KRS 65.948: Leased property exempt from state and local taxation.

A governmental agency shall be considered the equitable owner of any personal or real

property leased under KRS 65.940 to 65.956 where the property is used solely for public

purposes, unless the governmental agency is vested with legal ownership pursuant t o

KRS 65.952. Personal or real property which is equitably or legally owned by a

governmental agency shall be exempt from all taxation by the Commonwealth and any of

its political subdivisions. Leases and interests therein and payments received by lessors or

their assigns which are identified as interest shall be exempt from taxation by the

Commonwealth and any of its political subdivisions to the same extent as bonds or notes

issued by the Commonwealth and any governmental agency.