AN ACT proposing to create a new section of the Constitution of Kentucky relating to property exempt from taxation.
Summary
SB169 is a proposed constitutional amendment that would exempt certain property from state and local property taxes in Kentucky. Specifically, it would exempt the primary permanent residence and one primary motor vehicle of two groups: veterans of the U.S. Armed Forces with a 100% service-connected disability rating, and unremarried surviving spouses of service members killed in action while on active duty. The exemption would apply only to a residence of less than 100 acres that is used solely as the owner’s primary home, and to a vehicle used solely as the owner’s primary motor vehicle.
The bill also sets out the administrative process for claiming the exemption. Eligible owners would need to file a signed statement with the local assessor by December 31 of the tax year, under penalty of perjury, and provide documentation proving eligibility. If approved by voters, the amendment would be submitted at a general election and, if ratified, would not take effect for property assessed on or after January 1, 2028.
Impact
If adopted by voters, SB169 would amend the Kentucky Constitution to create a new property tax exemption for qualifying disabled veterans and certain surviving spouses, reducing the taxable base for local and state property taxes on the covered home and vehicle. It would also require local assessors to administer eligibility claims and documentation, and it directs the Secretary of State and county clerks to place the full question and amendment language on the ballot under specified publication and certification timelines. The exemption would apply prospectively only to property assessed on or after January 1, 2028.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate or opposition in the materials provided. Based on the bill’s subject matter, the proposal appears to be framed as a targeted tax benefit for severely disabled veterans and Gold Star surviving spouses, which is typically a sympathetic and politically favorable category. The bill’s referral to committee without further recorded action suggests it was still in the early stages of consideration.
Contention
The main policy questions likely concern the fiscal impact of narrowing the property tax base and the administrative burden of verifying eligibility through local assessors. Another possible point of contention is the scope of the benefit: the bill limits the exemption to a primary residence under 100 acres and one primary vehicle, and it excludes surviving spouses who remarry. Because the measure is a constitutional amendment rather than a statute, some may also object to locking the exemption into the constitution instead of creating it by ordinary law.