Thousands of Homeowners to Get Property Tax Freeze Under New Proposal

Lawmakers in Kentucky have advanced a constitutional amendment that could put an end to increasing property tax rates for the elderly.

Kentuckians aged 65 and older would have the valuation of their home frozen for tax purposes to protect them from increases. The measure passed the Senate in a 32-2 vote on Monday, February 12. If it continues its success streak, it will be placed on the ballot in the upcoming election.

The question asked of voters would be: "Are you in favor of providing an additional ad valorem tax exemption for real property maintained as the permanent residence of an owner who is 65 years of age or older by amending the Constitution of Kentucky to read as stated below?" The question would be on ballots alongside the nominees for president in November's national poll.

According to the text of Senate Bill 23, the property that is exempt from tax increases based on valuation must be the taxpayer's residence. According to the U.S. Census Bureau, approximately 17.6 percent of Kentucky's population is aged 65 and over.

Lead sponsor, Republican Senator Michael Nemes, said seniors "will still pay the property taxes when he turns 65 or when he purchases the house, but not additional on the assessment," according to a report by Link NYK. Newsweek has contacted Nemes for comment via email.

"The purpose of this amendment is clearly to provide relief to those who can least afford a property tax increase," said Republican Senator Phillip Wheeler, according to a report by The Associated Press.

The bill passed with votes across the Senate, but two Republicans did not vote in its favor on Monday. Senator Stephen West said he had concerns about how the tax change would impact public institutions such as schools. Property taxes are used to fund projects that are for public use, such as schools and roads.

West said: "A lot of these local taxes go to support our schools and libraries, and so for that reason, although I respect the sponsor's intent, I personally vote no today."

Louisville Democrat Karen Berg passed on the vote, citing that she did not wish to vote for a bill that would benefit her when she turns 65. She is currently 62 years old.

According to SmartAsset, Kentucky property taxes are among the lowest in the country, paying $1,382 every year. The state's average effective property tax rate is 0.80 percent.

Other states are also proposing legislation that would remove or limit the amount of property tax paid. In Florida, residents have hit out about a proposed termination of property levies so it can be replaced with a new sales tax.