5703-21-03 Election notification and annual report for qualified farm property.

(A) The representative and qualified heirs of a decedent who elect to value farm property of the decedent at its qualified use value shall file an election notification on a form prescribed by the tax commissioner. The notification shall be filed with the estate tax return filed pursuant to section 5731.21 or 5731.26 of the Revised Code.

(B) The tax commissioner or the commissioner's agent may inspect the farm property to verify the accuracy of the information presented in the notification as a condition precedent to the approval of the election, unless an application has been filed pursuant to section 5713.31 of the Revised Code and approved by the county auditor. If approved, the commissioner or the commissioner's agent shall be permitted to inspect the property from time to time to verify the continuing qualified use. Refusal of such inspection by the qualified heirs or person in possession of the property constitutes cause for imposition of the additional tax mandated by division (E) of section 5731.011 of the Revised Code.

(C) If the qualified farm property is transferred to a person other than a qualified heir or if the property ceases to be used exclusively for agriculture, the commissioner shall be notified by the qualified heirs of such fact within nine months after the date of such transfer or cessation of qualified use.

(D) The qualified heirs shall file for three years a report with the commissioner, on a form prescribed by the commissioner, to establish that the qualified farm property has not been disposed of other than to a qualified heir and has not ceased to be used for a qualified use.

The first report shall be filed no sooner than sixty days before and no later than the date that is two years after the date of the decedent's death. A report shall be filed within the same time period in each of the two following years.

Failure to file timely any report required by this paragraph constitutes cause for imposition of the additional tax mandated by division (E) of section 5731.011 of the Revised Code.

Eff 4-17-84
Rule promulgated under: RC 5703.14
Rule amplifies: RC 5703.14 , 5731.011 , 5731.21 , 5731.26 , 5731.37