Car Tax Loophole Still Intact For Some
Frankfort, KY – People who took advantage of a loophole allowing them to avoid paying a year's worth of property taxes on vehicles don't owe the tax.
The Supreme Court ruled the loophole was the general assembly's fault.
Property taxes are assessed against the vehicle owner on January 1st of each year. But a separate statute allows buyers 15 days to register their vehicles. So, people who bought cars in mid to late December did not have to register their vehicles until after January 1st and could avoid the property tax.
The revenue cabinet said there were 6,000 to 8,000 vehicles from the 1995 tax year to 2002 that improperly avoided the tax. The law was changed in 2002.