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How Real Estate Taxes Work in Kentucky


One of the most confusing parts of a real estate transaction is who pays the property taxes, when those taxes are due, how to pay the taxes, and how much tax will be due. I hope this guide will help you understand how the process works. 

 

ASSESSMENT DATE/CALCULATION OF TAXES

 

In Kentucky, taxes are assessed each year on January 1 by the local Property Valuation Assessor. The property owner of record on January 1 is the person in whose name the tax bill will be issued. This means that if you buy your property in the middle of the year, the tax bill will come out in the name of the prior owner and NOT your name. Hopefully you will receive the tax bill at the proper address, but it is a very real possibility that you may not.

 

Keep in mind that it is the buyer's obligation to determine what taxes are due and to pay them at the end of the year. If you buy property, you cannot depend on the PVA and Sheriff to send you the tax bill. You need to affirmatively seek out the taxes you owe and pay them in a timely manner.

 

The PVA calculates the tax bill based on the tax rate applicable to the property in question. For instance, if you live in the city limits of Murray, your tax rate is different than if you live in Hazel. And each city and county has its own tax rate as well. Marshall County's tax rate is going to be slightly different based on whether you live in Benton or Calvert City. And Graves County's rate is going to be different from Lyon County's rate.

 

Here are the links to the various PVA offices to help you determine what your tax liability will be. 

 

Calloway County PVA

 

Marshall County PVA

 

Graves County PVA

 

Lyon County PVA

 

Trigg County PVA

 

 

TIMELINE FOR MAILING OF TAX BILLS AND PAYMENT WITHOUT PENALTY

 

After calculating the amount due on each bill, the PVA has a record of the taxpayer and sends out the tax bills to the last known address for each taxpayer in the fall of each year.

 

Here in Calloway County, the tax bills are sent out on October 15 and can be paid with a discount by November 15. The deadline to pay without penalty is December 31, and the Calloway County Sheriff's Department here in Murray even has access to the current year's tax bills online at its website.

 

For instance, in Marshall County, the tax bills are sent out on October 1 and can be paid with a discount until November 1. The deadline to pay the tax bills without penalty remains December 31. You may pay your tax bill by mail or in person at the office of the Marshall County Sheriff in Benton, Kentucky.

 

If you live in Graves County, your tax bills will run on the same timeline as Marshall County. The bills will be sent out around October 1 and can be paid with a discount until November 1. As long as you pay your tax bill to the Graves County Sheriff in Mayfield on or before December 31, there will be no penalty. 

 

Most of the surrounding counties are on a similar schedule. If you live in Western Kentucky, Trigg County taxes can be paid to the Trigg County Sheriff in Cadiz, and Lyon County taxes can be paid to the Lyon County Sheriff in Eddyville.

 

WHO IS RESPONSIBLE FOR PAYING TAXES AT CLOSING?

 

Now that we know when the taxes are due, how to find out how much is owed, and where we go to pay our taxes, the question always arises - who is responsible for paying the taxes at closing?

 

Unless instructed otherwise, I will prorate the taxes due at each closing I conduct. This means that for most of the year, the seller will pay the buyer an amount equal to the estimated portion of their taxes for the year, as of the date of closing. Until the tax bills come out, we don't actually pay the taxes due at closing, we just give the buyer the seller's portion so the buyer can pay them when the tax bills are out.

 

From the time the tax bills are sent out in October until the end of the year, at closing I will either pay the taxes due and prorate the amount between buyer and seller OR give seller a credit for the taxes which they have already paid. If you are selling property during this time of year, please be in communication with our office so that we can determine whether we will pay taxes at closing or if you are going to pay them ahead of closing.

 

I hope this guide has been beneficial in helping you understand how real estate taxes work in Western Kentucky. After closing thousands of real estate transactions over the years, I would love to be the real estate attorney who helps you close on your next property. Feel free to call me at 270-761-4558 or email me at greg@gregtaylorlaw.com if you have any questions that I did not cover in this guide.

 
 

Learn more about How Real Estate Taxes Work in Kentucky here

Real Estate Law


Greg has an active real estate practice and is able to meet all your real estate needs. Whether it is drafting the sales contract, preparing the deed, performing a title opinion, or closing a transaction, Greg can assist you in a timely and courteous manner. If you desire title insurance, Greg is also an agent for both Old Republic Title Insurance Company and First American Title Insurance company and can provide you with that insurance at a reasonable rate.

 

Greg is licensed in both Kentucky and Tennessee and provides title services throughout both states. Being located in Murray, Greg is able to quickly perform title work in Marshall County, Graves County, McCracken County and Trigg County in addition to Calloway County. Over the years, Greg has served many happy clients from Benton, Calvert City, Mayfield and Cadiz as well as right here in Murray. For more information on Mayfield and Graves County real estate, please check out the Mayfield and Graves County information page that we have put together.

 

The firm also provides 1031 Exchange services which can be beneficial to investors looking to sell or trade their investment properties. For more information on 1031 Exchanges, visit the IRS 1031 Exchange information page.

Since Greg is an active real estate investor himself, he is able and willing to tackle any complex real estate transaction which you might have. There are many resources available on this site to help you learn more about the real estate process. If you are looking to buy a home, take a look at our Buying A Home and Selling Your Home guides, which provide you with some great information you need for a successful transaction.

 

Lastly, if you are looking to buy or sell, Greg has put together a great overview of how real estate taxes work in Kentucky that will acquaint you with what to expect when it comes to your taxes


Learn more about Real Estate Law here

Estate Planning


Greg is a skilled estate planning advisor and can assist you in making a sound estate plan that fits in with your overall financial goals. In addition to helping you plan, Greg can handle the entire process for you.

The initial step is drafting the Will, Living Will, Power of Attorney, or Trust documents needed. Greg is skilled in these areas and keeps up with the ever-changing laws in this arena, and is even a former adjunct professor teaching Estate Planning for Financial Planners at Murray State University.

In addition to drafting the documents, Greg can assist you with maintaining estate tax planning goals as well as charitable and lifetime gifting plans.


For a look at some of the commonly asked questions regarding estate planning, visit the Will FAQ here or our Living Trust FAQ here.

 


Learn more about Estate Planning here

Mayfield and Graves County Real Estate Information


If you are thinking about buying or selling real estate in Mayfield, Kentucky or really anywhere in Graves County, we hope this page will be a resource to help you out.

 

Throughout his years as a real estate attorney, Greg has had the privilege to assist hundreds of clients in Mayfield and throughout Graves County with buying and selling their homes, businesses and farm land. Here are some of the local resources that you can use to help you make a buying or selling decision.

 

The first place that to start when looking for information on a piece of property is the Property Valuation Assessor's office. The Graves County PVA is very accessible and friendly and will help you out. At that office, they can give you the assessed taxable value as well as many other helpful pieces of information such as the square footage and acreage associated with the property.

 

Next, if you have a question relating to the title to the real estate, you would go to the Graves County Clerk's Office for information. Both the PVA and the clerk are located in the courthouse in downtown Mayfield. The County Clerk's office is super helpful and will help you copy a deed, easement or plat as needed. The County Clerk also has delinquent property tax information.

 

Last, you are looking for information regarding the current year's taxes, you will need to contact the Graves County Sheriff.  Their office is right across from the PVA office, so you can get a lot of information with one stop to the courthouse.

 

If you do not have a specific property in mind and are looking for help with the buying process, the Mayfield-Graves County Board of Realtors is a good place to start. There you can connect with qualified local real estate professionals who can help you find what you are looking for.

 

If you are new to the area or are looking to locate in Mayfield, Farmington, Symsonia, Sedalia or one of the other towns in Graves County, then the Mayfield Graves County Chamber of Commerce has several resources and people to welcome you to the area.

 

Practicing real estate law in a town like Mayfield has so many rewards. Working with good people and developing long lasting relationships are among the many benefits of staying home to practice law.

 

We hope this information has been beneficial. After closing thousands of real estate transactions over the years, Greg would love to be the real estate attorney who helps you close on your next property. Feel free to call the office at 270-761-4558 or email Greg at greg@gregtaylorlaw.com to talk to him any time.

 
 

Learn more about Mayfield and Graves County Real Estate Information here

Probate Law


After a loved one has passed away, the time comes to administer the estate. This can be a painful time and many people desire assistance navigating the complex court process associated with probating the Will and administering an estate.

Greg can handle the entire probate process for you, from proving the Will and getting an Administrator or Executor appointed to final settlement and distribution of the estate assets.

 

Many times the process is more complicated than people realize and, after probating hundreds of estates over the years, Greg has the experience necessary to guide you through the process with compassion and understanding. For a more complex estate, Greg can even assist with post mortem planning and tax elections.

 

In general, there are three stages to probate. First, a hearing is held on the petition to open the estate, and an Administrator or Executor is appointed. Next, the Administrator or Executor marshalls the assets of the estate and reports back to the court on what assets he or she has discovered. This is called filing the Inventory of the estate. Finally, after all creditors have had six months to file any claims against the estate, the Administrator or Executor will pay any claims and then finalize the estate by paying the heirs.

 

If you are involved in a probate case and run into something that you are unsure how to handle, please give our firm a call. You will find that we are courteous and trustworthy, and able to provide you with excellent service.


Learn more about Probate Law here

Corporate Law


Greg can assist you with forming your corporation or LLC and can make sure that your corporate records are up to date and in compliance with state and federal laws. For more information about these subjects, click one of the links below:

Forming a C Corporation or S Corporation
Forming a Limited Liability Company

In addition to helping you form your company, Greg has received training in asset protection for people with extensive business interests. Holding assets in the correct corporate form can save business owners a lot of money in taxes and shield their assets from collection should a catastrophic event occur.


Learn more about Corporate Law here

Adoption


Adoptions are one of the most joyous events in an adoptive parent's life. However, the adoption process can become quite complicated and you will need an experienced attorney to help you. For more information about common adoption procedures, see our Adoption Procedures page here. Greg has experience in helping families like yours complete the legal steps necessary to bring home their new child. Please call us to schedule an appointment. We love helping you adopt!


Learn more about Adoption here

Asset Protection


For high net worth individuals, protecting the assets that you have worked for over a lifetime is an important piece of financial planning. Greg has experience in assisting clients with evaluation of their portfolio and structuring a business entity and insurance plan that will provide maximum protection should unforeseen disaster strike.

 

If you are an individual with significant assets in your own name, you need to develop an asset protection plan. Please call us any time and we'd be happy to discuss your various asset protection options. Many times, trusts, Limited Liability Companies, and/or Corporations can be established to provide a layer of protection and, combined with other planning, will provide peace of mind to wealthy individuals.


Learn more about Asset Protection here

Debt Collection


Greg is an experienced debt collection attorney and has a background in obtaining judgments, filing garnishments, and maximizing client returns. With a well-trained staff of legal collection experts helping him, Greg is able to tackle even large-scale debt collection projects.

Greg is licensed in both Kentucky and Tennessee, and can assist you with evaluating potential debt purchases or other debt investment opportunities.

Please call 270-761-4558 or email at greg@gregtaylorlaw.com if you would like to speak with Greg about getting maximum returns on your outstanding debt.


Learn more about Debt Collection here

Lien Collection


For the past seven years, Greg has been assisting people with the acquisition and collection of Certificates of Delinquency (better known as tax liens) in Kentucky. For a recap of the current state of Kentucky law with regard to Certificates of Delinquency, see our 2015 Certificate of Delinquency Update here.

When it comes to collecting these tax liens, Greg has a refined process of collection that ensures a very high rate of collection for the owner of the Certificate of Delinquency. In addition, Greg strives to treat each delinquent taxpayer with respect and courtesy throughout the process. With the laws changing frequently in the Certificate of Delinquency arena, you need someone on your side who can make sure that you follow the letter of the law. Greg is that person when it comes to Kentucky Certificates of Delinquency.


Learn more about Lien Collection here