Request By:
Mr. Robert W. Thompson, Jr.
Property Valuation Administrator
Jessamine County Courthouse
Nicholasville, Kentucky 40356
Opinion
Opinion By: Steven L. Beshear, Attorney General; By Alex W. Rose, Assistant Attorney General
Re: Homestead Exemption for Senior Citizens
Section 170 of the Kentucky Constitution, which deals with tax exemptions, states in part as follows:
"There shall be exempt from taxation . . . real property maintained as the permanent residence of the owner, who is sixty-five years of age or older, up to the assessed valuation of sixty-five hundred dollars on said residence and contiguous real property . . ."
You asked if the owner otherwise qualifies for the above exemption, should he receive the full exemption if he owns the property for less than a year. The answer is yes.
The intent of Section 170 is that a qualified person pay ad valorem taxes on his home on the value above $6,500. The length of ownership in any taxable year is immaterial to this formula. When property is transferred the taxes are divided between the buyer and seller, prorated to that part of the year each owned the house. The qualified exemptee will pay his share of the yearly tax based upon the percent of the year he owned the house. His portion of the tax will be based upon the value above $6,500 as adjusted for inflation.
If he sells one residence and buys another he is entitled to the exemption on both homes, provided he otherwise qualifies, of course. An example is where a qualified individual sells his home on July 1, and at the same time buys another. In this situation he would pay 50% of the ad valorem tax on each house over and above the value of $6,500 of each.