A farmer in Licking County, Ohio has 200 acres of cropland. Under CAUV, the agricultural value is $1,200 per acre, while the market value is $8,000 per acre. Both are assessed at 35%. If the millage rate is 70 mills, how much does the farmer save annually on the 200 acres by using CAUV instead of market value?
Correct Answer
A) $33,320
Step 1: Market assessed value = 200 × $8,000 × 0.35 = $560,000. Step 2: CAUV assessed value = 200 × $1,200 × 0.35 = $84,000. Step 3: Difference = $560,000 − $84,000 = $476,000. Step 4: Tax savings = $476,000 × 0.070 = $33,320.
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