Bill
Bill > HB639
summary
Introduced
02/18/2025
02/18/2025
In Committee
02/21/2025
02/21/2025
Crossed Over
Passed
Dead
03/28/2025
03/28/2025
Introduced Session
2025 Regular Session
Bill Summary
Create a new section of KRS Chapter 132, relating to state and local property taxes, to establish a new homestead exemption for veterans with a service-connected disability; establish requirements for the exemption; allow the permanent residence of a veteran's surviving spouse to continue to receive the exemption; require the Department of Revenue to prescribe forms and an application process for the exemption; apply the exemption to state, county, city, and special district taxes; allow mobile homes, manufactured houses, recreational homes, and modular homes to qualify for the exemption; require title transfers on property receiving the exemption to be reported to the property valuation administrator; allow the exemption to apply to the value of the property that is assessable to the owner or proportioned to his or her interest when the property is jointly owned or owned through a stock or membership corporation; allow partial or full refunds if an overpayment occurs upon application of the exemption; apply to property assessed on or after January 1, 2026.
AI Summary
This bill creates a new property tax homestead exemption for disabled veterans in Kentucky, providing graduated tax relief based on the severity of their service-connected disability rating. Veterans with a 10-100% disability rating can receive exemptions ranging from $5,000 to 100% of their property's assessed value, with the maximum exemption available for veterans with a 100% disability rating. For those with a 100% disability rating, the exemption will increase annually from $240,000 in 2026 to $400,000 in 2030 and beyond. The exemption applies to a veteran's permanent residence and contiguous property, and can include mobile homes, manufactured homes, and modular houses. Surviving spouses can continue to receive the exemption if they were married to the veteran at the time of death, have not remarried, and continue to live in the same residence. The exemption covers state, county, city, and special district taxes, and applies to various property ownership structures. Veterans can receive a full or partial tax exoneration before payment or a refund after payment, depending on their specific circumstances. The bill will take effect for property assessments on or after January 1, 2026.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
to Appropriations & Revenue (H) (on 02/21/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/25RS/hb639.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/25RS/hb639/orig_bill.pdf |
| Local Mandate Fiscal Impact | https://apps.legislature.ky.gov/recorddocuments/note/25RS/hb639/LM.pdf |
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