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FRANKFORT, Ky. (Jan. 18, 2022)—The Kentucky Department of Revenue (DOR) cautions vehicle owners about inaccurate information currently spreading on social media about an increase in state vehicle tax rates.
DOR is the executive branch agency that administers the state's tax laws enacted by the Kentucky General Assembly.
“This administration has not increased vehicle tax rates," Gov. Andy Beshear said. “The executive branch cannot increase tax rates."
Vehicle tax rates have not increased. The state rate remains the same as previous years. However, the value of some vehicles has increased causing the taxes owed by some to go up.
“What has happened is your car is worth more," Gov. Beshear said. “Right now, used cars are in such demand that value, as opposed to depreciating the last couple of years, has actually increased."
A limited supply and high demand due to the pandemic has caused an increase in fair market assessed values of some vehicles. This is happening across the nation, not solely in Kentucky.
If a vehicle owner believes the value of their vehicle is less than the estimated fair cash value due to documented damage or excessive mileage, they can appeal their assessment to their
local PVA.
Answers to frequently asked questions about vehicle taxes are available
here.
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