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HB 155

AN ACT proposing to create a new section of the Constitution of Kentucky relating to the exemption of state and local excise, sales, and use taxes from food, food ingredients, prescription drugs, and residential and on-farm utilities.

2026 Regular Session Introduced by George Brown and 2 co-sponsors

Would exempt from state/local taxes: food and ingredients, prescription drugs, residential utilities, and on-farm utilities for eligible farming activities in Kentucky.

to Elections, Const. Amendments & Intergovernmental Affairs (H)
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WeVote Research Nonpartisan
Bill Summary · HB 155

Overview

HB 155 (2026RS) from Kentucky proposes a constitutional amendment to exempt certain taxes from a broad list of items and utilities. If ratified by voters, it would add a new section to the Kentucky Constitution shielding specified goods and services from state and local excise, sales, and use taxes.

Purpose and intent

  • To prohibit state and local governments (counties, cities, towns, and other municipalities) from imposing any excise, sales, or use tax on:

    1. Food and food ingredients (as defined in the bill)
    2. Prescription drugs
    3. Residential utilities (electricity, water, sewer, natural gas) used in the owner's permanent residence
    4. On-farm utilities used in farming activities (as defined in the bill)

  • The amendment aims to reduce the tax burden on households, farmers, and patients by guaranteeing these exemptions in the Kentucky Constitution.

Key provisions and changes

  • New constitutional section (to be added) provided in Section 2:
    • Exemption categories:
    • Food and food ingredients: includes various forms (liquid, concentrated, solid, frozen, dried, dehydrated) sold for ingestion/chewing and consumed for taste or nutrition. Excludes: alcohol, tobacco, candy, dietary supplements, soft drinks, and prepared foods that are mixed/heated/served with utensils by the retailer.
    • Prescription drugs: any drug purchased for the treatment of a human being that requires a prescription under law.
    • Residential utilities: electricity, water, sewer services, natural gas used in the owner’s permanent residence.
    • On-farm utilities: electricity, water, sewer services, natural gas used for farming by a qualifying farmer (regularly engaged in tilling/cultivating; producing crops; raising/feeding qualifying livestock or poultry; producing milk for sale; or raising certain specified animals such as ratite birds, llamas, alpacas, buffalo, cervids, or aquatic organisms for agricultural pursuits).
  • Section 3 outlines voter ratification procedures for the amendment (standard constitution amendment process per Kentucky law).
  • Sections 4 and 5 specify publication and ballot timing/format requirements:
    • Publication in newspapers of general circulation no later than the first Tuesday in August preceding the election.
    • Certification and ballot placement by county clerks, with the question appearing on ballots for the next regular election when Assembly members are elected.

Who would be affected

  • Households: potential exemption from state/local taxes on food, prescription drugs, and residential utilities, reducing after-tax costs for these items.
  • Farmers and agricultural operations: potential exemption for on-farm utilities, which could lower operating costs for qualifying farming activities.
  • Local governments and county clerks: administrative duties and costs related to ballot preparation, printing, and potential minor ballot-system updates; overall fiscal impact deemed minimal by the bill’s analysis.
  • Voters: would vote on the constitutional amendment at the next general election.

Procedural and timeline notes

  • Campaign/legislative path:
    • If approved by the General Assembly, the measure would be placed on the ballot for ratification by voters.
    • Constitution requires publication and certified ballot language as described in Sections 4 and 5.
  • Ballot timing:
    • The amendment would be submitted at the next general election for members of the Kentucky House of Representatives (November 2026, per the bill’s note on Sections 256 and 257 of the Constitution).
  • Fiscal considerations:
    • Local government impact: minimal incremental costs associated with ballot publication and ballot programming; costs vary by county (estimates cited from prior programming/publishing data).
    • The bill does not provide a forecast of revenue loss beyond qualitative statements of “minimal” cost to ballot administration.

Illustrative definitions (as included in the bill)

  • Food and food ingredients: includes consumable substances; excludes alcohol, tobacco, candy, dietary supplements, soft drinks, and prepared foods mixed/heated/served with utensils by retailers.
  • Residential utilities: owner-occupied, permanent residence utilities (electricity, water, sewer, natural gas).
  • On-farm utilities: utilities used for farming activities tied to specified agricultural purposes and operations.

Summary

HB 155 seeks to enshrine in the Kentucky Constitution a broad set of exemptions from state and local taxes for essential items and services: food and its ingredients, prescription drugs, residential utilities, and on-farm utilities for qualifying agricultural activities. The measure outlines specific definitions and exclusions, establishes a standard constitutional amendment process with voter ratification anticipated in the November 2026 general election, and notes a minimal anticipated administrative cost to counties for ballot changes.

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

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