Tax Talk

• Kentucky has had a tax on property since June 1, 1792, the date the Commonwealth of Kentucky was created.
   
• The state Department of Revenue was created in 1936 to administer all state taxes.
   
• In 1965, the Kentucky Court of Appeals ruled in the Russman vs. Luckett case that the full cash value standard must be adhered to.
   
• The Office of Property Valuation is located within the Department of Revenue. The office is comprised of the:
• Division of State Valuation
• Division of Local Valuation
• Division of Minerals Taxation and GIS Services
   
• The Revenue Department is one of the administrative agencies of the executive branch of state government.
   
• In 1990, the Kentucky General Assembly, as part of the Kentucky Educational Reform Act (KERA), mandated that all real property be assessed at 100% of Fair Cash Value.
   
• The Kentucky Constitution provides two key directives in the structure of the property tax system. One is that all property not specifically exempted by the Constitution itself is taxable. The other is that all property must be assessed at fair cash value.
   
• Two amendments were passed to lessen the tax burden on certain groups of property owners: the Agricultural Deferred Value Amendment and the Homestead Exemption, which was broadened to include totally disabled homeowners.
   
• Property Tax is an ad valorem tax, which means "according to value."
   
• Real Property includes all lands within this state and improvements thereon.
   
• Personal Property includes every species and character of property, tangible and intangible, other than real property.
   
• Tangible Personal Property includes automobiles, construction equipment, manufacturing machinery, merchandise, livestock, and furniture and fixtures.
   
• Intangible Personal Property includes property which has no intrinsic value such as bonds, mortgages, notes, and accounts receivable.