Governor: Tax exemption for seniors not in jeopardy

February 8, 2008 at 12:00a.m.

Ohio Governor Ted Strickland (D-Lisbon)

The tax cut is open to
Ohioans 65 and older.

SPECIAL TO THE VINDICATOR

COLUMBUS — Gov. Ted Strickland said his $1.7 billion jobs package, funded through additional state debt, won’t put Homestead tax exemptions extended to all senior citizens last year in jeopardy.

The exemption reduces the market value of homeowners’ primary residences by $25,000. Total savings will vary by community based on current tax rates.

The tax cut is open to all seniors age 65 and older or who will turn 65 this year. Certified totally or permanently disabled residents, or surviving spouses of qualified homeowners who were at least 59 when their spouse died, also are eligible.

Applications for the exemption are available through local county auditors’ offices.

The governor, speaking during a legislative seminar for reporters Thursday, said the bond issue he proposed, even when combined with what could be a “robust” capital budget, would not put the state near the 5 percent constitutional cap on debt.

“Let me assure you that it will not,” he said. “When we securitized the tobacco resources, we lowered our debt and the percentage of our debt, and that was good.”

Last year, the state securitized its future tobacco settlement proceeds, lowering the overall state debt and backing school building projects and property tax breaks for seniors in the process.

With the $1.7 billion jobs package proposed in the State of the State address Wednesday and the capital budget lawmakers are expected to take up, the debt percentage for the state would reach about 4.7 percent, Strickland said.

“We think this is a very responsible package,” he said. “It will in no way threaten our ratings status. … We think that what we’re proposing is well within the limits.”

The stimulus package is important for the state’s economic growth, the governor added.

“It will enable us to initiate a program that will result in jobs being created,” he said. “We’re estimating 80,000 jobs.”