Businesses and individuals owning real estate in Kentucky valued at $1,000,000 or more for tax purposes should act now to reduce their Kentucky real estate tax bill. Long-term lessees obligated to pay property taxes should also take action.
It’s Now or Never! Request a conference with the Property Valuation Administrator (PVA) for the county in which your property is located before the “open inspection” period ends on May 20, 2024. Although, in Kentucky, the County Sheriff sends out property tax bills for real property in the fall, the time to dispute “overvaluations” of real estate is now. The process is the same throughout Kentucky, whether your real estate is located in Jefferson County, Fayette County, Boone County or any other Kentucky County. The PVAs’ position is that the request required by statute for a PVA conference must be filed with the PVA before the end of the inspection period; otherwise, the right to appeal is lost.
But, I Didn’t Get a Notice?! While each PVA is required to give property owners notices of changes in their assessment values, PVAs generally only send the notice by first class mail, which can be unreliable. Also, the PVA generally does not send a notice when no change in value is made. Even so, an owner may dispute the value of their real estate, even if they do not receive a notice. For most counties, you can check the tax assessment value of your property on the PVA’s website.
Income Producing Properties Present Reduction Opportunities! The tax assessment value of many leased properties are affected by the potential to produce income, like hotels, office buildings, retail centers, apartments, etc. Note that commercial tenants of leased properties often have the ability to appeal the tax assessment themselves under the terms of their lease agreements, so lessors of commercial property should investigate this tax savings opportunity as well.
Is It Worth It? The savings can really add up. For example, in Jefferson County (Metro Louisville), a reduction of $100,000 in value will typically result in an annual decrease in real property tax of approximately $1,300, and a reduction of $1,000,000 in value will result in an annual tax decrease of $13,000. The results are similar in other Kentucky Counties.
Can I Do It Myself? Although many choose to represent themselves in disputing “overvaluations,” at the PVA, many pitfalls and traps exist for those unfamiliar with the process. The conference with the PVA is just the first step in a multi-step process, and failure to request or to go through any given step will preclude an appeal to the next required step, such as an appeal to the County Board of Assessment Appeals or to the Kentucky Board of Tax Appeals. Another consideration is getting off on the right foot, and experience helps. It is generally more prudent to involve an attorney on the front end, who knows the process and property tax law.
Don’t wait, May 20, 2024 will be here before you know it.
