Cars generic.jpeg

LOUISVILLE, Ky. (WDRB) -- When you renew your Kentucky vehicle registration this year, be prepared to pay more.

According to a letter from the state's Office of Property Valuation sent out to clerk's offices this week, the value of vehicles this year, compared to last year, is up about 40%, which will increase the cost you pay for your registration.

The letter states supply-and-demand issues for new and used cars, and higher selling prices are driving up the value of vehicles.

The new assessments, the letter said, "reflect the unprecedented rising value of most motor vehicles as documented by numerous news reports in 2021."

"While these valuation increases result in a higher resale value for the consumer, they also translate into higher property tax bills," the letter reads.

The property tax on a vehicle is determined by what the state calls a fair cash value, if you sold the vehicle. The letter said the new values "represent the Department of Revenue's effort to uphold that standard."

Copyright 2022 WDRB Media. All Rights Reserved.