Section 170 of the Kentucky Constitution
For 2020, the maximum Homestead/Disability Exemption on real estate owned by qualified persons has been set at $39,300. The amount of the Homestead exemption is adjusted every two years in accordance with KRS 132.810 to compensate for changes in the purchasing power of the dollar.
To qualify for the Homestead Exemption, a person must;
• 1.) Provide documentation that they are sixty-five (65) years of age or older during the year they make application.
• 2.) Own and maintain the property as their primary residence.
• 3.) Not claim any other exemption in a different location, county, or state.
To qualify for the Disability Exemption, a person must:
• 1.) Own and maintain the property as their primary residence,
• 2.) Provide documentation that they have been totally disabled under a program authorized or administered by an agency of the United States government or by any other retirement system since January of the year in which application is made.
• 3.) Agree under penalty of perjury that, if their disability changes and benefits are no longer received, they shall report such changes to the PVA. Failure to do so will result in supplemental tax bills being issued for the amount of the exemption received for up to five years.
HOMESTEAD / DISABILITY
How to Apply
An application must be completed in the Property Valuation Office. The property owner will be asked to provide verification of age. Most people provide their birth certificate or drivers license.
When applying for the disability exemption, documentation must verify that the applicant was receiving payments from January through December.
Applicants may receive only one exemption on one piece of property in one county and one state.
Kentucky Revised Statute 132.010 (9, 10, 11) provides an Agricultural Exemption for taxation of land based on its production capability rather than its fair cash value. Agricultural land is defined as any parcel (or combination of adjacent parcels) that is ten or more acres and is used for the production of livestock and/or the growing of crops including timber.
Property which is total exempt from property taxation can be classified into four different categories.
• A. Government owned property. This includes federal, state, county and city owned properties.
• B. Educational property. To qualify under this classification, an institution must:
• 2. Have its funds used exclusively for education, and
• 3. Be located within Kentucky.
The educational exemption extends not only to the real estate and tangible property that is actually being used for educational activities, but to any income producing property that may be owned by the institution, provided that the income is used to further the educational program.
• C. Religious property. This includes real property owned and occupied by, and personal property owned by institutions of religion. This exemption now includes all motor vehicles, equipment and investments that are held in the church’s name. However, not every parcel of land a church owns is exempt. Real property must be both owned and occupied by the church. Church-owned property that is typically not tax-exempt might be land held for future development, acreage utilized as a farm, or property rented out to individuals or businesses.
• D. Other exempt property. The primary components of this category are properties owned by non-profit cemeteries and purely public charitable organizations.
Property owners who feel that their property should be tax exempt should complete the application below and present it to the Property Valuation Administrator.
Application for Exemption From Property Taxation