Ohio reappraises and updates real property valuations every three years, and that means higher taxes. For tax year 2024, reappraisals and updates included counties such as Cuyahoga, Lake, Portage, Stark, Allen, and Sandusky.[1] As property values continue to increase, this means higher taxes for landowners. However, there may be a solution for property used for agricultural purposes.
Current Agricultural Use Value, or CAUV, is a program that lower property taxes by reducing the valuation of properties used for commercial agricultural. Qualifying land is valued for tax purposes based upon its agricultural use, accounting for soil and crop types, rather than highest and best use.[2] To qualify, land consisting of 10 or more acres must be used for commercial agriculture, conservation, or forestry for at least three years prior to applying.[3] Properties with less than 10 acres must also produce more than $2,500 in average income over the previous three years.[4]
Qualifying commercial agricultural activities include farming crops, fruits, vegetables, timber, beekeeping, animal husbandry, flowers, and timber, among others.[5] The critical aspect is that the land is used to produce an agricultural product for sale. Additionally, woodlands adjacent land used for commercial agriculture also qualifies for the CAUV program.
To qualify for the CAUV, a landowner must have been an owner of the land as of January 1st of the year of application, the land must have been used for commercial agricultural or conservation use for the prior three years, even if it predates the applicant’s ownership, and the land must be used primarily for agricultural purposes.[6] The deadline to apply is the day prior to the first Monday in March.[7]
Given the benefits and complexity of the CAUV process, it always helps to have legal assistance to guide you through this process. If you or your business has a tax issue, the lawyers at Buckingham, Doolittle & Burroughs are experienced in these matters and may be contacted for more information. Our attorneys have helped many taxpayers navigate reassessments, audits, refund claims, planning and litigation all the way to the Ohio Supreme Court to resolve their Ohio state and local tax issues.
If you have questions regarding your Ohio State & Local tax obligations and opportunities, contact the SALT attorneys at Buckingham, Doolittle & Burroughs to discuss your matter. Steven A. Dimengo, Richard B. Fry III, Nathan M. Fulmer, and Noah Veres are ready to assist you.
[1] Property Value Reappraisal and Update Schedule, Ohio Dept. of Taxation (https://tax.ohio.gov/government/real-state/reappraisal-and-triennial-update) (last visited Feb. 28, 2025).
[2] Stammen, Kelli M., CAUV: Past, present and future, Ohio Farm Bureau, (https://ofbf.org/2024/06/20/cauv-past-present-and-future/) (last visited Feb. 28, 2025).
[3] Id.; CAUV, Stark County Auditor (https://www.starkcountyohio.gov/government/offices/auditor/real_estate/cauv.php) (last visited Feb. 28, 2025).
[4] Id.; Current Agricultural Use Value (CAUV), Ohio Dept. of Tax (https://tax.ohio.gov/government/real-state/cauv); CAUV Program, Green County (https://www.greenecountyohio.gov/387/CAUV-Program#:~:text=Purpose,over%20the%20previous%20three%20years) (last visited Feb. 28, 2025).
[5] See CAUV, Lake County Ohio, (https://www.lakecountyohio.gov/auditor/cauv/) (last visited Feb. 28, 2025); CAUV, Stark County Auditor (https://www.starkcountyohio.gov/government/offices/auditor/real_estate/cauv.php) (last visited Feb. 28, 2025).
[6] Id.; R.C. §5713.31.
[7] R.C. §5715.01; R.C. §5713.31.
