Q. Are all farms
in Ohio used exclusively for agricultural purposes eligible to be taxed on
their current agricultural use value?
Q. Will all farms be automatically reappraised on a CAUV basis?
Q. What does an owner have to do to be taxed
on the Current Agricultural Use Value? Q. What qualifies as land devoted exclusively to agricultural use?
A. Yes, if containing 10
acres or more. Those under 10 acres can qualify if the land has produced an
average gross income for the past three years of at least $2,500.
A. No. Applications must be made each year at the Hamilton County
Auditor's office.
A. File an application
with the County Auditor on or after January 7, 2008, and on or before March 3, 2008, and pay a one time application fee of $25. There is no renewal fee.
A.
- It qualifies if more than 10 acres were devoted exclusively to commercial production of field crops, tobacco, fruit, vegetables, timber, nursery stock, ornamental trees, sod or flowers, or if it qualified for a land retirement or conservation program under an agreement with the federal government.
- if less than 10 acres, it qualifies if, during the past three years, it produced an average gross income of at least $2,500.
Q. Do you have to own a
farm for three years before you can apply?
A. No. The farm has
to qualify, not the owner.
Q. Should every owner of 10 acres
or more apply for the CAUV Program?
A. No. Only if you believe
that assessments on the Current Agricultural Use Value basis will result in
lower taxes than assessment on the appraised market value approach.
Q. How often is real estate appraised for tax assessment purposes?
A. Reappraisals are done every six years and a review and
adjustment is possible in the third calendar year following the reappraisal.
Q. Is tax value the same as appraised value?
A. No. In Ohio, tax value, or tax assessed value, is 35% of the
appraised market value.
Q. How were farms valued before this
law was enacted?
A. On the basis of their appraised market
value.
Q. How does CAUV appraisal differ from fair market
value?
A. The fair market value approach depends upon the
comparison of sales of similarly situated farms and where the highest and best
use sets value. The CAUV method depends upon capitalizing the expected net
income from farming.
Q. Will some farms have lower appraised
values using the CAUV?
A. Yes. The fair market value reflects
what a buyer is willing to pay regardless of the farm's agricultural production
capability.
Q. Are the terms "tracts", "lots" and "parcels"
used interchangeably?
A. For the purpose of this act they are.
Q. Some land used exclusively for timber production has been
taxed at a lower rate for many years. How does this affect the new act?
A. Woodland is not eligible for tax savings under both laws. An
owner must choose one or the other. On parcels of 10 acres or more, timber
qualifies for the CAUV program, meeting the commercial production test.
However, you must submit a request for a Land Management program in writing to:
Division of Forestry
777 Columbus Ave. 5A
Lebanon, Ohio 45036
WANT MORE INFORMATION?
Q. What are the liabilities if incorrect information is given?
A. If you knowingly give false information on an application, you are guilty of a misdemeanor of the first degree.
Q. What happens if the land is converted into a non-qualifying use?
A. The owner is required to pay back the tax difference. Recoupment, for a maximum of three years, is taxed under the CAUV method.
Q. What causes one to become subject to recoupment?
A. Failure to reapply for CAUV tax appraisal or if a change in use occurs so that the land is not devoted exclusively to agricultural purposes.
Q. Do golf courses qualify under the CAUV?
A. No.
Q. Does raising race horses or saddle horses qualify?
A.Yes. This is a type of animal husbandry. However, a race track does not qualify.
Q. Does a greenhouse qualify?
A. Yes. As long as it meets the CAUV income requirements.
Q. Does a
garden store qualify?
A. No.
Q. Does a
farmland owner have to file each year to be eligible for the CAUV tax
appraisal?
A. Yes. After Monday, January 7, 2008, and
before Monday, March 3, 2008, you must reapply. The Farm Valuation
Office will mail you your renewal form on or before the first Tuesday in
January.
Q. Does aquaculture qualify?
A. Yes,
the raising of plants or animals as fish or shellfish in or under the sea, lake
or river or
other body of water.
Q. Does
apiculture qualify?
A. Yes. The raising and care of bees
qualifies.
