Tax Rules: Final: 5703-25
5703-25-34 Use of prescribed agricultural use value
of land tables by county auditor
(A) After the county auditor has determined that the
application or amended application for the auditor to value
land at its agricultural use, filed as provided by sections
5713.31 and 5713.38 of the Revised Code is complete and the
information thereon is correct the auditor shall, prior to
the first Monday in June, view or cause to be viewed the land
described in the application and determine whether the land
is devoted exclusively to agricultural use as defined in
division (A) of section 5713.30 of the Revised Code. If the
auditor, as of the first Monday in June, determines that the
land is devoted exclusively to agricultural use the auditor
shall appraise it for real property tax purposes as provided
in this chapter.
(B) The first step in the appraisal of land used exclusively
for agricultural use is to determine from county soil survey
maps, soil maps of individual farms prepared by the division
of land and soil of the department of natural resources of
Ohio and/or the soil conservation service, U.S.D.A., or other
sources of information the different soil types, land
capability classes and land uses together with the acreage in
each category for the tract or parcel. Where detailed soil
surveys are not available the county auditor shall consult
with the soil conservation service and other knowledgeable
sources on the most practical way to utilize the prescribed
tables.
(C) Soil scientists, in preparing a detailed soil survey or
individual soil conservation maps indicate different soil
categories by "mapping units" shown on the map by the "map
symbol" with the area included in this unit outlined. As an
example, in the soil survey of Fayette County, recently
released, "CaB2" is the map symbol for "Cana silt loam"
occurring on a two to six per cent slope, moderately eroded
and further described as having a "Land Capability Class II"
rating. While there might be some variance all soil maps
follow a standard system of notation.
(D) After delineation of the boundaries of the farm or tract
on the soil map the acreage in each soil type and land
capability class can be measured with a grid or planimeter.
The standard soil survey map uses a scale of four inches to a
mile, thus each square inch is equal to forty acres and a
quarter square inch is equal to ten acres. The enlargement of
soil maps to a scale of eight inches to a mile will allow for
more accurate estimation of soil areas. Isolated areas of
five acres or less in a mapping unit may be classified with
the mapping unit surrounding it or adjacent. When each soil
type and land capability class has been identified and the
acreage determined the information is to be listed on the
property record card. It should be noted that once this
information is initially recorded and verified that a
permanent inventory of soil information will have been
established for a parcel, with very few exceptions, unless
the property boundaries are changed.
(E) If a particular soil type is not included in the "current
agricultural use value of land table or tables" prescribed by
the tax commissioner for the given year, in said county as
described in rule 5703-25-33 of the Administrative Code, then
the county auditor shall contact the tax commissioner to
secure the per acre unit value for the soil type. The tax
commissioner shall then compute a use value as prescribed in
rule 5703-25-33 of the Administrative Code for that soil
type.
(F) Since land capability classes I through IV are suitable
for general field crops the cropland price shall be used for
soil areas in these classes unless an investment in capital
such as clearing or drainage is needed to convert the land
from its present use such as woods to tillable cropland. If
by simply plowing, etc. the land can be converted no
adjustment is needed. Where such adjustment is needed it
shall be made by using the per acre value of cropland for the
next highest numbered land capability class for the specific
mapping unit until the land is converted to cropland use.
Woodland prices for classes I through IV in the prescribing
tables allow for clearing and drainage in classes I and II
and clearing in classes III and IV. Land capability classes V
through VIII are priced as pasture or woodland according to
prescribed tables.
In the classification of the various soil types into soil
management groups and the calculation of minimum yields under
good management the hazards of the various soil types such as
drainage, erosion, shallow, droughty or stony soils has been
recognized and accounted for.
(G) Farm ponds shall be priced as class V pasture land in the
appropriate soil management group. Reclaimed strip mine land
often has a better agricultural potential than in its
original state depending on the geological origin of the
soil. Until better means are devised reclaimed strip mine
land used as cropland shall be priced as class IV land or
such other classification as may be determined based on the
slope of the ground and other soil characteristics or
properties. If in wood and pasture classify as class VI in
the proper use unless another classification is justified as
previously stated. Unreclaimed strip mine land, gravel pits,
etc. unsuitable for agricultural use shall be priced as class
VIII land.
(H) Where special "agricultural uses" are peculiar to and
typical of an area, individual appraisals must be made to
determine the agricultural use land value. In some cases, for
example, a greenhouse operation in an urban location, the
agricultural land value can be determined by the use of the
land residual appraisal technique using the present special
agricultural use as the highest and best use. The income
stream attributed to the land would then be capitalized to
determine the agricultural use land value. The land residual
technique is extremely sensitive therefore caution must be
used to be certain that the net income capitalized is typical
for the specific usage.
(I) One acre for each residence on a parcel shall be valued
as a homesite in the same manner as similar homesites in the
area on a market value basis. Land shall not be valued on a
homesite basis unless there is a building or a house trailer
used for human habitation located on such parcel.
Improvements including residences, agricultural service and
other buildings are valued and assessed as provided in rules
5703-25-05 to 5703-25-17 of the Administrative Code.
(J) The county auditor shall deduct from the value of each
separate parcel of real property the amount of land occupied
and used by a canal or used as a public highway as provided
in section 5713.04 of the Revised Code.
(K) The agricultural use land value shall be the total of
values extended by application of unit values from the
"Current Agricultural Land Use Tables" and the value of the
homesites. The total "agricultural use land value" is entered
on the real property record required by section 5713.03, of
the Revised Code, together with the "true value" of the land
as determined in accordance with Section 2, Article XIII of
the Ohio Constitution. Any difference in value shall be noted
on the real property record.
(L) Where adjustment in values is needed due to hazards, such
as floods, weed infestation, etc., peculiar to a specific
tract the auditor has the authority to make such adjustment
or in the event the land value of a parcel or tract, as
calculated from the "current agricultural use value of land
tables," exceeds or is less than the value indicated by the
sale of the parcel or comparable properties in the area where
the consideration was determined under the conditions
prescribed by the definition of "Current Agricultural Use
Value of Land" in rule 5703-25-30 of the Administrative Code
the current agricultural use value of land shall be
determined on the basis of such sale or sales.
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 5705-5-05