offers eligible homeowners, regardless of income, the opportunity to shield $25,000 of the market value of their home from property taxation.

The new Homestead Exemption starts with tax bills payable in 2008.

The number of households eligible for the Homestead Exemption is expected to grow from 220,000 to an estimated 750,000.

If you were not previously eligible, you must apply with your local county auditor by Oct. 1, 2007 to take advantage of the exemption. Applications postmarked by Oct. 1, 2007 and received after that date will be denied for that year.

Taxpayers who miss the 2007 filing deadline may still claim the credit for property taxes to be paid in 2008, but must wait until 2008 to apply.

Those who miss the deadline will need to file a late application for the missed tax year at the same time they file a timely application in 2008. The first day to file the application in 2008 is Jan. 8, 2008; the last day is June 2, 2008. Once an appliation has been timely filed and approved, no subsequent applications are required in future years.

County auditors will visit senior centers to explain the change in the program. For more information, you can call the Ohio Department of Taxation at (800)282-1780 or visit the department's Web site at http://tax.ohio.gov/and click on "Homestead Exemption. You can also call your county auditor's office or your local Rea advisor.

- By Tracy Kaufman, CPA (Senior Manager, Dublin office) and Linda S. Zevnik, CPA, CSA (Senior Manager, Mentor office)

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