Legal Resources - Tax Rules

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