Tax Rules: Final: 5703-25
5703-25-31 General
(A) Section 5715.01 of the Revised Code requires the tax
commissioner to adopt, prescribe and promulgate rules that
shall:
"... prescribe the method for determining the current
agricultural use value of the land devoted exclusively to
agricultural use, which method shall reflect standard and
modern appraisal techniques, which shall take into
consideration: the productivity of the soil under normal
management practices; the average price patterns of the crops
and products produced to determine the income potential to be
capitalized; market value of the land for agricultural use;
and other pertinent factors."
(B) All tracts, lots or parcels of real property in Ohio
shall be appraised for tax purposes, at its "true value" in
money and assessed at taxable value as provided in rules
5703-25-05 to 5703-25-17 and rules 5703-25-30 to 5703-25-36.
Rules 5703-25-30 to 5703-25-36 of the Administrative Code
shall apply if an application is made by the owner, as
required by sections 5713.31 and 5713.38 of the Revised Code,
requesting the county auditor to value the land, of such
tracts, etc. for real property purposes at the current value
such land has for agricultural use, and the county auditor
has determined that such tracts, etc. are devoted exclusively
to agricultural use as defined in section 5713.30 of the
Revised Code.
(C) The current agricultural use land value can be estimated
by the capitalization of the typical net income from
agricultural crops on a given parcel of land assuming typical
management, cropping patterns, and yields for the type of
soil present on the tract. Values estimated by this method
will closely approximate actual market values of farm land
where the actual highest and best use is exclusively
agricultural unaffected by other uses.
(D) In order to achieve uniformity in the appraisal and
assessment of land devoted exclusively to agricultural use in
the eighty-eight counties of Ohio, the tax commissioner,
after consultation with the agricultural advisory committee
shall, annually, adopt a proposed entry setting forth the
necessary modifications and values to be used in establishing
the current agricultural use value of land in counties
completing a sexennial reappraisal or that will be in the
third calendar year following the year in which a sexennial
reappraisal is completed in the ensuing tax year. Said entry
shall set forth the counties in which the values prescribed
shall be used and the specific tax years in which such values
apply. A public hearing shall be held on the proposed entry
after reasonable public notice has been given by the
commissioner at least thirty days prior to the date set for
the hearing in such manner and form as the commissioner
determines. After the hearing the commissioner shall adopt
the entry for the ensuing tax year for use in said counties
for the next ensuing three tax years.
(E) The valuations made by county auditors of said counties
in conformance with these rules and said annual entry will be
accepted as prima-facie correct valuation for parcels or
tracts of land devoted exclusively to agricultural use where
the parcel and tract of land has a "true" or "market" value
reflecting a higher and better use than agricultural and the
owner has qualified under the provisions of sections 5713.30
and 5713.31 of the Revised Code to have the land appraised
and assessed by the county auditor at the current
agricultural land use value.
(F) Nothing contained in these rules shall be construed as an
authorization to value parcels, qualified as provided in
sections 5713.30, 5713.31, and 5713.38 of the Revised Code
for tax purposes at any other value than an identical parcel
where the actual highest and best use is exclusively
agricultural unaffected by any other use.
(G) Nothing contained in rules 5703-25-30 to 5703-25-36 of
the Administrative Code shall be construed as an
authorization for any parcel, in any class, in any county, to
be valued for tax purposes at any other value than its
"taxable value" as set out in rule 5703-25-06 of the
Administrative Code, unless said parcel meets the
qualifications of sections 5713.30, 5713.31, and 5713.38 of
the Revised Code.
Effective: 9-18-03
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5713.01, 5715.01
Prior effective dates: 11-29-74, 11-1-77 as 5705-5-02