Kentucky bill would freeze property taxes for senior homeowners

"As we know, the assessments have been going up on them, and a lot of people are having income problems on fixed income, Nemes told Louisville Public Media last month. We need to help them. Under the proposal, a home assessed at $200,000 that later rises to $300,000 in value would still be taxed at the original $200,000 assessment. State Sen. Cassie Chambers Armstrong (D-Louisville) voted for the measure, citing the need for relief for low-income seniors."

"She said she would prefer a means test so that the policy does not apply to wealthier homeowners, suggesting it not extend to homes valued above $1 million or $2 million. Nemes said a legislative fiscal note estimates the proposal would reduce state revenue by about $5.5 million annually. Local governments which rely heavily on property taxes and set their own rates have not yet received a formal impact statement, Louisville Public Media added."

"We've helped the working-class people with the income tax, Nemes said. Well, these elderly people have paid income tax all these years, and now they're not paying income tax. We need to help them also. Five related bills have been introduced in the Kentucky House, including a measure by Rep. Daniel Grossberg (D-Louisville) that would cap the exemption on homes valued at $500,000."

A proposal would freeze property tax assessments so a home assessed at $200,000 that later rises to $300,000 remains taxed at the original $200,000. The measure targets relief for low-income seniors and could be limited by a means test excluding homes above $1 million or $2 million, with alternative proposals capping benefits at $500,000 or increasing existing homestead exemptions to $75,000–$100,000. A legislative fiscal estimate projects about $5.5 million in reduced state revenue annually. Local governments that rely on property taxes have not received formal impact statements. Broad property tax changes could strain school and local service funding, since nearly half of real estate tax revenue goes to schools.

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