Government and Educational Exemptions

Government-Owned Property

Property that is both publicly owned and used for a public purpose is exempt from property taxation under the constitution. The property must meet both requirements before an exemption can be granted.

Examples:

Municipal Buildings
Water treatment plants
Courthouses

Educational Institutions

To qualify for a property tax exemption under this classification an institution must:

Be non-profit
Have its funds used exclusively for education and
Be located within Kentucky

The Court of Appeals has defined an institution of education as a place where systematic instruction in any and all useful branches of learning is given by methods common in schools and institutions of learning.

The education exemption extends to any income producing property that may be owned by the institution provided the income is used to further its educational programs.