The Current Agricultural Use Valuation program provides a substantial reduction in the valuation of land that is exclusively dedicated to agricultural purposes.
When to apply:
After the 1st Monday in January, but before the 1st Monday in March
Cost to apply:
|Make Checks payable to:|
|Clinton County Auditor, Terence G. Habermehl|
|1850 Davids Drive, Ste#303|
|Wilmington, Ohio 45177|
There is no charge for renewal applications for land already on the CAUV program. Renewal applications will be mailed to each owner annually and must be filed in our office prior to the first Monday in March.
Land that is removed from the CAUV program is charged a recoupment charge equal the savings for three years that resulted from participation in the CAUV valuation versus valuation outside of the program.
Are all farms in Ohio used exclusively for agricultural purposes eligible to be taxed on their current agricultural use value?
Yes, if they contain 10 acres or more exclusive of any homesite. Those under 10 acres can qualify if the land has produced a gross income for the past three years of at least $2,500 each year or should reasonably be expected to produce that much during the current year. You may be asked to report income on a property that is over 10 acres, if commercial agricultural production is questionable.
Will all farms automatically be valued on a CAUV basis?
No. Applications must be made each year at the Clinton County Auditor's office.
What does an owner have to do to be taxed on the Current Agricultural Use Value?
File an application with the County Auditor between the first Monday in January and the first Monday in March and pay a one-time application fee of $25. There is no annual renewal fee.
What qualifies as land devoted exclusively to agricultural use?
Do you have to own a farm for three years before you can apply?
No. The farm must qualify not the owner.
How often is real estate appraised for tax assessment purposes?
Revaluations occur every three years.
Is the taxable values the same as appraised value?
No. In Ohio, tax value, or tax assessed value, is 35% of the appraised market value.
How were farms valued before this law was enacted?
On the basis of estimated market value.
How does CAUV valuation differ from fair market value?
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.
Will some farms have lower appraised values using the CAUV?
Yes. The fair market value reflects what a buyer is willing to pay regardless of the farm's agricultural production capability.
Are the term's "tracts", "lots" and "parcels" used interchangeably?
For the purpose of this act they are.
Some land used exclusively for timber production has been taxed at a lower rate for many years. How does this affect the new act?
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.
What are the liabilities if incorrect information is given?
If you knowingly give false information on an application, you are guilty of a misdemeanor of the first degree.
What happens if the land is converted into a non-qualifying use?
The owner is required to pay the tax savings for the last three years that resulted from the land being valued under the CAUV program.
What causes one to become subject to recoupment?
Failure to reapply for CAUV or if a change in use occurs so that the land is not devoted exclusively to agricultural purposes.
Do golf courses qualify under the CAUV?
Does raising race horses or saddle horses qualify?
Yes. This is a type of animal husbandry. However, a racetrack does not qualify.
Do greenhouses qualify?
Yes. As long as it meets the CAUV income requirements.
Do garden stores qualify?
Does aquaculture qualify?
Yes, the raising of plants or animals as fish or shellfish in or under the sea, lake or river or other body of water.
Does apiculture qualify?
Yes. The raising and care of bees qualifies.
Will the property be inspected?
Inspections are necessary to determine if the property continues to meet the commercial agricultural use standards required by law. Property owners may be asked to provide additional information to continue in the program.
If as a result of the inspection, it does not appear the property should remain on the C.A.U.V. program, the owner will be contacted and asked to provide information that may allow the property to continue on the program. Only if it is determined that the property no longer meets the qualifications required by the Ohio Revised Code will the property be removed.