Despite their best efforts, government officials sometimes get it wrong when assessing the value of your commercial real estate for tax purposes. Here’s why. First, your local Property Valuation Administrator (PVA) is charged with appraising tens of thousands of properties within each county. Faced with such a task and having limited resources available, it would be nearly impossible to accurately assess the value of each individual parcel. They, therefore, are forced to use mass appraisal techniques that sometimes fail to reflect individual property characteristics resulting in an over assessment of your commercial real estate.
Because your real estate taxes are ad valorem (that’s the Latin word for “according to value”), an over assessment could result in real estate taxes that are too high. Fortunately, there’s a solution. The State of Kentucky has in place an appeals process. To read details of the appeal process, click here.
In my experience, the taxing authorities have done a pretty good job at accurately assessing the value of commercial real estate in Kentucky. However, there are those occasions when the government just plain gets it wrong. If you have a legitimate disagreement with your local PVA and need an appraisal written by an expert with MAI credentials, I’m here to help.