Current Agricultural Use Value (CAUV) Program

Current Agricultural Use Value (CAUV) Program is sponsored by Ohio County Auditors (Ohio Department of Taxation sets values). The CAUV program allows farmland in Ohio to be valued based on its agricultural use rather than its "highest and best" potential use, resulting in a substantially lower tax bill for working farms. It is a property tax reduction program, not a direct grant.

Ohio's CAUV Program - Critchfield, Critchfield & Johnston Is your real property or a portion devoted exclusively to commercial agriculture? If so, your property may qualify for the Current Agricultural Use Value (CAUV) program. The CAUV program was enacted in 1973 after the Ohio Farm Bureau campaigned for a constitutional amendment to allow farmland to be taxed for its agricultural value rather than its fair market value.

CAUV is a program codified and protected by Ohio law found at ORC 5713. 30 through 5713. 99.

This program allows farmland to be valued based on the agricultural use of the land rather than its “higher and best” potential use, resulting in a substantially lower tax bill for working farms. The CAUV value is set by the Ohio Department of Taxation and is determined by soil type, soil region, land capability class, and agricultural commodity prices.

Reducing property taxes sounds like a great opportunity many of us would like to take advantage of! There are, however, specific requirements that your property must meet to qualify.

During the three (3) years before a CAUV application, your property must: Consist of ten (10) or more acres devoted exclusively to commercial agricultural use; or If your property is less than ten (10) acres and devoted exclusively to commercial agricultural use, you must show a gross average income of $2,5000. 00 over the previous three (3) years. Many commercial agricultural uses qualify for CAUV.

ORC 5731.

30(a) states that these uses include commercial animal or poultry husbandry, aquaculture, algaculture (farming of algae), apiculture (beekeeping), hemp farming (with a proper cultivation license), 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.

If someone owns farmland, this doesn’t mean that the property automatically receives the tax reduction. One must apply for the CAUV program through the county Auditor where the property is located. The Auditor will require you to complete form DTE 109 and pay a $25.

00 application fee. This initial application for the current tax year must be filed with the given county Auditor’s office after the first Monday in January and before the first Monday in March. If your application is denied, you may appeal this decision as described below.

A property owner must file a renewal application yearly to continue receiving the reduction. Once a property qualifies, a renewal application will be mailed from the county Auditor’s office each year. There is no charge for renewal applications.

The county Auditor’s office also performs annual field inspections. Each parcel in the program is visually inspected for continuing compliance each year. What Happens if My Property No Longer Qualifies for CAUV?

If land no longer qualifies for CAUV by either (a) failing to meet the qualifications at any time, (b) failing to file an initial application as a new owner, or (c) withdrawing from the program, the owner will be assessed a “recoupment” charge upon removal from the program. This recoupment equals the previous three (3) years of tax savings, which can often be a large one-time tax bill!

Landowners who believe their property should still qualify for CAUV may appeal the removal decision through the local Board of Revisions. Buyer Beware! Purchasing Property Subject to CAUV If you purchase a property and continue to use the property for its CAUV purpose, you will need to file a new initial application to maintain CAUV status in the period outlined above to avoid the property losing its CAUV status.

On the other hand, if you purchase property that qualifies for CAUV, build a home on the property, and fail to qualify for CAUV, the property will lose its CAUV status, and recoupment will be triggered. If you believe that the property you want to purchase will lose CAUV status, this issue should be agreed upon in writing between buyer and seller, such as in the purchase agreement for the property.

If you have questions or would like further information regarding CAUV, we suggest contacting your legal counsel or the county Auditor in which your property is located.

Tagged In: Agricultural Land Valuation Agricultural Property Taxes Aquaculture and Algaculture Beekeeping (Apiculture) Buying Farmland in Ohio CAUV Application Process CAUV Eligibility Commercial Agriculture Current Agricultural Use Value (CAUV) Farm Property Compliance Farmland Taxation Hemp Farming and Taxation Ohio Farm Bureau Ohio Revised Code (ORC) 5713.

30 Property Tax Recoupment Tax Reduction for Farmers Timber Growth and CAUV Fill out the form and someone will contact you within 1 business day.

Company Formation and Business Planning Liquor Permits, Transfers and Compliance Long-Term Care Asset Protection Medicaid Planning and Applications Employee Stock Ownership Plans Arbitration and Mediation Employment Agreements and Contracts Employment Policy Development & Compliance Human Resources Counseling Labor-Management Relations Unemployment Compensation ERISA and Employee Welfare Plans Estate Planning, Probate, and Trust Administration Business Succession Planning Family and Private Trust Companies Probate and Trust Litigation Sophisticated Estate Planning Closely-Held Business Disputes Collections and Creditors’ Rights Complex and Class Actions Health Insurance and ERISA Litigation Non-Compete and Other Restrictive Covenant Disputes Personal Injury and Wrongful Death Probate and Trust Litigation Oil, Gas and other Mineral Rights Purchase, Sale and Leasing Tax Planning, Zoning and Incentives Title Insurance, Escrow and Closing