HB 101 — AN ACT relating to an exemption from sales and use tax for religious institutions.

Summary

Amend KRS 139.495 to define "educational or charitable institution" and "religious institution"; exempt purchases and sales of tangible personal property, digital property, or services made by qualifying religious institutions from state sales and use taxes; make technical changes.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill expands existing tax exemptions to include religious institutions, allowing them similar exemptions as educational and charitable institutions.

• KRS 139.495

  The taxes imposed by this chapter shall apply to → As used in this section:

  The introductory phrase clarifies the application of tax to various institutions.

• KRS 139.495

  educational or charitable institution that has → educational or charitable institution that has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code; or

  The definition explicitly includes 'religious institutions' as eligible for basic tax exemptions.

• KRS 139.495

  or religious

  Refines the definitions to include religious institutions.

• KRS 139.495

  charitable[, or religious]

  Clarifies that charitable organizations are included in the tax exemption framework and aligns them with religious institutions.

• KRS 139.495

  Sales by nonprofit educational or charitable institutions → Sales by nonprofit educational or charitable institutions

  Maintains existing exemptions but emphasizes their applicability to both educational and religious entities.

• KRS 139.495

  nonprofit educational or[, charitable[, or religious] institutions → educational or charitable institutions

  Simplifies the language to apply the exemptions uniformly.

• KRS 139.495

  nonprofit educational or charitable institutions → religious institutions

  Adds religious institutions to groups eligible for tax exemption.

• KRS 139.495

  Sales of admissions by educational or charitable institutions → Sales of admissions by educational or charitable institutions

  Sales of admissions are reaffirmed as exempt for educational, charitable, and now religious institutions.

• KRS 139.495

  Sales of admissions to a golf course → Sales of admissions to a golf course when the admission is the result of a fundraising event,

  Adjusts the description for clarity while maintaining core exemption elements.

• KRS 139.495

  a[n] educational or charitable institution → a[n] educational or charitable institution

  Preserves the refund provisions while ensuring the inclusion of religious entities.

• KRS 139.495

  Sales made by nonprofit educational or charitable institutions → Sales made by educational or charitable institutions

  Ensures that sales from religious organizations are treated the same as other exempt entities.

Action History

1. February 09, 2026

   floor amendments (1) and (2-title) filed

2. January 14, 2026

   to Appropriations & Revenue (H)

3. January 07, 2026

   to Committee on Committees (H)

4. January 07, 2026

   introduced in House

Sponsors

• Wade Williams · Primary
• Mitch Whitaker · Primary
• Bill Wesley · Primary
• Timmy Truett · Primary
• Aaron Thompson · Primary
• Walker Thomas · Primary
• Nancy Tate · Primary
• Ashley Tackett Laferty · Primary
• Tom Smith · Primary
• T.J. Roberts · Primary
• Steve Riley · Primary
• Felicia Rabourn · Primary
• Marianne Proctor · Primary
• Michael Sarge Pollock · Primary
• J.T. Payne · Primary
• Kimberly Poore Moser · Primary
• Bobby McCool · Primary
• Candy Massaroni · Primary
• Savannah Maddox · Primary
• Matt Lockett · Primary
• Derek Lewis · Primary
• Chris Lewis · Primary
• DJ Johnson · Primary
• Mary Beth Imes · Primary
• Thomas Huff · Primary
• Kim Holloway · Primary
• John Hodgson · Primary
• Mark Hart · Primary
• Tony Hampton · Primary
• David Hale · Primary
• Vanessa Grossl · Primary
• Daniel Grossberg · Primary
• Peyton Griffee · Primary
• Deanna Gordon · Primary
• Al Gentry · Primary
• Chris Fugate · Primary
• Chris Freeland · Primary
• Patrick Flannery · Primary
• Daniel Fister · Primary
• Robert Duvall · Primary
• Ryan Dotson · Primary
• Myron Dossett · Primary
• Steven Doan · Primary
• Jennifer Decker · Primary
• Josh Calloway · Primary
• Emily Callaway · Primary
• Randy Bridges · Primary
• Steve Bratcher · Primary
• John Blanton · Primary
• Ryan Bivens · Primary
• Kim Banta · Primary
• Shane Baker · Primary
• James Tipton · Primary

Subjects