URGENT LEGISLATIVE ALERT (UPDATE)
Kentucky Bill to Assess Motor Vehicles for Property Tax Dies as Legislature Adjourns
Kentucky legislation (H.B. 94) to change the valuation procedure on vehicles for purposes of the property tax died when the legislature adjourned for the year. The bill would have put a new valuation procedure in place for older vehicles. Vehicles 20 years old or older would no longer have been presumed to be in "original factory" or "classic" condition. The measure instead provided three options for assessing the value of these vehicles: (1) the owner would have appeared before the property valuation administrator to request a special assessment; (2) if the vehicle was registered in Kentucky in its 19th year, it would have been assessed at the value it was assessed at in its 19th year and that value would have been reduced by 10% for each year after its 19th year; and (3) if the vehicle was not registered in Kentucky in its 19th year, it would have been valued according to its "clean trade-in value" in its 19th year, which would have been reduced by 10% for each year after the vehicle's 19th year. The bill preserved the tax assessor's ability to deviate from this valuation formula if information is available to warrant such a deviation from standard value. Newer vehicles would have been valued at the “average trade-in” value rather than the higher "clean trade-in" value.
Thank you all to who made their voices heard in the legislature.