Current Agricultural Use Value (CAUV) General Information. For property tax purposes, farmland devoted exclusively to commercial agriculture may be valued according to its current use rather than at its "highest and best" potential use. This provision of Ohio law is known as the Current Agricultural Use Value (CAUV) program.
Be careful of recoupment of reduced taxation of current agricultural use valuation January 31, 2015 The Ohio legislature has provided for significantly reduced property tax valuation (and thus, reduced property taxes) for property used for qualifying agricultural purposes.
agricultural use program, not an agricultural use . program. All crops, animals, etc. on this program must be used for a commercial purpose, must ... The owner is required to pay back the tax difference. Recoupment, for a maximum of three years, is . taxed under the CAUV method. Q.
In the event the agricultural use ceases, the State will recoup any tax savings associated with the real estate’s CAUV during the previous 3 years. Under Revised Code Section 5713.34, the recoupment is charged to the current owner regardless of whether that owner received the benefit of the previous CAUV.
If agricultural land owners fail to file the Renewal application prior to the first Monday of April of the current year, the land will be valued for real property tax purposes in the current tax year at its true value in money, and will be responsible for any recoupment.
Failure to qualify is a result of converting CAUV land to a non-agricultural use or not filing the annual renewal form. Land that no longer qualifies for CAUV is assessed a recoupment charge upon removal from the program. Recoupment is equal to the previous three years tax savings.
Current Agricultural Use Valuation (CAUV) The CAUV program allows farmland devoted exclusively to commercial agriculture to be valued based on their value in agriculture, rather than the full market value, resulting in a substantially lower tax bill for the working farmer.
Forming agricultural districts is intended to counteract the impact that nonfarm development can have upon the continuation of farm businesses. The Agricultural Districts Law allows reduced property tax bills for land in agricultural production by limiting the property tax assessment of such land to its prescribed agricultural assessment value.
If the land is converted to a non-agricultural use, a recoupment of the savings received through the CAUV program for the previous three years must be repaid. Failure of a new owner to apply for CAUV or a renewal of an existing CAUV can trigger the recoupment process.
Tax recoupment refers to the monetary reimbursement that an individual or organization receives from the government for having paid a tax that is determined as inappropriate. This recoupment is usually equal to the amount of money that one was taxed. There are many factors that lead to the issuance of tax recoupment.