A Guide to Real Property Tax Assessment Appeal Hearings before the Kentucky Board of Tax Appeals

It is important that you read the entire guide.

This guide is intended to help you prepare for your hearing before the Kentucky Board of Tax Appeals and to inform you of the important facts and issues which the board must consider in rendering its decision in your appeal. This guide is not a legal or technical document and is issued for general information purposes only. For legal or technical detailed information, you should consult an attorney. You may also wish to review the following: KRS Chapter 13B, which governs the conduct of administrative hearings before the board; selected portions of KRS Chapters 131-133 which include provisions specifying real property tax appeal procedure; and 802 Kentucky Administrative Regulations (KAR) 1:010, which state the rules of practice and procedure before the board.

A taxpayer who has appealed a local board decision is sent a tax bill by the county sheriff based on the owner’s opinion of the value of the property. This is NOT an indication that the Property Valuation Administrator (PVA) agrees with that value and the taxpayer should NOT consider this an indication that his or her appeal has been settled. If the board concludes that the taxpayer’s opinion of value was low, the county sheriff sends out a supplemental tax bill for the difference, plus interest.

General Nature of the Hearing

Hearings before the board are formal and open to the public. Testimony presented to the board is given under oath, and all testimony at the hearing will be recorded. You may obtain a copy of the hearing transcript from the court reporter after payment of a transcription fee.

Corporations, trusts, estates, partnerships, the pva, the Department of Revenue and any artificial entity are REQUIRED BY LAW to be represented by an attorney. ANY ARTIFICIAL ENTITY APPEARING WITHOUT AN ATTORNEY WILL BE SUBJECT TO LOSING THE APPEAL BY DEFAULT. A party represented by an attorney in proceedings before the board shall have his attorney file an entry of appearance within 30 days after the date on which the petition of appeal is filed. However, an appellant's attorney shall not be required to file an entry of appearance if he filed the petition of appeal on behalf of the appellant.

At the hearing, the appellant presents his case first. The appellant may present his case by offering his testimony, the testimony of witnesses and evidence that supports his case. The opposing party, called the appellee, then has the opportunity to question or cross-examine the appellant and his witnesses concerning their testimony and evidence. After any cross-examination, the appellee presents testimony and evidence in support of his position. The appellant will also have the opportunity to question the appellee or his witnesses concerning their testimony and evidence. Board members or the hearing officer also may ask questions of the parties or their witnesses.

The board’s file contains only those documents sent to this office by you or your legal representative. Documents provided to the PVA or the local board of assessment appeals are not included in the board’s file. Both parties should provide at least one copy of any original document, including any photograph, which is to be placed into evidence for the consideration of the board or the hearing officer, unless a party desires to submit the original document into evidence. This includes any property record cards from which a representative of the PVA may testify at the hearing. ORIGINALS WILL NOT BE RETURNED ONCE THEY BECOME PART OF THE HEARING’S RECORD OF EVIDENCE.

Your appeal will be heard by one or more members of the three-member board or by the board’s hearing officer. The board is an independent agency of the commonwealth. Members or employees of the board are neither employed by nor connected with the local PVA, the County Board of Assessment Appeals or the Kentucky Department of Revenue. The board members or hearing officer hearing your appeal acts similar to a judge in a courtroom, and testimony or evidence should be directed to the board members or hearing officer hearing the case. General courtroom decorum will be observed during hearings.

Questions the Board Can Decide

Section 172 of the Kentucky Constitution requires that all property be assessed for taxation at its fair cash value, estimated at the price it would bring at a fair voluntary sale. Thus, the board’s primary function is to determine the fair market value of the particular property which is the subject of the appeal, based upon the evidence presented to the board at the hearing. The board does not decide questions of equalization among assessments. In other words, the board does not decide whether your property’s assessment is too high relative to the assessments of your neighbors’ property. Rather, the board decides only whether your property tax assessment equals fair market value.

Helpful Evidence for Your Appeal

The board’s determination of the fair market value of your property is based solely upon the evidence presented at your hearing. The testimony or evidence that you present to the board at your hearing should indicate the fair market value of your property on Jan. 1 of the tax year at issue. The following examples of evidence assist the board in determining the value of your property:

1. Description of the property. You should be prepared to describe the property in question. Your description should include: the size and condition of the property, the type of buildings on the property, the size and condition of the buildings and any improvements to the property, such as a basement or garage. You may also be asked to give the amount for which the property is mortgaged or insured.
   
2. Recent appraisal of the property by an experienced appraiser. You may present a recent appraisal of your property made by someone with experience in appraising real estate.
   
3. Sales of comparable property. You may present evidence of recent sales (not assessments) of properties comparable to your property to indicate the value of your property. Sales of comparable properties should be similar to your property in size, condition, location and types of improvements. The sales should have occurred within one to two years of the assessment date in question. Additionally, the sales should be arms-length, voluntary transactions, e.g., sales were not between family members.
   
4. Rental income. You may present records relating to income and expenditures if the property on appeal is used as rental property.
   
5. Purchase price. You may present information regarding the price of the property if it was purchased recently.

These types of evidence tend to indicate the price your property would bring in a fair voluntary sale on the assessment date in question. You may introduce evidence of this nature through your own testimony or through the testimony of witnesses.

BEFORE YOUR APPEAL IS SET FOR HEARING, KEEP IN MIND:

1. Each appeal filed is for a single year’s property tax bill and assessment. Filing an appeal for one year does not allow the board to consider either the years before or the years after that appeal. An appeal must be filed for each year the taxpayer disagrees with the assessment.
   
2. Whenever a party files a document or letter with the board, a copy of the document must also be sent to the opposing party’s attorney. KRS 133.120 (11) states that the county attorney shall represent the PVA or arrange for substitute representation. The document must note that a copy has been provided to the opposing party.
   
3. If you are unable to attend the hearing on the assigned date, you must request a continuance in writing from the board prior to that date. Failure to request a continuance in writing could result in a default judgment against you.

If you have any questions about your hearing, write or call the Kentucky Board of Tax Appeals.