December 2008
Country Counsel by: Robert Moore
CURRENT agricultural use valuation, or CAUV, allows farmers to pay real estate taxes on the agricultural value of their farmland instead of the fair market value of the farmland.
To use an actual example, a 54-acre parcel in Delaware County has a fair market value of $171,500 ($3,175 per acre) and a CAUV value of $8,860 ($164 per acre). If taxes were paid on the fair market value, the owner would pay $2,712 annually. However, by enrolling the property in CAUV, the owner pays $307 in annual taxes – a savings of $2,405 ($45 per acre) each year…Download full article here.
