Boyle County Judge-Executive Howard P. Hunt, III made a quick trip to Frankfort on Tuesday to meet with legislative leadership to discuss the Revenue Cabinet’s recent announcement of a 40% increase in the assessed value of motor vehicles.   “This unexpected jump in the valuation of vehicles will likely create a hardship on our agricultural entities, small businesses and independent contractors,” said Judge Hunt as he pressed legislators to overturn this decision by the Revenue Cabinet.

According to a memo issued from the Kentucky Revenue Cabinet, the new assessments reflect the “unprecedented rising value of most motor vehicles as documented by numerous news reports in 2021.  Overall, the 2022 valuation increase for vehicles compared to the same time last year is up approximately 40 percent.”

Included in the Department of Revenue memo is a statement that the increase is attributed to a variety of factors, including:

• New-vehicle production and inventory constraints
• Elevated new vehicle transaction prices
• Ongoing limited supply of used vehicles
• Increased dealer interest in used vehicle operations

Two bills have been filed this week in Frankfort.  Representative Patrick Flannery of Olive Hill filed House Bill (HB) 6.  Flannery has been watching this issue for several years.   Senate Bill (SB) 75 was filed by Senator Jimmy Higdon.

HB 6 addresses the method to which the Revenue Cabinet determines the actual value of the vehicle and calls for a refund for overpayment.  SB 75 would direct the Department of Revenue to freeze vehicle assessments at last year’s value.   The Kentucky Constitution provides that the state must set values at fair cash value.  State statutes say valuations must be determined by sources such as the National Automobile Dealers Association (NADA) or Kelly Blue Book.

Judge Hunt summarized Tuesday’s meeting in Frankfort, saying, “It was important that I get in front of this issue and advocate for a reduction in taxes for our Boyle County citizens.  No one should be forced to burden a 40% increase just because our Nation’s supply chain has been mismanaged.”