Agricultural & Horticultural Exemptions

What is it?

The purpose of the agricultural/horticultural 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 fair cash value for the same land.  The 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.

PVA calculates the agricultural or horticultural use value based on standard appraisal techniques, using methodologies established by the Kentucky Department of Revenue’s Office of Property Valuation.  Such methods include an analysis of comparable land sales purchased for agricultural or horticultural use with consideration being given for influencing factors, and agricultural use values based on income-producing capabilities arrived at by the use of Soil Conservation Service land use classifications.

Eligibility Criteria List

  1. Agricultural Land, at least 10 contiguous acres or more, used for the production of agricultural products, including timber.  Any tract of land at least 5 contiguous acres or more commercially used for aquaculture is also defined as agricultural (KRS 132.010).
  2. Horticultural Land of at least 5 contiguous acres commercially used for the cultivation of orchard or ornamental plants (KRS 132.010).
  3. Additional qualifications can be found on the reverse side of the Agricultural/Horitcultural Exemption Application.

Land occupied by improvements related to the income-producing nature of the farm, including barns, silos, sheds, tenant houses, ponds, etc. is included under the acreage requirement; but land used for residential purposes, including primary residence of the property owner, lawns, drives, pools, etc. must be excluded from the calculation of qualification for agricultural land.  A farm residence occupied by the farm owner must be assessed at its fair cash value and is not eligible for an agricultural value.  However, houses used by farm managers or tenants actually working on the farm can be valued according to the contribution they make to the agriculturally related income production.

Contact Info

To apply, download the Agricultural/Horticultural Exemption Application.  Once downloaded, the form can be completed on your computer and printed.  Applications for the exemption should include a copy of the applicant’s most recent Schedule F (Form 1040): “Profit or Loss From Farming” return filed with the Internal Revenue Service, or a copy of the applicant’s current property lease.  Any other documentation that may support application for the exemption may also be included.  Application and supporting documentation are to be submitted to:  Jefferson County PVA Office / Attn: Jason Hancock, Agricultural/Horticultural Exemptions / 815 W. Market Street, Suite 400 / Louisville, KY  40202-2654.

If you have any questions about the agricultural/horticultural exemption, please contact:  Jason Hancock at (502) 574-6380, Xt. 9303 or email our Residential Valuation Department at: residential@jeffersonpva.ky.gov during our weekday office hours of 8:00 a.m. to 4:00 p.m.