Current Agricultural Use Valuation (CAUV)
The Current Agricultural Use Valuation (CAUV) program was created in 1973 by an amendment to the Ohio Constitution and was designed to exclusively benefit commercial agricultural production. While in the CAUV program, commercial farmland is taxed at its agricultural use value instead of its true market value, which is often significantly higher. This allows commercial farmers to continue in agricultural production amidst rising real estate values, without having to sell or develop their land.
Farms with more than 10 acres of cropland may qualify without having to meet an income level. Farms with fewer than 10 acres must submit evidence that the total gross income from the sale of agricultural products has exceeded $2500 for each of the past three years prior to the application. Farmland may also qualify automatically if it receives regular payments while involved in a land retirement or conservation program under an agreement with an agency of the Federal government.
(A)”Land devoted exclusively to agricultural use,” means:
(1) Tracts, lots, or parcels of land totaling not less than ten acres that are 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 were devoted to and qualified for payments or other compensation under a land retirement or conservation program under an agreement with an agency of the federal government.
(2) Areas of timber or woodland that occur on the parcel and that are grown for a non-commercial purpose may also qualify for the agricultural reduction, if the land on which the timber is grown is adjacent to or part of a parcel of land under common ownership that qualifies under item 1 above.
(3) Tracts, lots, or parcels of land totaling less than ten acres, used for any of the purposes described in number 1 above, may also qualify as ”land devoted exclusively to agricultural use,” where such activities produced an average yearly gross income of at least twenty-five hundred dollars. If this parcel qualified for payments or other compensation while involved in a land retirement or conservation program under an agreement with an agency of the federal government, the $2500 average yearly gross income requirement is waived.
(B) Land taxed under Ohio Revised Code (ORC) section 5713.23, and receiving the 50% reduction in value as permanent forestland, cannot additionally qualify for the CAUV tax reduction.
While in the CAUV program land is taxed at its agricultural value. This is calculated by determining the types and amount of the different soils on the property. The property owner is required to provide a soil map of the parcel at the time that the CAUV application is submitted. An outline of the parcel is then sketched onto the soil map and a measurement of the approximate acreage of all the different soil types is determined. All soil types have a corresponding value associated with them that is generated from the relative productivity index approved by the State Tax Commissioner. Once the total acres of a soil type have been determined, that acreage is multiplied by the corresponding value for that soil. The additive value of all the soil types found on the property now becomes the new value of the land for taxation purposes while the parcel stays in the CAUV program, or until the soil values change. Only the land that is used for an agricultural purpose qualifies. Homesite or residential and other miscellaneous areas not used for agriculture are taxed at their full market value not at an agricultural value.
While the parcel is taxed at its agricultural value it will begin to accumulate “tax savings”. This “tax savings”, also referred to as agricultural recoupment, is the difference between the dollar amount of real property taxes levied on the agricultural value and the property taxes that would have been levied had the parcel been taxed at its full market value. If the land use changes or the property no longer qualifies for the program, a lien equal to the past three years’ of tax savings—or the agricultural recoupment—will be assessed against the property.
If you choose to apply for this program you will need to complete the following:
File a complete Initial Application form DTE 109 and return it to the Mahoning County Auditor. It may be filed after the first Monday in January but it must be filed by the first Monday in March of the year in which the valuation is sought.
Submit a soil map of the parcel with the application.
Include a one-time, non-refundable $25.00 filing fee with the application. Make all checks payable to the Mahoning County Auditor.
After the auditor receives your application, your parcel will be entered into the program, pending an initial inspection. Every parcel is inspected each year to determine that it qualifies as “land devoted exclusively to agricultural use,” as defined by the Ohio Revised Code Section 5713.30. As long as the parcel qualifies on this basis the property will remain in the program and the tax reduction will be maintained.
Again, you may file an Initial Application for the Current Agricultural Use Valuation (CAUV) program anytime after the first Monday in January but it must be filed by the first Monday in March of every year.
The Mahoning SWCD provides a service to those landowners who wish to enroll in the CAUV Program in Mahoning County. A complete application packet is prepared that provides all materials needed to enroll in the program. The completed packet, which includes a 2004 aerial photo, a soil-type map, and a land-use/per acre/per soil type worksheet, needs to be submitted to the Mahoning County Auditor's office before the 1st Monday in March of each year.
The cost for this SWCD service is $25 for the first parcel, and $5 for each additional parcel.
As previously stated, fee of $25 will also be collected at the Auditor's office upon submission of the application packet. For additional information on the CAUV program, please contact the SWCD at 330-740-7995 or the Auditor's office at 330-270-2010.