Medina County Cauv Program Ohio

Welcome to the USDA Ohio Farm Service Agency Website. Department of Agriculture (USDA) Farm Service Agency (FSA) serves America’s farmers, growers and producers through a network of over 2,100 offices in nearly every rural county in the United States, providing localized service to potential and current farmers who, in turn, provide our nation and the world with safe, affordable. If you do not renew your application, the Medina County Auditor's Office is required to value the property at its true or current market value and to recoup the taxes for the past three years. Land that is removed from the CAUV program is charged a recoupment. Kovack, Medina County Auditor, invites CAUV landholders to a meeting to discuss the significant rate changes recently established by the State of Ohio. The public is invited to a discussion, “CAUV—Why the Rates are Going Up!” which will be presented at the Medina County University Center at 6300 Technology Lane, Medina, from 1. Current Agricultural Use Value CAUV. Real Estate Tax Reduction Programs for Farmland. In Medina County For more information, contact: MIKE KOVACK. Medina County Auditor 144 N. Broadway St., Room 301 Medina, Ohio 44256. Tol Free 844-722-3800.

MEDINA, Ohio— Many Medina County agricultural landowners may be surprised when they open their 2014 tax bills.

Soil type determination

For those on Current Agricultural Use Values (CAUV) program, property values have increased several hundred percent over 2010 CAUV values, depending on soil type. Ohio has approximately 3,500 soil types.

Unlike fair market value appraisals, CAUV values are calculated by the State of Ohio Department of Taxation by a formula that is based on five factors. The CAUV soil rates allow land to be taxed based on its agricultural value, rather than fair market value, which is considerably higher.

No control

The county auditor has no control over the calculation performed by the state. The auditor’s role in this regard is simply to apply the results of the predetermined calculation from the Ohio Department of Taxation. The five factors the Ohio Department of Taxation uses in calculating CAUV land values are yield information, cropping patterns, crop prices, non-land production costs and the capitalization rate. CAUV rates are updated every three years and current rates were updated because of the state mandated 2013 sexennial reappraisal.

Significantly less values

Even with the significantly increased CAUV values, farmers are paying taxes on values significantly less than those not on the CAUV program. In 2012 the statewide average value for CAUV acreage was $994, compared to $3,044 per acre for agricultural acreage not in the CAUV program. Because the county auditor has no role in setting the CAUV values, there is no appeal available to land owners at the local level.

Questions

Additional information regarding CAUV values is available on the auditor’s website at www.medinacountyauditor.org.
For questions, call the auditor’s office at 330-725-9765 or visit at 144 N. Broadway St., Medina. Hours are Monday through Friday, 8 a.m.-4:30 p.m.

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Current Agricultural Use Value (CAUV) is a program to reduce the taxable value of land being used for commercial agricultural production. By permitting values to be set well below true market values, CAUV normally results in a substantially lower tax bill for working farmers.

Qualification Requirements

Land must meet one of the following requirements during the three years preceding an application for CAUV:

Ten or more acres must be devoted exclusively to commercial agricultural use
If under 10 acres are devoted to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500

Initial Application

To sign up, there is a one-time fee of $25 for initial applications. Initial Application for Valuation of Land at Its Current Agricultural Use must be submitted between the first Monday in January and the first Monday in March.

Renewal Application

Applications must be renewed annually, but there is no annual renewal fee. The deadline for renewal applications is the first Monday in March.

If you do not renew your application, the Medina County Auditor's Office is required to value the property at its true or current market value and to recoup the taxes for the past three years.

Land that is removed from the CAUV program is charged a recoupment.

Frequently Asked Questions

What qualifies for CAUV?

A landowner must devote the parcel exclusively to commercial:

Animal or poultry husbandry
Aquaculture (the cultivation of freshwater and marine resources, both plant and animal)
Apiculture (the raising and care of bees)
Field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod, or flowers
Timber for a noncommercial purpose, if the land on which the timber is grown is contiguous to land that is already eligible for CAUV

If there are less than 10 acres of commercial agricultural use, the farm must generate a yearly gross income of at least $2,500. Qualified land that has not previously been enrolled in CAUV is subject to a three-year waiting period immediately prior to enrollment. During this time the land must meet the statutory definition of “land devoted exclusively to agricultural use.” Sufficient documentation is required with submission of the initial application in order to qualify. This documentation may be requested periodically by the Medina County Auditor's Office to verify the continuation of commercial agricultural production.

How does CAUV valuation differ from current market value?

The value of the land that is being farmed is reduced based on the type of soil in the property. There is no reduction on the home site area or any buildings. The true 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. Because market value reflects what a buyer is willing to pay, regardless of the farms agricultural production capability, some farms may have lower appraised values through the CAUV program.

How is CAUV calculated?

Medina County Cauv Program Ohio State

Each year, the Ohio Department of Taxation sets Current Agricultural Use Values for each of Ohio's soil types. To view current values and explanations of how the values were established, visit the Ohio Department of Taxation.

Are there any penalties for removal of property from program?

Yes. If at any time the land, or a portion of the land, does not meet the requirements to remain in the program a recoupment will be placed on the tax bill. If only a portion of the land is converted, the remainder will remain on the program as long as it continues to meet the qualifications. The land is allowed to lie fallow for one year and automatically remain in the program, the second and third year remain in program if good cause is proven to the Board of Revision.

What is a recoupment?

Medina County Cauv Program Ohio Phone Number

The recoupment charge is three years worth of savings that accumulated prior to conversion in the CAUV program, versus valuation outside of the program.

Who is responsible for paying the recoupment?

The recoupment will appear on the tax bill of the owner after the property changes use and/or hands. The total amount is recouped in one year by equally dividing the total between the first- and second-half tax bill. If a transfer of ownership causes the conversion, the seller and buyer decide who pays the recoupment. However, if the recoupment is not paid when the land is converted, the recoupment will go on the new owner's tax bill.

Medina County Cauv Program Ohio Locations

When do I file?

After the first Monday in January and before the first Monday in March of the year for which the agricultural use value is sought.

For more information, check out Current Agricultural Use Value or call the Medina County Auditor's Office at one of the following phone numbers:

Medina County Auditor Cauv

Medina County Cauv Program Ohio Application

Medina: (330) 725-9758
Toll Free: (844) 722-3800, ext. 9758