NewsCovering Kentucky


State Senate passes resolution to lower car taxes, receives bipartisan support

Rental cars
Posted at 12:05 PM, Feb 11, 2022
and last updated 2022-02-11 19:47:44-05

FRANKFORT, Ky. (LEX 18) — The state Senate has passed a joint resolution demanding the governor lower car taxes.

Lawmakers have pushed forward a bill aimed at giving taxpayers relief from surging vehicle property taxes, caused by the skyrocketing of used car values during the pandemic.

The measure passed unanimously.

Data indicates that used car prices in Kentucky jumped about 32% last August.

The increase has carried over to Kentuckians who pay taxes on the value of cars. A 40% jump in the value of your car would mean a 40% jump in the cost of your vehicle tax.

Earlier, the Kentucky House reset car values to pre-pandemic levels for tax purposes. It also passed unanimously.

Because there is bipartisan support for the measure, it’s likely that taxes would be lowered.

Don Blevins, the Fayette County Clerk, is concerned about the prospect of having to refund people who paid their vehicle tax this calendar year, even though, as he explained, the average refund would only be twenty dollars.

“The concern for the clerks are - how are refunds going to go out for the folks who have already renewed their tags, who have already paid the inflated property tax,” Blevins said.

Many county clerks, in less-populated counties in particular, aren’t prepared to issue so many checks, Blevins said. In addition, the money previously collected has already been distributed, so they no longer have it to distribute back to people. Blevins would like to see the state government distribute the money. He’d also like to see the car tax eliminated entirely, he said.