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132.020 State ad valorem taxes.
(1)
The owner or person assessed shall pay an annual ad valorem tax for state purposes
at the rate of:
(a) Thirty-one and one-half cents ($0.315) upon each one hundred dollars ($100)
of value of all real property directed to be assessed for taxation;
(b) One and one-half cents ($0.015) upon each one hundred dollars ($100) of
value of all privately owned leasehold interests in industrial buildings, as
defined under KRS 103.200, owned and financed by a tax-exempt
governmental unit, or tax-exempt statutory authority under the provisions of
KRS Chapter 103, upon the prior approval of the Kentucky Economic
Development Finance Authority, except that the rate shall not apply to the
proportion of value of the leasehold interest created through any private
financing;
(c) One and one-half cents ($0.015) upon each one hundred dollars ($100) of
value of all qualifying voluntary environmental remediation property,
provided the property owner has corrected the effect of all known releases of
hazardous substances, pollutants, contaminants, petroleum, or petroleum
products located on the property consistent with a corrective action plan
approved by the Energy and Environment Cabinet pursuant to KRS 224.01400, 224.01-405, or 224.60-135, and provided the cleanup was not financed
through a public grant or the petroleum storage tank environmental assurance
fund. This rate shall apply for a period of three (3) years following the Energy
and Environment Cabinet's issuance of a No Further Action Letter or its
equivalent, after which the regular tax rate shall apply;
(d) One and one-half cents ($0.015) upon each one hundred dollars ($100) of
value of all tobacco directed to be assessed for taxation;
(e) One and one-half cents ($0.015) upon each one hundred dollars ($100) of
value of unmanufactured agricultural products;
(f) One-tenth of one cent ($0.001) upon each one hundred dollars ($100) of value
of all farm implements and farm machinery owned by or leased to a person
actually engaged in farming and used in his farm operations;
(g) One-tenth of one cent ($0.001) upon each one hundred dollars ($100) of value
of all livestock and domestic fowl;
(h) One-tenth of one cent ($0.001) upon each one hundred dollars ($100) of value
of all tangible personal property located in a foreign trade zone established
pursuant to 19 U.S.C. sec. 81, provided that the zone is activated in
accordance with the regulations of the United States Customs Service and the
Foreign Trade Zones Board;
(i) Fifteen cents ($0.15) upon each one hundred dollars ($100) of value of all
machinery actually engaged in manufacturing;
(j) Fifteen cents ($0.15) upon each one hundred dollars ($100) of value of all
commercial radio, television, and telephonic equipment directly used or
associated with electronic equipment which broadcasts electronic signals to an
(2)
antenna;
(k) Fifteen cents ($0.15) upon each one hundred dollars ($100) of value of all
property which has been certified as a pollution control facility as defined in
KRS 224.01-300;
(l) One-tenth of one cent ($0.001) upon each one hundred dollars ($100) of value
of all property which has been certified as an alcohol production facility as
defined in KRS 247.910, or as a fluidized bed energy production facility as
defined in KRS 211.390;
(m) Twenty-five cents ($0.25) upon each one hundred dollars ($100) of value of
motor vehicles qualifying for permanent registration as historic motor vehicles
under the provisions of KRS 186.043;
(n) Five cents ($0.05) upon each one hundred dollars ($100) of value of goods
held for sale in the regular course of business, which includes machinery and
equipment held in a retailer's inventory for sale or lease originating under a
floor plan financing arrangement; and raw materials, which includes distilled
spirits and distilled spirits inventory, and in-process materials, which includes
distilled spirits and distilled spirits inventory, held for incorporation in
finished goods held for sale in the regular course of business;
(o) Ten cents ($0.10) per one hundred dollars ($100) of assessed value on the
operating property of railroads or railway companies that operate solely within
the Commonwealth;
(p) One and one-half cents ($0.015) per one hundred dollars ($100) of assessed
value on aircraft not used in the business of transporting persons or property
for compensation or hire;
(q) One and one-half cents ($0.015) per one hundred dollars ($100) of assessed
value on federally documented vessels not used in the business of transporting
persons or property for compensation or hire, or for other commercial
purposes; and
(r) Forty-five cents ($0.45) upon each one hundred dollars ($100) of value of all
other property directed to be assessed for taxation shall be paid by the owner
or person assessed, except as provided in KRS 132.030, 132.200, 136.300,
and 136.320, providing a different tax rate for particular property.
Notwithstanding subsection (1)(a) of this section, the state tax rate on real property
shall be reduced to compensate for any increase in the aggregate assessed value of
real property to the extent that the increase exceeds the preceding year's assessment
by more than four percent (4%), excluding:
(a) The assessment of new property as defined in KRS 132.010(8);
(b) The assessment from property which is subject to tax increment financing
pursuant to KRS Chapter 65; and
(c) The assessment from leasehold property which is owned and financed by a
tax-exempt governmental unit, or tax-exempt statutory authority under the
provisions of KRS Chapter 103 and entitled to the reduced rate of one and
one-half cents ($0.015) pursuant to subsection (1)(b) of this section. In any
(3)
(4)
(5)
year in which the aggregate assessed value of real property is less than the
preceding year, the state rate shall be increased to the extent necessary to
produce the approximate amount of revenue that was produced in the
preceding year from real property.
By July 1 each year, the department shall compute the state tax rate applicable to
real property for the current year in accordance with the provisions of subsection (2)
of this section and certify the rate to the county clerks for their use in preparing the
tax bills. If the assessments for all counties have not been certified by July 1, the
department shall, when either real property assessments of at least seventy-five
percent (75%) of the total number of counties of the Commonwealth have been
determined to be acceptable by the department, or when the number of counties
having at least seventy-five percent (75%) of the total real property assessment for
the previous year have been determined to be acceptable by the department, make
an estimate of the real property assessments of the uncertified counties and compute
the state tax rate.
If the tax rate set by the department as provided in subsection (2) of this section
produces more than a four percent (4%) increase in real property tax revenues,
excluding:
(a) The revenue resulting from new property as defined in KRS 132.010(8);
(b) The revenue from property which is subject to tax increment financing
pursuant to KRS Chapter 65; and
(c) The revenue from leasehold property which is owned and financed by a taxexempt governmental unit, or tax-exempt statutory authority under the
provisions of KRS Chapter 103 and entitled to the reduced rate of one and
one-half cents ($0.015) pursuant to subsection (1) of this section;
the rate shall be adjusted in the succeeding year so that the cumulative total of each
year's property tax revenue increase shall not exceed four percent (4%) per year.
The provisions of subsection (2) of this section notwithstanding, the assessed value
of unmined coal certified by the department after July 1, 1994, shall not be included
with the assessed value of other real property in determining the state real property
tax rate. All omitted unmined coal assessments made after July 1, 1994, shall also
be excluded from the provisions of subsection (2) of this section. The calculated
rate shall, however, be applied to unmined coal property, and the state revenue shall
be devoted to the program described in KRS 146.550 to 146.570, except that four
hundred thousand dollars ($400,000) of the state revenue shall be paid annually to
the State Treasury and credited to the Department for Energy Development and
Independence for the purpose of public education of coal-related issues.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 97, effective July 15, 2010. -- Amended
2007 Ky. Acts ch. 100, sec. 2, effective June 26, 2007. -- Amended 2006 Ky. Acts
ch. 152, sec. 3, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 168, sec. 55,
effective January 1, 2006; and ch. 85, sec. 171, effective June 20, 2005. -- Amended
2002 Ky. Acts ch. 324, sec. 1, effective July 15, 2002; and ch. 338, sec. 17, effective
July 15, 2002. -- Amended 2000 Ky. Acts ch. 2, sec. 2, effective July 14, 2000; and
ch. 327, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 55, sec. 1,
effective July 15, 1998; ch. 72, sec. 1, effective July 15, 1998; ch. 266, sec. 1,
effective July 15, 1998; and ch. 385, sec. 1, effective July 15, 1998. -- Amended
1996 Ky. Acts ch. 254, sec. 22, effective July 15, 1996. -- Amended 1994 Ky. Acts
ch. 65, sec. 2, effective July 15, 1994; ch. 263, sec. 3, effective July 15, 1994; and
ch. 328, sec. 4, July 15, 1994. – Amended 1992 Ky. Acts ch. 338, sec. 21, effective
July 14, 1992. -- Amended 1990 Ky. Acts ch. 345, sec. 1, effective July 13, 1990;
ch. 437, sec. 4, effective July 13, 1990; ch. 461, sec. 1, effective July 13, 1990; and
ch. 476, Pt. V, sec. 310, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 359,
sec. 1, effective July 15, 1986; ch. 431, sec. 16, effective July 15, 1986; and ch. 476,
sec. 5, effective July 15, 1986. -- Amended 1985 (1st Extra. Sess.) ch. 6, part 1,
sec. 1, effective July 29, 1985. -- Amended 1984 Ky. Acts ch. 169, sec. 1, effective
July 13, 1984. -- Amended 1982 Ky. Acts ch. 229, sec. 1, effective July 15, 1982. -Amended 1980 Ky. Acts ch. 188, sec. 102, effective July 15, 1980; ch. 210, sec. 6,
effective July 15, 1980; ch. 317, sec. 1, effective July 15, 1980; ch. 319, sec. 3,
effective July 15, 1980; and ch. 395, sec. 1, effective July 15, 1980. -- Amended
1979 (1st Extra. Sess.) Ky. Acts ch. 3, sec. 1, effective May 12, 1979; and ch. 25,
sec. 3, effective February 13, 1979. -- Amended 1978 Ky. Acts ch. 116, sec. 3,
effective January 1, 1979; and ch. 404, sec. 1, effective March 30, 1978. -- Amended
1976 Ky. Acts ch. 84, sec. 7, effective March 29, 1976; and ch. 93, sec. 9, effective
January 1, 1977. -- Amended 1968 Ky. Acts ch. 207, sec. 1. -- Amended 1965 (1st
Extra. Sess.) Ky. Acts ch. 2, sec. 1. -- Amended 1954 Ky. Acts ch. 161, sec. 1. -Amended 1950 Ky. Acts ch. 186, sec. 1. -- Amended 1948 Ky. Acts ch. 95, sec. 1. -Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
sec. 4019.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 171,
provides that: "Sections 55 (KRS 132.020) and 57 (KRS 132.200) of this Act,
relating to property tax changes, take effect on January 1, 2006, except the changes
made to paragraph (c) of subsection (1) of Section 55, relating to the voluntary
environmental remediation credit, paragraph (a) of subsection (2) of Section 55, and
paragraph (a) of subsection (4) of Section 55 of this Act, relating to new property and
the state property assessment, and subsection (21) of Section 57 of this Act, which
shall take effect on the effective date of this Act and which shall apply to tax years
beginning on or after January 1, 2005."
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