Fayette County approves resolution to pursue homestead exemption, sets 10‑year term

Fayette County commissioners approved Resolution 2026-12 on June 11 to preserve the county’s option to seek a local homestead exemption from ad valorem taxes and a Local Homestead Option Sales Tax (LHOST) to offset property tax reductions.

County Attorney Dennis A. Davenport told the board the matter is complex because implementation requires not just county action but parallel actions by each municipality in Fayette County: "the proposal would do more than levy or collect a tax; it would redefine the homestead exemption, so each city would need its own local act as a taxing jurisdiction." Davenport also explained election-year restrictions under the statutory route and the alternative of pursuing a local act through the General Assembly, which could set its own effective date.

Commissioner Eric K. Maxwell raised concerns that the accelerated timetable and the phrase "imposing a local homestead option sales tax" required clearer public explanation because it changes how revenues flow between county and cities. Several mayors had already sent a letter expressing worry about municipal revenue impacts. The board agreed to amend the resolution to include a 10-year term — the maximum allowed — to preserve the opportunity for further legislative and referendum processes. The motion as amended passed 5-0.

Board members and staff emphasized that approval of the resolution does not itself implement a tax change; rather, it preserves the county’s ability to pursue legislation and, where required, a voter referendum. County staff said the next steps include coordinating with cities and the county’s legislative delegation and preparing public education materials if the proposal advances.

What’s next

Staff will coordinate with the local delegation and municipal leaders, prepare legislative language and outreach materials, and return with any proposed ballot language or related timelines as the legislative process unfolds.