Tax Brake: Lawmakers want to prevent classic car owners from getting hit with double bill
02/04/2014 03:06 PM
The House Transportation Committee chairman is pushing a bill to give a break to people who own old cars and to preemptively prevent those who restore classic vehicles from being taxed twice.
House Bill 94, sponsored by Rep. Hubert Collins, D-Wittensville, would lower the taxable value of any vehicle 20 years old or older — whether restored or not. Under Collins’ bill, the value would drop 10 percent each year to a minimum of $250. The measure on Tuesday passed out of the committee Collins chairs.
Collins says that the bill is aimed at keeping classic car owners from being taxed twice — the parts they buy to restore the cars and a potentially increased value of the restored car.
But Collins acknowledged that Kentucky’s current tax system uses the book value for cars, which wouldn’t take into consideration the financial effect of improvements or restorations to a classic car. But he wants to protect show car owners from the law changing in the future to add taxable value to those cars.
“They’ve spent a lot of money on these vehicles,” Collins said. “We don’t think they should be overcharged on taxes just because they were willing to spend their money and make a show piece out of something.”
Two members of the House Committee on Transportation — Rep. Arnold Simpson, D-Covington and Rep. Tim Couch, R-Hyden — passed while Rep. Jimmie Lee, D-Elizabethtown and Rep. Addia Wuchner, R-Burlington, abstained because they either owned classic cars or are in the classic car business.
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