{"data":{"id":"us-ky/krs-132.195","jurisdiction":"us-ky","citation":"KRS 132.195","heading":"Assessment of possessory interest in tax-exempt real or personal property -","body":"- Lessee's liability.  (Effective until January 1, 2027)\n(1) When any real or personal property which is exempt from taxation is leased or\npossession is otherwise transfer red to a natural person, association, partnership, or\ncorporation in connection with a business conducted for profit, the leasehold or\nother interest in the property shall be subject to state and local taxation at the rate\napplicable to real or personal property levied by each taxing jurisdiction.\n(2) Subsection (1) of this section shall not apply to interests in:\n(a) Industrial buildings, as defined under KRS 103.200, owned and financed by a\ntax-exempt governmental unit or tax -exempt statutory authority un der the\nprovisions of KRS Chapter 103, the taxation of which is provided for under\nthe provisions of KRS 132.020 and 132.200;\n(b) Federal property for which payments are made in lieu of taxes in amounts\nequivalent to taxes which might otherwise be lawfully assessed;\n(c) Property of any state-supported educational institution;\n(d) Vending stand locations and facilities operated by blind persons under the\nauspices of the Division of Kentucky Business Enterprise, regardless of\nwhether the property is owned by the federal, state, or a local government;\n(e) Property of any free public library;\n(f) Property in Fayette County, Kentucky, administered by the Department of\nMilitary Affairs, Bluegrass Station Division;\n(g) All privately owned leasehold interests in res idential property when the\nresidential property is owned in fee simple by a purely public charity as of\nJuly 1, 2020:\n1. When the real property includes a residential property unit that is:\na. Leased by the purely public charity for a period of at least one (1)\nyear to an individual person who is fifty -five (55) years of age or\nolder;\nb. Maintained as the individual person's permanent residence under a\nlease agreement that:\ni. Prohibits the lessee from subleasing the unit; and\nii. Provides that the lessee's possessory interest in the unit is\nterminable by the lessor upon the death of the lessee, the\nphysical or mental inability of the lessee to continue to reside\nin the unit, or the lessee's relo cation to a nursing home or\nsimilar assisted living facility; and\nc. Constructed on or before July 1, 2020, or constructed after July 1,\n2020, on land that was privately owned in fee simple by the purely\npublic charity on or before July 1, 2020;\n2. If the fee simple ownership is transferred by the purely public charity\nafter July 1, 2020, it shall be transferred to another purely public charity\nand the requirements established for the residential property unit in\nsubparagraph 1. of this paragraph shall be maintained; and\n3. The taxation of which is provided for under KRS 132.020 and 132.200;\nor\n(h) All privately owned leasehold interests in residential property owned in fee\nsimple by a purely public charity, which is exempt from ad valorem taxation\nunder Kentucky Constitution Section 170, when the residential property unit\nis leased by the purely public charity to an individual person who is:\n1. Receiving medical or educational supportive services from the purely\npublic charity; and\n2. a. A postsecondary educational participant;\nb. A minor;\nc. Sick, disabled, or impoverished; or\nd. Over the age of sixty-five (65).\n(3) Taxes shall be assessed to lessees of exempt real or personal property and collected\nin the same manner as taxes assessed to owners of other rea l or personal property,\nexcept that taxes due under this section shall not become a lien against the property.\nWhen due, such taxes shall constitute a debt due from the lessee to the state, county,\nschool district, special district, or urban -county governm ent for which the taxes\nwere assessed and if unpaid shall be recoverable by the state as provided in KRS\nChapter 134.\nEffective: April 15, 2020","path":["KRS Chapter 132"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49950","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:23Z","sha256":"95ab79adae4100d126243f38473748224d8c66d41ce11dd8fd2462eb002cb1e3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-132.193","next":"us-ky/krs-132.200"},"notice":"GroundRules: Original legal text. Not legal advice."}