KY HB46

Amends KRS 140.080 to expand inheritance tax exemptions for Class B beneficiaries (nieces, nephews, half-nieces, half-nephews, daughters-in-law, sons-in-law, aunts, uncles, and great-grandchildren)

Class B beneficiaries currently receive a $1,000 exemption; for decedents dying on or after January 1, 2027, their entire inheritable interest will be exempt from inheritance tax

Removes obsolete statutory language referencing phased-in exemptions for Class A beneficiaries from 1995-1998, retaining only the current full exemption for Class A beneficiaries

Class C beneficiaries (all other persons not in Class A or B) retain their $500 exemption with no changes

Non-resident decedents receive a proportional exemption based on the ratio of Kentucky-taxable property to total transferred property