BOSWELL BILL STRENGTHENING TAXPAYER PROTECTIONS PASSES SENATE

BOSWELL BILL STRENGTHENING TAXPAYER PROTECTIONS PASSES SENATE

FRANKFORT, KY (March 11, 2026) — The Kentucky Senate has passed Senate Bill 41 (SB 41), legislation sponsored by Sen. Gary Boswell, R-Owensboro, to strengthen taxpayer protections by requiring voter oversight of significant local tax increases. The measure now heads to the Kentucky House of Representatives for consideration.



SB 41 requires most local tax increases that generate more than four percent above the compensating rate to be subject to voter recall. If voters reject the increase, the lower compensating rate would automatically take effect. The legislation also allows local governments and school boards to avoid a recall election by reducing their proposed tax rate so it stays within the four percent growth limit.

The bill preserves the school nickel tax used for school facility construction and debt service, ensuring districts maintain the flexibility needed to address building and infrastructure needs. It also clarifies timelines for when tax rates take effect, helping provide greater transparency and predictability for taxpayers.

“Taxpayers deserve a meaningful voice when government proposes significant increases in property taxes,” Boswell said. “Senate Bill 41 ensures that when tax increases exceed reasonable limits, citizens have a clear and automatic opportunity to weigh in.”

Boswell said the legislation strikes a balance between protecting taxpayers and allowing local governments to manage responsible growth.

“This bill strengthens accountability while still allowing modest revenue increases without triggering an election,” Boswell said. “It creates a transparent process that respects both taxpayers and the needs of local communities.”

SB 41 passed the Senate and now moves to the Kentucky House of Representatives for further consideration.

For more information on SB 41 and other legislative updates, visit Legislature.ky.gov.