Sales & Use Taxes
Sales and Use Tax: A state sales and use tax is levied at the rate of 6.0% on the purchase or lease price of taxable goods and on utility services. Local sales taxes are not levied in Kentucky.
State and Local Property Taxes
State and Local Property Taxes: The Kentucky Constitution requires the state to tax all classes of taxable property, and state statutes allow local jurisdictions to tax only a few classes. All locally taxed property is subject to county taxes and school district taxes (either a county school district or an independent school district). Property located inside the city limits may also be subject to city property taxes. Property assessments in Kentucky are at 100% fair cash value. Accounts receivables are taxed at 85% of face value. Special local taxing jurisdictions (fire protection districts, watershed districts, and sanitation districts) levy taxes within their operating areas (usually a small portion of community or county).
State Property Tax Rates Per $100 Valuation, 2005
| Selected Classes of Property |
State Rate 2005 |
Local Taxation Permitted |
|
Real Estate
|
$0.131
|
Yes
|
|
Manufacturing Machinery
|
0.150
|
No
|
|
Pollution Control Equipment
Inventories
|
0.150
|
No
|
|
Raw Materials
|
0.050
|
No
|
|
Goods in Process
|
0.050
|
No
|
|
Finished Goods
|
0.050
|
Yes
|
|
Motor Vehicles
|
0.450
|
Yes
|
|
Other Tangible Personal Property
|
0.450
|
Yes
|
|
Intangibles (Accounts Receivable, Money on Hand)
|
0.250
|
No
|
|
Source: Kentucky Revenue Cabinet.
|
|
|
Local Property Tax Rates Per $100 Valuation, 2005
| Taxing Jurisdiction |
Real Estate |
Finished Goods & Tangibles |
Motor Vehicles |
|
Bell County
|
$0.2590
|
$0.2652
|
$0.2314
|
|
Middlesboro
|
0.0800
|
0.2320
|
0.2320
|
|
Pineville
|
0.3150
|
0.3150
|
0.3150
|
|
|
|
|
|
|
School Districts
|
|
|
|
|
Bell County
|
0.4350
|
0.4350
|
0.5660
|
|
Middlesboro Independent
|
0.4780
|
0.4780
|
0.5600
|
|
Pineville Independent
|
0.4670
|
0.4670
|
0.5530
|
|
Source: Kentucky Revenue Cabinet.
|