Ohio Qualified Farm Property Annual Report for Estate Tax Valuation

Qualified Farm Property Annual Report for Estate Tax Valuation
ET_ET36_FI_050112.indd
Ohio I

ET 36
Rev. 4/12

Department of
Taxation

1st annual report
2nd annual report
Final annual report

Reset Form

Estate Tax Unit
P.O. Box 183050
Columbus, OH 43218-3050
1-(800) 977-7711
tax.ohio.gov

Qualified Farm Property Annual Report
for Estate Tax Valuation (Ohio Revised Code Section 5731.011)
For dates of death prior to Jan. 1, 2013
Estate of: Decedent’s last name
County in Ohio

Decedent’s first name and initial

Case number

Estate tax file number

Decedent’s Social Security number

Date of death

Part I – Identification

Date Received by
Ohio Department of Taxation

Name of preparer
Address
City, state and ZIP code
Telephone number of preparer
Designation (please check one):

Attorney

Executor

Administrator(s)

Part II – General Farm Property Information
1. Farm property location. Please provide only the street address, parcel(s) number(s), county and township.

2. Current farm owner(s) name(s)

3. Has the farm property been devoted exclusively for agricultural use, within the meaning of Ohio Revised Code section
5713.30(A) since the date of the decedent’s death? Yes No
4. Has any farm property, valued at current agricultural use value (CAUV) in the return, been sold or split off in the last
year?  Yes  No If yes, please provide the following information:
Date of sale or transfer
Sales price $
Total acreage
Sold to
Is this a qualified heir? Yes 
No
If no, please also provide a copy of the most current county auditor’s property tax record card showing the CAUV calculation, parcel number, total acreage and current owner’s name.

Part III – Signature and Verification
Under penalties of perjury, I declare that to the best of my knowledge and belief, the statements made herein are true and correct.

Signature of preparer

Date

ET 36
Rev. 4/12
Page 2

General Information
The four-year rule
R.C. Section
5731.011(E)

The estate remains open for four years. The CAUV will be disallowed if, during that time,
the farm property is transferred to a nonqualified heir or the estate discontinues the qualified use of the property. Qualified use is considered terminated if property passes to a
nonqualified heir even though the property is still used for farming. If one of these situations occurs, the department must be notified within nine months and a recapture tax
(explained below) will be assessed against the person who is disposing of the property
or terminating the qualified use.

Annual report

The qualified heirs are required to file an annual report, estate tax form 36, on the second,
third and fourth anniversaries of the decedent’s date of death. The first annual report is
due no sooner than 60 days before and no later than the second anniversary date of the
decedent’s date of death. Failure to timely file the annual reports will result in the assessment of the recapture tax. Please provide a copy of the most current county auditor’s
property tax record card showing the CAUV calculation, parcel number, total acreage and
current owner’s name with the final annual report only.

Recapture tax
R.C. Section
5731.011(E)

The recapture tax is the amount of tax savings realized in the decedent’s estate because
of the reduction in value of the farm property. For example:

Payment

The payment of recapture tax is the responsibility of the qualified heirs. Interest is calculated
on the recapture tax from nine months after the decedent’s date of death. If a qualified
heir dies, no recapture tax will be assessed.

Amended filings

If any portion of the CAUV property is sold, transferred or converted to nonqualified use,
the estate must file an amended estate tax form 2X showing the increase from the current
CAUV value to the fair market value. The estate will also be required to file an amended
estate tax form 34 reflecting the sale or conversion of the property.

Miscellaneous
information
regarding the sale of
CAUV property

If the sale is to another qualified heir, there is no recapture tax.

Assume the estate tax return shows all property at fair market value resulting in a tax of $25,000. However, when the estate reduces the farm
property to CAUV, the tax actually due is only $8,000. Therefore, the
savings realized is $17,000. This amount would also be the amount of
recapture tax.

If the sale is to a nonqualified heir, the recapture tax is assessed based upon the percentage of tax the portion of property sold generates.
If the property sold is either the one-acre homesite or building only, there is no recapture tax,
since that part of the property was originally included and taxed at fair market value.

Where to file
the completed
estate tax form 36

Ohio Department of Taxation
Estate Tax Unit
P.O. Box 183050
Columbus, OH 43218-3050
(800) 977-7711
or FAX to (614) 387-1984