262.900 Definitions for KRS 262.900 to 262.920.
(1)
As used in KRS 262.900 to 262.920, unless the context clearly indicates otherwise:
(a) "Agricultural conservation easement" or "easement" means an interest in land,
less than fee simple, which represents the right to restrict or prevent the
development or improvement of the land for purposes other than agricultural
production. The easement may be granted by the owner of the fee simple to
the Commonwealth or to a qualified organization described in Section 170(c)
of the Internal Revenue Code. It may be granted in perpetuity, as the
equivalent of the covenants running with the land.
(b) "Agricultural district" means a land use category created by voluntary
agreement between the Commonwealth and one (1) or more landowners under
Kentucky's agricultural district law, KRS 262.850, where the primary use of
land is and will remain to be agriculture.
(c) "Agricultural production" means the production for commercial purposes of
crops, livestock and livestock products, and nursery and greenhouse products,
including the processing or retail marketing of these crops, livestock and
livestock products, and nursery and greenhouse products, if more than fifty
percent (50%) of those processed or merchandised products are produced by
the farm operator, and the raising and stabling of horses for commercial
purposes.
(d) "Applicant" means a person or qualified organization described in Section
170(c) of the Internal Revenue Code offering to sell to the PACE Corporation
under the PACE Program an easement on a tract of land which is in or
available for agricultural use.
(e) "ASCS" means the Agricultural Stabilization and Conservation Service of the
United States Department of Agriculture.
(f) "Bargain sale" means the sale of an easement by a landowner at a price below
appraised market value, when a portion of the value of the easement is
donated by the landowner in a properly executed document as a charitable
contribution to a qualified organization described in Section 170(c) of the
Internal Revenue Code.
(g) "Capability class" means a group of soils that have similar characteristics
when used for field crop production.
(h) "Comparable sales" means market sales of similar land. In locating
comparable sales, first priority shall be given to parcels located in the same
general vicinity. The second priority shall be given to farms located in other
areas.
(i) "Conservation plan" means a plan describing best land management practices,
including an installation schedule and maintenance program, which, when
completely implemented, will improve and maintain soil, water, and related
plant and animal resources of the land.
(j) "Contract of sale" means a legally enforceable agreement in a form provided
by the PACE Board obligating the owner of a farmland tract to sell and the
Commonwealth to purchase an easement or other less-than-fee interest on the
farmland tract.
(k) "Commonwealth funds" means money appropriated to the PACE Corporation
for the purchase of agricultural conservation easements.
(l) "Development" means the carrying out of any material change in the use or
appearance of land, or dividing into two (2) or more parcels.
(m) "Easement value" means the value per acre as determined by a numerical
point system or, if an appraisal is used, the difference between the unrestricted
value of a farm and its value as restricted by an easement. If only one (1)
appraisal is used, unrestricted value is equal to market value and restricted
value is equal to the value of the farm, subject to an agricultural conservation
easement. If the landowner obtains an independent appraisal, easement value
shall be calculated according to the average between the landowner's appraisal
and the numerical point system, or if the Commonwealth also obtains an
appraisal, the average between the landowner's appraisal and the
Commonwealth's appraisal.
(n) "Eligible land" means a farmland tract in which the Commonwealth may
acquire an agricultural conservation easement or other property interest as
provided by this section.
(o) "Farm" means land in the Commonwealth which is being used for or is
available for agricultural production as defined in this section.
(p) "Farmland tract" means land constituting all or part of a farm that is proposed
for the purchase of an agricultural conservation easement.
(q) "Farmland value" means the price as of the valuation date for property used
for normal farming operations, subject to the terms of an agricultural
conservation easement, which a willing and informed seller who is not
obligated to sell would accept for the property, and which a willing and
informed buyer who is not obligated to buy would pay for the property.
(r) "Fund" means the agricultural enhancement fund created by KRS 262.920.
(s) "Grantor" means the person or entity holding title to the farmland tract on
which an easement is conveyed.
(t) "Grazing or pasture land" means land used for horse paddocks or the growing
of grasses and legumes which are consumed by livestock in the field, and at
least ninety percent (90%) of which is clear of trees, shrubs, vines, or other
woody growth not consumed by livestock.
(u) "Harvested cropland" means land used for the commercial production of field
crops, fruit crops, vegetables, and horticultural specialties, such as flowers,
nursery stock, and ornamentals.
(v) "Horse paddock" means an enclosed area used for pasturing and exercising
horses.
(w) "Landowner" means a person holding title to land.
(x)
(y)
(z)
(aa)
(ab)
(ac)
(ad)
(ae)
(af)
(ag)
(ah)
(ai)
(aj)
(ak)
"Market value" means the price as of the valuation date for the highest and
best use of the property which a willing and informed seller who is not
obligated to sell would accept for the property, and which a willing and
informed buyer who is not obligated to buy would pay for the property.
"Nonprofit land conservation organization" means nonprofit organization
dedicated to land conservation purposes recognized by the Internal Revenue
Service as a tax-exempt organization under Section 170(c) of the Internal
Revenue Code.
"PACE Corporation" means the Purchase of Agricultural Conservation
Easement Corporation created by KRS 262.906(1).
"PACE board" means the board of directors of the Purchase of Agricultural
Conservation Easement Corporation created by KRS 262.906(2).
"Qualified organization" means a tax-exempt organization described in
Section 170(c) of the Internal Revenue Code.
"Reserved life estate" means property deeded to a nonprofit organization
during an owner's lifetime with the owner retaining full use of and
responsibility for the property until the death of the last survivor of those
retaining life estates, whereupon, the responsibility of the property falls to the
nonprofit organization. The property owner is entitled to an income tax
deduction based on an appraised value and Internal Revenue Service actuarial
tables, and the taxable estate may also be reduced.
"Restricted land" means land and buildings, the use of which is subject to the
terms of an agricultural conservation easement.
"Restricted value" means the price as of the valuation date for property subject
to an agricultural conservation easement which a willing and informed seller
who is not obligated to sell would accept for the property, and which a willing
and informed buyer who is not obligated to buy would pay for the property.
"Soils report" means a report which sets forth the amount and description of
each soil type and class found on a specific farm.
"Title report" means a report prepared by a person authorized by the state to
engage in the sale of title insurance or an attorney setting forth the existence of
any liens, restrictions, or other encumbrances on a farmland tract.
"Unrestricted value" means the current market value of a property.
"USDA" means the United States Department of Agriculture.
"USDA-SCS" means the Soil Conservation Service of the United States
Department of Agriculture.
"Viable agriculture land" means land suitable for agricultural production and
which will continue to be economically feasible for use if real estate taxes,
farm use restrictions, and interference with and constraints on normal farming
operations are limited to levels approximating those in commercial
agricultural areas not influenced by the proximity of urban and related
nonagricultural development.
Effective: July 15, 1994
History: Created 1994 Ky. Acts ch. 390, sec. 21, effective July 15, 1994.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.