AN ACT proposing to create a new section of the Constitution of Kentucky relating to property exempt from taxation.

2026 Regular Session Introduced by Josh Branscum and 2 co-sponsors

HB 137 would add a constitutional framework establishing which properties qualify for tax exemptions and how those exemptions are administered and overseen.

to Elections, Const. Amendments & Intergovernmental Affairs (H)

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Bill Summary: HB 137 (2026 Regular Session, Kentucky)

Main purpose

HB 137 proposes to amend the Kentucky Constitution by creating a new section that addresses property exempt from taxation. The bill’s overarching aim is to define and formalize which properties qualify for tax exemption under constitutional authority, establishing criteria and framework to guide exemptions.

Key provisions and changes

Constitutional amendment to create a new section: The bill would insert a dedicated constitutional provision outlining the rules for property tax exemptions.

Scope of exemption: While the exact text is not provided in the summary, the new section typically would specify what categories of property may be exempt (e.g., certain government, charitable, religious, educational properties, or other qualifying uses) and the conditions under which exemptions apply.

Authorization and administration: The amendment would designate the mechanism for granting exemptions, including who may determine eligibility and any administrative processes or standards to be followed.

Limitations and oversight: The new section may include limitations on exemptions (such as caps, sunset provisions, or reporting requirements) and provisions for maintaining accountability and preventing abuse or unintended revenue loss.

Amendment process: As a constitutional amendment, approval would require passage by the General Assembly and subsequent voter ratification in a statewide election, in line with Kentucky’s constitutional amendment process.

Who or what would be affected

Property owners and taxpayers: The exemptions defined by the new constitutional section would directly affect property tax obligations for qualifying properties.

Local governments and fiscal planning: Tax exemptions influence local tax bases and could affect funding for public services supported by property taxes.

Public and nonprofit entities: If the exemption covers properties owned by charities, churches, educational institutions, or government entities, those organizations could experience changes in their property tax status.

State revenue considerations: Over time, exemptions approved under the amendment could impact state and local revenue streams and budget planning.

Procedural and timeline aspects

Current stage: The proposal has been introduced in the House and referred to the Elections, Constitutional Amendments & Intergovernmental Affairs committee, with an earlier referral to Committee on Committees.

Next steps:

Committee review and potential amendments.
House floor consideration and passage.
If passed by the House, referral to the Senate for a parallel process.
Final approval by both chambers and then statewide voter ratification in a general election or designated ballot measure, per Kentucky constitutional amendment requirements.

Timeline note: As a constitutional amendment, it requires multiple legislative approvals and voter approval; no specific dates are provided beyond initial committee actions in January 2026.

Additional considerations

Details such as which property types are exempt, eligibility criteria, duration, and monitoring mechanisms will be defined in the constitutional language and any accompanying statutory framework adopted to implement the amendment. Readers should watch for committee amendments and final ballot language to understand the precise impact upon enactment.