BillTrack50 logo
Free Signup Login
Bill

Bill > SB41

KY SB41

KY SB41
AN ACT relating to the levy of an ad valorem tax rate.

summary

Introduced
01/07/2026
In Committee
02/11/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Amend KRS 132.017, relating to the process for a recall of a local ad valorem tax rate, to define "school nickel tax rate"; require a petition process for recalling the levy of a school nickel tax rate; remove other taxes levied by local governmental entities from the petition process requirements; require an ad valorem tax levied by a local governmental entity and a general tax rate levied by a local board of education to be voted upon by the voters if the tax rate produces more than 4% in revenues over the revenues produced by the compensating tax rate; require the suspension of the ordinance, order, resolution, or motion levying the tax rate until after the required election; allow a local governmental entity or a local board of education to cancel a required recall election by reconsidering the levy and instead levying a tax rate that produces no more than 4% in revenues over the revenues produced by the compensating tax rate; specify ballot and public notification requirements for the election; provide that if a tax rate is recalled, the compensating tax rate shall be levied; amend KRS 68.245, 75A.050, 132.018, 132.023, 132.027, and 160.470 to conform; make technical changes; EFFECTIVE January 1, 2027.

AI Summary

This bill modifies the process for recalling local ad valorem tax rates, which are property taxes levied by local governments. It specifically defines a "school nickel tax rate" as a five-cent tax rate levied by a local school board for debt service, new facilities, or major renovations, and establishes a petition process for voters to recall this specific tax. The bill also requires that any ad valorem tax rate levied by a local government or a general tax rate levied by a local school board must be put to a voter referendum if it generates more than 4% in revenue compared to the "compensating tax rate" (the tax rate that would generate the same amount of revenue as the previous year). If such a tax rate is recalled, the compensating tax rate will be levied instead. Local governments and school boards can avoid a recall election by lowering their proposed tax rate to generate no more than 4% over the compensating tax rate. The bill also outlines requirements for public notification and ballot questions for these elections and makes conforming changes to other related laws, with an effective date of January 1, 2027.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

to Appropriations & Revenue (S) (on 02/11/2026)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...