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Property Assessments

Thursday, June 18, 2020

Why Was a Property Assessment Notice Received in the Mail?

By law, all real property in Kentucky must be assessed at least once every four years and must be assessed at fair cash value. Owners receive a notice by mail when their property has been reassessed. The value may go up or down from the prior assessment depending on a number of factors including field review of the property and review of comparable sales. If an owner disagrees with the assessment, there is information available on the notice about the available appeal process. Only a portion of the properties in the area are reassessed in any given year. Over a four-year period all of the properties in the area will be reassessed once. 

Property taxes are based on the most recent assessment. Homeowners over the age of 65 or who are totally disabled may qualify for an exemption. The amount of the Homestead or Disability exemption is $39,900. The exemption amount is subtracted from the assessment amount before the property is taxed.

How Do We Assess the Value of Real and Personal Property?1  

Cities are required to provide by ordinance for the annual assessment of real and personal property within the city. The assessment can be performed one of two ways.

The first is to use the annual county assessment as the basis for all ad valorem tax levies on real and personal property in the city. If the city chooses the county assessment, it must pay the office of the county property valuation administrator an annual fee based on the formula set out by statute (KRS 132.285.)

The second option is for cities to establish their own assessment offices and assess all taxable real and personal property, except motor vehicles and motorboats. If the city decides to do the assessment itself, it must comply with the statutory requirements (KRS 92).1

Newport uses the County assessment as this is the more cost-effective option for the City to obtain the needed information.

The Assessment Process2

The purpose of a property tax is to fairly distribute the necessary tax burden among all property owners based upon the market value of their property. Properties are appraised so that some of the costs associated with providing services, such as public education, fire and police protection, roads and utilities, can be allocated to property owners in proportion to the market value of their individual properties.

The PVA is required by law to assess property at fair cash value. The Constitution states that all property be assessed at "100% Fair Market Value" unless specifically exempted. The determined amount for each parcel appears on your tax bill under the heading of "Assessed Value".2

To learn more, review assessment and appeal process information available from the Campbell County PVA.

To learn about the Homestead or Disability Exemptions, review exemption information from the Campbell County PVA. Those who apply through the County and are approved will have the same exemption applied to the city tax bill.

 

Additional resource: "Do Property Assessors in Kentucky Value Residential Property at Fair Market Value?"

 

1Information excerpted from a Kentucky League of Cities publication

2Information excerpted from Campbell County PVA

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