An Ohio real estate agent is advising a buyer who is considering purchasing a property currently enrolled in the CAUV program. The agent should warn the buyer that if the buyer converts the land to non-agricultural use:
Correct Answer
D) The buyer will owe a CAUV recoupment charge for the tax savings received during the prior years of enrollment
Under ORC §5713.34, when CAUV-enrolled land is converted to non-agricultural use, the current owner at the time of conversion owes a recoupment charge. This charge recaptures the tax savings from CAUV enrollment, typically for the prior three tax years. If the buyer converts the land, the buyer would owe this charge.
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