Fayette County voters would decide on a sales tax-funded homeowner tax break

The bill would provide an annual county property tax exemption for eligible homestead property. It would cover residents of the Fayette County special district with homestead property there. The assessed value above the exempt amount would remain taxable. The exemption would be added to other homestead exemptions and would apply only to Fayette County taxes on property within the special district. A person generally would need to apply. No new application would be required for someone who received another county homestead exemption for the same property in the prior tax year and remains eligible. If approved in the referendum, the exemption would apply to tax years beginning January 1, 2027, through December 31, 2039.

The bill would impose a 1 percent local sales tax in the Fayette County special district. The tax would apply within the special district that covers Fayette County. The bill says the exemption amount would be based on net proceeds from the tax collected in the district. The tax would run from January 1, 2028, through December 31, 2037.

The election superintendent would hold a countywide vote on whether to approve the bill. Fayette County voters would decide whether to approve the bill. The bill would take effect only if it receives the required two-thirds vote in both legislative chambers and more than half of votes cast in the referendum are yes votes. If voters reject it or the election is not held as required, the bill would not take effect and would be repealed 365 days after the scheduled election date. The election would be held on the Tuesday after the first Monday in November 2026. If approved, the exemption provisions would take effect January 1, 2027.