Bill > SB186

This bill establishes a new process for voter approval of property tax rates that exceed the compensating tax rate by more than four percent in Kentucky. Under the new law, when a taxing district (such as a county, city, school district, or special purpose government entity) wants to levy a tax rate that would generate more than 4% additional revenue compared to the compensating tax rate, they must hold a voter election to approve the rate. The election can be either a special called election or coincide with the next regular election. If the election is a special called election, the taxing district must publicize the election details through website posting, newspaper publication, or mail notice to property owners. The bill requires that if a majority of voters oppose the tax rate, the rate will be officially recalled, the tax rate must be amended to the compensating tax rate, and any overpaid taxes must be refunded to taxpayers within 60 days. The bill also prohibits the use of local, state, or federal tax dollars to advocate for or against the ballot question. Additionally, the legislation amends several existing statutes to align with these new requirements and provides that these provisions will take effect on January 1, 2026. The bill aims to provide more direct voter control over local tax rates by giving citizens a direct say in approving tax increases beyond a certain threshold.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/sb186.html