FRANKFORT— Kentuckians may soon get a break on their motor vehicle taxes.
The House Appropriations and Revenue approved House Bill 6 on Tuesday. The bill would require that property valuation administrators tax vehicle owners the same as they did 2021.
“House Bill 6 follows concerns from my constituents regarding a letter that they received from the executive branch stating that their motor vehicle appraiser values would be increasing by 40% in 2022 compared to 2021,” said Rep. Sal Santoro, R-Union, the primary sponsor of the bill.
Beginning in 2023, HB 6 would require the average trade-in value to be used as the standard value of a motor vehicle for property tax purposes instead of the rough trade-in value or clean trade-in value.
Santoro said the executive branch adopted a policy in 2009 that allowed the clean trade-in be used in assessing motor vehicle property taxes. This, in conjunction with the current motor vehicle market, has caused motor vehicle property taxes to skyrocket.
Commenting on the bill, Rep. Angie Hatton, D-Whitesburg, said someone she knows learned that the vehicle they purchased a year ago is now worth thousands more than what they originally paid for it.
HB 6 would apply to motor vehicles assessed on or after Jan. 1, and it contains an emergency clause meaning it would go into effect immediately upon becoming law, Santoro said. The bill would also provide a way for Kentuckians to receive a refund if they’ve overpaid their taxes for this year.
The House Appropriations and Revenue Committee unanimously approved HB 6. It will now go before the full House for consideration.
Rep. Jason Nemes, R-Louisville, said this is the number one issue constituents have been calling him about this legislative session.
“We’ve got to make sure we protect the taxpayers here,” Nemes said. “This is something that’s coming that’s not their fault, and we need to make sure that we protect them.”