Property Tax Exemptions Government Owned Property Property that is both publicly owned and used for a public purpose is exempt from property taxation under the constitution. The property must meet both requirements before an exemption can be granted. Examples: a. Municipal Buildings b. Water treatment plants c. Courthouses Educational Institutions To qualify for a property tax exemption under this classification an institution must: a. Be non-profit b. Have its funds used exclusively for education and c. Be located within Kentucky The Court of Appeals has defined an institution of education as a place where systematic instruction in any and all useful branches of learning is given by methods common in schools and institutions of learning. The education exemption extends to any income producing property that may be owned by the institution provided the income is used to further its educational programs. When an organization requests an exemption they need to request an application from the Property Valuation Office. Click here for forms. Churches Other Exempt Properties