Current Agricultural Use Valuation (CAUV)
Current Agricultural Use Valuation (CAUV) is a program
which values property based upon its value for agricultural
productivity, rather than fair market value, for tax purposes.
CAUV was designed to follow the farm economy; resulting
in higher values in times of prosperity and lowered values
if the farm economy falters. Even as CAUV values increase,
landowners typically still see a significant discount from fair
market value if enrolled in the CAUV program.
Property Taxation and Exceptions
to the Rule The Ohio Constitution
requires that all property be taxed
uniformly.98 This traditionally has meant
all land is taxed at its fair market value,
or the value at which it would change
hands between a willing seller and willing
buyer.99 A constitutional amendment
in 1973 allowed for farmland to be
valued differently, using the capitalized
net income from agricultural activities
to value land or the land’s current
agricultural use value (CAUV).100 At that
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99
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Ohio Constitution, Article XII, Section 2
ORC 5713.03
Ohio Constitution, Article II, Section 36
time, the value of land at its “highest and
best” use was quickly becoming the value
used to figure real estate taxes, allowing
development pressure to push up the
taxable value of farmland. With CAUV,
the land value depends upon capitalizing
the expected net income from farming,
making the taxation of farm real estate
more fair and reasonable.
All properties have four individual
values, which are aggregated to find the
total property value. The four individual
values represent the home, a one-acre
home site, other buildings and all other
land. CAUV can only apply to the “all
other land” portion of a property’s
value. Land values are reappraised on a
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