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AN ACT relating to the property tax quarterly installment payment program. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 134 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Beginning January 1, 2025, real property taxes collected by a sheriff may be 5
prepaid in quarterly installments as provided in this section. 6
(2) Each sheriff shall create and administer a quarterly installment payment 7
program for real property taxes. The program shall establish accounts for each 8
separate parcel of property owned by a taxpayer for the purpose of tracking and 9
monitoring quarterly installment payments and ensure that the payments are 10
accurately applied. 11
(3) (a) The sheriff is responsible for ensuring that the four (4) quarterly 12
installments total to an amount that allows the taxpayer to pay his or her 13
property taxes for that parcel of property along with the administration fee 14
as provided in subsection (6) of this section in full on or before the due date 15
established by Section 2 of this Act. 16
(b) Any overpayment as of the due date established by Section 2 of this Act 17
shall be automatically applied to the taxpayer's property taxes for the 18
immediately following assessment year or refunded to the taxpayer upon 19
request. 20
(c) To initially determine the amount of the quarterly installments for each 21
parcel of property, the sheriff shall add the administrative fee established by 22
subsection (6) of this section to the total taxes assessed on the property for 23
the immediately preceding assessment year and then divide the sum by four 24
(4). 25
(d) When new or updated information that impacts the taxpayer's property 26
taxes is received by the sheriff, adjustments shall be made to the quarterly 27 UNOFFICIAL COPY 22 RS BR 1530
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installments within thirty (30) days of receiving the information. 1
(4) (a) Before January 31, 2025, the sheriff shall send every taxpayer within their 2
jurisdiction a notification that provides information about the quarterly 3
installment payment program and the requirements for participation. 4
(b) The sheriff shall post information about the quarterly installment payment 5
program on its Web site, or the county's Web site if the sheriff does not 6
maintain a Web site that is accessible to the general public. 7
(5) (a) To provide taxpayers who participate in the quarterly installment payment 8
program information about their property taxes, the sheriff shall: 9
1. Provide taxpayer's property tax information through an online system 10
that can be accessed by the taxpayer; or 11
2. Send, at a minimum, quarterly notifications to the taxpayer that detail 12
the taxpayer's property tax information. 13
(b) Information provided by the online system and the notifications required by 14
paragraph (a) of this subsection shall include, at a minimum: 15
1. The taxpayer's: 16
a. Estimated property taxes for the assessment year; 17
b. Estimated amount of the administration fee established by 18
subsection (6) of this section for the assessment year; 19
c. Amount due for each quarterly installment in the assessment 20
year; 21
d. Due date for each quarterly installment in the assessment year; 22
e. Total property taxes paid to-date for the assessment year; and 23
f. Outstanding property tax balance for the assessment year; 24
2. Details of all adjustments made to the quarterly installments; 25
3. An explanation that a quarterly installment may increase or decrease 26
in order to reflect the actual assessed value of the property and the tax 27 UNOFFICIAL COPY 22 RS BR 1530
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rates for the assessment year; and 1
4. An explanation of the duties of the taxpayer under the quarterly 2
installment payment program. 3
(6) The sheriff may charge an administrative fee for each quarterly installment 4
payment collected on a parcel of property. The fee shall: 5
(a) Be paid by each taxpayer that participates in the quarterly installment 6
payment program; 7
(b) Be separately stated and clearly identified as an administration fee in the 8
taxpayer's quarterly installment; and 9
(c) Not exceed three percent (3%) of the total taxes assessed on each quarterly 10
installment. 11
(7) (a) The two percent (2%) discount for the early payment of property taxes as 12
provided by subsections (2) and (3) of Section 2 of this Act shall not apply to 13
taxes paid under a quarterly installment payment program. 14
(b) Penalties and interest shall not be assessed by a sheriff for late payments 15
received under a quarterly installment payment program. Penalties, interest, 16
and collection processes shall apply to property taxes which become 17
delinquent after the due date established by Section 2 of this Act. 18
(8) The department shall, through the promulgation of administrative regulations in 19
accordance with KRS Chapter 13A, establish guidelines, conditions, and 20
standards for the quarterly installment payment program to ensure uniformity in 21
the administration and to provide additional information on: 22
(a) Forms associated with the quarterly installment payment program; 23
(b) Conditions under which a taxpayer may be rejected from the program; 24
(c) Processes on collection, distribution, handling, and refunding of the taxes 25
collected under the program; and 26
(d) Any other information that the department deems necessary for the 27 UNOFFICIAL COPY 22 RS BR 1530
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administration of the program. 1
(9) A sheriff who does not comply with this section and any administrative 2
regulations promulgated for quarterly installment payment programs shall be 3
subject to penalties in KRS 134.990. 4
(10) On or before January 1, 2025, independent school districts and cities who appoint 5
a tax collector other than the sheriff to collect real property taxes shall establish 6
and administer a quarterly installment payment program in a manner similar to 7
the program established in this section. 8
Section 2. KRS 134.015 is amended to read as follows: 9
(1) All property taxes are due and payable on or before December 31 of the assessment 10
year except as otherwise provided by law. Payment shall be made to the sheriff as 11
provided in KRS 134.119 unless otherwise provided by law. 12
(2) (a) Any taxpayer, except a taxpayer paying under a quarterly installment 13
payment program established by Section 1 of this Act, who pays the property 14
taxes in full by November 1 of the assessment year shall receive a two percent 15
(2%) discount on the amount otherwise due. 16
(b) Taxes paid in full between November 2 and December 31 of the assessment 17
year shall be paid at the amount reflected on the tax bill without discount or 18
penalty. 19
(c) Taxes paid in full between January 1 and January 31 of the year following the 20
assessment year shall be subject to a penalty of five percent (5%) of the taxes 21
due and unpaid. 22
(d) Taxes paid after January 31 of the year following the assessment year shall be 23
subject to a penalty of ten percent (10%) of the taxes due and unpaid. 24
(3) If the regular collection schedule established by subsections (1) and (2) of this 25
section is delayed, the department may establish an alternative collection schedule. 26
Taxes shall be due two (2) full months from the date the tax bills are mailed. The 27 UNOFFICIAL COPY 22 RS BR 1530
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alternative collection schedule shall allow a two percent (2%) discount for all tax 1
bills paid in full within one (1) full month of the date the tax bills were mailed 2
except for the taxes paid under a quarterly installment payment program 3
established by Section 1 of this Act. Upon expiration of the discount period, the 4
face amount reflected on the tax bill without discount or penalty shall be due for the 5
next full month. Payments made within one (1) month following the face amount 6
period shall be subject to a penalty of five percent (5%) of the taxes due and unpaid. 7
Payments made after the five percent (5%) penalty period shall be subject to a 8
penalty of ten percent (10%) of the taxes due and unpaid. 9
(4) All taxes due under this section and all fees, penalties, and interest thereon are a 10
personal debt of the taxpayer on the assessment date, from the time the tax becomes 11
due until paid. 12
(5) The lien that attaches to property on which taxes have become delinquent under 13
KRS 134.420 shall continue as provided in KRS 134.420, from the time the taxes 14
become delinquent until the taxes are paid or the eleven (11) year period established 15
by KRS 134.420 expires, regardless of who owns the property. 16
(6) A tax bill issued against omitted property, or an increase in valuation over that 17
claimed by the taxpayer, as finally determined upon appeal as provided for in KRS 18
133.120, shall be due the day the bill is prepared and shall be considered delinquent 19
on that date. If the tax bill is not paid within one (1) full month of the due date, an 20
additional penalty of ten percent (10%) of the tax, fees, penalties, and interest due 21
shall be added to the tax bill. The laws relating to delinquent taxes on the same class 22
of property or taxpayers involved shall apply to delinquent omitted tax bills unless 23
otherwise provided by law. 24