AN ACT proposing to create a new section of the Constitution of Kentucky relating to property exempt from taxation.
Summary
SB 67 proposes a constitutional amendment to provide an additional property tax exemption for homeowners age 65 or older. For a qualifying owner-occupied residence, the measure would exempt from ad valorem taxation any increase in the assessed value of the home and contiguous real property that occurs after the later of the year the owner turns 65 or the year the property was purchased. The exemption would be in addition to the existing homestead exemption in Section 170 of the Kentucky Constitution.
The bill also sets out the procedures for placing the amendment before voters. It directs the Secretary of State to publish the ballot question and full text of the proposed amendment, and it requires county clerks to include the complete text on ballots at the next regular general election for members of the General Assembly. If approved by voters, the exemption would apply only to increases in property value occurring after ratification, not retroactively.
Impact
If ratified, SB 67 would amend the Kentucky Constitution and limit property tax growth for eligible senior homeowners by freezing taxation on post-qualification increases in assessed value for their primary residence and adjacent property. This would affect local property tax bases and county assessment practices, while benefiting older homeowners who remain in their homes and experience rising property values. The bill explicitly operates notwithstanding contrary provisions of several constitutional sections governing taxation, and it would be implemented only for future value increases after voter approval.
Sentiment
The available voting history suggests the bill received strong support in the Senate, passing third reading 32-3. No committee transcript is available, but the vote margin indicates broad favorable sentiment toward providing tax relief to senior homeowners. The bill’s framing as a constitutional amendment for older residents likely contributed to its support, especially among members prioritizing property tax relief and aging-in-place policies.
Contention
The main point of contention is the fiscal and policy effect of carving out an additional property tax exemption for a specific class of homeowners. Supporters likely view the measure as targeted relief for seniors on fixed incomes, while opponents may be concerned about reducing local tax revenue, creating inequities between age groups and homeowners, or complicating the property tax system. Because the bill amends the constitution rather than ordinary statute, it also raises the stakes by making the change more durable and harder to reverse.