Kentucky state law says that all property is taxable unless it is exempt. Real property is defined as land and any permanent structures attached to it. Some examples of real property are houses, office buildings, vacant land, gas stations, motels/hotels, shopping enters, farms, apartment buildings, factories, restaurants, manufactured homes, condominiums, etc..
Here are a few frequently asked questions to help explain the PVAs involvement in real property taxes.
- What does your assessment mean?
Your assessment is our estimate of your property value. This means the amount we estimate you could sell your property for in an arms-length transaction or “fair cash value”. - What does “fair cash value” mean?
This is estimated price a property would sell for on the open market between a willing buyer and a willing seller assuming all parties have knowledge of relevant facts. - Why is “fair cash value” so important?
This value is what the state Constitution requires be used for the payment of property taxes. By ensuring everyone pays taxes on their fair cash value the property tax system will be fair and equal. - How was my assessment calculated?
For most residential property, the assessment was calculated by reviewing the sales of nearby residential property, estimating the price per square foot of similar property and applying that price per square foot to your property.
Example, if homes in your neighborhood have been selling for $100 per square foot and your home is 2,000 square feet, your assessment would be 2,000 x $100 making the assessment $200,000.
Commercial property assessments are often similar but use similar commercial properties. For example, hotels may be assessed by the number of rooms and recently sold hotels in the area. Office buildings may be assessed by the amount of office space and the sale prices of nearby office properties. - How was my tax bill calculated?
The PVA office only has a small part in the tax bills. The tax bill uses the PVA’s assessment, the mailing address and tax district for your property. The tax bill amount is calculated by multiplying the total tax rate times the property assessment. - What is this 911 parcel fee on my tax bill?
The city and county commissions approved a 911 parcel fee for each property to pay for the 911 service upgrades. The amount of the fee is determined by the type of property you have. See the city or county website for more information. - Does the size of my home matter?
Yes! The value is based on the size, condition, neighborhood and size. - I built my home last year. When will it be assessed?
New homes will receive a partial assessment based on the estimated completion percentage as of January 1. This means if a home will be worth $300,000 when complete and we estimate construction is 50% completed on January 1, the assessment for that year will be $150,000. When the home is completed the assessment will be $300,000. - How often will my home be reassessed?
State law requires that we inspect a home once every four years. State law also requires that we assess every year. While we can’t reassess every property every year we typically reassess a home on a four year schedule according to the quad plan. - I purchased a portable building to store my yard equipment. How will it be assessed?
Portable buildings are viewed as personal items. We do not tax them unless the portable building has utilities connected to it. - An inspector came to my home and left a door tag. Do I need to do anything?
Not unless the door tag asks you to call. We ask that you verify the information we’ve collected to ensure our data is correct. - Are there any tax discounts available?
Yes. State law provides for a homestead exemption and a farm exemption. The PVA office administers both exemption.