May 2, 2001 - Columbus,
Ohio - Farmland Tax Values Drop
in 23 Ohio Counties
COLUMBUS, Ohio – Farmland values used in
determining property tax bills dropped an average of $27 per
acre -- about 10% -- over the past three years. The decline
will affect taxes on agricultural land in 23 Ohio counties
for 2001, 2002 and 2003. The values were recently calculated
by the Ohio Department of Taxation (ODT).
The lower values apply for agricultural land enrolled in
Ohio’s Current Agricultural Use Value (CAUV) program. CAUV
was established following voter approval of an amendment to
the Ohio Constitution in 1973. The amendment created an
"agricultural use" value for taxing farmland. Other land in
Ohio is taxed on "market" value.
For land in the 23 counties affected by the new rates, the
average per acre value dropped from $258 three years ago to
$231 today. Land in the CAUV program enjoys tax savings of 73
percent over land assessed at market value.
In many cases, the new values will result in lower property
taxes for farmland in the CAUV program. An exception would be
where a new levy offsets the savings.
The new values will be used to calculate tax bills paid in
2002, 2003 and 2004 (property tax is paid in the year after
it's assessed). Taxpayers will not be able to get their
individual values until November or December of this year.
ODT officials attributed the decrease in agricultural land
values to reduced crop prices over the last seven years for
which data was considered in calculating the values. ODT uses
five factors in the formula for determining CAUV values for
more than 3,300 soil types in Ohio: crop yields, cropping
patterns, crop prices, non-land production costs and
capitalization rates (the cost of money invested in the
CAUV values change, but Ohio Tax Commissioner Tom Zaino said,
"We attempt to avoid severe fluctuations in values by using
seven years of data in our calculations. This helps ensure
that the values are fair and accurate and reflect the
long-term trends in Ohio’s agricultural economy."
An advisory committee composed of experts in farm production
and economic issues participates in developing information
for the ODT calculations. Organizations named to this
committee include the Ohio Farm Bureau, Ohio State Grange,
National Farmers’ Organization, Ohio Farmers’ Union, County
Auditors' Association of Ohio, Ohio Association of County
Treasurers, Ohio Society of Farm Managers & Rural
Appraisers and the Ohio Chapter, Realtors Land Institute.
All real property in Ohio, including land in the CAUV
program, is by law revised every three years being subject
either to an inspection and reappraisal or the less intensive
property value update. The re-valuation of property is done
on a rotating annual schedule so a different group of
counties goes through the process each year.
Counties impacted by the new CAUV values this year are:
Adams, Carroll, Champaign, Clark, Columbiana, Fairfield,
Hancock, Hocking, Holmes, Lawrence, Logan, Marion, Medina,
Meigs, Miami, Monroe, Paulding, Ross, Scioto, Tuscarawas,
Washington, Union and Wyandot.
Farmland must be enrolled in the CAUV program and meet
certain requirements to qualify for tax savings, and the tax
savings apply only to agricultural land. Participation in
CAUV is voluntary.
Farmers must apply at their county auditor’s office every
year to keep CAUV status for their land. First time
applicants pay a $25 fee. There is no fee for subsequent
re-enrollments. More than 16 million acres of Ohio’s 19.3
million acres of agricultural land are enrolled in the CAUV
For more information contact: