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Property Taxes in Webster Henderson Mclean Union County | NWKY Forward

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business_climateProperty Taxes

The basis of assessments for property taxes in Kentucky is 100% of fair cash value. Kentucky Revenue Cabinet, Department of Property Valuation, performs the assessment valuation for a limited number of classes of property including property owned by utility companies, railroads, airlines, and most financial institutions, distilled spirits, non resident commercial watercraft and unmined minerals. The county Property Valuations Administrator (PVA), an elected state official, assesses all other classes of taxable property for the state, county, school districts and for most special taxing districts.

Assessments are based upon property held on January 1st of each year. Taxpayers are required to report the value of all of their taxable property to the local PVA annually.

County Property Tax Rates

4 County Property Tax Rates Per $100 Valuation - 2012

Exemption & Key Points For Businesses

  • Exemption of manufacturing machinery from all local property taxes. The state rate is only 15 cents per $100 of assessed value. (KRS 132.020 and 132.200)
  • Exemption of certified pollution control facilities and equipment from all local property taxes. The state rate is only 15 cents per $100 of assessed value. (KRS 132.020; 132.200 and 224.01-300)
  • Exemption of raw materials and products in the course of manufacture from all local property taxes. The state rate on these inventories is only 5 cents per $100 of assessed value. (KRS 132.020 and 132.200)
  • Exemption of tangible personal property located in a federally designated and activated foreign trade zone (or sub-zone) from all local property taxes. The state rate is only 1/10 of 1 cent per $100 of assessed value. (KRS 132.020 and 132.200)
  • Exemption of intangible property (money in hand, notes, bonds, accounts receivable, mortgage receivables, intercompany intangible personal property due from affiliates, patents, copyrights, trademarks and other credits) from state and local taxation, except for financial institutions and life insurance companies. (KRS 132.208)
  • Favorable tax treatment for finished goods inventories. The state rate on these inventories is only 5 cents per $100 of assessed value. Cities, counties, and urban-county governments may levy rates on these business inventories that are less than the prevailing rate of taxation on other tangible personal property in their respective jurisdictions. (KRS 132.020; 68.246; and 132.028)
  • Favorable tax treatment for finished goods in a transit status may occur if the goods are located in a warehouse or distribution center pending subsequent shipment out-of-state. These goods shall be exempt from state, city, county (general levy), urban county, and school district property taxation. Fire and special taxing districts may exempt these goods at their discretion. (KRS 132.020; 132.095)
  • State laws limit the increase in local property tax revenues from real estate, exclusive of new property, to 4 percent annually for each local taxing jurisdiction (county, city, and school district). Increases larger than 4 percent must be approved by voters. (KRS 132.023 and 132.027)
  • State laws limit the increase in state property tax revenues from real estate, exclusive of new property, property approved for tax increment financing and KRS Chapter 103 industrial revenue bond property receiving the reduced state rate of $0.15 per $100 of leasehold value, to 4 percent annually. (KRS 132.020)
  • Assessment of property for taxation is made only once annually on January 1, allowing businesses to plan purchases or assets and levels of inventories to their best tax advantages. (KRS 132.220)