Page 1 of 2 LRC 2024-BR236-HB61
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 236 HOUSE BILL NUMBER 61
TITLE AN ACT relating to the property tax homestead exemption.
SPONSOR Representative Ryan Dotson
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDA TE
APPROPRIATION UNIT(S) IMPACTED:
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL
ESTIMATES
2023-2024 2024-2025 2025-2026 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES ($18,000,000) ($18,000,000)
EXPENDITURES
NET EFFECT ($18,000,000) ($18,000,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: HB 61 amends the amount of the property tax homestead
exemption to be 50 percent of the first $250,000 in assessed valuation. The bill only becomes
effective upon the ratification of an amendment to Section 170 of the Kentucky Constitution
permitting the General Assembly to determine the amount of the homestead exemption.
FISCAL EXPLANATION: If HB 61 is enacted and the related constitutional amendment is
ratified, the fiscal impact is expected to be negative $18,000,000 each year.
65 And Over: FY 2026
# Homeowners with Property value <$250,000 302,276
Median Home Value $131,084
Exemption Value $65,542
# Homeowners with Property value >$250,000 109,121
Maximum Exemption Value (50% X $250,000) $125,000
Tax Rate (11.4 cents/$100) .00114
65 And Over Exemption Value $38,135,196 Page 2 of 2 LRC 2024-BR236-HB61
Disabled: FY 2026
# Homeowners with Property value <$250,000 60,401
Median Home Value $112,310
Exemption Value $56,155
# Homeowners with Property value >$250,000 17,411
Maximum Exemption Value (50% X $250,000) $125,000
Tax Rate (11.4 cents/$100) .00114
Disabled Exemption Value $6,347,856
HB 61 Exemption Value $44,483,052
Current Exemption Value $26,495,633
FY 2026 Fiscal Impact ($17,987,419)
It is important to note that if enacted, HB 61 would decrease the property tax burden for
qualifying homeowners whose permanent residence is assessed at a value that is more than
double the current homestead exemption amount and would increase the tax burden for
qualifying homeowners whose permanent residence is assessed at a value that is less than double
the current homestead exemption amount.
Currently, qualified homeowners with a residence valued below the current homestead
exemption amount do not pay property tax on their home; however, under HB 61, these qualified
homeowners would pay property taxes on 50 percent of the assessed value of their residence.
DATA SOURCE(S): US Census Bureau Public Use Microdata 2022, Kentucky Department
of Revenue, National Association of Realtors, LRC staff
PREPARER: Cynthia Brown NOTE NUMBER: 50 REVIEW: JH DATE: 2/28/2024