Things to remember as first CAUV reform benefits take effect

first_imgShare Facebook Twitter Google + LinkedIn Pinterest Ohio’s farmers and rural communities will benefit from reforms to the state’s farmland tax policy, culminating a three-year effort that ended with the new state budget signed by Gov. John Kasich last summer. The budget legislation contained changes to the Current Agricultural Use Value formula, which in recent years has caused farmland owners to experience tax increases of 300% or more.“It’s taken three years of grassroots action to fix the flaws in the CAUV formula, and our members should be proud of this significant accomplishment,” said Adam Sharp, Ohio Farm Bureau Executive Vice President.Sharp said the reforms are being phased-in over two reassessment cycles (six years) in order to assist local communities and schools to transition to the more accurate CAUV formula. Under CAUV, farmland is taxed at a rate that reflects its value for agricultural purposes instead of its value as development property. Ohio voters originally enacted the formula in 1973 as a means to preserve farmland.The reforms will begin in the 2017 valuations, which farmers in 41 counties will receive in January 2018, and will be fully implemented for all counties after the 2022 reassessment, said Leah Curtis, policy counsel for Ohio Farm Bureau.“If you are in a 2017 re-appraisal county, that means you get your new bill in 2018. Your county auditor may have sent out an updated CAUV value for you. Not all auditors do that, so if you want to see what your new CAUV value is you can contact your auditor to find out,” Curtis said. “They will probably not know what your taxes are yet because they don’t get the finalized tax rates until later in December, but they should be able to tell you what your new CAUV value is. On average we saw those CAUV values about 30% lower than what they were in 2014, which is the last time those counties were appraised. The actual taxes are very dependent on your local tax situation. It would include local tax rates, what the property values have done, if levies were added or taken away — all of those things will play into the difference in the taxes you will pay. Tax rates are locally determined so you can talk with your auditor who may have an idea what your tax rates will do.”Some of the biggest changes, at least in terms of the paperwork with CAUV, involve conservation practices on the land.“The conservation part of CAUV reform is the one area where people need to prepare some different paperwork than they have in the past. Just like normal, you have to do a renewal application for CAUV,” Curtis said. “If you have conservation land that you want valued at the minimum value of $230 per acre, you need to submit to your auditor the new conservation paperwork. If it is federal conservation land, it will have to be a map showing where that acreage is and a copy of your contract. If it is not federal, you need a map showing where that conservation land is and it needs to be less than 25% of your total acreage.“You have to leave that conservation practice in for three years or you will pay back the difference between that low value and your normal CAUV value. If you take it out before the three-year mark, you will have to pay the difference. If you are one of the 2017 counties and you already did your application back in January and you are getting your new value, you need to visit with your auditor now to get that conservation acreage cleared up so they know you had conservation acreage on Jan. 1 and they can do that valuation for you.”Those not in a 2017 reappraisal year will not see the change until you get to the reappraisal year for their counties.“Just like the changes in your CAUV values happen in your update year, the conservation changes also happen at that same time,” Curtis said. “If you are in a 2018 or 2019 reappraisal, you will be doing this on your application, but you won’t see the change in value until you get to your reappraisal or update.”The actual form required for notifying auditors about these conservation practices has been finalized and looks different because it is asking for people to delineate out what their acreage is used for and how many acres are devoted to conservation. Forms are available on the Ohio Department of Taxation website and from the county auditor.“The Tax Department puts together guidance for the auditors as to how they are to handle this. They get direction straight from the Tax Department. We haven’t heard of any confusion from the Tax Department. They sent out some guidance in October. I think the statute and the language was pretty clear and there was not much confusion,” Curtis said. “I think there was some discussion as to how we got those people from the 2017 reappraisal year and how they get the auditor to know what that acreage is because the forms were already filled out. The auditors can amend those applications by getting information from the landowner, but it is going to be on the landowner to do that.”In terms of the paying their property taxes for 2018, there are a number of factors landowners need to remember, Curtis said.“There are questions about the conservation changes and how that will work. We are helping people understand how they can go about doing that and work with their auditor,” she said. “It is always good to pay attention to the fact that if you are above the 10-acre amount you do not need to worry about filling out the income portion of that form. Sometimes that trips people up. The form says if acreage is less than 10 acres then you need to show gross income. That, of course, is because you can qualify with 10 acres. For those with less than 10 acres, it requires $2,500 of income to qualify. That income section is only for those with less than 10 acres.“If you are a 2017 county, get your conservation acres looked at and, as always, your renewal forms are due between the first Monday in January and the first Monday in March. A lot of people are really happy to see farmers will get a chance to have accurate values based on accurate information like any other homeowner or property owner would have. We really haven’t heard much as far as backlash.”last_img

first_imgShare Facebook Twitter Google + LinkedIn Pinterest Ohio’s farmers and rural communities will benefit from reforms to the state’s farmland tax policy, culminating a three-year effort that ended with the new state budget signed by Gov. John Kasich last summer. The budget legislation contained changes to the Current Agricultural Use Value formula, which in recent years has caused farmland owners to experience tax increases of 300% or more.“It’s taken three years of grassroots action to fix the flaws in the CAUV formula, and our members should be proud of this significant accomplishment,” said Adam Sharp, Ohio Farm Bureau Executive Vice President.Sharp said the reforms are being phased-in over two reassessment cycles (six years) in order to assist local communities and schools to transition to the more accurate CAUV formula. Under CAUV, farmland is taxed at a rate that reflects its value for agricultural purposes instead of its value as development property. Ohio voters originally enacted the formula in 1973 as a means to preserve farmland.The reforms will begin in the 2017 valuations, which farmers in 41 counties will receive in January 2018, and will be fully implemented for all counties after the 2022 reassessment, said Leah Curtis, policy counsel for Ohio Farm Bureau.“If you are in a 2017 re-appraisal county, that means you get your new bill in 2018. Your county auditor may have sent out an updated CAUV value for you. Not all auditors do that, so if you want to see what your new CAUV value is you can contact your auditor to find out,” Curtis said. “They will probably not know what your taxes are yet because they don’t get the finalized tax rates until later in December, but they should be able to tell you what your new CAUV value is. On average we saw those CAUV values about 30% lower than what they were in 2014, which is the last time those counties were appraised. The actual taxes are very dependent on your local tax situation. It would include local tax rates, what the property values have done, if levies were added or taken away — all of those things will play into the difference in the taxes you will pay. Tax rates are locally determined so you can talk with your auditor who may have an idea what your tax rates will do.”Some of the biggest changes, at least in terms of the paperwork with CAUV, involve conservation practices on the land.“The conservation part of CAUV reform is the one area where people need to prepare some different paperwork than they have in the past. Just like normal, you have to do a renewal application for CAUV,” Curtis said. “If you have conservation land that you want valued at the minimum value of $230 per acre, you need to submit to your auditor the new conservation paperwork. If it is federal conservation land, it will have to be a map showing where that acreage is and a copy of your contract. If it is not federal, you need a map showing where that conservation land is and it needs to be less than 25% of your total acreage.“You have to leave that conservation practice in for three years or you will pay back the difference between that low value and your normal CAUV value. If you take it out before the three-year mark, you will have to pay the difference. If you are one of the 2017 counties and you already did your application back in January and you are getting your new value, you need to visit with your auditor now to get that conservation acreage cleared up so they know you had conservation acreage on Jan. 1 and they can do that valuation for you.”Those not in a 2017 reappraisal year will not see the change until you get to the reappraisal year for their counties.“Just like the changes in your CAUV values happen in your update year, the conservation changes also happen at that same time,” Curtis said. “If you are in a 2018 or 2019 reappraisal, you will be doing this on your application, but you won’t see the change in value until you get to your reappraisal or update.”The actual form required for notifying auditors about these conservation practices has been finalized and looks different because it is asking for people to delineate out what their acreage is used for and how many acres are devoted to conservation. Forms are available on the Ohio Department of Taxation website and from the county auditor.“The Tax Department puts together guidance for the auditors as to how they are to handle this. They get direction straight from the Tax Department. We haven’t heard of any confusion from the Tax Department. They sent out some guidance in October. I think the statute and the language was pretty clear and there was not much confusion,” Curtis said. “I think there was some discussion as to how we got those people from the 2017 reappraisal year and how they get the auditor to know what that acreage is because the forms were already filled out. The auditors can amend those applications by getting information from the landowner, but it is going to be on the landowner to do that.”In terms of the paying their property taxes for 2018, there are a number of factors landowners need to remember, Curtis said.“There are questions about the conservation changes and how that will work. We are helping people understand how they can go about doing that and work with their auditor,” she said. “It is always good to pay attention to the fact that if you are above the 10-acre amount you do not need to worry about filling out the income portion of that form. Sometimes that trips people up. The form says if acreage is less than 10 acres then you need to show gross income. That, of course, is because you can qualify with 10 acres. For those with less than 10 acres, it requires $2,500 of income to qualify. That income section is only for those with less than 10 acres.“If you are a 2017 county, get your conservation acres looked at and, as always, your renewal forms are due between the first Monday in January and the first Monday in March. A lot of people are really happy to see farmers will get a chance to have accurate values based on accurate information like any other homeowner or property owner would have. We really haven’t heard much as far as backlash.”last_img

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