By Tom Latek
Kentucky Today
A bill offering relief from a huge increase in the property tax bill to motor vehicle owners when they renew their registration this year, won unanimous approved by both the Senate Appropriations and Revenue Committee, and the full Senate on Wednesday.
Rep. Sal Santoro
Rep. Sal Santoro, R-Union, sponsored House Bill 6, in response to a 40% increase in valuation of motor vehicles for property tax purposes this year, caused by the shortage of used cars and trucks that have caused their value to jump.
He noted current law requires that vehicles be taxed at their fair cash value, which was based on the average trade-in rate.
“But in 2009, the Executive Branch adopted a policy that defined the average trade-in to mean a higher value, a ‘clean’ trade-in. As a result, many vehicles are being taxed at a higher rate than their vehicle is actually worth.”
The bill would require Property Valuation Administrators, or PVAs, in each county use a median trade-in value as a standard, not the “rough” or “clean” trade-in value and freeze the valuation at 2021 levels in both 2022 and 2023.
Sen. Chris McDaniel
While presenting the bill on the Senate Floor, Sen. Christian McDaniel, R-Ryland Heights, said the bill has other provisions.
“It allows a different mechanism for appeal to a PVA for a used valuation on a car if an error is believed. Also, it establishes that taxpayers who have already paid their property tax bill for this year will automatically be issued a refund, in lieu of actually filling out paperwork.”
McDaniel added, “This is a good bill for the taxpayers of the Commonwealth, and I would urge the members of this body to vote for House Bill 6.”
With no other discussion, the measure passed the chamber by a 34-0 vote, and now returns to the House for concurrence in changes made to it by the Senate. If the House agrees, then it would head to the governor’s desk.
The legislation is retroactive to Jan. 1, and contains an emergency clause, meaning it would take effect immediately upon the governor signing it.
