Introduced

Passed House

Passed Senate

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · February 11, 2026

To Appropriations & Revenue (H)

Introduced February 4, 2026

House

Adjourned Sine Die

2026 Regular Session

HB560

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Amend KRS 45.021 to require the Finance and Administration Cabinet to contract with each local board of education of a district that has 65% or more in tax-exempt real property and that does not receive financial relief from other sources for the tax revenue lost from the tax-exempt property, to provide for recoupment to the board of at least 25% of the local board of education's lost tax revenue from the tax-exempt properties.

Budget and Financial Administration Education, Finance State Agencies Taxation Taxation, Property

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This bill would require the state to provide financial relief to school districts where 65% or more of real property is tax-exempt, such as land owned by governments or nonprofits that cannot be taxed. Districts meeting that threshold and not already receiving other compensation would be guaranteed a payment of at least 25% of the local tax revenue they are unable to collect because of those exemptions. This addresses concerns that some districts have a…

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