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Do Property Assessors In Kentucky Value Residential Property At Fair Market Value?, Brian Smith
Do Property Assessors In Kentucky Value Residential Property At Fair Market Value?, Brian Smith
MPA/MPP/MPFM Capstone Projects
Assessors are required, as mandated by the Kentucky State Constitution and KRS 132.690, to assess property at 100 percent of fair market value. Fair market value is defined as the price a seller would expect to receive in an open and competitive market. Evidence from data and analysis in this paper indicates that property is under-assessed by approximately 25 percent. Though urban areas assess at a slightly higher rate, this is offset by rural areas, which do a significantly poorer job. This has important implications for local communities in Kentucky that depend on property tax revenue in order to provide …