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UNOFFICIAL COPY 26 RS BR 1191
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AN ACT relating to a property tax homestead exemption for disabled veterans. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 132 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) (a) Notwithstanding any statutory provisions to the contrary, real property 5
owned by and maintained as the permanent residence of a veteran of the 6
Armed Forces of the United States who meets the qualifications under 7
paragraph (b) of this subsection shall be provided a homestead exemption 8
on the assessed valuation of the permanent residence and contiguous real 9
property in accordance with this section. 10
(b) In order to qualify for the homestead exemption provided under this section, 11
the owner shall be a veteran with a fifty percent (50%) or greater service -12
connected disability rating adjudicated by the United States Department of 13
Veterans Affairs. 14
(c) The homestead exemption amount is equal to the result computed from 15
multiplying the veteran's service-connected disability rating percentage by: 16
1. The first one hundred thousand dollars ($100,000) of the assessed 17
valuation of the veteran's permanent residence and contiguous real 18
property; or 19
2. The total assessed valuation of the veteran's permanent residence and 20
contiguous real property when the to tal assessed valuation is less than 21
one hundred thousand dollars ($100,000). 22
(d) If a veteran qualifies for more than one (1) homestead exemption under this 23
section and KRS 132.810: 24
1. Only one (1) homestead exemption per residential unit is allowed; 25
2. The homestead exemptions cannot be combined; and 26
3. The homestead exemption amount that provides the largest monetary 27
UNOFFICIAL COPY 26 RS BR 1191
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benefit to the veteran shall be applied to the assessed valuation of the 1
veteran's permanent residence and contiguous real property. 2
(e) The permanent residence and contiguous real property of the surviving 3
spouse of a veteran who qualified for a homestead exemption under this 4
section prior to his or her death shall continue to qualify for the homestead 5
exemption as long as: 6
1. The surviving spouse: 7
a. Was married to the veteran at the time of the veteran's death; 8
and 9
b. Has not remarried since the death of the veteran; and 10
2. The property: 11
a. Was the permanent residence of the surviving spouse at the time 12
of the veteran's death; and 13
b. Has been maintained as the permanent residence of the 14
surviving spouse since the veteran's death. 15
(2) The department shall prescribe forms and an application process for the 16
homestead exemption provided under this section. 17
(3) Notwithstanding any statutory pro visions to the contrary, the provisions of this 18
section shall apply to the assessment and taxation of real property for state, 19
county, city, and special district purposes. 20
(4) A mobile home, manufactured home, or recreational vehicle, when classified as 21
real property under KRS 132.751, or a modular home shall qualify as a 22
permanent residence for purposes of the homestead exemption provided under 23
this section. 24
(5) When title to real property that is exempted either in whole or in part under this 25
section is transferred, the owner, administrator, executor, trustee, guardian, 26
conservator, curator, or agent shall report the transfer to the property valuation 27
UNOFFICIAL COPY 26 RS BR 1191
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administrator. 1
(6) The real property may be held by legal or equitable title, by the entireties, jointly, 2
in common, as a condominium, or indirectly by the stock ownership or 3
membership representing the owner's or member's proprietary interest in a 4
corporation owning a fee or a leasehold initially in excess of ninety -eight (98) 5
years. The homestead exemption provided under this section shall apply only to 6
the value of the real property assessable to the owner or, in case of ownership 7
through stock or membership in a corporation, the value of the proportion which 8
his or her interest in the corporation bears to the assessed value of the property. 9
(7) Any owner making application and qualifying for the homestead exemption 10
provided under this section: 11
(a) Before payment of his or her property taxes for the assessment year in 12
question shall be entitled to a full or partial exoneration, as the case may be, 13
of the property tax due to reflect the taxable assessment after allowance for 14
the homestead exemption; or 15
(b) After property taxes have been paid for the assessment year in question 16
shall be entitled to a refund o f the taxes paid applicable to the value of the 17
homestead exemption. 18
Section 2. This Act applies to property assessed on or after January 1, 2027. 19