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

2026 Regular Session Introduced by Jimmy Higdon and 5 co-sponsors

Proposes a constitutional amendment to create a formal, entrenched framework for which property may be tax-exempt in Kentucky.

to Committee on Committees (S)

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Summary of SB 169 (2026 Regular Session, Kentucky)

Purpose

SB 169 proposes a constitutional amendment to create a new section of the Kentucky Constitution governing property that is exempt from taxation. The bill seeks to establish a formal constitutional basis for which properties may be exempt and under what conditions, shifting or clarifying the framework used to determine tax-exempt status.

Key provisions and changes

Constitutional amendment: The bill would add a new section to the Kentucky Constitution, dedicated to property exempt from taxes. This means any rules governing exemptions would be anchored in constitutional text rather than statutes alone.

Scope of exemptions (proposed): While the exact language of the new section is not provided in the summary, such amendments typically delineate:

Types of property that may be exempt (e.g., certain nonprofit, educational, religious, charitable institutions; government properties; property used for specific public purposes).
Conditions under which exemptions apply (e.g., property use, ownership, alignment with statutory standards).
Limitations or oversight mechanisms to ensure compliance and prevent abuse.

Implementation considerations: The amendment would require future statutory alignment to implement and administer the constitutional provision, including definitions, processes for applying for exemptions, and potential oversight or appeal procedures.

Who or what would be affected

Property owners and entities seeking exemptions: Nonprofit and other organizations that rely on tax exemptions could be affected insofar as the constitutional framework determines eligibility and scope.

Local governments and taxing authorities: Tax assessors and boards of property valuation would operate within the new constitutional framework, adjusting policies and administrative processes to comply with the amended constitution.

Public fiscal implications: Depending on the breadth of exemptions recognized, there could be impacts on tax revenues and budgeting at the state and local levels, necessitating consideration of revenue forecasts and funding for public services.

Procedural and timeline aspects

Introduced in Senate: February 5, 2026.

Referral: Sent to the Committee on Committees (S) on the same day, indicating initial procedural steps where the bill would be evaluated, possibly amended, and a recommendation made before proceeding to the full Senate.

Notes and considerations

The summary does not provide the exact text of the proposed constitutional section, so the precise categories of exempt property, eligibility criteria, and administration details will depend on the final language.

As a constitutional amendment, approval would require passage by the General Assembly and ratification by voters in a statewide referendum, following the typical process for constitutional changes in Kentucky.

If you’d like, I can incorporate the full bill text once available and provide a more detailed, line-by-line analysis of the proposed constitutional language and its implications.