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Bill

HB 101

AN ACT relating to an exemption from sales and use tax for religious institutions.

2026 Regular Session Introduced by Shane Baker and 54 co-sponsors

Kentucky bill exempting religious institutions from sales and use tax to reduce their operational costs while decreasing state revenue by unspecified amounts.

floor amendments (1) and (2-title) filed
#charitableandnonprofitorganizations #education #elementaryandsecondary #finance #fiscalnote #religion #sales #taxation #salesanduse
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Bill Summary · HB 101

Legislative bill overview

HB 101 proposes to exempt religious institutions from Kentucky's sales and use tax. The bill has been introduced in the House and referred to the Appropriations & Revenue Committee, where floor amendments were filed in early February 2026.

Why is this important

Tax exemptions for religious institutions affect state revenue, the competitive position of non-religious organizations, and the relationship between government and religion. Kentucky already provides some tax exemptions for religious properties; this bill would expand those exemptions to include sales and use tax, potentially affecting operational costs for religious groups while reducing state tax collections.

Potential points of contention

  • Revenue impact: Removing sales and use tax revenue from religious institutions' purchases reduces state funding available for education, infrastructure, and services without identifying offsetting revenue sources
  • Scope and definition: The bill's language on what qualifies as a "religious institution" could be overly broad or narrow, creating disputes over eligibility and potential discrimination claims
  • Separation of church and state concerns: Providing preferential tax treatment to religious entities raises constitutional questions about government preference for religion and whether non-religious charitable organizations receive comparable treatment

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

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