WHAT IS THE HOMESTEAD EXCLUSION? Act 50 of 1998 provides for the implementation of the Homestead Exclusion. The Homestead Exclusion is a way to target property tax relief to homeowners who have their permanent residence in the taxing jurisdiction approving the program. The Homestead Exclusion reduces the assessed value of the homestead properties, therefor reducing the property taxes due. The Homestead Exclusion allows homeowners real property tax relief of up to one half of the median assessed value of all approved homesteads in the local taxing jurisdiction.

WHAT IS "MEDIAN ASSESSED VALUE"? The county assessment office will calculate the median assessed value after all of the applications have been filed and approved. The median assessment is the middle value of all homestead properties in the local taxing jurisdiction arranged from smallest to largest. If the median assessed value for the local taxing jurisdiction is $ 4,000, then the taxing body could opt to adopt an exclusion up to $2,000. This amount of assessed value would then be deducted from your total assessed value and your tax bill, sent out by your local elected tax collector, would be adjusted.

WHAT QUALIFIES AS A "HOMESTEAD"? A homestead is a dwelling primarily used by an owner as their permanent residence. No one can have more than one (1) permanent home at any time. In general, it is the address where you have registered to vote, and have registered your driver’s license. You may still qualify for a partial homestead exemption even if there are other non-residential structures on your property. As an example, if you operate a business in a separate structure on your property, the county assessor will segregate the values on the structure and may approve the homestead exclusion on that portion of your assessed value that qualifies.

THE APPLICATION PROCESS: Application forms are being made available by the county assessment office on December 15^th. Any property owner may file annually for the homestead exclusion. All applications must be completed and returned to the Fayette County Assessment Office by March 1^st. The county assessment office will then process all the forms and either approve or deny the application by June 30^th. If your application is denied for any reason, you will be notified by first class mail as to the denial. You can then appeal that decision if you do not agree with it.

You must do this within forty (40) days of the date of your notice. NOTE: You are not appealing your assessed value, only the homestead exclusion denial. The appeal is heard by the Fayette County Board of Assessment. You will need to reapply every three (3) years for this program. If you change the use of your property and no longer are the owner/occupant, you must notify the Fayette County Assessment Office within forty-five (45) days of the change. If ownership changes on a homestead property, the new owner must apply to the county to continue the homestead exclusion.

WHEN WILL I SEE AN ADJUSTMENT IN MY LOCAL REAL ESTATE TAXES? Act 50 allows local school districts to shift the local tax burden from real property to the earned income tax. Your local school district must adopt this program, as it is not automatic. Voter approval of a referendum is required for the taxing authority to opt for the alternative tax base. The first referendum can occur in November 1999, and then in years of municipal elections (odd numbered years). Upon approval of the referendum, the new taxing system would be imposed upon the next school district fiscal year beginning July 2000.

WHAT IF MY SCHOOL DISTRICT DOES NOT ADOPT THIS PROGRAM? If the school district fails to place a referendum question on the ballot within two (2) years after the effective date of the act, the electors (public) of the school district may circulate a petition. If signed by 2 % of the number of electors voting for the office of Governor voting in the last gubernatorial election in the school district and filed with the election officials and submitted to the school district, then said school district shall establish a local tax study commission. If the said tax study commission makes a recommendation to levy the earned income tax and the school district fails to place the recommendation on the ballot, then the electorate (public) can circulate a second petition. If signed by electors comprising 5% of the number of electors voting for the office of Governor voting in the last gubernatorial election in the school district, and filed with the election officials at least ninety (90) days prior to the next municipal election, the petition shall compel the election officials to place the recommendation on the ballot.

 
TIMETABLE OF EVENTS:

December 15 – March 1, 1999 – Applications taken by Fayette County Assessment Office.

June 30^th, 1999 – All applications either approved or denials mailed.

August 10^th, 1999 – Deadline for school districts to have referendum on ballot.

September 1^st, 1999 – Deadline to file yearly assessment appeals.

October 31^st, 1999 – Deadline to finalize all appeals.

November 15^th, 1999 – Deadline to certify assessment totals to taxing bodies.

December 15^th, 1999 – Application process begins again for July 2001.