Motor Vehicle Property Tax

Motor Vehicle Refunds Coming Soon

In accordance with Governor's Executive Order 2022-096 and the enactment of HB 6, the Department of Revenue, Commonwealth Office of Technology, the Office of the State Treasurer, county clerks and property valuation administrators have been working collaboratively to develop a process for refunding a portion of the motor vehicle property tax payments made in January, February, and a portion of March. These refunds will reflect the difference in the amount of tax paid based on the vehicle's 2022 assessed value and the amount that would have been due based on the vehicle's 2021 assessed value.

All motor vehicle values were updated in March to reflect this reduction back to their 2021 values and correct tax amounts were then collected. All vehicle tax notices beginning with April reflect the correct tax amount due.

To streamline the refund process, software programming changes to the Motor Vehicle Tax System will allow approximately 221,105 refunds to be issued directly to the taxpayers. These checks are scheduled to be mailed out over a two-week period beginning around mid-to-late April.

The refund check will be mailed by the State Treasurer's Office and will include the Vehicle Identification Number (VIN) on the inside of the check. If you have multiple vehicles, you will receive multiple checks.

The following are included in the checks being issued by the State:

Payments made on vehicles for the 2022 year where the value for 2022 increased over 2021; and

The owner and address of the vehicle were the same in 2021 and 2022.

The following transactions will need to be processed by the County Clerk with valuation adjustments done by the PVA. Lists of these transactions will be provided to each County Clerk and PVA to perform these automatically.

Payments made for 2022 where the taxpayer did not live at the same address for January 1, 2021, and January 1, 2022.
Payments made where manual adjustments to value are required for 2021 or 2022.

There will continue to be limited circumstances that will require a taxpayer to seek a refund through their local county clerk and property valuation administrator's office. Specifically, if a car was purchased in 2021, then no 2021 property taxes were due on that vehicle. Therefore, no information exists to compare the 2022 value, and a refund cannot be generated through the State's centralized process. For this reason, these motor vehicle owners who paid their taxes for 2022 will need to seek a refund at the local level. The same situation would exist if a person relocated to Kentucky in 2021 and their vehicle was first taxed in 2022.

Inquiries on refund status can be sent to motorvehiclerefund@ky.gov or by calling 502-564-8180.

Assessment and Payment

Property Valuation Administrators (PVAs) in each county must list, value, and assess the property tax on motor vehicles and motor boats as of January 1st of each year. (KRS 132.220(1)(a))
The person who owns a motor vehicle on January 1st of the year is responsible for paying the property taxes for that vehicle for the year.
Payment should be made to the County Clerk Office in the county where the vehicle is registered. If the taxes are not paid by the due date, then penalties and interest may be assessed. Find my County Clerk Office.
Assessment Process of Motor Vehicles

Billing and Due Dates

The Department of Revenue (DOR) sends out a notice of tax due and registration renewal to all motor vehicle owners each year. For any vehicle previously registered in Kentucky, this notice is sent out during the month prior to registration renewal month (usually, the owner's birth month). For any vehicle that was not already registered in that tax year, the notice is sent out during the month following the transfer of that motor vehicle. By law, not receiving the renewal notice card is not a defense against having to pay the tax or any applicable penalties, interest, lien fees, or cost recovery. (KRS 134.805(5)(d))

Protest of Assessment

If you disagree with the assessment of your vehicle, then you must protest that assessment with your county PVA. The assessment shall be due and payable if not protested in writing to the Department of Revenue within 60 days from the date of notice (see the information on back of the renewal notice).

Refunds

By law, all requests for property tax refunds must be filed within two (2) years from the date the tax was paid. All refunds shall be authorized by the county PVA on Revenue Form 62A044 and supporting documentation. (KRS 134.590(2))

Additional Motor Vehicle Property Tax Information

Active Duty Military

An active duty military servicemember whose Leave and Earning Statement (LES) indicates Kentucky as the state of residence or taxable state will owe Kentucky property tax, whether he or she is a Kentucky resident or not.

An active duty military servicemember will not owe Kentucky property tax if he or she is in Kentucky on military orders and his/her LES does not indicate Kentucky as the state of residence or taxable state.

Read about Kentucky income tax military exemptions.

Learn more about the federal Servicemembers Civil Relief Act.

Apportioned Trailer Exemption Forms

Certain trailers used on routes or in systems that are partly within and partly outside Kentucky may be exempt from state and local ad valorem property tax. To learn more, including which trailers qualify and documentation must be filed with the forms below, read DOR guidance here.

Single Apportioned Trailer:	Form 62A044 Affidavit for Correction/Exoneration of Motor Vehicle/Boat/Trailer Property Tax
Fleet Apportioned Trailer:	Form 62A044-T Affidavit for Correction/Exoneration of Fleet Trailer Property Tax

Bankruptcy

You may still receive a property tax bill even if you have filed bankruptcy. Motor vehicle property taxes are not dischargeable through bankruptcy if the tax is less than one (1) year delinquent at the time the bankruptcy petition is filed. If you file bankruptcy and you owe taxes to the Department of Revenue (DOR), you must list DOR as a creditor on your bankruptcy petition.

Divorce

The Department of Revenue requires the Final Divorce Decree and/or judge signed legal documents before a person can be removed as liable for tax purposes. The divorce decree must be signed by a judge prior to January 1 of the tax year for which the tax record is to be edited.

Getting a Vehicle Out of Your Name and Stopping Tax Liability

If you no longer have a vehicle that you used to own, to avoid having to pay FUTURE taxes on that vehicle you must surrender the title to the County Clerk. In the event that you do not have the title to the vehicle, you will need to request a duplicate title from the Transportation Cabinet and then surrender that duplicate title to the County Clerk.

Historic Plates

Vehicles are considered "historic" if they are twenty-five (25) years old or older and used primarily for exhibition in shows, parades, tours, and other special uses, but not for general transportation. Historic vehicles are licensed and registered by the Kentucky Transportation Cabinet. (KRS 186.043(2)(3))

Motorboats

Property tax assessments and procedures are the same for motorboats as they are for motor vehicles. (KRS 132.488) For the definition of a motorboat, see KRS 235.010.

Sale or Transfer of a Vehicle

If a vehicle is transferred in any year before the property taxes on that vehicle have been paid, then within ten (10) working days after the transfer date or after the notice of transfer, a notice of tax due will be sent to the person who owned the vehicle on January 1^st of the year. (KRS 134.805(5)(b)) The notice of taxes due will notify the person of the amount of property tax that is still owed on the vehicle.

Vehicle Titling and Registration
Watercraft-related Issues
Web Renewal
License Plates
Forms
Publications
Receipts for Motor Vehicle Taxes Paid

Please contact the Transportation Cabinet at

(502) 564-5301 or visit their website at http://drive.ky.gov for assistance.