Agricultural Assessment Process
There is a property tax alleviation for Boone County Farmers. The Commonwealth of Kentucky realizes that it is not feasible for farmers to pay property tax on the true fair cash value of their farm and thus offers a break under the Agricultural and Horticultural Land Use Act under KRS 132.450.
The Boone County PVA office has deemed that every agricultural acre shall be taxed at $300 and so, be deemed as the Farm Agricultural Value. The Farm Fair Cash Value is still listed in the incident that the Farm may be split up in future sales.
However, it is important to realize that under KRS 132.450(2)(a), “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,” so interpreted that a lot size must be carved out with the residence and be assessed separate from the farm.
Agricultural Property is defined in KRS 132.010(9) as:
- Any tract of land, including all income-producing improvements, of at least ten (10) contiguous acres 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;
- Any tract of land, including all income-producing improvements, of at least five (5) contiguous acres in area commercially used for aquaculture; or
- Any tract of land devoted to and meeting the requirements and qualifications for payments pursuant to agriculture programs under an agreement with the state or federal government.
Horticultural Property is defined in KRS 132.010(10) as:
- Any tract of land, including all income-producing improvements, of at least five (5) contiguous acres in area commercially used for the cultivation of a garden, orchard, or the raising of fruits or nuts, vegetables, flowers, or ornamental plants.
We ask that you fill out the following Agricultural/Horticultural Land Use Questionnaire so we may have on file, in case of a state audit. For proof of Horticultural land, we also ask for either a business license or a copy of your Schedule F from your Individual Tax Return.
Agricultural/Horticultural Land Use Questionnaire
Structural Buildings: Barns, garages and other structural buildings are taxable features and thus must be assessed at fair cash value. When determining the value of such buildings, we take into account several factors including but not limited to: construction material, quality and condition, floor of the building, age and depreciation. Often, we determine a $ / square foot figure to use in assessing each structure. We are aware that some buildings have little or no value and may be more of a liability than an asset and deem them as having $0 taxable value.