KY HB101

Amends KRS 139.495 to separate religious institutions from educational and charitable institutions in Kentucky's sales and use tax exemption statute, creating distinct definitions and exemption provisions for each category

Grants religious institutions with 501(c)(3) tax-exempt status a broader sales tax exemption than educational/charitable institutions, covering all sales of tangible personal property, digital property, or services made by religious institutions

Exempts religious institution purchases of tangible personal property, digital property, or services from sales tax when used solely within the state for religious functions

Maintains existing exemptions for educational and charitable institutions, including school cafeteria food sales, textbook sales, nonprofit school club sales (excluding athletic event tickets), fundraising events, and certain admissions

Preserves the 25% tax refund provision (up to $1,000,000 per location) for educational and charitable institutions selling donated goods when used for capital construction of new retail locations, with specific eligibility requirements including job training programs and spending thresholds