Ever look at your Lexington tax assessment and wonder why it does not match recent sale prices in your neighborhood? You are not alone. Understanding how the Fayette County PVA values property can help you plan your budget, set a smarter list price, or make a stronger offer. In this guide, you will learn what the PVA does, how assessed value differs from market value, how taxes are calculated, and what to do if you disagree with your assessment. Let’s dive in.
PVA basics in Fayette County
The Property Valuation Administrator (PVA) is the county official who values all taxable real and personal property for ad valorem taxation. In Fayette County, the PVA’s figures are the starting point for property tax bills that local taxing bodies produce.
The PVA works within Kentucky law and receives oversight and guidance from the state. For statewide policies and background, review the Kentucky Department of Revenue’s resources on PVAs and property tax administration. You can find those details through the state’s website for statewide guidance from the Kentucky Department of Revenue.
Local taxing entities, such as the city and school district, set their own tax rates that are later applied to the PVA’s values. To find local links and property tools, visit the Lexington-Fayette Urban County Government site and search for PVA or property tax.
How assessments are done
County assessors use mass appraisal methods to value thousands of parcels consistently. Mass appraisal relies on standardized models rather than a custom appraisal for each home. You can read more about industry standards at the International Association of Assessing Officers (IAAO).
Typical data the PVA considers includes:
- Recent arm’s-length sales of comparable homes.
- Property record data such as lot size, square footage, year built, and improvements.
- Building cost information and replacement cost tables.
- Income or rent data for income-producing properties.
- Field inspections and property record cards.
PVAs produce assessment rolls annually, and counties follow a reappraisal cycle for broader updates. The valuation is set as of a specific “effective” date, which may precede current market conditions. For the most accurate dates and the current assessment calendar, check the Lexington-Fayette Urban County Government site and your assessment notice.
Assessed value vs. market value
Market value is the probable price a property would bring in an open, competitive sale under typical conditions. Assessed value is the PVA’s estimate used only for property taxation. These numbers often differ, and here is why:
- Methodology. The PVA uses mass appraisal modeling for consistency across the tax roll. A buyer and seller set price through an individual negotiation that includes unique motivations and short-term dynamics.
- Timing. Assessments use a set valuation date. Prices can rise or fall after that date, which creates a lag.
- Scope. Assessors may smooth out spikes or exclude certain non-market sales. Your home’s unique upgrades or condition can be more or less visible in a model.
- Exemptions and credits. Local programs can reduce taxable value even when the assessed value does not change.
- Appraisals vs. assessments. Lenders order property-specific appraisals to estimate current market value for a loan. PVAs estimate value for tax purposes and equity across all parcels.
It is normal for an assessed value to be higher or lower than a recent sale price. Remember, assessed value drives taxes, while market value drives what a home sells for and how lenders underwrite a loan. For foundational definitions and best practices, the IAAO provides widely used standards.
How property taxes are calculated
Your property tax bill is based on the taxable value multiplied by the combined tax rate (often called millage) set by local entities. A mill equals one dollar of tax for every $1,000 of taxable value.
Here is the basic flow:
- The PVA sets an assessed value for your parcel.
- Eligible exemptions or credits are applied, creating the taxable value.
- Local millage rates are applied to the taxable value to produce the tax due.
- Billing and collection follow local schedules.
If market prices jump, your tax bill does not automatically change. Taxes move when the PVA updates assessments or when local bodies adjust millage. You can explore local tax information and public notices on the Lexington-Fayette Urban County Government site. For state-level policy and definitions, the Kentucky Department of Revenue is the authoritative resource.
What to do if your value seems off
Start by reviewing your assessment notice and your property record card. Make sure the basics are correct: lot size, square footage, bed and bath count, and any listed improvements. Errors in these fields can affect value.
Next, compare sales. Gather three to five recent sales of similar nearby homes. Focus on similar size, age, and condition. If you have a recent independent appraisal, it can help too.
If the assessed value still looks high or low, contact the PVA office for an informal review. Be ready to share:
- A short list of recent comparable sales with addresses and sale prices.
- Photos that show condition, deferred maintenance, or unique features.
- A copy of any recent private appraisal.
- Notes on any errors in the record card.
If the informal review does not resolve it, you can file a formal appeal. Deadlines and required forms are set locally, so check your assessment notice and the Lexington-Fayette Urban County Government site for current instructions. You can also reference statewide rules through the Kentucky Department of Revenue.
Guidance for buyers
Do not assume a home’s assessed value equals its market value. Use current comparable sales, and consider ordering a private appraisal if you need extra confidence before you bid.
Estimate your carrying costs with taxes in mind. Look at the prior year’s bill, but also consider that values may change at the next cycle and that local millage can change. The sale itself can inform the PVA’s next update, even if it does not instantly reset the assessment.
If you are financing, remember that your lender will rely on a property-specific appraisal and not the PVA’s assessed value. The PVA’s number should be one data point in your broader analysis.
Guidance for sellers
Buyers and lenders will look at market comps and current appraisals, not just your assessed value. If your assessed value is lower than your list price, be prepared to present recent comparable sales and highlight upgrades, condition, and location features that support your pricing.
If your assessed value is higher than expected, it may become a talking point in negotiation. Make sure your property record is accurate and gather documentation that explains either unique upgrades or condition items that a mass model might not capture.
Guidance for investors and out-of-state owners
If you own rental property or you are managing an estate, treat assessed value as a planning metric. Confirm the property record data and look at local millage to forecast taxes. For income-producing assets, note that mass appraisal may consider income factors, but it will still generalize across many properties.
If you plan to contest an assessment, gather leases, income statements, and expense records along with comparable sales or a recent private appraisal. Check appeal windows early in the calendar year so you do not miss a deadline.
Quick local resources
Use these official sources to validate information and find forms:
- Kentucky Department of Revenue for statewide statutes, assessment guidance, and PVA program information.
- Lexington-Fayette Urban County Government for local property tools, PVA contact links, and public notices on tax rates.
- International Association of Assessing Officers (IAAO) for plain-language standards on market value and mass appraisal.
Put local expertise to work
Navigating assessments, taxes, and market pricing is easier with a local advisor who pairs data with on-the-ground insight. If you are buying, selling, or reviewing your tax assessment in Lexington, reach out to Thaddeus Blevins for a clear plan, neighborhood-level comps, and a smooth process from first question to closing.
FAQs
What does the Fayette County PVA do?
- The PVA estimates the value of all taxable property for ad valorem taxes, maintains records, and provides the values that local taxing bodies use to create bills; statewide oversight comes from the Kentucky Department of Revenue.
Why is my Lexington assessed value different from market value?
- Assessments use mass appraisal models and a set valuation date, while market value reflects individual buyer and seller decisions in real time; the IAAO explains these differences in standard definitions.
How are Lexington property taxes calculated?
- Taxes equal taxable value multiplied by the combined local millage; the PVA sets assessed value, exemptions adjust it to taxable value, and local entities set rates listed through the Lexington-Fayette Urban County Government.
Does selling my home reset the PVA assessment in Fayette County?
- Not automatically; sale data informs the PVA and may trigger a review for the next cycle, but updates follow the county’s assessment schedule and state rules outlined by the Kentucky Department of Revenue.
Can I appeal my Fayette County assessment if I sold for less?
- Yes; provide your sale documentation and context, along with any appraisal or photos, and follow the filing window and steps posted on the Lexington-Fayette Urban County Government site.
Does the PVA’s value affect my mortgage appraisal in Lexington?
- No; lenders rely on property-specific appraisals that estimate current market value for underwriting, while the PVA’s assessment is used only for taxes and equity across the roll.
