KentuckySB 1292025 Regular SessionSenateWALLET

AN ACT relating to property.

Sponsored By: Julie Raque Adams (Republican)

Signed by Governor

County ClerksState AgenciesTaxationTaxation, PropertyAdministrative Regulations and ProceedingsAttorney, CountyPropertyLocal Mandate

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

Some rental owners must live on-site

For leases started after the law's effective date, covered owners must primarily live in a dwelling on the rental lot. This covers single-family homes, multifamily units, and accessory dwelling units in counties containing a consolidated local government. It applies in traditional single-family zones that barred multifamily homes as of January 1, 2025. Lots with only one single-family home and no accessory dwelling unit are exempt.

Landlords gain emergency response fee protection

Local governments, special districts, and emergency providers cannot charge landlords for responses caused by residential tenants or their guests. This protection does not apply when the emergency results from the landlord's failure to maintain the building under applicable codes. Providers can still seek payment from a responsible party. The law does not itself create a payment duty for tenants or guests.

Mostly residential projects skip economic reports

Qualifying Signature Projects and mixed-use redevelopment projects can skip a required report and certification of net positive economic impact. Homes must make up at least 50% of the project's proposed total finished floor space. The exemption reduces application paperwork but does not guarantee approval or state participation.

Signature Projects need $200 million investment

A qualifying Kentucky Signature Project must have at least $200 million in capital investment and represent new economic activity in Kentucky. Its grant agreement must have been signed before January 1, 2008. It must not be subject to a KRS 65.495 contract in effect on or before March 23, 2007. This is a project eligibility rule, not a household payment.

Local lawmakers control more housing decisions

Certain multifamily projects must follow zoning map amendment procedures, including local legislative approval, without the alternative zoning-amendment process. This applies in counties containing a consolidated local government, in traditional single-family zones that barred multifamily homes on January 1, 2025. Covered projects increase nearby residents' fire or emergency medical response times, or lower the nearest arterial, collector, or access road's service level. The road trigger is a full letter-grade drop or a drop below grade D. Separately, planning commissions need local legislative approval to change or waive binding zoning conditions that the legislative body added.

Vacant-property tax liens face earlier sales

Eligible public entities and nonprofits can seek protected tax-debt certificates on residential properties in a tax-delinquency diversion program. They must wait at least 90 days after the certificate is created. The county attorney must verify at least one year of continuous vacancy and repeated housing, building, or nuisance code violations. After removing protection and notifying the clerk and other purchasers, the attorney triggers a sale scheduled within 90 days of notice. Nonprofits need five years of Kentucky registration, a main Kentucky office, an affordable-housing purpose, and federal 501(c)(3) tax-exempt status. All buyers must register with Kentucky's Department of Revenue and meet the state's third-party tax-certificate purchaser requirements.

Urban taxes must cover more services

Urban service districts must use differential tax revenue to cover rising shares of added service costs and related capital spending. The minimum is 85% from July 1, 2025, through June 30, 2028. It rises to 90% from July 1, 2028, through June 30, 2031, then 95% through June 30, 2034. Beginning July 1, 2034, the minimum is 100%. Services within the central business district, as defined by ordinance on April 1, 2024, are exempt.

Sponsors & Cosponsors

Sponsor

Julie Raque Adams
Republican • Senate

Cosponsors

D. Yates
Affiliation unavailable
Gerald A. Neal
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 142 • No: 20

House vote • 3/14/2025

3rd reading, passed

Yes: 76 • No: 12

Senate vote • 3/14/2025

passed

Yes: 32 • No: 5

Senate vote • 2/25/2025