Farmers to see tax valuations increase by 77%

Wood County farmers are going to see their tax valuation increase by 77% and their tax bill increase by an estimated 35-40%, says Brian Jones, CAUV specialist for the Wood County Auditor.

Jones and Auditor Matthew Oestreich spoke to over 200 residents, mostly farmers, at a public meeting held at the Wood County Fairgrounds’ Junior Fair Building Wednesday.

For the first time in years, farmland valuations are increasing based on Ohio’s Current Agricultural Use Values (CAUV).

The CAUV formula takes into consideration the average yields of corn, soybeans, or wheat per acre over a 10-year period, a farmers’ average costs over a seven-year period, and average capitalization rates over a seven-year period.

Jones says in Wood County, soybeans comprise an average of 57.4% of cropping patterns, 37% of yields are corn and 5% is wheat. He adds that 60% to 65% of Wood County fields are farmed on Hoytville Clay soil, which plays a role in the valuation. There are 3,500 soil types in Ohio.

Jones said CAUV values in Ohio reached their lowest point in 2005, doubled in 2008, doubled in 2011, and doubled again in 2014. At that time, the state made changes in the formulation and valuations began dropping, but now they are on the rise again.

“At this time, I’m not here to put lipstick on a pig. I realize it is still a pig,” Jones said, telling farmers their taxes are going up, but he cannot say how much.

Jones explained that how much a tax bill rises depends on the farmer’s tax district. He said any action should be addressed to the Ohio Department of Taxation or the House of Representatives, which controls the taxation department.

“The State of Ohio assigns these values,” Jones said. “We do not have any control over their values. You can call the Department of Taxation, but I don’t recommend it because I don’t think you are going to get any satisfaction from it.”

Oestreich added that issues on the November ballot, if approved, will also affect valuations within different tax districts.

“It’s a 77% increase in valuation, but it won’t go up that much,” Oestreich said. “It depends on your school district, but your taxes will go up. If you’re in a school district that is on a 20-mill floor, they’ll go up more.”

Jones added, “It could be 30%, it could be 40%, or it could be 50%. I usually tell them 35-40% but I hope I’m high.

“In my opinion, they went up because of the yields and crop prices and in my opinion, they are going to continue to go up. I believe over the next three years the values are going to go up and what happens after 2026 remains to be seen.”

‘Highest taxes in the state’

Valuation increases are also being applied to residential and commercial properties in Wood County this year because of revaluation, while some neighboring counties won’t see until next year.

Jones admits this year Wood County residents could be paying the highest property taxes in the state.

“Every county that updates this year is going to have higher values than every other county in the state for this year,” Jones said. “We will have the highest value in the state right now. Next year when the other counties update, they’ll have a higher valuation than we will. It’s going to average out over time.”

Jones says the total amount of tax revenue the state takes in won’t change significantly, just the burden of who pays it.

He says the burden is now shifting to agriculture, with 55% to 60% of the tax bill benefiting school districts, but also townships and other local government jurisdictions. Jones says all tax districts will likely receive more money this year, but how much remains uncertain.

One farmer responded to Jones and Oestreich, saying, “It sounds like you’re really setting us up for failure. Who is our competition? Our competition is on the other side of the equator — Brazil. We’ve been fighting inflation. This looks like inflation to me. The feds better start doing something to stop inflation.”

Jones and Oestreich did say the valuations are tied to interest rates to some degree, which have been rising because of inflation.

The farmer responded, “In one to three years I’ll be broke. Before that time, I’ll be out of business. You better wake up. I’ll bet you can’t get one manufacturer in the county to take that offer. Go around and see if you can get one manufacturer to take that offer.”

Others in attendance asked about woodlands; property adjacent to ditches, rivers, or roads; wetlands; and farmland contracted as conservation ground, which lowers valuation.

One man asked about installing solar panels, which the auditor’s office said would increase valuation because the property would be deemed commercial.

Also speaking was Nick Eckel, Wood County extension agent from the Ohio Department of Agriculture. Eckel said he and other county agents provide feedback into the CAUV formula.

A representative from the Ohio Farm Bureau was also present promising to be an “advocate” for farmers in the Ohio legislature.