AN ACT proposing to create a new section of the Constitution of Kentucky relating to property exempt from taxation.
Summary
SB51 proposes a constitutional amendment to give older homeowners an additional property tax benefit on their permanent residence. Specifically, for real property used as the permanent residence of an owner age 65 or older, any increase in assessed value after the later of the year the owner turns 65 or the year the owner acquired the property would be exempt from ad valorem taxation. The exemption would be in addition to the existing homestead exemption in Section 170 of the Kentucky Constitution and would override conflicting constitutional provisions on taxation to the extent necessary.
Because this is a constitutional amendment, the bill does not itself change tax law immediately; instead, it sets the question for voter ratification and directs the Secretary of State and county clerks to publish and place the amendment text on the ballot at the next regular general election. If approved by voters, the amendment would apply only to increases in real property value occurring after ratification, limiting its effect to future appreciation rather than retroactive relief.
Impact
If ratified, SB51 would amend the Kentucky Constitution to create a new property tax exemption for qualifying senior homeowners, reducing the taxable portion of future increases in home value for permanent residences owned by people 65 and older. It would affect local property tax assessments and revenues by limiting the growth in the tax base for eligible properties, while leaving the underlying property still subject to taxation on value that existed before the exemption applies. The bill also requires election-related publication and ballot procedures under KRS 118.415 and related constitutional provisions.
Sentiment
The available voting history suggests strong support in the Senate, where the bill passed third reading 36-0. No committee transcript is available, but the unanimous vote indicates broad bipartisan or at least chamber-wide agreement on advancing the proposal. The bill’s framing as a targeted tax relief measure for older homeowners likely contributes to its favorable reception.
Contention
The main policy issue is the fiscal tradeoff between providing tax relief to senior homeowners and reducing future property tax growth for local governments and taxing districts. Supporters are likely to view the measure as protecting older residents from rising property tax burdens tied to home appreciation, while critics may be concerned about revenue impacts, fairness relative to other taxpayers, and the constitutional complexity of creating an exemption that sits alongside existing homestead protections. Because the bill is a proposed constitutional amendment, another point of contention is that final approval depends on voter ratification rather than legislative enactment alone.