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Kentucky bill requires state payments to school districts with high levels of tax-exempt property

Original title: AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Last action · February 11, 2026: to Appropriations & Revenue (H)Sponsor: Erika Hancock

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Kentucky House Bill 560 requires the to contract with qualifying local school boards to recoup at least 25% of property tax revenue lost due to tax-exempt properties.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

local board of education

Local school boards meeting the property exemption criteria become eligible for state contracts providing annual payments for lost tax revenue.

Directly affected

Finance and Administration Cabinet

The Cabinet is tasked with establishing and executing contracts with qualifying local school boards within budgetary limits fixed by appropriations.

Key Facts

  • The Finance and Administration Cabinet is directed to contract with qualifying local boards of education to provide annual payments recouping at least 25% of lost property tax revenue.
  • To qualify, a school district must have 65% or more of the total assessed value of its real property exempt from property taxation.
  • Qualifying school districts must also lack financial relief from other sources to reimburse the lost property tax revenue.
  • Existing law requiring contracts with the City of Frankfort for fire and police protection of state-owned property is maintained and expanded upon.

Frequently Asked Questions

Which school districts qualify for the state funding payments under HB 560?
School districts qualify if 65% or more of the total assessed value of real property within the district is exempt from property taxation and financial relief is not provided from other sources to reimburse the lost revenue.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

2 actions
  1. Feb 11, 2026HouseCommittee
    to Appropriations & Revenue (H)
  2. Feb 4, 2026HouseIntroduced
    introduced in House to Committee on Committees (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Erika Hancock, Finance and Administration Cabinet, The City of Frankfort and 1 more
PersonErika Hancock“Bill sponsor”Map →
OrganizationFinance and Administration Cabinet“Required to contract with local school boards and the City of Frankfort”Map →
locationThe City of Frankfort“Receives contracts for fire and police protection of state-owned property”Map →
OrganizationGeneral Assembly of the Commonwealth of Kentucky“Enacting body of the legislation”Map →

Sources

Open source document

apps.legislature.ky.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 60)
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz20
    Current news / social attention level

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