Other Exempt Properties
In order to be recognized as a purely public charity an institution must:
- Be non-profit and
- Be a public charity instead of a private charity
- The courts have defined a public charity as whatever is done or given for the relief of public burdens or for the advancement of the public good. Where the public is the beneficiary, the charity is public.
- American Red Cross or subsidized low-income housing project
- Non-profit hospitals
- Boy and Girl Scout Organizations
- Non-profit rehabilitation services for drug and alcohol abusers or mentally retarded
Leasehold Interest: The 1990 General Assembly amended KRS 132.195 says that when exempt real or personal property is leased to a business conducted for profit and a leasehold interest exists, that interest should be assessed to the lessee.
Non-profit Cemeteries: Section 170 of the Constitution specifies that only places of burial not held for private or corporate profit are to be exempted. Any income producing property must be placed on the tax roll even if the income generated is used to maintain the cemetery.
When an organization requests an exemption they need to request an application from the Property Valuation Office. Click here for forms.
Age or Disability
In Kentucky, homeowners who are least 65 years of age or who have been classified as totally disabled and meet other requirements are eligible to receive a homestead exemption. This exemption is applied against the assessed value of their home and their property tax liability is computed on the assessment remaining after deducting the exemption amount.
Application Based on Age
An application to receive the homestead exemption is filed with the property valuation administrator of the county in which the property is located. If the application is based upon the age of the homeowner, the property owner can provide proof of their age by presenting a birth certificate, driver’s license, passport or other approved documentation.
Application Based on Disability
If the application is based on the disability of the homeowner, then the homeowner must have been classified as totally disabled under a program authorized or administered by an agency of the United States government or any retirement system located within or outside of Kentucky.
The homeowner must have been receiving payments pursuant to his or her disability for the entire assessment period.
The value of the homestead exemption for the 2021-2022 assessment years is $40,500. This amount is deducted from the assessed value of the applicant’s home and property taxes are computed based upon the remaining assessment. For example, if the applicant’s residence is assessed at a value of $200,000, property taxes would be computed on $159,500 (200,000 – 40,500). The amount of the homestead exemption is recalculated every two years to adjust for inflation. The next adjustment will be effective for the 2023 and 2024 assessment years.
The Kentucky Revised Statute 132.010 (9, 10, 11) defines agricultural land as any tract of land, including all income producing improvements of at least 10 contiguous acres in area used for the production of livestock, livestock products, poultry, poultry products and/or the growing of tobacco and/or crops including timber, or where devoted to and meeting the requirements and qualifications for payment pursuant agricultural programs and an agreement with the state or Federal government.
Defined as horticultural land is any tract of land, including all income producing improvements of at least 5 contiguous acres in an area commercially used for the cultivation of a garden, orchard, or the raising of fruit or nuts, vegetables, flowers or ornamental plants.
The state provides a property tax break to farmers whose land use falls under either provision.
Taxpayers must notify the PVA of such land use.