Ky. lawmakers propose bills to mediate car tax increases
FRANKFORT, Ky. (WKYT) - Because the value of used cars is rising, the tax bills are also increasing in Kentucky.
Several bills are in the state legislature to correct that.
Car taxes have risen an estimated 40 percent and there are two bills filed that could provide some relief. One is House bill 6, the other is Senate bill 75.
The reason your taxes are higher now is because the rates are based on used cars, and used cars are more valuable now because new cars are limited due to supply chain issues.
Senate Bill 75 would use a value that’s based on the preceding year, House Bill 6 would require the department of revenue to use the average trade-in rate as a standard for new tax purposes.
Governor Beshear was asked about all of this during one of his briefings early this week and he said his administration has not increased car tax rates.
“The executive branch cannot increase tax rates. That is done by the legislature,” said Gov. Beshear. “It appears that people have seen their overall tax bill go up, and they are trying to suggest this administration has increased their tax rates, that is not what is happening.”
The Governor simply says your car is worth more such as when your home is worth more, thus your property taxes go up.
Both bills are waiting to be heard by their respective house and senate committees.
Copyright 2022 WKYT. All rights reserved.