HAMILTON COUNTY CAUV PROGRAM
IMPORTANT CAUV
DATES & DEADLINES
Tuesday, January 3, 2024, is the first day to file initial applications
and renewal applications. The initial application has a one time fee of $25.
Make check payable to Dusty Rhodes, Hamilton County Auditor and return
to 138 East Court Street, Room 304-A, Cincinnati, Ohio 45202.
Friday, January 5, 2024, is the last day for the Auditor to mail renewal
applications to each current owner whose land qualified for CAUV the previous
year.
All initial applications for CAUV must be filed prior to
Monday, March 4, 2024.
On Tuesday, March 5, 2024, the
Auditor determines whether all renewal applications (for land already on the CAUV program) have been filed. If not, the Auditor notifies,
by certified mail or by email and regular mail, those current owners who failed to file the renewal application by the deadline.
All renewal applications for land already on the CAUV
program must be filed prior to Monday, April 1, 2024.
Monday, August 5, 2024, is the last day for the Auditor to view land upon which applications
have been filed to determine whether it is devoted exclusively to agricultural
use.
Monday, September 11, 2024, is the last day for the Auditor
to notify by certified mail each owner of land whose CAUV application was
denied, citing reasons for the denial.
QUESTIONS &
ANSWERS
Q. Are all farms
in Ohio used exclusively for agricultural purposes eligible to be taxed on
their current agricultural use value?
A. It is important to note that CAUV is a commercial agricultural use program, not an agricultural use program. All crops, animals, etc. on this program must be used for a commercial purpose. They must be grown and sold with the intent of profit. We request gross income information from ALL applicants.
Q. Will all farms be automaticly reappraised on a CAUV basis?
A. No. Applications must be made each year at the Hamilton County
Auditor's office.
Q. What does an owner have to do to be taxed
on the Current Agricultural Use Value?
A. File an application
with the County Auditor on or after January 3, 2024, and on or before March 4, 2024, and pay a one time application fee of $25. There is no renewal fee.
Q. What qualifies as land devoted exclusively to agricultural use?
A.
- It qualifies if more than 10 acres
were devoted exclusively to commercial production of field crops, animal husbandry, tobacco, fruit, vegetables, timber, nursery stock, ornamental trees, sod or flowers, or if it qualified for a land retirement or conservation program under an
agreement with the federal government; or if under ten acres devoted exclusively to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500.
- The first requirement for a parcel to qualify for CAUV is that it must have been farmed commercially the previous three calendars years prior to the year in which the application is made.
Therefore, if an owner is applying in 2024 (tax year 2024) then the property must have been farmed in 2023, 2022 and 2021 and must have generated income during those years from agricultural use. Regardless what is done in 2024 and in the future, the property must meet this test before further consideration can be given to the application. The income requirement is $2,500 gross income for each year.
Q. Do you have to own a
farm for three years before you can apply?
A. No. The farm has
to qualify, not the owner.
Q. Should every owner of 10 acres
or more apply for the CAUV Program?
A. No. Only if you believe
that assessments on the Current Agricultural Use Value basis will result in
lower taxes than assessment on the appraised market value approach.
Q. How often is real estate appraised for tax assessment purposes?
A. Reappraisals are done every six years and a review and
adjustment is possible in the third calendar year following the reappraisal.
Q. Is tax value the same as appraised value?
A. No. In Ohio, tax value, or tax assessed value, is 35% of the
appraised market value.
Q. How were farms valued before this
law was enacted?
A. On the basis of their appraised market
value.
Q. How does CAUV appraisal differ from fair market
value?
A. The fair market value approach depends upon the
comparison of sales of similarly situated farms and where the highest and best
use sets value. The CAUV method depends upon capitalizing the expected net
income from farming.
Q. Will some farms have lower appraised
values using the CAUV?
A. Yes. The fair market value reflects
what a buyer is willing to pay regardless of the farm's agricultural production
capability.
Q. Are the terms "tracts", "lots" and "parcels"
used interchangeably?
A. For the purpose of this act they are.
Q. Some land used exclusively for timber production has been
taxed at a lower rate for many years. How does this affect the new act?
A. Woodland is not eligible for tax savings under both laws. An
owner must choose one or the other. On parcels of 10 acres or more, timber
qualifies for the CAUV program, meeting the commercial production test.
However, you must submit a request for a Land Management program in writing to:
Division of Forestry
777 Columbus Ave. 5A
Lebanon, Ohio 45036
WANT
MORE INFORMATION?
Q. What are the liabilities if incorrect information is given?
A. If you knowingly give false information on an application,
you are guilty of a misdemeanor of the first degree.
Q. What
happens if the land is converted into a non-qualifying use?
A.
The owner is required to pay back the tax difference. Recoupment, for a maximum
of three years, is taxed under the CAUV method.
Q. What causes
one to become subject to recoupment?
A. Failure to reapply for
CAUV tax appraisal or if a change in use occurs so that the land is not devoted
exclusively to agricultural purposes.
Q. Does a greenhouse qualify?
A. Yes. As long as it meets the CAUV income requirements.
Q. Does a
garden store qualify?
A. No.
Q. Does a farmland owner have to file each year to be eligible for the CAUV tax appraisal?
A. Yes. After Tuesday, January 3, 2024, and before Monday, March 4, 2024, you must reapply.
Q. Does aquaculture qualify?
A. Yes,
the raising of plants or animals as fish or shellfish in or under the sea, lake
or river or other body of water.
Q. Does apiculture qualify?
A. Yes. The raising and care of bees qualifies.
For More Information Call Patty Hils 513-946-4120