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Act Now to Reduce Your Kentucky Real Estate Tax Bill

 

Businesses and individuals with Kentucky real estate valued at $1,000,000 or more for tax purposes should act now to reduce their real estate tax bill. In Kentucky, although the County Sheriff sends out property tax bills for real property in the fall, the time to dispute "overvaluations" of real estate is the spring. The process is the same throughout Kentucky, whether your real estate is located in Jefferson County, Fayette Bounty, Boone County or any other Kentucky county.

The statutory "inspection period" for disputing the tax values set by the County Property Valuation Administrator (PVA) begins on the first Monday in May and lasts for thirteen days. For 2008, it begins on May 5 and ends on Saturday, May 17. Appeals must be filed with the PVA before the end of the inspection period; otherwise, the right to appeal is lost.

When the PVA reappraises real estate, the PVA sends the owner a notice to inform them of the reevaluation; however, the PVA generally does not send a notice when no change in value is made. Even so, owners may dispute the value of their real estate, even if they do not receive a notice.

Recent newspaper reports indicate that nearly all of the commercial property in downtown Louisville is being reassessed and the property of many homeowners will be reassessed as well.

The potential savings can really add up. For example, in Metro Louisville, a reduction of $100,000 in value will typically result in an annual decrease in real property tax of approximately $1,300, and a reduction of $1,000,000 in value will result in an annual tax decrease of $13,000. The results are similar in other Kentucky Counties like Fayette and Boone. A valuation which results from a contested assessment may continue for multiple years, thus, multiplying the tax savings.

Although many choose to represent themselves in disputing "overvaluations," at the PVA, many pitfalls and traps exist for those unfamiliar with the process. The conference with the PVA is just the first step in a multi-step process, and failure to request or to go through any given step will preclude an appeal to the next required step, such as an appeal to the County Board of Assessment Appeals or to the Kentucky Board of Tax Appeals.

If you receive a notice advising you or your business of the tax value of your real property, review it. If you do not receive a notice, take a look at your property tax bill from last fall and ask yourself if the property's value for tax purposes is greater than the amount that you could get if you sold it - particularly given the overall state of the real estate market. If the answer is "Yes," you should consider taking steps to reduce your 2008 real estate tax bill.

You cannot wait until the real estate tax bill comes out in the fall to protest the value. By that time, the value is set by law and it cannot be protested. Act now, before the inspection period closes.

To learn more about Mark A. Loyd and his practice, please visit his profile.


This communication is provided as general information rather than legal advice. Questions about individual situations should be addressed to the attorney of your choice. The regulations governing legal advertising in the states of Kentucky, Ohio and Tennessee require that communications of this kind contain the following statement: THIS IS AN ADVERTISEMENT. Kentucky law does not certify specialties of practice.

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