Complete coverage
The Springfield News-Sun will continue to provide unmatched coverage of changes in the CAUV formula, which affects numerous farmers in Clark and Champaign counties. The paper has provided coverage of a spike seen by many farmers due to the formula, and changes state officials are considering to the CAUV.
About 20 Clark County farmers gathered in South Vienna this week as Clark County Auditor John Federer highlighted upcoming changes to their taxes.
The Current Agricultural Use Value is a roughly 40-year-old formula designed to keep taxes more palatable for farmers and to deter them from selling their land to commercial developers.
However, many local farmers have seen their taxes double or even triple in some cases due to a quirk in the formula and high crop prices in recent years. The crop prices have since fallen, but those more recent prices have yet to work their way into the formula, leaving many farmers with higher tax bills and less revenue on hand to pay them.
Although many residents have raised concerns about the increases locally, the Ohio Department of Taxation manages the formula, Federer said. The Ohio Farm Bureau has recently been working with state officials and recommended some changes to take into consideration more recent crop data.
Some of those changes will more closely tie tax values to current economic conditions, as well as more accurately value woodlands, he said. The changes will be in place when Clark County sees an appraisal in 2016, although it likely won’t show up on tax bills until 2017, Federer said.
The changes won’t necessarily mean lower taxes for farmers overall, but should help alleviate some of the recent increases farmers have seen, Federer said.
“It will lessen the amount of an increase than if it stayed the same,” Federer said of the formula.
Frank and Penny Augustus, of South Charleston, said they attended Thursday’s meeting at Ritchie Bros. Auctioneers to learn more information about the formula. Penny Augustus said their family raises beef cattle and has to calculate how many cattle are needed annually to pay off the higher taxes.
Larry Timmons Jr. raises corn, beans, wheat and hay in Clark County. He said he was mostly interested in how long-term interest rates will affect the formula, although some of those answers are not readily available.
“When you’ve got high tax rates with your income coming down, it makes for a tough situation,” Timmons said.
Despite the recent higher costs, Federer said the formula continues to be a good deal for farmers in the long run.
About the Author