Frequently asked questions:
For residential property the assessed value is typically based on recent market sale prices of similar property from the same or similar comparable areas.
A property’s value can be determined in three different ways:
1. Property is compared to others similar to it that have sold recently, using only sales where buyer and seller both acted without undue pressure. This method is called the market approach and is normally used to value residential, vacant, and farm properties.
2. The second way is to calculate what it would cost, using today’s labor and material prices, to replace the structure with a similar one. If the structure is not new, the assessor determines how much is has depreciated since it was built. The resulting value is added to an estimate of the market value of the land. This method is used to value special purpose and utility properties, and is called the cost approach.
3. The third way is to analyze how much income a property, like an apartment building, a store, or a factory will produce if rented. Operating expenses, insurance, maintenance costs, financing terms, and how much money owners expect to make on this type of property, are considered. This is the income approach.
Often a recent deed price will be used as the assessed value, but not always. If your deed price reflects fair cash value the assessed value will match the deed price. If you “get a deal” and pay less than fair cash value the assessed value will be greater than the deed price. Fair cash value is not “any deed price”. Foreclosure or distress sales often sell for less than fair cash value, therefore their assessed value may be greater than deed price.
All real estate is assessed at its fair cash value as of January 1 each year. All assessments are subject to change annually. A change in assessment (reassessment) will occur anytime the PVA discovers, or is presented with, sufficient information to base a change in value.
If appropriate, yes. Assessments follow market values. The assessed value of your home should be supported by market sale prices of similar homes from your area or similar areas.
Your assessment value changed because market sale prices of similar property showed your prior assessment was low or high.
Call us and discuss it. We can verify your property data, compare market sales of similar property and consider additional information. If we discover a change is in order, we will change your assessment. If we can’t agree, you may file an appeal.
It is a formal challenge to your assessed value. If our discussion doesn’t result in agreement, you may file a formal appeal to be heard by the Local Board of Assessment Appeals. A brochure, “The Appeals Process for Real Property Assessments” is available in the PVA office.
Homeowners age 65 and older or homeowners less than 65 receiving 100% disability benefits can reduce their property tax by more than $200 at current tax rates.
Properties can be revalued with the following information:
- Recent appraisals
- Insurance policies
- Sales of similar properties
The PVA will evaluate the information you provide, and compare with sales information available in the office.
Contact Us if the PVA has information about your property that is inaccurate to ensure it is corrected. Also, you may receive an assessment notice in the mail if your property’s assessment has changed.
If you wish to add, change or remove a name on your property record and/or tax bill, you must record an official document such as a deed or will with the appropriate office.
Real Estate taxes are determined AS OF JANUARY 1st. You will not be eligible for the Homestead Exemption until you are in the property, as of January 1st.
You may get a Homestead/Disability Exemption for Commercial Property only if you own AND occupy the building (e.g. you live on the second floor of the commercial building).
All automobiles, trucks, boats, boat trailers, motorcycles, aircraft, and recreational vehicles must be assessed as of January 1 of each year. Motor vehicles are generally taxed in the county of registration. If you have assessment questions regarding motor vehicles or boats, please contact the Motor Vehicle Department.
The Kentucky Department of Revenue requires PVAs to have documentation on any motor vehicle or boat that is taken off the tax roll. A bill of sale, receipt from a junk or salvage yard, or an accident report is acceptable proof.
The PVA may be able to lower the value of your vehicle if you have excessive mileage or damage. If you have assessment questions regarding your motor vehicle assessment, please contact the Motor Vehicle Department.
To remove your vehicle from the tax roll, you can supply the PVA with either:
- A copy of a bill of sale or
- A copy of the front & back of the KY title indicating you transferred the vehicle. If you moved out of state, you may provide the PVA with a copy of your new title, or a copy of your registration.
- Provide a letter from your insurance company (on their letterhead) stating the VIN # and the date you canceled the vehicle off of your policy.
Other states do not make Kentucky aware when a vehicle is transferred out-of-state. Unfortunately, you have to contact both offices to ensure that the vehicle has been properly removed from one state and registered in another state.
KY law states that the January 1 owner is responsible for the taxes for the entire year.
YES if you are a KY resident.
NO if you are not a KY resident, To have taxes removed for a non-resident military person you will need to supply the PVA office with a copy of your “wage & earning” statement. If you have questions, contact our office.
Your tangible property assessed value is based on the tangible return you filed with our office in May.