A review of Ohio Revised Code sections 303 and 519, which contain the 'agricultural exemption' from county and township zoning authority, is the first step toward understanding whether a county or township can regulate an agricultural land use (note that different laws apply for cities and villages). If you do not renew your application, the Medina County Auditor's Office is required to value the property at its true or current market value and to recoup the taxes for the past three years. Land that is removed from the CAUV program is charged a recoupment. Washington St., Suite B-4, Medina, OH 44256 BRUNSWICK Michael Kovack, Medina County Auditor, explained the CAUV Program (Current Agricultural Use Value). Zoning Inspectors from Harris-ville, Montville, Granger and Hinckley Townships, and Green, Ohio, attended. Medina County Cauv Program Ohio Current Agricultural Use Value (CAUV) is a program to reduce the taxable value of land being used for commercial agricultural production. By permitting values to be set well below true market values, CAUV normally results in a substantially lower tax bill for working farmers.

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Type of Tax

Two types of tax, a current use tax and a reduction in Fair Market Value (FMV). The Current Agricultural Use Value (CAUV) is for land devoted to growing timber and is based on the soil productivity of the land; the assessed value is generally $100. The Ohio Forest Tax Law (OFTL) is a 50% reduction in FMV.

Law

CAUV is covered under Ohio Forest Tax Law Rev. Code Sec. 5713.22-.26

OFTL is covered under Current Agricultural Use Value Rev. Code Sec. 5713.30-.38

Objective

The objective of CAUV is to produce timber and the objective of OFTL is to protect land use from urban sprawl

Requirements

OFTL- minimum 10 acres, must be managed for timber production

CAUV- minimum 10 acres, land devoted exclusively to timber growth, no management plan req.

(less under CAUV if the land earns $2500/year for previous 3 years)

Minimum stocking of 50 ft² BA/A or 300 trees/acre under OFTL

Forest stewardship management plan approved by state forester and marked boundaries under OFTL

Must reapply annually under CAUV and land must be inspected every 5 years under OFTL

Use change results in penalty of previous 3 years for CAUV

No penalty for withdrawal from OFTL

Program Administration

Private forestry consultant develops management plan and landowner submits to State Department of Forestry for approval under OFTL. The Chief of Forestry Division sends certified application to county auditor. Under CAUV the Department of Agricultural calculates soil productivity values. Landowners file application with county tax assessor.

The Current Agricultural Use Value (CAUV) is a real estate tax program that allows land owners to have their real estate taxed according to its agricultural value rather than its fair market value. The CAUV program was a referendum passed by Ohio voters in 1973, which amended the Ohio Constitution, Article II, Section 36, to provide this specialized tax treatment for agricultural lands. The program is controlled by the Department of Tax Equalization, which is a division of the Ohio Division of Taxation. Local County Auditors administer the program in each county by supplying the appropriate forms to complete and verifying the real estate meets the CAUV requirements.

Medina County Cauv Program Ohio

In order to qualify, the land must be at least 10 acres or more, and be used exclusively for agricultural use during the 3 calendar years prior to the year in which the application is filed. Agricultural use refers to land 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 non-commercial purpose in certain circumstances. In determining whether you have 10 acres devoted exclusively to agricultural use, be sure that you do not include any homes located on the property or any roads, drives and any road frontage which is not used for agricultural use.

Even if you have less than 10 acres, you still may qualify for the CAUV, if during the 3 calendar years prior to the year in which the application is filed, the land was used exclusively for agricultural use, as defined above, and produces an average yearly gross income of at least $2,500 during the 3-year period.

However, with all benefits come certain drawbacks. In the event the agricultural use ceases, the State will recoup any tax savings associated with the real estate’s CAUV during the previous 3 years. Under Revised Code Section 5713.34, the recoupment is charged to the current owner regardless of whether that owner received the benefit of the previous CAUV. As a result, purchasers of agricultural land should be cautious and determine whether the real estate they are purchasing is currently the subject of a CAUV. In such cases, the seller and purchaser should address in their agreement who will be responsible for the any recoupment.

In order to receive the CAUV, the land owner must first file an application between January 1 and the first Monday of March. Failure to file in this time frame will generally prevent the landowner from receiving the CAUV. Applications can be obtained by contacting the applicable County Auditor. Upon receipt of a qualifying application, the County Auditor will value the land at the current value such land has for agricultural use. Information on the formulas used to calculate the CAUV can be found on the Tuscarawas County Auditor’s website at www.co.tuscarawas.oh.us/auditor’s/filingprocedures.htm. Additional information on the history and arguments for and against the CAUV can be found at http://ohioline.osu.edu/cd-fact/1267.html.

Medina County Cauv Program Ohio Application

NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.