Kentucky lawmakers advanced a bill Tuesday aimed at giving taxpayers relief from the sticker shock of surging vehicle property taxes, caused by a pandemic-related skyrocketing of used car values.
The measure picked up bipartisan support in winning approval from the House Appropriations and Revenue Committee. The legislation heads to the full House.
The bill would change the method to determine a vehicle’s value. Kentuckians who already paid vehicle property taxes this year would receive refunds for overpayments.
Last month, state officials notified county property value administrators that 2022 valuation increases for vehicles would go up about 40 percent. For vehicle owners, it meant a big increase in their tax bill. It stems from used vehicle prices soaring as new cars became more scarce because of supply chain shortages caused by the coronavirus pandemic.
The measure would “hold everyone harmless against those increases of appraisals and the resulting increases of taxes,” said Republican Rep. Jason Petrie, the committee chairman.
“So in 2022, you would pay no more tax than you would have paid on the 2021 bill,” he said.
The bill is a response to widespread complaints from taxpayers. So far, more than one-third of the House’s 100 members have signed on as cosponsors.
“We’ve heard from all our constituents,” Republican Rep. James Tipton said. “It’s been a shock for many people who are living in tight times.”
The Associated Press
