KRS § 132.010 — KY Code / Title XI / Chapter 132 / Section 132.010
132.010 Definitions for chapter
Status: in_force

132.010 Definitions for chapter.

As used in this chapter, unless the context otherwise requires:

(1) "Department" means the Department of Revenue;

(2) "Taxpayer" means any person made liable by law to file a return or pay a tax;

(3) "Real property":

(a) Means all lands within this state and improvements thereon; and

(b) Includes but is not limited to mains, pipes, pipelines, and conduits that are:

1. Authorized to be installed in, upon, or under any public or private street

or place; and

2. Used or to be used for or in connection with the collection, transmission,

distribution, conducting, sale, or furnishing of heat, steam, water,

sewage, natural or manufactured gas, or electricity to or for the public;

(4) "Personal property" means every species and character of property, tangible and

intangible, other than real property;

(5) "Resident" means any person who has taken up a place of abode within this state

with the intention of continuing to abide in this state; any person who has had his or

her actual or habitual place of abode in this state for the larger portion of the twelve

(12) months next preceding the date as of which an assessment is due to be made

shall be deemed to have intended to become a resident of this state;

(6) "Compensating tax rate" means that rate which, rounded to the next higher one-

tenth of one cent ($0.001) per one hundred dollars ($100) of assessed value and

applied to the current year's assessment of the property subject to taxation by a

taxing district, excluding new property and personal property, produces an amount

of revenue approximately equal to that produced in the preceding year from real

property. However, in no event shall the compensating tax rate be a rate which,

when applied to the total current year assessment of all classes of taxable property,

produces an amount of revenue less than was produced in the preceding year from

all classes of taxable property. For purposes of this subsection, "property subject to

taxation" means the total fair cash value of all property subject to full local rates,

less the total valuation exempted from taxation by the homestead exemption

provision of the Constitution and the difference between the fair cash value and

agricultural or horticultural value of agricultural or horticultural land;

(7) "Net assessment growth" means the difference between:

(a) The total valuation of property subject to taxation by the county, city, school

district, or special district in the preceding year, less the total valuation

exempted from taxation by the homestead exemption provision of the

Constitution in the current year over that exempted in the preceding year; and

(b) The total valuation of property subject to taxation by the county, city, school

district, or special district for the current year;

(8) "New property" means the net difference in taxable value between real property

additions and deletions to the property tax roll for the current year. "Real property

additions" shall mean:

(a) Property annexed or incorporated by a municipal corporation, or any other

taxing jurisdiction; however, this definition shall not apply to property

acquired through the merger or consolidation of school districts, or the

transfer of property from one (1) school district to another;

(b) Property, the ownership of which has been transferred from a tax-exempt

entity to a nontax-exempt entity;

(c) The value of improvements to existing nonresidential property;

(d) The value of new residential improvements to property;

(e) The value of improvements to existing residential property when the

improvement increases the assessed value of the property by fifty percent

(50%) or more;

(f) Property created by the subdivision of unimproved property, provided, that

when the property is reclassified from farm to subdivision by the property

valuation administrator, the value of the property as a farm shall be a deletion

from that category;

(g) Property exempt from taxation, as an inducement for industrial or business

use, at the expiration of its tax exempt status;

(h) Property, the tax rate of which will change, according to the provisions of

KRS 82.085, to reflect additional urban services to be provided by the taxing

jurisdiction, provided, however, that the property shall be considered "real

property additions" only in proportion to the additional urban services to be

provided to the property over the urban services previously provided; and

(i) The value of improvements to real property previously under assessment

moratorium.

"Real property deletions" shall be limited to the value of real property removed

from, or reduced over the preceding year on, the property tax roll for the current

year;

(9) "Agricultural land" means:

(a) 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;

(b) Any tract of land, including all income-producing improvements, of at least

five (5) contiguous acres in area commercially used for aquaculture; or

(c) 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;

(10) "Horticultural land" means 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;

(11) "Agricultural or horticultural value" means the use value of "agricultural or

horticultural land" based upon income-producing capability and comparable sales

of farmland purchased for farm purposes where the price is indicative of farm use

value, excluding sales representing purchases for farm expansion, better

accessibility, and other factors which inflate the purchase price beyond farm use

value, if any, considering the following factors as they affect a taxable unit:

(a) Relative percentages of tillable land, pasture land, and woodland;

(b) Degree of productivity of the soil;

(c) Risk of flooding;

(d) Improvements to and on the land that relate to the production of income;

(e) Row crop capability including allotted crops other than tobacco;

(f) Accessibility to all-weather roads and markets; and

(g) Factors which affect the general agricultural or horticultural economy, such

as: interest, price of farm products, cost of farm materials and supplies, labor,

or any economic factor which would affect net farm income;

(12) "Deferred tax" means the difference in the tax based on agricultural or horticultural

value and the tax based on fair cash value;

(13) "Homestead" means real property maintained as the permanent residence of the

owner with all land and improvements adjoining and contiguous thereto including

but not limited to lawns, drives, flower or vegetable gardens, outbuildings, and all

other land connected thereto;

(14) "Residential unit" means all or that part of real property occupied as the permanent

residence of the owner;

(15) "Special benefits" are those which are provided by public works not financed

through the general tax levy but through special assessments against the benefited

property;

(16) "Manufactured home" means a structure manufactured after June 15, 1976, in

accordance with the National Manufactured Housing Construction and Safety

Standards Act, transportable in one (1) or more sections, which when erected on

site measures eight (8) body feet or more in width and thirty-two (32) body feet or

more in length, and which is built on a permanent chassis and designed to be used

as a dwelling, with or without a permanent foundation, when connected to the

required utilities, and includes the plumbing, heating, air-conditioning, and

electrical systems contained therein. It may be used as a place of residence,

business, profession, or trade by the owner, lessee, or their assignees and may

consist of one (1) or more units that can be attached or joined together to comprise

an integral unit or condominium structure;

(17) "Mobile home" means a structure manufactured on or before June 15, 1976, that

was not required to be constructed in accordance with the National Manufactured

Housing Construction and Safety Standards Act, transportable in one (1) or more

sections, which when erected on site measures eight (8) body feet or more in width

and thirty-two (32) body feet or more in length, and which is built on a permanent

chassis and designed to be used as a dwelling, with or without a permanent

foundation, when connected to the required utilities, and includes the plumbing,

heating, air-conditioning, and electrical systems contained therein. It may be used

as a place of residence, business, profession, or trade by the owner, lessee, or their

assigns and may consist of one (1) or more units that can be attached or joined

together to comprise an integral unit or condominium structure;

(18) "Modular home" means a structure which is certified by its manufacturer as being

constructed in accordance with all applicable provisions of the Kentucky Building

Code and standards adopted by the local authority which has jurisdiction,

transportable in one (1) or more sections, and designed to be used as a dwelling on

a permanent foundation when connected to the required utilities, and includes the

plumbing, heating, air-conditioning, and electrical systems contained therein;

(19) "Prefabricated home" means a manufactured home, a mobile home, or a modular

home;

(20) "Recreational vehicle" means a vehicular type unit primarily designed as temporary

living quarters for recreational, camping, or travel use, which either has its own

motive power or is mounted on or drawn by another vehicle. The basic entities are:

travel trailer, camping trailer, truck camper, and motor home. As used in this

subsection:

(a) "Travel trailer" means a vehicular unit, mounted on wheels, designed to

provide temporary living quarters for recreational, camping, or travel use, and

of a size or weight that does not require special highway movement permits

when drawn by a motorized vehicle, and with a living area of less than two

hundred twenty (220) square feet, excluding built-in equipment (such as

wardrobes, closets, cabinets, kitchen units or fixtures) and bath and toilet

rooms;

(b) "Camping trailer" means a vehicular portable unit mounted on wheels and

constructed with collapsible partial side walls which fold for towing by

another vehicle and unfold at the camp site to provide temporary living

quarters for recreational, camping, or travel use;

(c) "Truck camper" means a portable unit constructed to provide temporary living

quarters for recreational, travel, or camping use, consisting of a roof, floor,

and sides, designed to be loaded onto and unloaded from the bed of a pick-up

truck; and

(d) "Motor home" means a vehicular unit designed to provide temporary living

quarters for recreational, camping, or travel use built on or permanently

attached to a self-propelled motor vehicle chassis or on a chassis cab or van

which is an integral part of the completed vehicle;

(21) "Hazardous substances" shall have the meaning provided in KRS 224.1-400;

(22) "Pollutant or contaminant" shall have the meaning provided in KRS 224.1-400;

(23) "Release" shall have the meaning as provided in either or both KRS 224.1-400 and

KRS 224.60-115;

(24) "Qualifying voluntary environmental remediation property" means real property

subject to the provisions of KRS 224.1-400 and 224.1-405, or 224.60-135 where the

Energy and Environment Cabinet has made a determination that:

(a) All releases of hazardous substances, pollutants, contaminants, petroleum, or

petroleum products at the property occurred prior to the property owner's

acquisition of the property;

(b) The property owner has made all appropriate inquiry into previous ownership

and uses of the property in accordance with generally accepted practices prior

to the acquisition of the property;

(c) The property owner or a responsible party has provided all legally required

notices with respect to hazardous substances, pollutants, contaminants,

petroleum, or petroleum products found at the property;

(d) The property owner is in compliance with all land use restrictions and does

not impede the effectiveness or integrity of any institutional control;

(e) The property owner complied with any information request or administrative

subpoena under KRS Chapter 224; and

(f) The property owner is not affiliated with any person who is potentially liable

for the release of hazardous substances, pollutants, contaminants, petroleum,

or petroleum products on the property pursuant to KRS 224.1-400, 224.1-405,

or 224.60-135, through:

1. Direct or indirect familial relationship;

2. Any contractual, corporate, or financial relationship, excluding

relationships created by instruments conveying or financing title or by

contracts for sale of goods or services; or

3. Reorganization of a business entity that was potentially liable;

(25) "Intangible personal property" means stocks, mutual funds, money market funds,

bonds, loans, notes, mortgages, accounts receivable, land contracts, cash, credits,

patents, trademarks, copyrights, tobacco base, allotments, annuities, deferred

compensation, retirement plans, and any other type of personal property that is not

tangible personal property;

(26) (a) "County" means any county, consolidated local government, urban-county

government, unified local government, or charter county government;

(b) "Fiscal court" means the legislative body of any county, consolidated local

government, urban-county government, unified local government, or charter

county government; and

(c) "County judge/executive" means the chief executive officer of any county,

consolidated local government, urban-county government, unified local

government, or charter county government;

(27) "Taxing district" means any entity with the authority to levy a local ad valorem tax,

including special purpose governmental entities;

(28) "Special purpose governmental entity" shall have the same meaning as in KRS

65A.010, and as used in this chapter shall include only those special purpose

governmental entities with the authority to levy ad valorem taxes, and that are not

specifically exempt from the provisions of this chapter by another provision of the

Kentucky Revised Statutes;

(29) (a) "Broadcast" means the transmission of audio, video, or other signals, through

any electronic, radio, light, or similar medium or method now in existence or

later devised over the airwaves to the public in general.

(b) "Broadcast" shall not apply to operations performed by multichannel video

programming service providers as defined in KRS 136.602 or any other

operations that transmit audio, video, or other signals, exclusively to persons

for a fee;

(30) "Livestock" means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes,

and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid

species;

(31) "Heavy equipment rental agreement" means the short-term rental contract under

which qualified heavy equipment is rented without an operator for a period:

(a) Not to exceed three hundred sixty-five (365) days; or

(b) That is open-ended under the terms of the contract with no specified end date;

(32) "Heavy equipment rental company" means an entity that is primarily engaged in a

line of business described in Code 532412 or 532310 of the North American

Industry Classification System Manual in effect on January 1, 2019;

(33) "Qualified heavy equipment" means machinery and equipment, including ancillary

equipment and any attachments used in conjunction with the machinery and

equipment, that is:

(a) Primarily used and designed for construction, mining, forestry, or industrial

purposes, including but not limited to cranes, earthmoving equipment, well-

drilling machinery and equipment, lifts, material handling equipment, pumps,

generators, and pollution-reducing equipment; and

(b) Held in a heavy equipment rental company's inventory for:

1. Rental under a heavy equipment rental agreement; or

2. Sale in the regular course of business;

(34) "Veteran service organization" means an organization wholly dedicated to

advocating on behalf of military veterans and providing charitable programs in

honor and on behalf of military veterans;

(35) "Government restriction on use" means a limitation on the use of at least fifty

percent (50%) of the individual dwelling units of a multi-unit rental housing in

order to receive a federal or state government incentive based on low-income renter

restrictions, including the following government incentives:

(a) A tax credit under Section 42 of the Internal Revenue Code;

(b) Financing derived from exempt facility bonds for qualified residential rental

projects under Section 142 of the Internal Revenue Code;

(c) A low-interest loan under Section 235 or 236 of the National Housing Act or

Section 515 of the Housing Act of 1949;

(d) A rent subsidy;

(e) A guaranteed loan;

(f) A grant; or

(g) A guarantee;

(36) "Low income" means earning at or below eighty percent (80%) of the area median

income as defined by the United States Department of Housing and Urban

Development for the location of the multi-unit rental housing; and

(37) "Multi-unit rental housing" means residential property or project consisting of four

(4) or more individual dwelling units and does not include:

(a) Assisted living facilities; or

(b) Duplexes or single-family units unless they are included as part of a larger

property that is subject to government restriction on use.