Current Agricultural Use Value (CAUV) is a program to
reduce the taxable value of land being used for commercial
By permitting values to be set well below true market
values, CAUV normally results in a substantially lower
tax bill for working farmers.
Land must meet one of the following requirements during the three years preceding an application for CAUV:
- Ten or more acres must be devoted exclusively to
commercial agricultural use
- If under 10 acres are devoted to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500
To sign up, there is a one-time fee of $25 for initial applications.
Initial Application for Valuation of Land at Its Current
Agricultural Use must be submitted between the first Monday in January and the first Monday in March.
Applications must be renewed annually, but there is no annual renewal fee. The deadline for renewal applications is the first Monday in March.
If you do not renew your application, the Medina County Auditor's Office is required to value the property at its true or current market value and to recoup the taxes for the past
Land that is removed from the CAUV program is charged a recoupment.
What qualifies for CAUV?
A landowner must devote the parcel exclusively to commercial:
- Animal or poultry husbandry
- Aquaculture (the cultivation of freshwater and marine resources, both plant and animal)
- Apiculture (the raising and care of bees)
- Field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod, or flowers
- Timber for a noncommercial purpose, if the land on which the timber is grown is contiguous to land that is already eligible for CAUV
If there are less than 10 acres of commercial agricultural use, the farm must generate a yearly gross income of at least $2,500. Qualified land that
has not previously been enrolled in CAUV is subject to a three-year waiting period immediately prior to enrollment. During this time the land must meet the statutory definition of “land devoted exclusively to agricultural use.” Sufficient
documentation is required with submission of the initial application in order to qualify. This documentation may be requested periodically by the Medina County Auditor's Office to verify the continuation of commercial agricultural production.
How does CAUV valuation differ from current market value?
The value of the land that is being farmed is reduced
based on the type of soil in the property. There is no
reduction on the home site area or any buildings. The true market value approach depends upon the comparison of sales of similarly situated farms and where the highest and best use sets value. The CAUV method depends upon capitalizing the expected net income from farming. Because market value reflects
what a buyer is willing to pay, regardless of the farms agricultural production capability, some farms may have lower appraised values through the CAUV
Are there any penalties for removal of property from program?
Yes. If at any time the land, or a portion of the land, does not meet the
requirements to remain in the program a recoupment will be placed on the
tax bill. If only a portion of the land is converted, the remainder will
remain on the program as long as it continues to meet the qualifications.
The land is allowed to lie fallow for one year and automatically remain in
the program, the second and third year remain in program if good cause is
proven to the Board of Revision.
What is a recoupment?
The recoupment charge is three years worth of savings that accumulated prior to conversion in the CAUV program, versus valuation outside of the program.
Who is responsible for paying the recoupment?
The recoupment will appear on the tax bill of the owner
after the property changes use and/or hands. The total
amount is recouped in one year by equally dividing the total
between the first- and second-half tax bill. If a transfer
of ownership causes the conversion, the seller and buyer
decide who pays the recoupment. However, if the recoupment
is not paid when the land is converted, the recoupment will
go on the new owner's tax bill.
When do I file?
After the first Monday in January and before the first
Monday in March of the year for which the agricultural
use value is sought.
For more information, check out Current Agricultural Use Value,
call, or email the Medina County Auditor's Office:
Phone: (330) 725-9758