AN ACT relating to the levy of an ad valorem tax rate.

Repeal and reenact KRS 132.017 to require the portion of a property tax rate which will produce revenue from real property, exclusive of revenue from new property, more than four percent over the amount of revenue produced by the compensating tax rate to be subject to recall by the voters of the district; establish requirements for the ballot question, notifying the public, the election process, and recalling the rate; allow the cancellation of the election; disallow local, state, and federal tax dollars to be used to advocate for the rate; amend various statutes to conform; EFFECTIVE January 1, 2026.

Introduced: February 14, 2025

Last action: February 19, 2025

To Appropriations & Revenue (S)

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This bill would change the rules for when Kentucky local governments can raise property taxes. Under the proposal, if a taxing district wants to collect more than four percent in additional revenue from existing properties beyond a baseline rate, voters would have the right to challenge that increase through a recall election. It also prohibits the use of public tax dollars to promote the higher rate to voters. Who it may affect: property owners across Kentucky, local taxing districts such as school boards and city governments, and voters in any district considering a property tax increase.

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