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Supreme Court to Review Ad Valorem Property Tax Appeal Procedures

05.27.2009

In Jefferson County Property Valuation Administrator v. Cromwell Louisville Associates, LP, Case No. 2008-SC-00644 (Ky.), the Kentucky Supreme Court (“Court”) has granted a taxpayer’s Petition for Discretionary Review of a decision from the Court of Appeals holding that a conference with the local Property Valuation Administrator (“PVA”) must be held during the open inspection period during the year of assessment in order to appeal an ad valorem assessment on real property.

In May 2002, Cromwell Louisville Associates, LP (“Cromwell”) appealed 2001 and 2002 ad valorem property tax assessments to the Jefferson County PVA during the 2002 inspection period and then appealed the 2001 and 2002 assessments to the Jefferson County Board of Assessment Appeals (“BAA”) in July 2002. The BAA reassessed the value of the parcels for tax year 2002 but declined to address the 2001 assessment.

On appeal, the Kentucky Board of Tax Appeals (“KBTA”) held that Cromwell’s appeal of the 2001 assessment to the BAA was untimely pursuant to KRS 133.120. But on appeal, the Jefferson Circuit Court reversed holding that the 2001 appeal was timely because KRS 133.120 and KRS 133.045 did not contain specific language requiring the conference with the PVA to occur within the inspection period of the same year as the contested assessment. On appeal from the Circuit Court, the Court of Appeals reversed.

The current practice for real property tax appeals in Kentucky has been to contest a real property tax assessment during the open inspection period for that assessment year. If the Kentucky Supreme Court holds for the taxpayer as did the Circuit Court, this would affirmatively authorize taxpayers to contest real property tax assessments for multiple years at the same time.

If you have questions about this topic or any other legal issue, please contact any member of the firm's State and Local Tax Team.

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