Kentuckians will not see a rise in vehicle property taxes this year after Gov. Andy Beshear signed an executive order on Wednesday that will freeze the vehicle tax rate to the same rate owners paid in 2021.
Beshear said the decision was made based on the rising rates of car values, which rose by 40% last year. Kentucky uses national averages to determine car values and vehicle taxes.
“If they own the same vehicle, and it's in the same condition, and they're living in the same county, they will not pay taxes on the inflated value,” Beshear said. “The property valuation for the average motor vehicle in Kentucky rose from $8,006 to $11,162.”
The executive order allows the freeze to last for two years.
“Those who've already paid their 2022 tax bill don't need to worry they're going to be getting a refund from their local county clerk's office,” Beshear said.
A joint resolution signed last week, gives Beshear the power to make the rule.
Beshear also urged the legislature to pass a bill that would lower sales tax from 6% to 5%.
