Veterans Homestead

Effective 9/11/2014


Am. Sub. House Bill 85, 130th General Assembly, has created an additional classification of recipient for the homestead exemption and for that recipient has granted an increased reduction. A $50,000 homestead reduction is authorized for veterans experiencing service-connected disabilities and qualifying spouses.

A new classification is found in R.C.323.1 51(F). Under that subsection, a "disabled veteran" is defined to be a person who is a veteran of the armed forces of the United States (including the reserve components or the national guard) who has received a permanent total disability rating or a total disability rating for a service-connected disability or combination of service-connected disabilities for which the Code of Federal Regulations identifies as a 100 percent evaluation. If a veteran meets the definition, that person will receive a reduction in taxes equal to the taxes on $50,000 of true value (as opposed to the current homestead reduction of taxes equal to the taxes on $25,000 of true value).

If the homestead qualifies for reduction under the new R.C. 323.152(A) (2) in the year the disabled veteran dies, and the veteran is survived by a spouse who occupied the homestead when the disabled veteran died and who acquires ownership of the homestead, the reduction shall continue through the year in which the surviving spouse dies or remarries.

In order to qualify, the disabled veteran must provide a letter or other written confirmation by the federal Department of Veterans Affairs, or any predecessor or successor agency, showing that the veteran qualifies as a disabled veteran as described above. Please note the Department of Veterans Affairs issues two types of disability ratings. A permanent total disability rating is not subject to further review by the VA and will never change. However, other determinations of total disability ratings, or ratings of combinations of service-connected disabilities for which the Code of Federal Regulations identifies as a 100 percent evaluation are subject to review and may change over time. The term "overall or combined rating" is used by the VA to rate the level of disability separate from the level of compensation (which also may be expressed as a percentage). Only the rating of the level of service-connected disability should be used to determine eligibility for the expanded exemption.