FAQs • Williams County, OH • CivicEngage

What qualifies as land devoted exclusively to agricultural use?

Land devoted exclusively to agricultural use qualifications include:

It qualifies if more than 10 acres were devoted exclusively to commercial production of filed crops; 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.
If less than 10 acres, it qualifies if, during the past three years, it produced a gross income of at least $2,500 each year or has an anticipated gross income of such amount during the current year.

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Current Agricultural Use Value (C.A.U.V.)

Major advantages include:

It provides tax relief on agricultural land.
If the tract of land contains woodland as well as cropland, the C.A.U.V. Law will often provide a greater tax relief than the Ohio Forest Tax Law because the law applies only to forest land acreage.
In some special circumstances, land currently under the C.A.U.V. program can lay idle for up to one year prior to being subject to recoupment.

Disadvantages include:

The owner must file annually to keep the exemption.
If the land use changes to non-agricultural, or if the owner fails to reapply for the C.A.U.V. program, there is a recoupment penalty equal to the past three years' tax savings.
Tracts under 10 acres can qualify only if the gross annual income from sales of agricultural products is at least $2,500.

3. Are all farms in Ohio used exclusively for agricultural purposes eligible to be taxed on their current agricultural use value?: Yes, if containing 10 acres or more. Those under 10 acres can qualify if the land has produced a gross income for the past three years of at least $2,500 each year or should reasonably be expected to product that much during the current year.

4. Will all farms be automatically reappraised on a C.A.U.V. basis?: No. Applications must be made each year at the Williams County Auditor's office.

5. What does an owner have to do to be taxed on the Current Agricultural Use Value?: File an application with the County Auditor on or after the first Monday in January and on or before the first Monday in March and pay a one time application fee of $25. There is no renewal fee.

Land devoted exclusively to agricultural use qualifications include:

It qualifies if more than 10 acres were devoted exclusively to commercial production of filed crops; 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.
If less than 10 acres, it qualifies if, during the past three years, it produced a gross income of at least $2,500 each year or has an anticipated gross income of such amount during the current year.

7. Do you have to own a farm for three years before you can apply?: No. The farm has to qualify, not the owner.

8. How often is real estate appraised for tax assessment purposes?: Reappraisals are done every six years and a review and adjustment is possible in the third calendar year following the reappraisal.

9. Is tax value the same as appraised value?: No. In Ohio, tax value, or tax assessed value, is 35% of the appraised market value.

10. How were farms valued before this law was enacted?: Before the law was enacted farms were appraised on the basis of their appraised market value.

11. How does C.A.U.V. appraisal differ from fair market value?: 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 C.A.U.V. method depends upon capitalizing the expected net income from farming.

12. Will some farms have lower appraised values using the C.A.U.V.?: Yes. The fair market value reflects what a buyer is willing to pay regardless of the farm's agricultural production capability.

13. Are the terms "tracts," "lots" and "parcels" used interchangeably?: For the purpose of this act they are.

14. Some land used exclusively for timber production has been taxed at a lower rate for many years. How does this affect the new act?: 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 C.A.U.V. program, meeting the commercial production test. However, you must submit a request for a Land Management program in writing to:
Tom Collins
Service Forester Division of Forestry
3357 County Road D
Swanton, OH 43558

15. What are the liabilities if incorrect information is given?: If you knowingly give false information on an application, you are guilty of a misdemeanor of the first degree.

16. What happens if the land is converted into a non-qualifying use?: The owner is required to pay back the tax difference. Recoupment, for a maximum of three years, is taxed under the C.A.U.V. method.

17. What causes one to become subject to recoupment?: Failure to reapply for C.A.U.V. tax appraisal or if a change in use occurs so that the land is not devoted exclusively to agricultural purposes.

19. Does raising race houses or saddle horses qualify?: Yes. This is a type of animal husbandry. However, a race track does not qualify.

20. Does a greenhouse qualify?: Yes. As long as it meets the C.A.U.V. income requirement

22. Does aquaculture qualify?: Yes, the raising of plants or animals as fish or shellfish in or under the sea, lake or river or other body of water.