Kentucky legislation · 2026 Regular Session
Kentucky HB560: AN ACT relating to funding school districts that have a high percentage of tax-exempt property.
Status: In committee, February 11, 2026
Amend KRS 45.021 to require the Finance and Administration Cabinet to contract with each local board of education of a district that has 65% or more in tax-exempt real property and that does not receive financial relief from other sources for the tax revenue lost from the tax-exempt property, to provide for recoupment to the board of at least 25% of the local board of education's lost tax revenue from the tax-exempt properties.
What the bill says
An act relating to funding school districts that have a high percentage of taxexempt property.
From the introduced text:
AN ACT relating to funding school districts that have a high percentage of taxexempt property. Be it enacted by the General Assembly of the Commonwealth of Kentucky: Section 1. KRS 45.021 is amended to read as follows: The Finance and Administration Cabinet, within budgetary limits fixed by any appropriations made by the General Assembly for such purpose, shall contract with: (1) The City of Frankfort for the provision by the city to state agencies located at the seat of government for fire and police protection of state-owned property and other municipal services as are provided by the city to commercial and industrial taxpayers residing in the City of Frankfort; and (2) Each local board of education of a school district where: (a) Sixty-five percent (65%) or more of the total assessed value of real property located within the district is exempt from property taxation; and (b) Financial relief is not provided from other sources to reimburse the property tax revenue lost from the tax-exempt properties; to provide a payment for the local board of education's recoupment of at least twenty-five percent (25%) of the total property tax revenue lost from the taxexempt properties each year. XXXX 2/3/2026 2:00 PM Jacketed
Sponsors
- Erika Hancock (D, HD-057) · primary sponsor
Latest actions
- : to Appropriations & Revenue (H)
- : to Committee on Committees (H)
- : introduced in House
Subjects: State Agencies, Taxation, Budget And Financial Administration, Education, Finance, Taxation, Property
Common questions
- What is HB560?
- HB560 is a bill in the Kentucky Legislature (2026 Regular Session): AN ACT relating to funding school districts that have a high percentage of tax-exempt property.
- What does HB560 do?
- In its own words: An act relating to funding school districts that have a high percentage of taxexempt property.
- What is the status of HB560?
- In committee as of February 11, 2026. Latest action: to Appropriations & Revenue (H) (February 11, 2026).
- Who sponsored HB560?
- Erika Hancock (D, HD-057).
- Where is the official record for HB560?
- On the Kentucky Legislature website: https://apps.legislature.ky.gov/record/26rs/hb560.html
Source: official Kentucky record. Tracked by Delilah, AI for legislation across all 50 states and Congress.