Kentucky has had a tax on property since June 1, 1792, the date the State was created.

The Department of Revenue was created in 1936 to administer all state taxes.

In 1965 the Kentucky Court of Appeals ruled in the Russman vs. Luckett case that the full cash value standard must be adhered to.

The Finance and Administration Cabinet is one of the administrative agencies of the executive branch of state government. The Department of Revenue is one of seven departments within the Finance and Administration Cabinet. The Office of Property Valuation is within the Department of Revenue. The department is comprised of the Commissioner’s Office plus three divisions:

  • • State Valuation
  • • Local Valuation
  • • Minerals Taxation and GIS Services

In 1990 the General Assembly as part of the Kentucky Educational Reform Act (KERA) mandated that all real property be assessed at 100% of Fair Cash Value.

Property tax is an ad valorem tax, which means according to value.