Some Kentuckians could save hundreds of dollars if a proposed constitutional amendment is approved.
FRANKFORT, Ky. — If you are 65 or older, your property taxes could stop increasing under a proposal in Frankfort that would amend Kentucky’s constitution.
Catherine Overton would benefit from the change. She line dances at ElderServe every week, even after undergoing two knee replacements.
“This is something that helps mentally, physically and spiritually,” Overton said.
The only steps she struggles to keep up with are her rising property taxes.
“I’ve appealed it twice,” Overton said, referring to appeals filed with the Property Valuation Administrator. “The second time, I had to go downtown. I had to arrange transportation because I don’t really drive much.”
Under the proposed legislation, that could become a concern of the past.
Property values would freeze at age 65
State Sen. Mike Nemes of Shepherdsville is pushing to freeze property value assessments for anyone who turns 65. To do so, he is seeking a change to the state constitution.
“I don’t want to move into my son’s house,” Nemes said. “Somebody has a $200,000 home, and suddenly their assessment jumps to $300,000.”
An increase like that could raise property taxes by about $1,000 a year.
According to the U.S. National Home Price Index, Kentucky home values are expected to rise by an average of $9,000. If the amendment passes, that would save eligible homeowners about $113.40 each year.
Here is how those savings would break down for someone 65 or older living in Louisville:
$9.54 in state taxes
$10.62 for Metro Louisville
$64.53 for JCPS
$28.71 for the Urban Service District
“This is meant to help seniors who paid income taxes their whole lives and now need a break,” Nemes said.
School districts could still raise rates
When asked whether the proposal would affect school districts that depend on property taxes, Nemes said school funding would remain stable.
“They will still get the same revenue they did last year,” Nemes said.
The measure would only freeze property value assessments. Local governments and school districts would still be allowed to raise tax rates.
“LG&E is asking for another increase,” Overton said. “When you’re a senior on a fixed income, you have to constantly rework your budget.”
Overton does not need a reason to dance. But if her property taxes stopped rising, she said she would certainly have one.
Path to the ballot
Because the proposal is a constitutional amendment, it would require a three-fifths vote in both the state House and Senate to appear on the November ballot.
The bill advanced out of a Senate committee this week and needs one more reading in the Senate before moving to the House.
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