Agricultural & Horticultural Exemption
Explanation & Exemption Application
Applicant must be owner of recorded property as of January 1 of the year making the application. The application shall be valid until the property is transferred or the land use is changed.
Pursuant to KRS 132.450(3), in part: "Classification as agricultural land shall expire upon change of use by the owner or owners or upon conveyance of the property to a person other than a surviving spouse." (This includes all family transfers other than to a surviving spouse.)
Agricultural land is defined as any tract at least ten acres in area, exclusive of land used in conjunction with the farmhouse, that is used for agricultural purposes or for the growing of merchantable timber.
Horticultural land is defined as any land of at least five acres in area commercially used for the cultivation of a garden, orchard, or the raising of fruits, vegetables, flowers, or ornamental plants.
Explanation of Exemption
KRS 132.010 as amended sets out definite provisions relative to certain agricultural and horticultural land.
On or before March 1 of any year the owner or owners of land devoted exclusively to agricultural or horticultural use on which the property valuation administrator has placed a value in excess of the agricultural or horticultural value, may file application for valuation at the agricultural or horticultural value. This application must be made with the property valuation administrator of the county in which the land is located on Revenue Form 62A351, "Application of Valuation, Assessment, and Taxation of Land under the Agricultural and Horticultural Land Use Act."
Agricultural or horticultural value means a combination of representative sales prices of comparable land purchased for agricultural or horticultural use with consideration being given to the purpose of purchase, such as, improved accessibility and other like factors unduly influencing the sale price, and agricultural use value based on the income-producing capability arrived at by use of Soil Conservation Service land use classifications.
Deferred tax means the difference in the tax based on agricultural or horticultural value and the tax based on fair cash value.
Exclusions & Restrictions
- Land devoted to agricultural or horticultural use, where the owner or owners have petitioned for, and been granted, a zoning classification other than for agricultural or horticultural purposes, is excluded from the provisions of this act.
- When the use of a part of a tract of land which is valued and taxed as agricultural or horticultural land is changed, either by conveyance or other action of owner, the right of the remaining land to be retained in the agricultural or horticultural classification for assessment and taxation shall not be impaired provided it meets the minimum requirements for such classification.
- Land on which there has been established a systematic pattern of change of use over a period of two years is excluded from the provisions of this act.
- This application shall be valid until the property is transferred or the land use is changed.
Changing the Assessment Category
Any taxpayer, whose land is assessed at agricultural or horticultural land use value, may elect to have the subject property assessed as other than agricultural or horticultural land by filing a statement to that effect with the Property Valuation Administrator prior to the close of the 13-day period beginning on the first Monday in May.