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HB560 • 2026

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
E. Hancock
Last action
2026-02-11
Official status
02/11/26: to Appropriations & Revenue (H)
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

What This Bill Does

  • AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-11 Kentucky Legislative Research Commission

    to Appropriations & Revenue (H)

  2. 2026-02-04 Kentucky Legislative Research Commission

    introduced in House to Committee on Committees (H)

Official Summary Text

AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Current Bill Text

Read the full stored bill text 
UNOFFICIAL COPY 26 RS BR 1679
Page 1 of 1
XXXX 2/3/2026 2:00 PM Jacketed
AN ACT relating to funding school districts that have a high percentage of tax -1
exempt property. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 45.021 is amended to read as follows: 4
The Finance and Administration Cabinet, within budgetary limits fixed by any 5
appropriations made by the General Assembly for such purpose, shall contract with: 6
(1) The City of Frankfort for the provision by the city to state agencies located at the 7
seat of government for fire and police protection of state -owned property and other 8
municipal services as are provided by the city to commercial and industrial 9
taxpayers residing in the City of Frankfort; and 10
(2) Each local board of education of a school district where: 11
(a) Sixty-five percent (65%) or more of the total assessed value of real property 12
located within the district is exempt from property taxation; and 13
(b) Financial relief is not provided from other sources to reimburse the 14
property tax revenue lost from the tax-exempt properties; 15
to provide a payment for the local board of education's recoupment of at least 16
twenty-five percent (25%) of the total property t ax revenue lost from the tax -17
exempt properties each year. 18