FRANKFORT, Ky. (January 11, 2022) – Representative Patrick Flannery has filed legislation to combat skyrocketing motor vehicle tax rates. HB 6 would require the Department of Revenue to use the average trade-in rate as the standard for motor vehicle valuation for property tax purposes.
According to the Office of Property Valuation, the 2022 motor vehicle valuation has increased an unprecedented 40 percent compared to 2021. “A 40% increase on your motor vehicle taxes is uncalled for,” said Representative Flannery, “and in my opinion, the Department of Revenue is not following existing law.”
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. However,in 2009 under the Steve Beshear administration, the Department of Revenue adopted a policy defining “average trade-in” rate to a higher valuation of “clean trade-in” rate.
“The dirty secret is that the Department of Revenue has defined average trade-in to mean ‘clean trade-in,’” said Flannery, “which means the majority of automobile owners are paying more in taxes than the true condition of the vehicle.”
This measure would prohibit the use of “rough trade-in” or “clean trade-in” values for standard motor vehicle valuation. The bill would apply retroactively to motor vehicles assessed on January 1, 2022, and permit refunds for overpayments made in 2022.
HB 6 is modeled after legislation Flannery sponsored in the 2021 session. “I saw this coming,” he said. “The first bill that I ever filed as legislator last year aimed to prevent this tax hike.”
HB 6 can be found on the Legislative Research Commission’s website at www.legislature.ky.gov or by clicking here.
Remy Gaines
Leadership Staff
House Majority Caucus
(502) 564-4334
We should have to pay taxes on something we have already paid taxes on. Double taxation is not right.
Darlene now which one is it we should pay or we shouldn’t ?
I don’t get it. Why do you think we should pay taxes on something that we have already paid taxes on? But also think of this. Some in Lawrence county actually have a job and when they get paid, taxes are held out on that money. When they buy food, taxes are paid again. When they purchase parts for their vehicles to get to that job, taxes are paid again. When they buy gas to get to that job, taxes are paid. The list goes on and on with items that people are paying taxes on twice or more.
Thank you Mr. Flannery. Those Beshears really know how ruin things.
Bob you do know the republicans have controlled both houses since 2016 and the governor 4 years that’s roughly 6 years ago. Pretty convenient of your people to blame a governor who hasn’t been in office over 6 years now.
Facts are facts Kaggie. Open your eyes.
I agree Bob Facts are Facts Republicans have controlled both houses the last 6 years.
Citizens as long as the Dems have any say your taxes will raise. How do you think they are going to pay for all these give aways? Its called wealth distribution. Biden promoted this from the get go and made no bones about it. Yet people voted for this moron. He told everyone from the get go that he was going to pick a woman of color, which was his main focus , for his running mate. Yet people voted for him. Even the dead people voted for him. This is biting him in the butt now and is so funny because all who voted for this race divider deserves him and her. Democrate governors are no different. LETS GO BRANDY !!
Brandy now which taxes has your President Biden raised please tell us all. Again Brandy give us all one dead person name that voted for your Great President Biden.