Kentucky drivers could see their automobile taxes rise 40%

A few new bills are in the works to help reduce the percentage on the automobile taxes

LEXINGTON, Ky. (WTVQ) – This year, many drivers are expected pay more in car taxes.  Every year on December 31st, the state uses the national automobile dealers association to upload new values into the system. Kentucky bases its assessments on those values including the property tax of vehicles.

“What happened was that those assessments went up quite a bit just due to the weird circumstances of the pandemic in some cases as much as 40%,” explains Don Blivens, the Fayette County Clerk.

Much of that can be linked to skyrocketing used car values.  In addition, the automobile manufacturing that’s been down, which has been causing a strain on the supply chain.

“There’s a lot of shortages on supplies and I think that does play into it due to covid and that lack of a workforce right now,” adds Jason Denny the Anderson County Clerk.

This means that, the higher your car is valued, the more taxes you pay.  The solution for some may be to get an older car but then there’s the risk of it breaking down.  There is the option to not get a car at all, but county clerks worry this could hurt workers who live far from work.

“The vehicle property tax in my opinion is very regressive meaning that it impacts the poor more than the rich in our case in the us.  If you want to work. Generally speaking you need to have your own personal transportation,” says Blivens.

The General Assembly is looking at a couple options to help.  There are four different bills and they are somewhat similar. Each one is trying to at least reduce the severity of that increase.  The goal in the end is to cap the cost.  While county clerks from Fayette and Anderson counties say they haven’t heard much uproar from folks about the tax, they’re anticipating more by the end of this week.

“We’ll start to see our January renewals show up who will be informed wow my vehicle’s worth a lot more money than it was last year,” says Blivens.

It might just be a kick off to 2022, that could cause some kicking and screaming unless the general assembly gives one of those car tax bills the green light.

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