The Kentucky Department of Revenue has sent out guidance to local county clerks regarding Governor Andy Beshear’s executive order freezing values of used vehicles at 2021 levels.
Office of Property Valuation Executive Director Tom Crawford says “PVAs can reduce motor vehicle values back to the 2021 assessment levels now. This will allow the county clerks to collect the appropriate amount of taxes and a refund situation can be avoided.”
By February 27, state officials hope their computer systems will be updated with the 2021 tax rates appearing in county clerk’s offices, allowing them to collect the proper amount without any help from the PVA.
Crawford says the April motor vehicle notices will be held until this update occurs. This will ensure that the April and all subsequent month’s notices will reflect the correct assessment and tax amounts.
He says a centralized process is under development to issue refunds to those who have already paid the 2022 amounts, which had increased by an average of 40 percent due to inflated values of used vehicles.