A day after Governor Andy Beshear issued an executive order that directed motor vehicle values be returned to their 2021 assessment for 2022 and 2023, county clerks and PVAs have received guidance on how to implement the changes.
Tom Crawford, the executive director of the Kentucky Department of Revenue Finance and Administration Cabinet, said PVAs can immediately reduce motor vehicle values back to their 2021 assessments.
He added car values for unpaid accounts in the mainframe systems will be updated on February 27 which means car owners with March renewal notices may want to wait until February 28 in order to pay the correct amount.
Crawford went on to say that people who have already paid their 2022 vehicle taxes will get a refund from the state. Refunds will not be made at the local level but instead will be handled by the state so that all refund checks are prepared and mailed at the same time. April motor vehicle notices will be held until this update occurs.
County officials will still be responsible for working with vehicle owners who want a further adjustment for high mileage or damage, and vehicles that were sold out of state.
Because of market trends, vehicle values increased between 35 and 40-percent which meant motor vehicle taxes increased by hundreds of dollars. Beshear said Wednesday that the average motor vehicle value in Kentucky rose from $8,006 to $11,162 during the 2021 fiscal year alone and that this sharp rate of change had to be corrected.
