| The PVA office is a state office with county
jurisdiction. The PVA is a locally elected official who's duty is appraising
all property, both real and personal, that lies in Johnson County. There
are some exception such as public service companies, bank shares and omitted
tangible property which are valued by the state Revenue Cabinet.
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 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.
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, schools, governmental
buildings, etc. Formal application must be made with the PVA office before
any exemption can be granted.
Real property, by definition, includes:
Residential lots and acreage including improvements.
Farms or acreage, including improvements.
Commercial and industrial lots and acreage, including
improvements.
Mineral (oil, gas, coal, etc.) and timber properties,
including the rights conveyed to these types of property, both developed
and undeveloped.
Tangible Personal Property, by definition,
includes:
Physical items which are the subject of ownership,
excepting real and intangible property. Non-business, personal household
items, livestock, etc. are excluded.
Generally, tangible personal property is always attributed
to property used in a business. Some specific items of businesses that
are subject to valuation by the PVA are tools, furniture, fixtures, inventories,
goods in process, manufacturing equipment and machinery, etc. For tangible
personal property of this type, there are prescribed forms that must be
completed by the taxpayer
The PVA office must use all legal means at
their disposal in order to arrive at the fair cash value. This includes
sales and cost data, physical inspection, financial data, audits, etc.
Statutes further require the PVA to revalue property
on an annual (January 1) basis in order to maintain fair cash value assessments
for both old and new property. Much of this "maintenance of assessments"
is conducted by use of computer generated model data. In addition, the
PVA must physically examine all parcels in the county every four years
so that verification of previously generated values and improvement data
are accurate. |