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

2026 Regular Session Introduced by Julie Adams and 18 co-sponsors

SB 51 would add a constitutional exemption from property taxes, defining which properties qualify and altering local revenue if those exemptions apply.

to Appropriations & Revenue (H)

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SB 51 (2026RS) — AN ACT proposing to create a new section of the Constitution of Kentucky relating to property exempt from taxation

Purpose and intent

The bill proposes adding a new constitutional provision to establish property exempt from property taxation.

The exact text of the exemption, including scope and criteria, is not provided in the summary, but the measure centers on defining what property may be exempt from local or state property taxes under the Kentucky Constitution.

Key provisions and changes

Introduces a new section to the Kentucky Constitution specifying exemptions from property taxation.

The bill’s language would determine which properties qualify, the thresholds or categories of exemption, and any limitations or conditions tied to the exemption.

As a constitutional amendment, the exemption would be a fundamental, enduring provision requiring formal amendment procedures to change.

Affected parties and properties

Property owners and properties that meet the constitutional exemption criteria would be directly affected, potentially reducing local government tax revenue for those properties.

Government entities (localities, school districts) relying on property taxes could experience budget or funding implications if exemptions reduce taxable base.

Local governments would be responsible for implementing and administering the exemption in line with the constitutional provision, and assessing how it interacts with existing tax exemptions and revenue mechanisms.

Procedural and timeline aspects

Legislative history shows progression from introduction in the Senate on 2026-01-09 through committees and readings:

Introduced in Senate (01/09/2026) to Committee on Committees (S)
Reported favorably (01/14/2026)
1st reading in House and referred to committees (01/23/2026)
Passed 3rd reading in Senate (01/22/2026) with a 37-0 vote
House actions include referrals to Appropriations & Revenue (H) (03/06/2026) and initial committee activity

As a constitutional amendment, passage would typically require approval by both chambers and, depending on Kentucky’s constitutional amendment process, possible voter ratification in a statewide election. The summary does not specify the exact amendment process or timeline beyond legislative steps.

Potential impacts and considerations

Fiscal impact: Reduced property tax revenue for exempted properties could affect local government funding for services such as schools, public safety, and infrastructure unless offset by alternative revenue mechanisms or broader tax base adjustments.

Legal and policy considerations: The amendment would set a constitutional baseline for exemptions, limiting future legislative changes unless further constitutional amendments or processes are undertaken.

Administrative considerations: Local assessor offices would need guidance to administer the exemption consistently and in compliance with the constitutional text.

Notes

The specific eligibility criteria, exempt categories (e.g., charitable, religious, historic, government-owned property, or property used for particular purposes), exemption amounts, sunset clauses, or phased implementations are not detailed in the provided material. Reading the full constitutional language and any accompanying fiscal notes would be necessary to assess precise impacts and implementation requirements.