Representative Myron Dossett of Pembroke has filed legislation to address complaints from Kentuckians across the state that the Department of Revenue is taking advantage of current inflationary prices on motor vehicles to dramatically increase the state’s motor vehicle property collection.
According to a news release, House Bill 353 would require the Department of Revenue to calculate the vehicle’s value based on 2021 valuations. According to the Office of Property Valuation, the 2022 motor vehicle valuation has increased an unprecedented 40 percent compared to 2021. Section 172 of the Kentucky Constitution requires that motor vehicles be taxed according to their “fair cash value.” The statutory standard used to determine this value is the average trade-in rate. Dossett says the Department of Revenue is using the “clean trade-in” rate rather than the “average trade-in” rate.
Representative Dossett says, “The state has options but instead chose to levy a 40% increase on motor vehicle taxes. My bill simply takes a step back and requires the tax be based on a more accurate value, before inflation rocked our nation. Kentuckians are paying more for food, clothing, and other supplies – and that’s just when they can find what they need. The last thing they need is their own state government manipulating numbers to get more money from them.”