The CAUV program provides tax relief in the form of property value reductions on farmlands of ten acres or more devoted exclusively to agricultural use or for timberlands. The program also is available for tracts of land that are less than ten acres, if the average yearly gross farm income for the past three years is at least $2,500 from agricultural products.
Under the CAUV program, farmland is valued based on soil types rather than the “best and highest use” or market value. To establish valuation, soil surveys are conducted to determine various soil types and the amount of acreage for particular soil types. Each soil type has a pre-assigned value set by the state.
The CAUV program does not reduce the valuation of buildings or the home site that lies beneath the buildings. If the land is converted to non-agricultural use, recoupment of the savings received through the CAUV program for the previous three years must be repaid. Failure of a new owner to apply for CAUV or a renewal of an existing CAUV can trigger the recoupment process. CAUV Applications are accepted from the first Monday in January through the first Monday in March, with an initial filing fee of $25.00. Renewals are mailed automatically each year and require no additional filing fees.