Take action now to lower your Kentucky property taxes!
Businesses and individuals with Kentucky real estate valued at $1,000,000 or more for tax purposes should act now to reduce their Kentucky real estate tax bill. Long-term tenants obligated to pay property taxes should also take action.
It’s now or never! Request a conference with the Property Valuation Administrator (PVA) of the county in which your property is located before the end of the “open inspection” period on May 17, 2021. Although in Kentucky the county sheriff sends bills property tax bill in the fall, it’s time to challenge real estate “overvaluations”. The process is the same throughout Kentucky whether your property is located in Jefferson County, Fayette County, Boone County, or any other county in Kentucky. The ACP position is that the legally required application for an ACP conference must be filed with the PVA before the end of the inspection period; otherwise, the right of appeal is lost.
More properties are re-evaluated in 2021! In 2020, many PWAs postponed property reassessments; thus, they are re-evaluating many more properties in 2021. This property could be yours!
But, I did not receive a notice? ! Although every ACP is required to notify owners of changes to their assessment values, ACPs generally only send the notice by first class mail, which in 2021 is highly unreliable. Also, the ACP generally does not send a notice when no change in value is made. Nevertheless, a landlord can dispute the value of his property, even if he does not receive a notice. For most counties, you can check the tax assessment value of your property on the PVA website.
Income-generating properties present discount opportunities! The tax assessment value of many leased commercial properties is affected by the potential for income generation, such as hotels, office buildings, shopping malls, apartments, etc. The challenges of 2020 can be an opportunity to reduce the assessed value of your property. . Note that many tenants of these properties often have the ability to appeal the tax assessment themselves under their rental agreements, so commercial property lessors should also investigate this tax savings opportunity. .
Is it worth it? The savings can really add up. For example, in Jefferson County (Metro Louisville), a writedown of $100,000 will typically result in an annual decrease in property tax of approximately $1,300, and a writedown of $1,000,000 will result in a decrease annual fee of $13,000. The results are similar in other Kentucky counties. This can accumulate over several years.
Can I do it myself? Although many choose to represent themselves by contesting “overstatements,” at the PVA, many pitfalls and pitfalls exist for those unfamiliar with the process. The ACP conference is only the first step in a multi-step process, and failure to request or go through a given step will prevent an appeal to the next required step, such as an appeal with County. Board of Assessment Appeals or the Kentucky Commission of Tax Appeals. Another consideration is to start off on the right foot, and experience helps. It is generally safer to involve a lawyer at the beginning, who knows the process and the property tax law.
Don’t wait, May 17, 2021 will be here before you know it.