Worried by your property assessment? You may qualify for an exemption. Here’s how
If you recently got your Fayette County property assessment notice in the mail and now have a case of sticker shock at the sharp uptick in your home’s assessed value, there may be hope for you under Kentucky’s Homestead Exemption.
Property assessment notices are going out to homeowners across Lexington and Fayette County, and according to Property Valuation Administrator David O’Neill, some are seeing valuation adjustments of at least 30%.
The assessment is a key factor in determining a property owner’s tax liability when they get their bill in the fall. A higher assessment typically means a higher tax bill.
However, there is one exception available to vulnerable groups struggling to stay in their homes in the long term.
So what is the Homestead Exemption and who qualifies for it? Read on for answers to those questions, along with information about how to apply for it.
What is Kentucky’s Homestead Exemption?
As explained by the Kentucky Department of Revenue, the dollar amount of the Homestead Exemption is applied against the assessed value of your home. The amount you owe in property taxes is calculated based on the remaining assessment after deducting the exempted amount, ultimately lowering the amount of tax you’ll owe when your bill comes in the fall.
For this year, the deduction amount is $40,500, according to a memorandum from the Kentucky Office of Property Valuation.
The Homestead Exemption is permitted under Section 170 of the Kentucky Constitution, per the Kentucky Department of Revenue.
Who qualifies for the Homestead Exemption in Kentucky?
According to the office of the Fayette County property valuation administrator, Kentucky’s Homestead Exemption is targeted at two main groups of people:
People who will be 65 years old or older at any time during the current calendar year
People who are disabled
To qualify, applicants must also live in and maintain the home as their primary residence.
How do I apply for a Homestead Exemption for my home?
It varies based on whether you’re disabled or age 65 or older. No matter who you are, there can only ever be one exemption for one household.
If you want to qualify based on your age, you need a copy of any of the following to show as proof of your eligibility and send with your application:
Driver’s license
Birth certificate/registration
School records
Marriage records
According to the Fayette County PVA, those who receive the homestead exemption for age apply once and are not required to submit annual verification. There is no deadline for an age-related application, but the office encourages applying in time for the exemption to be included on the tax bills, which begin printing in mid-August.
If you’re seeking an exemption based on your disability, you need to be classified as “totally disabled” by a public or private retirement system, receive disability payments from that system and have held onto that disability classification for the entire calendar year for which you’re seeking the exemption.
According to the Fayette County PVA office, applying under this status requires you to resubmit your disability verification each year and the only group exempt from this requirement are disabled veterans.
A copy of the disability declaration letter from your retirement system should be all you need for the verification step here.
Once you have your verification documents in hand, your next step is to obtain and fill out a one-page application. That application is available on the Fayette County PVA website.
According to the office, you may also request an application be mailed to you by calling Lori Kidwell at 859-246-2722, ext. 238.
You can submit your application and the required proof of eligibility by fax to 859-246-2729, by scanning and emailing to lori.kidwell@ky.gov or by mailing it to the head of the Fayette County PVA office c/o David O’Neill, Fayette PVA Office, 101 E. Vine St., Suite 600, Lexington, KY 40507.
If you live outside of Fayette County, you should contact your local county property assessment office for information about how to apply for the Homestead Exemption your area.
Do you have a question about real estate in Lexington or Kentucky? We’d like to hear from you. Fill out the form below or email ask@herald-leader.com.
This story was originally published May 4, 2022 at 12:12 PM.