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HB 317

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

2026 Regular Session Introduced by Daniel Grossberg

Adds a constitutional property tax exemption for seniors 65+ on increases in their primary residence value up to $500,000 (indexed) after ratification.

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Bill Summary · HB 317

Summary of HB 317 (2026 Regular Session, Kentucky)

Purpose

HB 317 proposes a constitutional amendment to create an additional property tax exemption for real property that serves as the owner’s permanent residence and is owned by someone 65 years of age or older. The exemption would apply to increases in the property’s assessed value (property value increases) after the owner turns 65 or after the owner acquires the property, whichever is later, subject to a capped threshold.

Key Provisions

  • New constitutional exemption mechanism

    • The amendment adds a specific exemption to Section 170 of the Kentucky Constitution.
    • It exempts increases in the valuation of a real property that is the owner’s permanent residence and is owned by an individual aged 65 or older.
    • The exemption applies beginning in the year the owner turns 65 or the year the owner acquired the property, whichever is later.

  • Dollar cap and indexing

    • The exemption applies only to increases in assessed value up to a cap of five hundred thousand dollars ($500,000).
    • The $500,000 cap is indexed every two years (the method of indexing is not specified in the text provided).

  • Treatment beyond the cap

    • Increases in assessed value that occur after the property’s value exceeds $500,000 are not exempt from ad valorem taxation.
    • Any portion of the assessed value that was exempted previously remains exempt, provided the property continues to be maintained as the owner’s permanent residence and the owner remains 65 or older.

  • Supersession of certain constitutional provisions

    • The exemption is stated to be notwithstanding Sections 171, 172, and 174 of the Kentucky Constitution, suggesting it would override existing provisions to the extent of consistency.

  • Effective date and ratification process

    • The amendment must be ratified by voters in a future general election (the next general election in which members of the General Assembly are to be voted for, i.e., November 2026 per the bill’s timeline).
    • If ratified, the exemption would apply only to increases in real property values occurring after the date of ratification.

  • Ballot and publication requirements

    • The Secretary of State would publish the full text of the proposed amendment and announce that it will be placed on the ballot.
    • Local election officials (county clerks) would receive certification by prescribed deadlines to place the measure on ballots.

Affected Parties and Impacts

  • Primary beneficiaries: Homeowners who are 65 years of age or older and who own a real property that is their permanent residence.
  • Property tax implications: Reduced property tax increases (via the exemption) on increases in assessed value up to the $500,000 cap (adjusted biannually by indexing).
  • Local government impact: Potentially reduced property tax revenue from qualified exemptions; the fiscal impact is acknowledged as likely significant but not precisely estimable due to data limitations. Localities would initially incur minimal costs related to ballot processing and publication.
  • Implementation considerations: Counties and county clerks would be involved in ballot administration, publication, and voter information, with costs varying by county.

Procedural Timeline

  • Ballot placement: If ratified by voters, the amendment would become part of the Constitution starting from the date of ratification and would apply to increases occurring after that date.
  • Election timing: Ballot placement is aligned with the next general election for House members (November 2026, given the bill’s schedule).
  • Publication deadlines: The Secretary of State must publish the question no later than the first Tuesday in August preceding the election, and certification for ballot printing is required by specified timelines tied to the election cycle.

Considerations for Stakeholders

  • Local governments should assess potential revenue impacts and plan for the long-term fiscal effects of a growing exemption base.
  • Elder homeowners may benefit from cap-adjusted relief on property tax increases, improving affordability of staying in their homes.
  • Ballot administration costs will vary by county and depend on ballot format and printing requirements.

Note: This summary reflects the bill text and supporting documents as provided, including stated fiscal considerations and procedural steps.

Compiled from official sources — confirm details with the bill’s official record.

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