Application:(both forms below must both be filled out and submitted)View material from the CAUV meeting that took place January 22, 2015 at Somerset Elementary, Somerset, OH:
Frequently Asked Questions
What is the Current Agricultural Use Value Law?
The Law is an outgrowth of the Constitutional Amendment passed by the voters of the State of Ohio to save our open spaces, and to protect the farmer from paying high property taxes for his farmland.
What are the eligibility requirements?
Do you have to own a farm for three years before you can apply?
No. The farm has to qualify, not the owner.
For what length of time is the application effective?
The CAUV application must be filed each year. The county has devised a very simplified renewal procedure requiring only a notification from year to year.
What happens if I don’t re-file my CAUV Application?
If you do not re-file your application for a Current Agricultural Use Valuation, then the Auditor is required to value the property at its true market or current market value to recoup the taxes for the three (3) years in the past.
When does the parcel of property become subject to recoupment?
There are two general reasons for recoupment. First, the Failure to reapply for Current Agricultural Use Value, and second, when A change in use in the parcel occurs, so that the land is not used exclusively for agricultural purposes. At that point, the Auditor will notify the owner and recalculate the property’s bill.
What happens when the land is converted from agricultural use?
"Upon the conversion of all or any portion of a tract, lot, or parcel of land devoted exclusively to agricultural use a portion of the tax savings upon such converted land shall be recouped as provided for by section 36 Article !!, Ohio Constitution by levying a charge on such land in an amount equal to the amount of the tax savings on the converted land during the three (3) tax years immediately preceding the year in which the conversion occurs. The charge shall constitute a lien of the state upon such converted land as of the first day of January of the tax year in which the charge is levied and shall continue until discharged as provided by law".
How much in terms of tax reduction might I expect?
The actual reductions are dependent on the Current Agricultural Use Value (CAUV) which is placed upon the land. Major factors affecting the value are Soil type, soil region and land capability class. Agricultural commodity prices and production costs also enter in the CAUV value. The resulting CAUV value replaces the appraised value; the tax value is set at 35 percent of the CAUV value. The CAUV values are readjusted on a three-year cycle by the State Tax commissioner to account for changing agricultural production costs and commodity prices.
How does the CAUV appraisal differ from the fair market value?
The fair market value normally depends upon establishing the value for the farm land based on comparing it to recent sales of similarly situated farms. The CAUV system depends upon capitalizing the expected net income received from farming.
What are some of the major advantages of the CAUV program?
What are some of the disadvantages?
Is there an opportunity to discuss the valuation formula's creation?
The agricultural advisory committee meets in October to discuss possible changes and adjustments in rates. In February an open meeting is held to officially adopt the rates for the current year. Both meetings are open to the public. Ask your County Auditor or Farm Bureau representative for dates and location information.
How are a house and other buildings on a CAUV property valued?
The CAUV law only allows land that is being directly used for agricultural purposes to be valued using the CAUV valuation formula. Therefore all homes and structures on an agricultural property, plus a one-acre home site, are appraised at their fair market value.
When must I file for CAUV?
At any time after the first Monday in January and prior to the first Monday in March of any year.
Where should I file my application?
All applications are to be filed with the Auditor's Office. Trained personnel can assist individuals in completing their CAUV applications.
Is there a cost to filing?
Yes there is. The State Legislature has a mandated a $ 25.00 per application initial filing fee. The fee stays in the County Real Estate Assessment Fund for use in financing the program. There is no charge for annual renewal.
Where can I find more information about the Current Agricultural Use Value (CAUV) program?
You can find more information about Ohio's CAUV program through:
Section 5713.30(A) of the Ohio Revised Code defines “Land Devoted Exclusively to Agricultural Use” as follows.
(1) Tracts, lots, or parcels of land totaling not less than ten acres that, during the three calendar years prior to the year in which application is filed under Section 5713.31 of the Revised Code, and through the last day of May of such year, were devoted exclusively to commercial animal or poultry husbandry, aquaculture, apiculture, the production for a commercial purpose of timber, field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod or flowers, or the growth of timber for a noncommercial purpose, if the land on which the timber is grown is contiguous to or part of a parcel of land under common ownership that is otherwise devoted exclusively to agricultural use, or were devoted to and qualified for payments or other compensation under a land retirement or conservation program under and agreement with an agency of the federal government;
(2) Tracts, lots or parcels of land totaling less than ten acres that, during the three calendar years prior to the year in which application is filed under Section 4713.31 of the Revised Code and through the last day of May of such year, were devoted exclusively to commercial animal or poultry husbandry, aquaculture, apiculture, the production for a commercial purpose of timber, field crops, tobacco, fruits, vegetables produce an average yearly gorss income of at least twenty-five hundred dollars during such three-year period or where there is evidence of an anticipated gross income of such amount from such activities during the tax year in which application is made or were devoted to and qualified for payments or other compensation under a land retirement or conservation program with an agency of the federal government.