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1. What are some of the big advantages of the CAUV program?

1) It provides major tax relief for owners of agricultural land.
2) If land contains woodland as well as cropland, the CAUV program will often provide a greater tax relief but, the Ohio Forest Tax reduction can also apply to forest land of ten (10) acres or more and not less than one-hundred twenty (120) feet wide. Owners should contact the Ohio Department of Natural Resources and compare tax savings between the two programs.
3) In some special circumstances, land currently under CAUV can lay fallow for one year prior to being subject to recoupment.

2. What are some of the disadvantages of the CAUV program?

1) If the land use changes to non-agricultural, or if the owner fails to reapply for the CAUV program (renewed yearly), there is a recoupment charge equal to the past three (3) years' tax savings.
2) Tracts under ten (10) acres can qualify only if the gross annual income from sales of agricultural products is at least $2,500 or anticipate a gross income of $2,500 or more.

3. Are all farms in Ohio used exclusively for agricultural purposes eligible to be taxed on their current agricultural use value?

Yes, if containing ten (10) acres or more. Those under ten (10) acres can qualify if the land has produced a gross income for the past three years of at least $2,500 each.

4. Will all farms currently enrolled in the program be automatically renewed each year?

No. CAUV renewals must be made each year by the deadline at the Lucas County Auditor's Office. Failure to do so will result in the removal of the property from the CAUV program. In addition, a recoupment will be levied.

5. What does an owner have to do to be taxed on CAUV?

File an initial application with the Lucas County Auditor on or after the first Monday in January and on or before the first Monday in March. There is a one time application fee of $25.00. Renewal applications must be filed yearly to remain in the program. There is no renewal fee.

6. Do you have to own a farm for three (3) years before you can apply for CAUV?

No. The farm has to qualify, not the owner.

7. What qualifies as land devoted exclusively to agricultural use?

1) It qualifies if (10) ten acres or more are devoted exclusively to production of field crops; tobacco, fruit, vegetables, timber, nursery stock, ornamental trees, sod or flowers; or it qualifies for a land retirement or conservation program under agreement with the U.S. Government.
2) If the property is less than (10) ten acres, it qualifies if, during the past three (3) 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.

8. How often is real estate appraised for tax assessment purposes?

CAUV Soil Values are reappraised every three (3) years and a review and adjustment is possible in the third (3rd) calendar year following the reappraisal. This is similar to the triennial updates conducted for all properties in the county.

9. How does CAUV appraisal differ from fair market value?

The fair market value approach calculates the property tax based on its highest and best potential use. In contrast, the CAUV method calculates the property tax based on the agricultural use of the land. Thus, the CAUV program was enacted as a tax incentive program.

10. Will some farms have lower appraised values using the CAUV?

Yes. The fair market value reflects the amount of money a willing buyer is willing to pay to a willing seller to purchase the property, regardless of the farm's agricultural production capability.

11. What are the liabilities if incorrect information is given on a CAUV application (initial or renewal)?

If you knowingly give false information on an application, you are guilty of a misdemeanor of the first degree.

12. What happens if the land is converted into a non-qualifying use?

The owner is required to pay back the accumulated tax savings. A recoupment for a maximum of the accumulated past three (3) years' savings.