Kentucky PVA Association moves priority bill out of committee today

HB 260, sponsored by Reps. Randy Bridges, Shawn McPherson and William Lawrence, would amend state statute to ensure that proper appraisal practices are being used in the Commonwealth.

The bill reinforces the roles and abilities of Property Valuation Administrators in relation to valuing buildings and land owned by big box stores. These stores have allegedly compared dissimilar properties in tax appeal appraisals to their advantage, falsely claiming that vacant, closed properties are comparable to active, vibrant on-going businesses.

Henderson County PVA and Kentucky PVA Association President Andrew Powell testified on HB 260 during a meeting of the House Appropriations and Revenue Committee.

“The use of these ‘dark store’ appraisals is an apples to oranges comparison that HB 260 seeks to eliminate,” said PVA Association President Andrew Powell.

In 2021, 18 Lowes and Home Depot stores appealed assessments to their local county boards in a number of Kentucky counties. Most if not all of these assessments were the same as the prior year’s assessment. Eleven of the 18 went on to the State Board of Tax Appeals, with several being represented by the same set of attorneys and out-of-state appraisers. Empty buildings and land in other states are being used as comparable to vibrant and active stores in Kentucky.

If this strategy were to prove successful in Kentucky, the individual commercial assessments of these stores would decline. This means residential, farm and small business owners in the county would have to make up the difference through higher tax rates.