(A) Section
5715.01 of the Revised Code
requires the tax commissioner to adopt, prescribe and promulgate rules that
shall:
"... prescribe the method for determining the current
agricultural use value of the land devoted exclusively to agricultural use,
which method shall reflect standard and modern appraisal techniques, which
shall take into consideration: the productivity of the soil under normal
management practices; the average price patterns of the crops and products
produced to determine the income potential to be capitalized; market value of
the land for agricultural use; and other pertinent factors."
(B) All tracts, lots or parcels of real
property in Ohio shall be appraised for tax purposes, at its "true value" in
money and assessed at taxable value as provided in rules
5703-25-05 to
5703-25-17
and rules
5703-25-30 to
5703-25-36.Rules
5703-25-30 to
5703-25-36
of the Administrative Code shall apply if an application is made by the owner,
as required by sections
5713.31 and
5713.38 of the Revised Code,
requesting the county auditor to value the land, of such tracts, etc. for real
property purposes at the current value such land has for agricultural use, and
the county auditor has determined that such tracts, etc. are devoted
exclusively to agricultural use as defined in section
5713.30 of the Revised
Code.
(C) The current agricultural
use land value can be estimated by the capitalization of the typical net income
from agricultural crops on a given parcel of land assuming typical management,
cropping patterns, and yields for the type of soil present on the tract. Values
estimated by this method will closely approximate actual market values of farm
land where the actual highest and best use is exclusively agricultural
unaffected by other uses.
(D) In
order to achieve uniformity in the appraisal and assessment of land devoted
exclusively to agricultural use in the eighty-eight counties of Ohio, the tax
commissioner, after consultation with the agricultural advisory committee
shall, annually, adopt a proposed entry setting forth the necessary
modifications and values to be used in establishing the current agricultural
use value of land in counties completing a sexennial reappraisal or that will
be in the third calendar year following the year in which a sexennial
reappraisal is completed in the ensuing tax year. Said entry shall set forth
the counties in which the values prescribed shall be used and the specific tax
years in which such values apply. A public hearing shall be held on the
proposed entry after reasonable public notice has been given by the
commissioner at least thirty days prior to the date set for the hearing in such
manner and form as the commissioner determines. After the hearing the
commissioner shall adopt the entry for the ensuing tax year for use in said
counties for the next ensuing three tax years.
(E) The valuations made by county auditors of
said counties in conformance with these rules and said annual entry will be
accepted as prima-facie correct valuation for parcels or tracts of land devoted
exclusively to agricultural use where the parcel and tract of land has a "true"
or "market" value reflecting a higher and better use than agricultural and the
owner has qualified under the provisions of sections
5713.30 and
5713.31 of the Revised Code to
have the land appraised and assessed by the county auditor at the current
agricultural land use value.
(F)
Nothing contained in these rules shall be construed as an authorization to
value parcels, qualified as provided in sections
5713.30,
5713.31, and
5713.38 of the Revised Code for
tax purposes at any other value than an identical parcel where the actual
highest and best use is exclusively agricultural unaffected by any other
use.
(G) Nothing contained in rules
5703-25-30 to
5703-25-36
of the Administrative Code shall be construed as an authorization for any
parcel, in any class, in any county, to be valued for tax purposes at any other
value than its "taxable value" as set out in rule
5703-25-06
of the Administrative Code, unless said parcel meets the qualifications of
sections
5713.30,
5713.31, and
5713.38 of the Revised Code.
Notes
Ohio Admin. Code
5703-25-31
Five Year Review (FYR) Dates:
7/31/2023 and
07/31/2028
Promulgated
Under: 119
Statutory Authority: 5703.05
Rule Amplifies:
5713.01, 5715.01
Prior Effective Dates: 11/29/1974, 11/01/1977,
09/18/2003, 09/11/2017
Effective: 9/11/2017
Five Year
Review (FYR) Dates: 6/26/2017 and
09/11/2022
Promulgated
Under: 119
Statutory Authority:
5703.05
Rule
Amplifies: 5713.01,
5715.01
Prior
Effective Dates: 11/29/74, 11/1/77,
9/18/03