Tax Rules: Final: 5703-21
5703-21-03 - Election notification
and annual report for qualified farm property
(A) The representative and qualified heirs of a decedent who
elect to value farm property of the decedent at its qualified
use value shall file an election notification on a form
prescribed by the tax commissioner. The notification shall be
filed with the estate tax return filed pursuant to section
5731.21 or 5731.26 of the Revised Code.
(B) The tax commissioner or the commissioner's agent may
inspect the farm property to verify the accuracy of the
information presented in the notification as a condition
precedent to the approval of the election, unless an
application has been filed pursuant to section 5713.31 of the
Revised Code and approved by the county auditor. If approved,
the commissioner or the commissioner's agent shall be
permitted to inspect the property from time to time to verify
the continuing qualified use. Refusal of such inspection by
the qualified heirs or person in possession of the property
constitutes cause for imposition of the additional tax
mandated by division (E) of section 5731.011 of the Revised
Code.
(C) If the qualified farm property is transferred to a person
other than a qualified heir or if the property ceases to be
used exclusively for agriculture, the commissioner shall be
notified by the qualified heirs of such fact within nine
months after the date of such transfer or cessation of
qualified use.
(D) The qualified heirs shall file for three years a report
with the commissioner, on a form prescribed by the
commissioner, to establish that the qualified farm property
has not been disposed of other than to a qualified heir and
has not ceased to be used for a qualified use.
The first report shall be filed no sooner than sixty days
before and no later than the date that is two years after the
date of the decedent's death. A report shall be filed within
the same time period in each of the two following years.
Failure to file timely any report required by this paragraph
constitutes cause for imposition of the additional tax
mandated by division (E) of section 5731.011 of the Revised
Code.
Effective: 4-17-84
Promulgated under: 5703.14
Amplifies: 5703.14, 5731.011, 5731.21, 5731.26, 5731.37