LOUISVILLE, Ky. — In the words of Benjamin Franklin, "nothing can be said to be certain, except death and taxes."
The WHAS11 Investigative team has been asking questions about the assessment process for vehicles for weeks.
We are breaking down what you need to know to check to make sure you are paying your fair share.
KENTUCKY MOTOR VEHICLE TAX (MOTAX)
In a nutshell, you pay personal property taxes on a percentage of the state's assessed value of your vehicle.
That value is based on the condition of the vehicle as of Jan. 1 but you may not get your amount due until your birth month.
The state uses the National Automobile Dealers Association's 'clean trade' value to set the standard value for all vehicles in Kentucky.
COLLECTING PROOF TO APPEAL VEHICLE VALUE
There are many reasons someone may appeal.
A taxpayer can request an appeal if the vehicle was wrecked and settled with the insurance company, scrapped, repossessed, sold, or if the taxpayer moved out of state prior to Jan 1.
Those appeals are pretty straight forward; a bill of sale, insurance statement, junkyard receipt can serve as proof.
Higher than average mileage or damage could also warrant an adjustment through an appeal.
To win a mileage or damage appeal you will need to bring the Property Valuation Administrator proof that your car is not worth the assessed value.
Here are some pieces of proof you may be able to use to make your case for a value adjustment:
- Documentation of your high mileage as of Jan 1. For example, a receipt for an oil change may note the mileage as long as the oil change was around the turn of the new year. Do you track your mileage for work? Expense report(s) showing you drive a significant amount of miles. There are also apps that track your mileage as well.
- For physical or mechanical damage, you can bring photos of the damage or rust. You can also take your car to get an estimate on repair costs and present the summary of that estimate.
- You can also do a valuation comparison test and bring the results to the PVA.
HOW TO APPEAL YOUR ASSESSMENT:
Step 1 – The vehicle owner should speak with the County Property Valuation Administrator or PVA office. The taxpayer must bring proof that the state's assessed value is inaccurate. If there is an adjustment to the assessment, it is called an exoneration and a form is filled out documenting the change in value.
Step 2 – If the PVA and the taxpayer cannot agree upon an assessment, the PVA should instruct the taxpayer to file a written protest with the Department of Revenue in accordance with KRS 131.110.
Step 3 – The taxpayer has the right (within 60 days of the assessment date) to file a formal (written) protest to the Department of Revenue.
Step 4 - If the issue is not resolved, the taxpayer can appeal to the Department of Revenue's decision to the Kentucky Claims Commission.
Step 5 – If the taxpayer is still not pleased, they can go to the appeal through the court system.