After more than a decade of advocating for accurate woodland inputs in the CAUV formula, the Ohio Department of Taxation has accepted the Ohio Forestry Association’s (OFA) data regarding land clearing costs and updated those inputs in the formula. These changes should result in significant tax savings for many woodland owners.
“This is wonderful news for Ohio’s woodland owners and forest products industry,” said Jenna Reese, OFA executive director. “With 86% of forests privately owned in Ohio, forest health and the industry depend on the woodland management decisions of landowners enrolled in CAUV.”
Accurate CAUV values for woodland are important to maintaining Ohio’s working forestland. Woodland CAUV values rely on “cost of conversion” deductions in the CAUV calculation, meant to represent the costs of converting woodland to cropland for valuation purposes.
In 2016, Ohio Farm Bureau’s advocacy led to updates of these costs for the first time in decades. However, Farm Bureau and OFA have continued to advocate for further updates that accurately match the real costs of clearing and drainage that landowners would experience.
Prior to the updates on July 12, the artificially low land clearing costs in the CAUV formula were a deterrent to landowners maintaining their woodland parcels. Accurate conversion inputs like land clearing and drainage costs are critical for landowners enrolled in CAUV who previously faced significant tax barriers to maintaining their woodlands.
“For years Farm Bureau has advocated that these numbers be updated based on the real world data from the Ohio Forestry Association. We are glad to see the Tax Department take this step and will continue to work with OFA to ensure accuracy for woodland values,” said Leah Curtis, policy counsel and senior director of member engagement for Ohio Farm Bureau. “These updates could not come at a more needed time. As we have seen significant increases in CAUV cropland values in 2023, and anticipate substantial increases in 2024, the inaccuracies in woodland values were a major weakness in the program.”
The values that more accurately reflect land clearing and drainage expenses based on OFA and Ohio State University data will be finalized by the Ohio Department of Taxation later this summer after a comment period.
“I, as a long-time member of the Ag Advisory Committee, support the CAUV values that were presented at the public hearing today, especially with the adjustment for woodland values concerning updating the costs of clearing and drainage. Much praise to the Ohio Forestry Association, for bringing this information to the attention of the Advisory Committee and the Ohio Tax Department,” said Ted Finnarn, who has represented the Ohio Farmers Union on the CAUV Ag Advisory Committee for over 48 years.
The Ohio Forestry Association is a 501(c)(6) that supports the management of Ohio’s forest resources and the strengthening of member business opportunities in the forest products industry and related enterprises. Learn more at ohioforest.org.
