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State Representative Jim Buchy
Reduced taxes
on Ohioans will spur economic growth in all sectors
Its tax season again, and local farmers are concerned by increased
property tax bills. Like last year these increases are caused by
structural problems with the Current Agricultural Use Value Formula
(CAUV). Since the ultimate fix to this formula can only happen
through a vote of Ohioans on the ballot, it is important we take steps
in the legislature and at the tax department to make the minor
adjustments that can be made while still respecting the Ohio
Constitution.
In 1973, voters supported a constitutional amendment that would adjust
tax rates for farmers every three years with 1/3 of the counties up for
review each year. Because voters placed the citizen led
initiative into the constitution most of the components of the formula
cannot be changed by the legislature. This makes it impossible for a
legislative fix to provide the broad relief needed for Ohio’s farmers
as grain prices fall.
Recent hikes in the CAUV have been caused by land value increases
several years ago that are still included in the formula’s rolling
average. This means that while grain prices have gone down, and
agricultural land values with them, the CAUV formula still taxes
farmers on the prices from a few years ago. When the land values
were high and grain prices were up a few years ago Ohio’s farmers were
paying taxes on the lower value from years prior.
The Department of Taxation took some important steps last year which
made positive impacts on future tax bills for farmers, but the
remaining concerns have not been addressed causing the legislature to
act.
I have co-sponsored a bill to require the Ohio Department of Taxation
to establish a more reasonable capitalization rate and publish it
annually, as well as provide a break to farmers who have placed their
land in set aside grants and no longer benefit from farming it.
There is also a proposed amendment to the bill that would benefit those
whose land contains woodland by reducing their CAUV rates.
Updating a law that is nearly 50 years old is important, unfortunately
the best changes require changing the Ohio Constitution which requires
a citizen led initiative and a vote by Ohioans. I support the
small steps the legislature can take because it is a calculated and
balanced approach to helping our farmers.
I know that when we keep taxes in Ohio competitive we attract business
and encourage job growth. This approach is important for economic
success in Ohio. Ohio’s farmers are better equipped to invest these tax
dollars than bureaucrats in Columbus.
Please give me your opinion on this topic and others in the news this
month by completing an online survey at tinyurl.com/buchymarch2016
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