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Maverick
Maverick, Attorney
Category: Business Law
Satisfied Customers: 5767
Experience:  20 years of professional experience
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We have 12 acres and want to build a barn to have a few

Customer Question

We have 12 acres and want to build a barn to have a few animals and a stall to rent out. Plan to rent out and upper level apartment as well. Sell chicken eggs and meat from cows that graze. What are the tax advantages of raising this barn. Live in Hubbard, Ohio
Submitted: 1 year ago.
Category: Business Law
Expert:  Maverick replied 1 year ago.

I am sorry, I am not finding any special tax incentives for building such a barn; as compared to restoring an existing barn. Is there something that you can point me to that led you to believe otherwise so that I can try to better assist you?

Customer: replied 1 year ago.
If we put up a barn on our property, have some animals for agriculture (sell eggs, meat, milk...something or even for person consumption), is there some property tax advantage to doing so. We have many neighbors that are doing something to this advantage, just not sure what that is and how to do that. Do you have to register as a business?. I understand that the County Auditor comews out to check on them once in a while, to be sure they are doing whatever they are supposed to, but not clear.
Expert:  Maverick replied 1 year ago.

Property tax incentives, if any, would be county based. Can you tell me what county you would put the barn up in?

Customer: replied 1 year ago.
Trumbull
Expert:  Maverick replied 1 year ago.

For property tax purposes, farmland devoted exclusively to commercial agriculture may be valued according to its current use rather than at its "highest and best" potential use. This provision of Ohio law is known as the Current Agricultural Use Value (CAUV) program. By permitting values to be set well below true market values, the CAUV normally results in a substantially lower tax bill for working farmers.

You can read more about how that works here.

Customer: replied 1 year ago.
I had this information already. For some reason I thought this site would help me sift through that information and make an informed decision about the details of doing this.
Expert:  Maverick replied 1 year ago.

I cannot know what you know or do not know already unless you tell me. But it appears to me that to qualify for the CAUV, your land must for three years time period before you file an application for the CAUV, you must have done one of the two things below:

  • Ten or more acres must be devoted exclusively to commercial agricultural use; or
  • If under ten acres are devoted exclusively to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500.

So, after you have done that for 3 years, then you will need to contact the county auditor and fill out an application to see if you can get the lower tax rates. Click here for a list of all county auditors throughout Ohio.

Customer: replied 1 year ago.
Awesome. Thank you
Expert:  Maverick replied 1 year ago.

sure....

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