You may have recently received a letter from the local county auditor that provided information on your county’s property tax revaluation and your updated property value. It is important to note that these notices often do not reflect your Current Agricultural Use Value, and instead present your Market Value only. Therefore, the “taxable value” indicated in the letter is probably not reflective of what will be used to determine your property taxes.
Since 2017, CAUV values have declined due to Ohio Farm Bureau’s lobbying efforts that led to CAUV calculation reform. Keep in mind that CAUV values only apply to your farmland, and do not apply to your home, the land your home is on (called the homesite) and any buildings on your property. The values of those three components are the market value, based on recent sales in your county and local area. Prior to COVID-19, real estate markets were very healthy throughout Ohio (and remain healthy in some areas despite the pandemic), and we have seen most counties have an increase in taxable value of homes and buildings due to that.
If you have received a property value notification, understand that it is likely reflective of your overall market value, rather than your CAUV value or a combination of the two. When it comes to your CAUV qualified farmland, the market value you may be seeing is what you would be taxed on if you were not in the CAUV program. Typically, if the CAUV value is included, it will be labeled as such on the value notification. CAUV values were certified earlier this summer, and county auditors may not have been able to incorporate those into previously scheduled mailings. You can speak with the local county auditor to determine what your taxable value will be under the CAUV program.