Friday, November 21, 2014

CAUV Has Saved Farmers Billions - Guest Column from State Representative Jim Buchy

The Current Agriculture Use Valuation has been a topic of discussion lately. I support this modified tax rate for agricultural land in Ohio because it has saved around $10 billion for farmers in Ohio since 1973.

Unlike previous tax laws, the CAUV is a tax assessment that allows farmland to be taxed based on its agricultural value, not on its full market value. The five factors that are included in the CAUV rate are cropping pattern, crop prices, crop yield, non-land production coasts, and capitalization rates.

The formula was developed with local input and voted on by Ohioans. The last few years have resulted in ups and downs in the fields, and as a result, the increases in CAUV rates are causing concerns for local farmers. I am in discussions with the Ohio Farm Bureau Federation regarding any possible changes that can be made to reduce the continued increase in CAUV.

Ultimately, any major changes to the CAUV rates and formula will require a vote of the people to change the Ohio Constitution, and I would ask that local input be included in all of those discussions. We have fine agriculture attorneys locally and their efforts in the crafting of the CAUV amendment must be included going forward.

Reducing operation costs for all businesses including farmers has been a focus of the legislature in the past four years and I will continue to work for reductions in fixed operating costs. For Ohioans, reducing taxes and regulations will reduce operating costs.

Governor Kasich has worked to reduce the personal income tax on all working Ohioans and specifically included a 50-percent reduction for small business owners, which would include many farmers. In addition, we are working for continued reforms at the Bureau of Worker’s Comp to return money to employers. It is worth noting that one of the first accomplishments in Governor Kasich’s first budget was the elimination of the state death tax. Eliminating the state death tax was a benefit that helps farmers by reducing the costs of keeping a farm in the family.

The CAUV tax rate has provided billions of dollars of relief to Ohio farmers. Recently, events in the agricultural sector have caused the formula to result in a spike. Working to reduce the long-term effects of this spike is important and I support the state legislature doing what it can to accomplish this goal. Long-term changes may be needed that would require local input and a vote of the people. In state government, we remain committed to reducing the costs of doing business and have taken steps to help farmers in Ohio.

Please give me your opinion on this topic and others in the news this month by completing an online survey at tinyurl.com/buchynovember2014.

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