How Many Cars Are Registered In Lousville

Not all states collect an almanac property revenue enhancement on motor vehicles, but Kentucky is one of them.

LOUISVILLE, Ky. — (WHAS11) -- Purchasing a vehicle from any car sales lot, you're likely going to see inflated prices.

There is the MSRP, the accessories, the warranties just price haggling doesn't have to finish with the sale of a vehicle.

Every year, Kentucky taxpayers pay the price for driving a car in Kentucky.

Depending on where you live, you pay a percent of the cars assessed value, a price gear up past the state.

"Hmm, I think they have it at about 6 grand," Ron Aubrey, a 2004 Jeep Wrangler owner, said. "That'southward the style the game is played".

His Jeep was valued at $half dozen,500 to exist exact.

Aubrey said his Jeep isn't worth that much.

"No, no, it's got holes in information technology and it needs a lot of work," Aubrey said.

VALUE Assessment FROM THE DEPARTMENT OF REVENUE

Clearly, the college your auto is valued the more taxes y'all pay.

"On our project written report, I recollect it was about $140 one thousand thousand." Cathey Thompson, the Section of Revenue State Evaluation Division Director, said.

The county clerk gets four percent for collection services on the local level.

For example, a 2016 Mini Cooper assessed at simply over $19,000, a 2010 Ford Explorer at $five,650, and a 2006 Hyundai Tucson at an even $two,600.

"It'southward 'off-white cash' value," Thompson explained.

The Democracy'southward Constitution (Section 172) defines 'fair cash value' as the "price information technology would bring at a fair voluntary sale" which the Kentucky Department of Revenue interprets as a NADA 'clean trade'.

Values based on the 'clean merchandise' condition of a vehicle as of Jan. ane.

Those values defined by the $124,000 almanac subscription the Department has with the "National Auto Dealers Association (NADA)."

Here is the definition of a clean trade from a Cypher book: 'Clean' represents no mechanical defects and passes all necessary inspections with ease. Paint, body, and wheels may take some minor surface scratching with a loftier gloss cease.

In Kelley Blue Volume (KBB), 'good' condition is closest to NADA'southward definition of 'make clean merchandise' condition.

But even in KBB'south 'very practiced' status, the trade toll is significantly disproportionate with NADA merely more in line with values on Cars.com which uses Black Book.

Just on a 2006 Tucson, well, there's all the same confusion.

Although NADA assessed information technology in for 2018 at $2,600. The same car just over a twelvemonth older was really valued $600 more than by Zip when we checked online, significant the car's value increased with age.

"I went off the VIN, and I made sure that it was the exact, correct model," John Charlton showed Thompson at the Department of Revenue.

"It leads me to believe that that vehicle has been adjusted at some betoken," Thompson said.

The possessor is the only possessor of the machine and swears that aligning never happened.

Thompson said she is not enlightened of the Aught giving them over inflated prices.

"From what I've been told that NADA more than closely represents the 'fair cash' value, which is a sale betwixt a willing buyer and a willing seller," Thompson said.

Kentucky residents: Have you lot paid a auto revenue enhancement this twelvemonth? John Charlton looks into what the state says your motorcar is worth ↔️ https://on.whas11.com/2XjL8iS

GETTING AN INDEPENDENT Assessment

So what tin can your car really fetch?

Nosotros took ii of our own vehicles to Neil Huffman Acura at Oxmoor to get their version of an accurate assessment.

First, an inspection of a 2013 GMC Terrain with 78,000 miles on it.

Used machine managing director Brian Ubelhart has assessed thousands of cars and believes it is hard for most vehicles on the route to come across the 'clean merchandise' standard.

"It'southward almost impossible for any car with several years and tens-of-thousands of miles on information technology to be a 'clean trade'," Ubelhart said.

Ubelhart said the 2013 GMC didn't actually come across the standard of a clean status vehicle.

"I wouldn't exactly say make clean condition. Similar I said, there'due south some repairs that are necessary and unfortunately the repairs I'g talking about are costly," Ubelhart said. "That headlight associates is going to run about $800, getting this rear bumper repainted is going to probably cost somewhere effectually $300, so that's why I would classify it equally adept condition."

The second car Ubelhart inspected was a xvi-twelvemonth old Ford Escape with 132,000 miles, interior tears, and exterior rust.

"This vehicle is nowhere near 'clean' condition, as a matter of fact, it'south in rough shape," Ubelhart said.

Ubelhart valued the second machine at $500 but the state said information technology was worth triple that at $1,350 assessment.

"In the 'clean' to 'excellent' status, you're looking at five% of the cars that we look at," Ubelhart explained, "almost of the time information technology's just unrealistic".

Ubelhart said he believes NADA has always overvalued vehicles.

"The land is but pulling 1 number out of the air and people need to know that they can dispute that," Ubelhart said.

Appealing THE State'Southward ISSUED VALUE

"We'll review the information and we'll need some proof," John Elgin, Jefferson Canton MOTAX Director, said.

The Motor Vehicle Tax Director of Jefferson County, John Elgin says higher than usual miles and harm may make the value drop below 'clean trade' causing them to pay more in taxes. The taxpayer has the responsibility to question the value if they experience it is unfair.

But the truth is most don't appeal.

"Ii reasons, near people have it as sort of a cost of having an automobile, and secondly, they really don't know that they can exercise it," Elgin said.

The small-scale print on the dorsum of the mailer sent to the taxpayer is just a line within a line.

Elgin also said the fine print is very hard to observe.

THE ROADMAP TO PAYING YOUR CAR TAX

NADA drives motorcar prices and then the value of your vehicle is printed at the Department of Revenue.

The mailer from the Department of Revenue then goes to the taxpayer, that states the amount due.

This is where at that place's a fork in the road.

The taxpayer tin just pay the money to the Canton Clerk or accept the road less traveled and appeal the assessment with the canton Property Valuation Administrator within lx days.

With an adjustment, the taxpayer can and so pay the new pct of taxes due to the clerk.

Without an adjustment, the taxpayer can take the appeal straight to the Department of Acquirement in Frankfort.

THE TAXPAYER

"They call up it is worth one thing, you lot tin can't sell it for that," Aubery said.

Aubrey also didn't know he could appeal only he'southward already paid his 2019 car tax of $6,500.

"They want the money, I want to alive hither," Aubery said. "Give information technology to them."

FUELED PROCEDURE Modify

Since we have been digging around and asking questions, nosotros accept fueled some alter.

The Kentucky Department of Revenue says it will now require County Property Valuation Administrator Offices to keep a tape of all appeals, even adjustment appeals that are denied.

BREAKING DOWN OUR INVESTIGATION

HOW YOUR CAR VALUE IS Adamant

The Kentucky Section of Revenue pays NADA (National Automobile Dealers Association) to provide it with an annual list of assessments for each vehicle registered in the democracy.

NADA is one of several services car dealers, and in this example country government, can use to make up one's mind vehicle values.

The Kentucky Department of Revenue is required by the Republic Constitution Department 172 to assess property tax "at its fair cash value, estimated at the price it would bring at a fair voluntary auction".

NADA's "Clean Merchandise-In" value is the standard the land uses to tax.

That value is also used to generate taxes on the local level, including canton, school and emergency services taxes.

OUR PROCESS

Is the NADA "Clean Trade-In" value a fair assessment of cars across Kentucky?

To find out WHAS11 collected postcard notices and registration forms for nearly 40 vehicles to compare assessment values.

You lot tin can follow the same process to see if you're overpaying, underpaying, and fairly paying.

Auto VALUATION COMPARISON Exam

Find the assessed value on your postcard or registration.
Plug in your vehicle'south information on Kelley Bluish Book (we used the VERY Good condition standard) and annotation the KBB value.
Plug in your vehicle'due south information on Blackness Volume and note the value.
And so, plug in your vehicle'southward information on Nix for the note the value.
Finally, compare all the prices.

Annotation: The value of your car is what its worth on Jan. i. If yous are checking the value based on the miles on your car now chances are the value has decreased slightly from Jan. 1 when the country issued their assessment because there will be more miles on the machine. Post-obit the steps higher up may not be an exact comparison, but it gives a general idea of what's going on.

DO THE VALUES Add together Upwards?

Are the values from the unlike websites close beyond the board?

Does i service value your car at a higher rate than the rest?

If you're not happy with the results, again, yous can appeal the assessment.

Nosotros're interested to see if your car passed the valuation comparison test. Send your results to iteam@whas11.com.