Statutory Committees, Navigating Property Tax Challenges, and Certificate of Need
Last week, a number of statutory committees held their inaugural meetings of the legislative interim. In short, a statutory committee is a body created by state law that often has more specific goals and is typically smaller in size than interim joint committees. What also makes these committees unique is their membership, as many are composed of not just state legislators, but also public officials and citizen members.
The following five statutory committees met last week: Government Contract Review Committee; Administrative Regulation Review Subcommittee; Investments in IT Improvement and Modernization Projects Oversight Board; Tobacco Settlement Agreement Fund Oversight Committee; and the Legislative Oversight and Investigations Committee.
Alongside the aforementioned regular business being conducted in Frankfort, I have also noted that in many community discussions the issue of property valuation and taxes has been raised. This week, I would like to take a moment to explain a bit about how property valuation works.
In Kentucky, all counties have a general county rate set by the fiscal court and a school district tax rate set by the local school board. The amount that you are paying in property taxes each year depends on two things, the assessed value of your property and the tax rates. State law requires the state real property tax rate to be reduced anytime the statewide total of real property assessments exceeds the previous year’s assessment totals by more than 4%. Each county is responsible for determining the property tax districts that will be in effect.
You may have recently received a notice in the mail from the property valuation administrator (PVA) telling you that there is an increase in the assessed value of your property. All property owners have the right to appeal the assessed value of their property; however, certain steps must be followed. This first step is a property owner wishing to appeal their assessment must hold a conference with the PVA office. In order to meet the requirements of a conference, property owners must submit “Burden of Proof” along with their review request. During the conference process, property owners must provide documentation that supports their opinion of the property’s value.
If an agreement cannot be reached as a result of the PVA conference, property owners may appeal to the county board of assessment appeals (BAA). The BAA is independent of the PVA office and is directed by the county clerk’s office. Finally, an additional appeal to the Kentucky Board of Tax Appeals (KBTA) is available to anyone who remains dissatisfied with their assessment after having gone through the BAA process. The KBTA is a body detached from any taxing authority that provides an independent, impartial, and neutral forum for hearing and resolving disputes on tax issues.
Another topic that is once again at the forefront of our discussions in Frankfort is certificate of need. This Thursday, June 20, the Interim Joint Committee on Licensing, Occupations, and Administrative Regulations is meeting at 11 a.m. to hear testimony regarding certificate of need. As many of you know, since taking office I have made the reformation of this process one of my highest legislative priorities for not just the people of our region but for those seeking care across the commonwealth. By instituting a few key changes, we would be granting the opportunity for the free market to work and provide a more robust and vibrant healthcare model that would be accessible to all Kentuckians.