The Assessment Process
House Bill 940 (1990) states "No later than July 1, 1994, all real property located in the state and subject to local taxation shall be assessed at one hundred (100%) of fair cash value."
The following are the steps involved in the assessment process:
Field Review: All property is required by KRS 132.690 to be physically examined at least once every four years. The Guidelines for Field Review are as follows:
- The field review includes checking, verifying, and correcting property records. All necessary records such as maps and property record cards are taken to the field for the actual review process.
- The review must pick up new improvements and additions to existing improvements. New photos are taken. Property characteristics are reviewed and updated.
- Real property identified in a field review is added to the tax roll and the omitted billing process initiated.
- A record is kept of the physical inspection.
Assessment of Real Property: The purpose of assessment is to determine the value of the property. Property tax is an ad valorem tax (according to the value).
Three approaches to assessing property:
Sales Comparison Approach
This method estimates a property value by reference to comparable sales. This is the most commonly used method in assessing residential property. The desired result is that properties with similar characteristics, in similar areas, in similar condition will be assessed at similar values derived from the selling price of a similar property.
This approach is based on how much it would cost, including current material and labor costs, to replace current structures with similar structures. This approach is used very effectively with new construction but can also be utilized with existing structures.
Utilized for commercial property, this method evaluates the income a property produces. The property owner provides income and expense information.
Assessed Value and the Tax Rate
The PVA's primary responsibility is to determine the fair market value of all property. The PVA office does not set tax rates nor does it collect taxes.
The amount of tax is determined by a tax rate applied to a property's assessed value. The tax rate is decided upon by the various taxing agencies; state, county, city, school districts, extension, health, library, conservation and courthouse district.
Property Owner Rights:
Property owners receive notification in April if there have been any changes in the assessed value. This notice includes information regarding the process of appealing the PVA's assessed value. The appeal process is governed by Kentucky Revised Statutes and must be followed to insure the property owner's right to appeal.
The following summarizes the steps necessary to appeal the PVA's fair market value on a property:
- Request a conference with the PVA or designated deputy. The conference must be held prior to or during the open inspection period. This open inspection period is the 13 days in May when the county tax roll is open to the public.
- Provide the PVA staff with documentation to support the claim that the assessment is not fair at fair market value. Present a detailed description of the reasons why; bring pictures and other relevant information to support this position.
- If, after the conference, the property owner still believes the assessment is not representative of the fair market value, an appeal may be filed at the county clerk's office. All appeals must be filed no later than one workday following the conclusion of the inspection period.
- At the conference, the property owner presents information to the County Board of Assessment Appeals. This is a three-member board knowledgeable in real estate value, appointed by the fiscal court, the judge/executive and the mayor of the largest city using the county tax roll.
- If no agreement is determined at this level, a conference is scheduled with the Kentucky Board of Tax Appeals within thirty (30) days from the date the ruling was mailed.
- A final appeal can be made to the Circuit Court if no agreement is met at the state level.
If you have questions regarding your assessment, or if your opinion of the value of your property differs from the PVA's, our staff is available to provide you with answers about the appraisal process and your specific assessment. They will also explain the procedure for requesting a review of the assessment. The phone number for the PVA Office is (859) 292-3871.
You can help us with our goal of producing fair and equitable assessments by verifying that the information contained in the assessment record for your property is correct.