KentuckyHB 6002026 Regular SessionHouseWALLET

AN ACT relating to the collection of delinquent tax bills.

Sponsored By: Mary Beth Imes (Republican)

Signed by Governor

Attorney, CountyCountiesLocal MandateState AgenciesTaxationTaxation, Property

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 2 costs, 3 mixed.

Higher fees on delinquent local taxes

The law adds a 20% collection fee to each delinquent tax bill handled under a county attorney’s contract. If the county attorney files suit, you owe the higher of a 13% litigation fee or reasonable attorney fees and costs. Fees over $2,000 need a court finding. Each mailed notice adds $1 to your balance. These charges are added to the certificate and must be paid by the person who pays it.

Payment plans and fee relief for late taxes

County attorneys must offer installment payment plans for delinquent taxes. If you pay the full claim within 5 days after it is filed, the county attorney fee is waived. You may ask in writing to waive or reduce fees or penalties if the taxing unit agrees. If your bill is on a current payment plan, in court, in bankruptcy with a filed claim, or on a protected list, the certificate is not for sale. The clerk must be told if a plan fails.

Stronger in rem enforcement for local taxes

Counties, home‑rule cities, and urban‑county governments can use in‑rem procedures to collect any local tax. County attorneys under contract can choose this method. Collectors may join many parcels in one case; each parcel is a separate count, and the clerk charges $0.50 per parcel as court costs. The petition must list interested parties. Anyone with an interest has 50 days after first publication to file and serve an answer or risk default. Filed affidavits and the tax bill serve as basic proof unless a sworn answer disputes them. Courts may enter judgment for taxes, interest, penalties, and costs and order a master‑commissioner sale.

Tax sale outcomes: redemption and title

Before a sale is set, the collector must file the most recent certified assessment. If the sale price is below that value, the owner has 60 days from the sale to redeem. After the court confirms the sale and the redemption window ends, the buyer takes fee‑simple title. Prior rights end and claims shift to the sale money. Sale funds pay costs first, then taxes. Leftover money escheats to the state after two years if unclaimed. Special protections apply for minors and people found of unsound mind, including a required guardian ad litem and limits on sales that would defeat future interests. Appeals of sale confirmation are allowed within 30 days. Cities that buy at sale may keep, sell, lease, or use the property.

Stricter notice and timing before tax sale

Within 30 days after a certificate is created, a notice must be mailed showing amounts due, 12% yearly interest, and that after 90 days a third party may pay it. It must also explain payment plan options. At least 20 days later, and within 60 days, a second notice must give the sale date and warn about added fees and possible foreclosure. After the one-year tolling period, legal action can start, but a 45-day intent notice is required. After filing, the collector must publish notice twice and send certified mail within 30 days to listed parties. Returned mail goes to the PVA for address fixes within 20 days and is re‑sent; an “Occupant” notice may be sent if no address is found. The county must file the mailed‑notice lists and a July list of unpaid bills. If required notices are missed, the tax claim still stands but the collector cannot be paid for that case.

State takes lead on delinquent collections

The Department must offer collection work on certificates of delinquency to each county attorney. Attorneys who want the work must sign a yearly contract. If a county attorney refuses or fails to perform, the Department takes over all uncollected certificates and receives the 20% collection fee into the delinquent tax fund. The Department can share delinquent‑tax databases and refund‑offset tools with county attorneys who sign confidentiality agreements. If more than one county attorney worked a case, the one who sent the last notice or did the last major step gets the fee.

Sponsors & Cosponsors

Sponsor

Mary Beth Imes
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 119 • No: 12

Senate vote • 3/25/2026

3rd reading, passed

Yes: 37 • No: 1

House vote • 3/5/2026