Budget & Taxes (Property Tax)

Amend KRS 132.4851 to exempt motor vehicles assessed under KRS 132.485 from state property taxes beginning on or after January 1, 2027; amend KRS 132.020 to conform.

Direct the Legislative Research Commission to establish the Property Tax Relief Task Force to study and review the taxation of property and make policy recommendations to address affordability issues; require the task force to seek input from other groups in the development of policy recommendations and strategies; outline task force membership; require the task force to meet monthly during the 2026 Interim; require the task force to submit its findings and recommendations to the Legislative Research Commission by December 1, 2026.

Propose to create a new section of the Constitution of Kentucky to allow the General Assembly to provide by law a property tax exemption for the permanent residence of an owner who is a veteran with a service-connected disability; require the law to specify the amount of the exemption, the qualifications for claiming the exemption, and whether the exemption transfers to the veteran's surviving spouse; prohibit more than 1 exemption per permanent residence; disallow the exemption to be combined with an exemption under Section 170 of the Constitution of Kentucky; provide ballot language; submit to voters for ratification or rejection.

Create a new section of KRS Chapter 65 to require local governments to establish a program to waive fines, fees, and interest associated with a property that has been donated to a qualifying donee; amend KRS 65.355 to require a local government that creates a land bank authority to establish a program to grant property assessment moratoriums pursuant to KRS 99.595 to 99.605.

Create a new section of KRS Chapter 134, relating to collection of taxes to establish a quarterly installment payment program; define terms; provide installment payment calculation guidelines; require specific property tax information to be sent to the taxpayer through notifications or made accessible through an electronic system; allow an administrative fee up to 3%; disallow 2% discount for early payment of taxes if taxes paid under quarterly installment payment program; prohibit collection of penalties and interest on installment payments; require the Department of Revenue to promulgate administrative regulations; establish penalties for noncompliance; amend KRS 133.220 to require the sheriff or collector to include specific tax payment information on tax notices; amend KRS 134.015 to conform.

Amend KRS 45.021 to require the Finance and Administration Cabinet to contract with each local board of education of a district that has 65% or more in tax-exempt real property and that does not receive financial relief from other sources for the tax revenue lost from the tax-exempt property, to provide for recoupment to the board of at least 25% of the local board of education's lost tax revenue from the tax-exempt properties.

Propose to amend Section 172B of the Constitution of Kentucky to expand the freeze on an assessment or reassessment moratorium to include the development of property and to remove the 5-year expiration date for the moratorium; provide ballot language; submit to voters for ratification or rejection.

Amend KRS 132.017, relating to the process for a recall of a local ad valorem tax rate, to define "school nickel tax rate"; require a petition process for recalling the levy of a school nickel tax rate; remove other taxes levied by local governmental entities from the petition process requirements; require an ad valorem tax levied by a local governmental entity and a general tax rate levied by a local board of education to be voted upon by the voters if the tax rate produces more than 4% in revenues over the revenues produced by the compensating tax rate; require the suspension of the ordinance, order, resolution, or motion levying the tax rate until after the required election; allow a local governmental entity or a local board of education to cancel a required recall election by reconsidering the levy and instead levying a tax rate that produces no more than 4% in revenues over the revenues produced by the compensating tax rate; specify ballot and public notification requirements for the election; provide that if a tax rate is recalled, the compensating tax rate shall be levied; amend KRS 68.245, 75A.050, 132.018, 132.023, 132.027, and 160.470 to conform; make technical changes; EFFECTIVE January 1, 2027.

Propose to create a new section of the Constitution of Kentucky to exempt homeowners who are 65 years of age or older from any increase in the valuation of their permanent residence that is assessed after the later of the year the homeowner turned 65 or the year the homeowner acquired the property; require the exemption to be in addition to the exemption provided in Section 170 of the Constitution of Kentucky and notwithstanding Sections 171, 172, and 174 of the Constitution of Kentucky; apply the exemption to increases in valuation that occur after the date the amendment is ratified by the voters; provide ballot language; submit to voters for ratification or rejection.

Propose to create a new section of the Constitution of Kentucky to exempt homeowners who are 65 years of age or older from any increase in the valuation of their permanent residence that is assessed after the later of the year the homeowner turned 65 or the year the homeowner acquired the property; require the exemption to be in addition to the exemption provided in Section 170 of the Constitution of Kentucky; apply the exemption only to increases occurring until the assessed value of the property is $500,000; prohibit exempting increases occurring after the real property is assessed above $500,000; require the $500,000 to be indexed every 2 years; require any portion of the assessed value previously exempted under this section to retain its exempt status as long as the real property continues to be maintained as the permanent residence of the owner who is 65 years of age or older; require the exemption to be notwithstanding Sections 171, 172, and 174 of the Constitution of Kentucky; apply the exemption to increases in valuation that occur after the date the amendment is ratified by the voters; provide ballot language; submit to voters for ratification or rejection.