SB180
Log in to followAN ACT relating to property valuation.
Amend KRS 132.010, relating to state and local property taxation, to amend the definitions of "agricultural land" and "horticultural land" to include a parcel in agricultural or horticultural land that has been converted to a residential use as part of a planned development containing 10 or more parcels until a certificate of occupancy is issued for the parcel; state that agricultural value is calculated based on the agricultural value prior to the conversion to residential use; amend KRS 132.454 to outline the procedure and timeline for transition of agricultural use to residential use for property tax purposes; amend KRS 132.450 to conform.
Introduced: February 11, 2026
Last action: February 23, 2026
Plain-language summary
This bill would change how certain land is taxed during the transition from farm use to residential development. Under the proposal, parcels within a planned residential development of 10 or more lots would keep their lower agricultural or horticultural tax value until a certificate of occupancy is issued, rather than being reassessed at residential rates sooner. It also sets out the steps and timeline for how that tax transition would be handled. Who it may affect: landowners and developers converting agricultural or horticultural land into residential subdivisions, and local governments that rely on property tax revenue.
Legislative History
Primary Sponsor
