(WCLU NEWS FILE PHOTO)
GLASGOW — Gov. Andy Beshear signed an executive order Wednesday, which will provide partial refunds to those who’ve paid vehicle motor property taxes this year.
The move comes after a period of widespread inflation. The rate last year was a record 7%.
“The last two years have been tough, and we’re now experiencing the most significant inflation that we’ve seen in decades,” Beshear said. “That makes it tougher for our families to get by.”
The Kentucky House of Representatives drafted a bill earlier this month to mitigate the issue with increased vehicle valuations. Vehicle values increased nearly 40% after most production and sales halted in 2020 due to the pandemic. Resell values of used vehicles also saw a record increase.
The bill moved from the House with unanimous approval. It moved to the Senate and to their Appropriations and Revenue Committee. The committee took no action at its meeting Wednesday morning.
“I’ve had enough. We’ve all had enough,” Beshear said. “That’s why today I’m providing relief on vehicle property taxes.”
The order was signed Wednesday, and Beshear noted it was effective immediately. Refunds will be administered from county clerks’ offices, he said. Sales tax collection reductions were included in the order, too.
Beshear also detailed a proposal to reduce the state sales tax to 5% for two years. Angie Hatton, state representative, joined the initiative. The Kentucky General Assembly has the power to reduce the sales tax.
The order is expected to generate $340 million in savings to Kentuckians. The total could increase to $1.2 billion if the sales tax is reduced.
