Agricultural & Horticultural Exemptions & Application

The purpose of the agricultural value program is to stimulate the continuation of farming operations and encourage the preservation of farmland in Kentucky by providing property tax relief. The value of land used for farm production is assessed at a "use" value, which results in a lower taxable dollar value per acre than the fair cash value for the same land. This program was enacted through a constitutional referendum in 1969 to keep rising property assessments, particularly in developing areas, from forcing farmers out of business and accelerating the land conversion process.

Agricultural land is defined by KRS 132.010(9) as:

• (a) any tract of land, including all income- producing improvements of at least ten (10) contiguous acreas in area used for the production of livestock, livestock products, poultry, poultry products, and/or the growing of tobacco and/or other crops including timber;
• (b)Any tract  of land, including all income - producing improvements of at least five (5) contiguous acres in area commercially used for aquaculture; or
• (c) Any tract of land devoted to and meeting the requirements and qualifications for payments pursuant to agricultural programs under and agreement with the state or federal government. 

In addition, KRS 132.450(2)(a) indicates "... there shall be excluded, land used in connection with dwelling houses including but not limited to, lawns, drives, flower gardens, swimming pools, or other areas devoted to family recreation" 

"Horticultural land" is defined as any tract of land 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 1st 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.

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.

When a change in land use occurs in any tax year, the owner of such land at the time of the land use change shall be subject to the deferred tax provisions of KRS 132.454(1) for the current tax year and the preceding two tax years in which the land was valued and taxed for agricultural and horticultural purposes. (KRS 132.450(2) (f)

When, in the opinion of the property valuation administrator, any land on which and application has been filed has a value in excess of that for agricultural or horticultural use, he shall enter both the fair cash value and the value for agricultural or horticultural use. The agricultural use shall be used for taxation. (KRS132.450 (2)(g)

When the application is denied, the property valuation administrator shall notify the property owner in the manner provided by KRS132.450 (4). (KRS132.450 (2)(h))

The property owner may appeal such ruling to the county Board of Assessment Appeals as provided in KRS 133.120 or in the case of a city or special district to the appropriate appeals body for the city of district. (KRS 132.450(2)(h))

The provisions of this act shall become effective on January 1, 1997, and for each year thereafter.

This application shall be valid until the property is transferred or the land use is changed. However, you will be asked to submit a signed affidavit indicating there have been no changes to the original application once every four years when your property is inspected. 

Download the Agricultural/Horticultural Land Use Questionnaire

You can download and complete this form on your computer. For your convenience you may email the completed form to pva@boonecountyky.org. Please be sure that you include the name of the form in the subject line of your email to ensure that it gets properly routed within the administration.

Applicant must be owner of recorded property as of January 1st of the year making the application. The application shall be valid until the property is transferred or the land use is changed.

You can download and complete this form on your computer. For your convenience you may email the completed form to pva@boonecountyky.org. Please be sure that you include the name of the form in the subject line of your email to ensure that it gets properly routed within the administration.