Tax Rules: Final: 5703-25
As used in rules 5703-25-30 to 5703-25-36 of the
Administrative Code, the following definitions shall apply
unless the context requires otherwise:
(A) Statutory definitions: The following terms are as defined
in section 5713.30 of the Revised Code.
(1) "Land devoted exclusively to agricultural use;
(2) "Conversion of land devoted exclusively to agricultural
(3) "Tax savings;"
(B) Nonstatutory definitions:
(1) "Cropping and land use pattern" - The typical sequence or
distribution of major field crops and uses with the
proportion of each crop or use expressed as a decimal
fraction of the total acreage being farmed.
(2) "Current agricultural use value of land" - The current
agricultural use value of land devoted exclusively to
agricultural use of a parcel is the current market value or
fair market value of the land considering only those factors
that affect the parcel's value from an agricultural
standpoint. It is the price at which the property would
change hands on the open market between a willing buyer and
seller, neither being under any compulsion to buy or sell,
and both having knowledge of all relevant facts, if the
highest and best use was exclusively agricultural with no
other influence being present. Usually this value will be
highly dependent on the soil productivity of the parcel.
(3) "Depreciation or appreciation rate" - The total per cent
of decrease or increase in value that a prudent investor
would expect to receive when the investor disposes of a given
investment after a period of years.
(4) "Drainage profile group" - Soils that occur on similar
topography and have similar internal drainage.
(5) "Effective tax rate" - The real property tax rate, after
the reductions under section 319.301 of the Revised Code,
expressed as per cent of actual true, market, or current
agricultural use value rather than the statutory rate
expressed as mills on tax value.
(6) "Equity yield" - The annual rate of return an investor
would expect on the investment above any liens or mortgages.
(7) "Grid" - A cross sectional transparent scale that may be
used to measure areas on a map, etc.
(8) "Land capability class" - A system of classifying land
according to physical limitations arising from slope,
drainage and erosion characteristics of the soil used by the
U.S.D.A. soil conservation service. The classes are
designated by Roman numerals from I through VIII with
progressive greater limitations and narrower choices for
practical use as the number increases. Classes I through IV
are suitable for general field crops. Classes V through VIII
are limited to pasture, forest land or wildlife.
(9) "Land residual technique" - A technique in which the
improvements are valued independently of the land and the
annual net return on the improvements is deducted from the
anticipated net annual income to the total property. The
residual net income is attributed to the land and is
capitalized to indicate the land value.
(10) "Lots" - See "Tracts, lots or parcels."
(11) "Mortgage equity method of capitalization" - A method of
capitalizing income that gives weight to typical mortgage and
equity financing terms for similar properties in arriving at
an estimate of value.
(12) Moving average" - Average of an item for given period of
years that is recalculated each year after dropping the
oldest year and adding the latest year.
(13) "Nonland production costs" - Those costs, including
management, of producing agricultural products which do not
include any expense or charge for the use of the land.
(14) "Parcels" - See "Tracts, lots or parcels."
(15) "Permanent pasture" - Land capability classes V through
VII that does not meet the definition of woodland and is
greater than five acres in size. In land capability classes I
through IV land that due to soil limitations, such as
gullied, severe erosion, stony outcropping, etc., is not
suitable to open cultivation and does not meet the definition
for woodland shall be classified as permanent pasture.
(16) "Planimeter" - A mechanical device used to measure areas
on a map.
(17) "Projection period" - The period of years over which an
investment is held before being resold or refinanced.
(18) "Soil management group" - A group of soils with similar
properties and crop yields.
(19) "Soil mapping symbol" - Letter or numerical symbol used
to identify a soil mapping unit on a soil map.
(20) "Soil mapping unit" - Areas of a soil type or types
delineated on a soil map.
(21) "Soil region" - A region or area where the soils have
formed from similar parent materials under similar
(22) "Soil series" - Soil on one parent material representing
one drainage profile.
(23) "Soil survey" - A written report with a soil map,
describing the soils surveyed together with information on
the characteristics and capabilities of the soils. Available
from the division of lands and soil, Ohio department of
natural resources or U.S.D.A. conservation service.
(24) "Soil type" - A soil which throughout its full extent
has relative uniform texture.
(25) "Tracts, lots or parcels" - Tracts, lots or parcels
shall mean all distinct portions or pieces of land (not
necessarily contiguous) where the title is held by one owner,
as listed on the tax list and duplicate of the county, which
are actively farmed as a unit if together the total acreage
meets the requirements of section 5713.30(A)(1) or (A)(2), of
the Revised Code. The terms "tracts," "lots" or "parcels" may
be used interchangeably.
(26) "Woodland" - Land that has at least twenty-five per cent
shade cover from forest trees. Land that has previously met
this definition but currently does not, due to 'clear
cutting,' etc., and that has not been developed for other
uses shall continue to be classified as woodland. Forest
trees are woody plants that have a well developed stem and
usually more than twelve feet in height at maturity. The area
must be five acres or more in size. Land that has been
planted to forest species shall also be included in this
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5713.01, 5715.01
Prior effective dates: 11-29-74, 11-1-77 as 5705-5-01