Republican Sen. Mike Nemes of Shepherdsville presented Senate Bill 51 to a Senate committee in Frankfort on Jan. 14, 2026.
Several bills have already been introduced during this session of the Kentucky General Assembly aimed at lowering property taxes for homeowners through a constitutional amendment, with one measure advancing out of a Senate committee on Wednesday.
SB 51 would amend the Kentucky Constitution to protect elderly homeowners from higher property tax bills caused by rising home valuations. Under the proposal, Kentuckians age 65 and older would still pay property taxes on their primary residence, but the home’s assessed value would be locked in and would not increase.
Nemes told lawmakers the goal is to assist seniors, many of whom live on fixed incomes and may struggle to keep up with sudden increases in property values.
“As we know, the assessments have been going up on them, and a lot of people are having income problems on fixed income,” Nemes said. “We need to help them.”
As an example, Nemes explained that if an elderly homeowner’s residence were valued at $200,000 and later reassessed at $300,000, the homeowner would continue paying property taxes based on the original $200,000 valuation.
If SB 51 passes both legislative chambers with at least a three-fifths majority, it would appear on the November ballot as a statewide referendum for voters to approve or reject the constitutional amendment.
The committee advanced the bill unanimously. Republican Sen. Julie Raque Adams of Louisville said the homestead tax issue is “probably the number one thing that I get calls and emails about in my district.”
Democratic Sen. Cassie Chambers Armstrong of Louisville said she supported the bill because it would help low-income seniors but expressed concern that it lacks means testing. She suggested limiting the benefit so it would not apply to wealthy homeowners, such as those with homes valued above $1 million or $2 million.
In the House, five separate bills related to a homestead tax exemption for seniors have been filed. One proposal from Democratic Rep. Daniel Grossberg of Louisville would cap the exemption for homes valued at $500,000.
Two Republican-sponsored House bills mirror Nemes’ proposal, while two other GOP measures would amend the constitution to increase the current exemption of $49,000 in a senior’s home value to either $75,000 or $100,000.
Nemes has successfully passed similar homestead tax legislation in the Senate multiple times in past sessions, but he said he hopes House Republicans will move the measure to the ballot this year.
Asked whether the House Republican supermajority is more supportive of the proposal this session, GOP House Speaker David Osborne of Prospect said lawmakers have held “general discussions about it, but nothing that we’ve gained any consensus about at this point.”
A fiscal note prepared by legislative staff estimates SB 51 would reduce state tax revenue by about $5.5 million each year. Property taxes are also a major source of revenue for local governments, though Nemes said a local impact statement has not yet been completed.
Nemes said he has not heard objections from local government associations, adding that they would likely face backlash from voters if they opposed the measure over what he described as a relatively small amount of money.
“If (local governments) really are concerned about that, they want more money than they had last year,” Nemes said, “they can raise the (property tax) rate that would offset that.”
Nemes also pointed to income tax cuts passed by Republican lawmakers over the past decade, arguing that the homestead tax proposal would extend relief to retirees.
“We’ve helped the working class people with the income tax,” Nemes said. “Well, these elderly people have paid income tax all these years, and now they’re not paying income tax. We need to help them also.”
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