Public Hearing on 2023 Agricultural Use Values Tax Proposal
This public hearing by the Ohio Department of Taxation presents data on the proposed final Current Agricultural Use Values (CAUV) for the tax year 2023. The agenda includes discussions on data sources, CAUV formula, formula inputs, sample calculations, year-to-year comparisons, and addressing questions and comments.
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Presentation Transcript
Public Hearing: Current Agricultural Use Values (CAUV) Tax Year 2023 Proposed Final Values Division of Tax Equalization June 22, 2023
Meeting Purpose & Agenda Meeting Purpose & Agenda Purpose: This is a public hearing before the Ohio Department of Taxation to present data on the proposed final Current Agricultural Use Values (CAUV) for tax year 2023. Agenda: o Data Sources o CAUV Formula o Formula Inputs o Sample Calculations o Year-to-Year Comparisons o Questions & Comments
CAUV Formula GOI = Crop Yield x Average Crop Price NOI = GOI Non-land Production Costs Value = NOI/Capitalization Rate
Formula Inputs & Proposed Final Values Formula Inputs & Proposed Final Values Factors used in the CAUV Calculation Income Factors - Crop yields, crop prices, & cropping patterns Expense Factors - Non-land production costs Capitalization rate for net income 2023 Proposed Soil Values Average Cropland Values & Woodland Values Comparative Charts
Crop Yields & Cropping Patterns Soil yields from 1984: adjusted by 10-year average of actual yields per acre for 2013-22. Single crop pattern for most soils based on five-year average of acres harvested, 2018-2022: o Corn 37% o Soybeans 57% o Wheat 6% Maintain 50% corn & 50% soybeans for organic and frequently flooded soils.
Crop Prices Used in Five Year Average USDA, National Agricultural Statistics Service Crop Values, 2022 Summary, February 2023
Adjusted Crop Prices in the Formula, 2020-2023 USDA, National Agricultural Statistics Service 2022 Summary, February 2023
Non-Land Production Costs Base & Added Unit, 2020-2023 OSU, Ohio Crop Production Budgets Five Year Average, May 2023
Capitalization Rate TY 2020 & 2023 Farm Credit Services, Jan-May 2023 USDA Farm sector financial ratios, February 2023
Cropland, Simple Average CAUV Value by Productivity Index 2015-2022
Cropland, Average CAUV Value (Formula) $1,800 $1,600 $1,400 Average Cropland Value $1,200 $1,000 $800 $600 $400 $200 $0 2005 2008 2011 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Average Cropland Value $123 $249 $700 $1,668 $1,388 $1,310 $1,153 $1,015 $876 $668 $759 $999 $1,443
Average CAUV (Formula) & Ohio Cropland Value USDA Dollars per Acre, 2006-2022 $8,000 $7,000 $6,000 $5,000 Value (per acre) $4,000 $3,000 $2,000 $1,000 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CAUV average of all soil types (per acre) $177 $181 $249 $459 $505 $700 $719 $1,205 $1,668 $1,388 $1,310 $1,153 $1,015 $876 $668 $759 $999 USDA Value (per acre) $3,470 $3,820 $4,140 $3,830 $3,900 $4,160 $4,640 $5,190 $5,740 $6,030 $6,070 $6,150 $6,320 $6,400 $6,460 $6,800 $7,550
HB 49 Land Conservation Land used for conservation practices (25%) under a qualifying retirement or conservation contract with the federal government. Receives lowest value in the Table ($230). If use changes sooner than 36 months after initial certification, auditor recoups extra tax savings.
CAUV Program Savings Source: Ohio Department of Taxation; Taxable Current Agricultural Use Value of Real Property, Taxable Value of Real Property without CAUV, and Number of CAUV Acres, By County, Tax Year 2021; Updated 8/9/2022. https://tax.ohio.gov/researcher/tax-analysis/tax-data-series/tangible-personal-property/pd32/pd32ty21
CAUV Information (2009-2022) Online https://tax.ohio.gov/government/real-state/cauv Questions, Comments, and How to Obtain Additional CAUV Information Contact the Department DTE@tax.state.oh.us; 614-466-5744 Stephanie.Stultz-wynkoop@tax.state.oh.us; 614-752-8613
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