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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) "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.
(y)
(z)
(aa)
(ab)
(ac)
(ad)
(ae)
(af)
(ag)
(ah)
(ai)
(aj)
(ak)
"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.
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