The actual property tax exemption is based on the value of homes in the area. Since the exemption is a set dollar amount based on area real estate prices, home values and other factors, it is progressive. This means taxpayers with more modest homes will see a proportionally bigger break on their property taxes. This plan was approved by voters in 1997 and then enacted as Act 50 of 1998. If approved, school districts could collect an earned income tax of up to 1.5 percent if the money is used to lower other taxes, including nuisance, occupational privilege and per capita taxes.
Tax exemptions apply only to property that is used as a primary residence.
Vacation homes and rental properties do not qualify. If school districts do not opt into the program within two years, residents can ask that the question be placed as a referendum on a ballot. To have an application mailed, send a self-addressed stamped envelope to the Fayette County Tax Assessment Office.