FRANKFORT – Gov. Andy Beshear on Wednesday announced two actions to help Kentuckians and small businesses who are having to deal with the highest inflation rate the country has seen in at least 40 years.
During a Capitol press conference, the governor said, “We have all had enough, and today I am doing something about it, by providing immediate vehicle property tax relief and proposing a cut in the sales tax.”
Beshear signed an executive order, that will stop an increase in vehicle property taxes caused by soaring used car values, which in Kentucky rose approximately 40% since last year, by immediately freezing the appraised value for vehicles at last year’s rate, through 2023.
“The property valuation for the average motor vehicle in Kentucky rose from $8,006 to $11,162, in just one year,” he said. “That abrupt change warrants this action.”
The General Assembly has a measure being considered, Senate Joint Resolution 99, which says the governor has the power to roll-back the motor vehicle appraised rate, so Beshear said he was taking the action immediately, even before the House considers the resolution.
He also announced, “My administration is working with House Democratic Whip Angie Hatton, who will be filing legislation to temporarily cut the state sales tax from 6% to 5% during the next fiscal year, July 1, 2022, until June 30, 2023. We’ll be able to determine during the legislative session next year, to determine where we are, where inflation is, to consider further lengthening the cut at that time.”
Beshear says the two actions would result in an estimated $1.2 billion savings to Kentuckians: $340 million in the property tax relief, and $873 million with the sales tax cut.