Kentucky Gov. Andy Beshear announced that he is providing immediate vehicle property tax relief and proposed a temporary 1% drop in the state sales tax.
“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.”
Sales Tax Rate Reduction & Vehicle Property Tax Relief
Kentucky saw an all-time record-setting budget surplus in fiscal year 2021 and enters 2022 with an estimated $1.9 billion more than budgeted. In an effort to pass along the surge in revenue, the Governor signed an executive order that will stop an increase in vehicle property taxes caused by the substantial increase in used car values.
In addition, he proposed a temporary decrease to the sales tax rate. Some of the items purchased that will benefit form the sales tax rate reduction are building and hardware materials.