The Press Newspaper

Toledo, Ohio & Lake Erie

The Press Newspaper

The Press Newspaper


 With the Ohio Senate passing its version last week of farmland valuation reform and the House approving a similar measure last month in the budget bill, the Current Agricultural Use Valuation program appears destined for change.

 However, questions linger over the impact a reformed CAUV formula will have on other entities that rely on property tax revenues.

 The Senate approved SB 36 Wednesday by a vote of 33-0. Under CAUV, farmland tax valuation is based on its agricultural value rather than the land’s market value.

  “The Ohio Senate has taken a much needed step to help farmers who have been subjected to extraordinary property tax increases. By reforming the CAUV formula, the bill will bring relief to family farmers who have seen farmland property taxes increase by more than 300 percent in recent years. These increases have come at the same time that farm income has undergone significant decline. SB 36 also ensures that farmers are not penalized for adopting conservation practices that protect water quality,” a statement from the Ohio Farm Bureau says.

 Tax relief for farmers with land enrolled in the CAUV could have consequences for school districts and local governments.  The Legislative Service Commission estimated SB 36 could cost school districts statewide revenue losses of $13 million in Fiscal Year 2018 and up to $17 million in fiscal 2019.

 “Revenue losses would phase in with sexennial reappraisals and triennial (property) updates, starting 2017,” the commission’s impact statement says. “About 60 percent of the value of land in the CAUV program is scheduled for revaluation in that year, with the rest about evenly divided between 2018 and 2019. For property taxes subject to tax reduction factors, revenue losses would be partly offset by higher effective tax rates on residential property owners and also on farmers. Effective rates can rise no longer than voted (gross) millage rates.”

 In testimony before the Senate Ways and Means Committee, Mike Yoder, president of the County Auditors’ Association of Ohio, cautioned the committee about the effect a change may have on the school foundation funding formula.

 “Due to the calculation of the school foundation formula as a ratio of an individual school district’s value as compared to the state’s total value, any reduction in total valuation requires a recalculation of the distribution of the limited funds available from the school foundation formula. This may give more money to the districts where the values are lowered and less funding for the remaining school districts,” he said.



Boy Scouts

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