DISABILITY & HOMESTEADEXEMPTIONS

Real property exempt from taxation by the Constitution must be listed in the same manner and at the same time as taxable real property. The PVA must maintain an inventory of all exempt real property, but does not place it on the tax rolls.

Each PVA must, under the direction of the Revenue Cabinet, review annually all property listed and claimed to be exempt from taxation. All property that is not exempt shall be placed on the tax roll.

A taxpayer may also be entitled to the HOMESTEAD EXEMPTION, below are the basic provisions of this exemption.

A taxpayer who is at least sixty-five (65) years of age is eligible for a homestead exemption for property that is owned and maintained as his or her personal residence. Taxpayers who are younger than sixty-five may also receive an exemption if they meet all of the following requirements.

1) The taxpayer must both own and maintain the property as his or her personal residence;
2) The taxpayer must have been classified as totally disabled under a program authorized
or administered by the Federal Government or by any other retirement system - it does
not matter if the retirement system is located in Kentucky or outside the state - on January 1
for the year in which the application is made and maintain the disability classification through
December 31;
3) The taxpayer must be receiving disability payments pursuant to that disability classification;
and
4) An application for the disability exemption must be made on an annual basis.

The most common Federal program under which a taxpayer can obtain a totally disabled classification is Social Security/SSI. Other Federal programs that may be encountered include the Veterans Administration and the Tennessee Valley Authority. Other common non-Federal programs that you will encounter that now qualify a taxpayer for a disability exemption include the Teachers' Retirement System and Worker's Compensation. However, remember that disability payments from any type of retirement system - both publicly and privately sponsored - will qualify the taxpayer for the exemption.

These exemptions are limited to a specific amount, $25,400 for the 1999 & 2000 tax year with an increase every two years. Property assessed for a greater amount will be subject to taxation by the taxing districts.