FRANKFORT, Ky. — Kentucky lawmakers say they have been flooded with emails from constituents concerned about a spike in the assessment value of their cars. 


What You Need To Know

  • Kentucky lawmakers say they have been flooded with complaints from constituents about a spike in the assessment value of their cars

  • Car values have gone up about 40% compared to last year, according to a memo from the Department of Revenue

  • A Senate committee passed Senate Joint Resolution 99 Wednesday

  • It would direct the governor to order the Department of Revenue to deviate from the standard valuation used to assess car taxes

Car values have gone up about 40% compared to last year, according to a memo from the Department of Revenue. 

The memo states that there have been constraints on new vehicle production, higher new car prices, a limited supply of used cars and more interest in used cars from car dealers. 

Senate Joint Resolution 99, which passed a Senate committee unanimously Wednesday, would direct Gov. Andy Beshear to order the Department of Revenue to deviate from the standard valuation used to assess car taxes. 

The resolution asks that cars are assessed on the January 2021 level, instead of today’s level, remaining in effect for this year and 2023, according to the resolution's sponsor, Sen. Donald Douglas (R, Nicholasville).

The resolution also calls for the state to refund property tax over-payments. 

"Our taxpayers should not have to suffer the pain of the artificially inflated vehicle values and therefore, leading to the artificially inflated tax burden of $70 million," said Douglas. 

Sen. Stephen Meredith (R, Leitchfield) said working Kentuckians are in need of relief. 

"We’re in the middle, supposedly, of a booming economy, but the working people are not feeling it," he said. "They’re being crushed by high gas prices, by inflation, by taxes like this. It’s inexcusable and the sooner we can identify these type of issues, the quicker we can provide relief for these people."

Gov. Andy Beshear said last month that he was open to any proposal that provides some relief when it comes to vehicle property taxes.

Several other bills have been filed aiming to address the issue.

Wednesday afternoon, the House passed House Bill 6, which would base vehicle tax on the average trade-in value as opposed to its clean trade-in value.  

Senate Joint Resolution 99 moves next to the full Senate. 

A spokesperson for the Finance and Administration Cabinet said the Department of Revenue is reviewing the resolution and only the General Assembly has the constitutional authority to enact or amend law.