262.900 Definitions for KRS 262.900 to 262.920.
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/ky/chapter-262/262-900A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in KRS 262.900 to 262.920, unless the context clearly indicates otherwise:
(1)"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;
(2)"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;
(3)"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;
(4)"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;
(5)"ASCS" means the Agricultural Stabilization and Conservation Service of the
United States Department of Agriculture;
(6)"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;
(7)"Capability class" means a group of soils that have similar characteristics when used
for field crop production;
(8)"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;
(9)"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;
(10)"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;
(11)"Commonwealth funds" means money appropriated to the PACE Corporation for
the purchase of agricultural conservation easements;
(12)"Development" means the carrying out of any material change in the use or
appearance of land, or dividing into two
(2)or more parcels;
(13)"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;
(14)"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;
(15)"Farm" means land in the Commonwealth which is being used for or is available for
agricultural production as defined in this section;
(16)"Farmland tract" means land constituting all or part of a farm that is proposed for
the purchase of an agricultural conservation easement;
(17)"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;
(18)"Fund" means the agricultural enhancement fund created by KRS 262.920;
(19)"Grantor" means the person or entity holding title to the farmland tract on which an
easement is conveyed;
(20)"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;
(21)"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;
(22)"Horse paddock" means an enclosed area used for pasturing and exercising horses;
(23)"Landowner" means a person holding title to land;
(24)"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;
(25)"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;
(26)"PACE Corporation" means the Purchase of Agricultural Conservation Easement
Corporation created by KRS 262.906(1);
(27)"PACE board" means the board of directors of the Purchase of Agricultural
Conservation Easement Corporation created by KRS 262.906(2);
(28)"Qualified organization" means a tax-exempt organization described in Section
170(c) of the Internal Revenue Code;
(29)"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;
(30)"Restricted land" means land and buildings, the use of which is subject to the terms
of an agricultural conservation easement;
(31)"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;
(32)"Soils report" means a report which sets forth the amount and description of each
soil type and class found on a specific farm;
(33)"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;
(34)"Unrestricted value" means the current market value of a property;
(35)"USDA" means the United States Department of Agriculture; and
(36)"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.