Q&A on Agricultural "Use Valuation" and How it Can Offer Tax Relief for Some Ohio Property Owners
Q: Is there a special way agricultural land can be valued to reduce local real property taxes?
A: While Ohio law generally requires real property (land and improvements) to be taxed by uniform rules according to its fair market value, a special rule exists for land devoted exclusively to agricultural use. This commonly is referred to as current agricultural use value or "CAUV." A CAUV designation can significantly reduce the real property taxes owed by the land owner, especially if the land is in an area where housing or commercial uses are alternative uses for the land.
Q: How do I know if my land qualifies for CAUV?
A: To qualify, the land, during the three years prior to a CAUV application, must:
- consist of ten or more acres devoted exclusively to commercial agricultural use; or
- consist of less than ten acres devoted exclusively to commercial agricultural use and produce, or be expected to produce, an average yearly gross income of at least $2,500.
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