FRANKFORT, Ky. — A stark 40% increase in car taxes this year has increased momentum for a series of bills that could change how the property tax is calculated.

“Typically, a vehicle is a depreciating asset,” said Rep. Patrick Flannery (D-Olive Hill), the sponsor of House Bill 6. “You wouldn’t expect it to be an appreciating asset, and that’s what’s happening right now.”

The vehicle property tax Kentuckians pay is based on the car’s resale value, and because of several factors, resale values increased 40% last year.

A memo from the Department of Revenue went out earlier this month, detailing the issues: constraints on new vehicle production, elevated new car prices, a limited supply of used cars and increased interest from car dealers in used cars.

Flannery said his bill will lead to a lower vehicle tax.

“Obviously, this year it is on people’s radar,” he said. “And it’s really been, other than redistricting and budget issues, it’s probably been one of the topics that’s on the minds of legislators and the public.”

The vehicle tax is based on its clean trade-in value, as determined by the National Automobile Dealers Association.

Flannery’s bill would change it to the average trade-in value calculated by the NADA.

“I think it’s pretty clear that if you look in a parking lot, most vehicles are not in a clean trade-in condition,” he said. “So people are actually paying more than what the statute calls for.”

Flannery said the bill would reverse a change in the tax code the Kentucky Department of Revenue made in 2009. A memo from January of that year explained NADA added two new categories to its trade-in estimates in 2008: average trade-in and rough trade-in.

For a few months, the state used the average trade-in value in its calculation, but then it changed course and started using the clean trade-in value.

So what does Flannery’s bill actually mean? That depends on the car you drive.

For example, if you own a 2019 Ford Escape, the current NADA guide lists the clean trade-in value at $20,950, while the average trade-in value is $19,825, which is about a 5% difference.

At least two other bills filed in Frankfort also aim to address the issue.

In the House, Rep. Steve Sheldon (R-Bowling Green) filed House Bill 261 to effectively cap any vehicle tax increase at 6%.

In the Senate, Sen. Robin Webb (D-Grayson) filed a bill would cap any increase at 5%.

“There are other bills filed by legislators that attempt to tackle this problem, several other good ideas, and I’m looking at a way to potentially incorporate those ideas into my bill as well,” Flannery said.

Gov. Andy Beshear said Thursday that he’s open to any proposal that provides some relief when it comes to vehicle property taxes, although he doesn’t want to commit to any specific bill before it goes through the legislative process.

“I want to make sure that we’re ultimately being fair to Kentucky families,” he said. “And we’d look at whether that relief is helping the people who need it the most.”

It’s not clear yet when any of the bills will be heard in committee.