Duties of the PVA and Awards
The PVA office is a Kentucky State office with county jurisdiction. The PVA is a locally elected official who is charged with appraising all property, both real and personal, that lies within McCracken County. There are some exceptions, such as public service companies, bank shares, and omitted tangible properties which are valued by the state Revenue Cabinet in Frankfort.
The PVA office does not set property tax rates, nor do they collect property taxes. The Kentucky Constitution requires equality and uniformity through fair cash value assessments. Fair Cash Value is defined as the price that a piece of property will bring in a fair voluntary sale between a willing seller and a willing buyer.
All property, unless specifically exempt by the Constitution, is taxable. The Constitution expressly prohibits exemption of any property or persons except those allowed by the Constitution itself. Thus, taxation is the rule and exemption is the exception. Currently, examples of such exceptions are the Homestead Exemption for age 65 and older, Disability for 100% totally disabled individuals, some religious, educational, and governmental properties, etc. Formal application must be made with the PVA office before any exemption can be granted.
2012- OUTSTANDING JURISDICTION AWARD MCCRACKEN PVA
KY DEPUTY OF THE YEAR AWARDED TO:
Property Tax Talk
Kentucky has had a tax on property since June 1, 1792, the date the State was created.
The Department of Revenue was created in 1936 to administer all state taxes.
In 1965 the Kentucky Court of Appeals ruled in the Russman vs. Luckett case that the full cash value standard must be adhered to.
The Finance and Administration Cabinet is one of the administrative agencies of the executive branch of state government. The Department of Revenue is one of seven departments within the Finance and Administration Cabinet. The Office of Property Valuation is within the Department of Revenue. The department is comprised of the Commissioner’s Office plus three divisions:
- • State Valuation
- • Local Valuation
- • Minerals Taxation and GIS Services
In 1990 the General Assembly as part of the Kentucky Educational Reform Act (KERA) mandated that all real property be assessed at 100% of Fair Cash Value.
Property tax is an ad valorem tax, which means according to value.
The Homestead Exemption (based on age or disability status) Allows taxpayers who are at least 65 years of age or who are totally disabled to receive an exemption.
The following requirements must be met in order to claim the homestead exemption:
• The taxpayer must both own and maintain the property as his or her personal residence as of January 1st;
• The taxpayer must have been classified as totally disabled under a program authorized or administered by an agency of the United States Government, or any retirement system either within or outside the state of Kentucky on January 1st for the year in which the application is made and maintain the disability classification through December 31st;
• The taxpayer must be receiving disability payments pursuant to that disability classification; and
• An application for the disability exemption must be made on an annual basis.
* The most common government agency under which a taxpayer can obtain a totally disabled classification is Social Security / SSI. Other programs include the Tennessee Valley Authority, the Veterans Administration and the Teacher’s retirement System.
How to Apply
An application must be completed and filed in the Property Valuation Office along with documentation verifying age. Appropriate documentation might include Medicare cards issued by Social Security, birth certificates, along with a valid Kentucky driver’s license or a government issued ID Card with current address. When applying for the disability homestead, the same form will apply. However, documentation verifying total disability and that payments have been issued throughout the entire year must follow. Because of this, a taxpayer needs to provide proof of his or her disability status before December 31st of the current year.