Terms

General terms used.

The Assessment Process

The purpose of a property tax is to fairly distribute the necessary tax burden among all property owners based upon the market value of their property. Properties are appraised so that some of the costs associated with providing services, such as public education, fire and police protection, roads and utilities, can be allocated to property owners in proportion to the market value of their individual properties.

Exemptions

KRS 132.810 (1)(2) provides for some properties to be exempt from taxation or taxed at a lesser amount than the assessed value. There is an application process to determination qualification for any of the exemptions.

Agricultural Valuation

Land used for agricultural land is assessed utilizing two methods. The fair cash value is determined like all property in the state: what a willing buyer would pay a willing seller. However, a 1969 Constitutional amendment provides the basis for agricultural land to have a taxable value that may differ from the fair cash value.

Motor Vehicle Property Valuation

The centralized system for property tax assessments on motor vehicles is a piggyback program supported by the Automated Vehicle Information System (AVIS).