Ohio lawmakers may lower skyrocketing farmland taxes

TOLEDO, Ohio (AP) — State lawmakers are looking at giving Ohio farmers a break on their real-estate taxes that have skyrocketed over the last few years.

The Blade newspaper reports taxes for farmland are rising. Republican state Rep. Kirk Schuring estimates property values have gone up 300 percent in recent years. Prices for crops that farmers produce have dropped, however.

“Our agricultural community has had some very difficult times. In fact, they’ve been caught between a rock and a hard place,” said Schuring.

Property value is determined by the Current Agricultural Use Variation Formula. The complicated algorithm considers several things including mortgage interest rates, land production costs, crop prices and income.

Farmers argue rising crop prices combined with low mortgage interest rates have created inflated land values. Many think the formula should be reworked.

Farmers are hopeful Ohio leaders will help them out in the two-year state budget that’s being considered in the Senate after it was approved by the House.

A proposal in the budget would change how the state determines the value of agricultural land, shifting to U.S. Department of Agriculture data that reflects the land’s farming value.

The County Commissioners Association of Ohio hasn’t taken a position on the proposal, but it says the measure would lead to a loss of money for local governments and school districts. Residential and business properties would then take the brunt of local tax burdens.