Consolidated and Joint Returns
| Instructions for Tangible Property |
This page will allow you to download the tangible tax return forms, instructions for those forms, and the rates for each class of property.
Click here to download Tangible Tax Return Forms and Instructions.
These instructions have been designed to assist taxpayers in preparing the Tangible Personal Property Tax Return, Revenue Form 62A500. These instructions are meant to give the property owner a brief guide to the return form, if more information is needed please contact the PVA office at (859)392-1750 or the Revenue Cabinet - Department of Property Taxation - Division of State Valuation - Frankfort - Kentucky - 40620.
For more information on items listed below, please click on the topic of choice:
All individuals, partnerships, corporations and other business entities owning, leasing or having a beneficial interest in taxable tangible property which is located within Kentucky on January 1 must file a tangible property tax return.
The assessment date for all tangible personal property is January 1.
A tangible property tax return must be filed for each location and business activity at which tangible property is located within Kentucky except for lessees whose tangible property is are contained under the section titled Lessors and Lessees of Tangible Personal Property.
The return should indicate the location of the given as the property within the appropriate county. A post office box may not be given as the property address.
The return must be filed with the PVA in the county of the taxable status or with the Department of Property Taxation each year between January 1 and May 15.
Consolidated and Joint Returns
Consolidated and joint return are not permitted for Kentucky property tax purposes. A return must be filed for each location and business activity where an entity has tangible personal property.
Tangible personal property is defined as every tangible thing which is the subject of ownership, excepting real and intangible property.
Depreciable assets should be listed in the appropriate schedule be taxing district at fair cash value, which may be greater or less tan book value, as of assessment date.
Lessors and Lessees of Tangible Personal Property
Lessors of tangible personal property must file Revenue Form 62A500 within the PVA in each county where property is located. The return must contain the name of the lessee, the location of the property, year of purchase, original cost, class of property and fair market value.
Leased property must be listed by the owner, regardless of the terms of the lease agreement concerning tax liability.
Kentucky law requires inventories to be listed at fair cash value. As such, inventories must be reported utilizing full absorption first-in-first-out (FIFO) costing.
The value of manufacturing inventories must include all factory burden and overhead costs attributable to the manufacturing facilities and process.
The value of merchandising inventory must include the costs to acquire the inventory, taxes and freight.
Automobile dealers should report all vehicles whether new, used, dealer assigned, titled, untitled, registered and unregistered that are held for sale as motor vehicle inventory.
Farming Equipment and Livestock
All farm implements, farm machinery and livestock owned by or leased to a person actually engaged in farming and used in their farm operations are subject to a tax at the state rate only.
The General Assembly has created 12 enterprise zones within the Commonwealth and provided special tax advantages for businesses and individuals located within these zones.
Construction and Mining Equipment
All rebuilds or capitalized repairs carried on a corporation's books are to accounted for on the tangible personal property tax return.
The taxable status of tangible personal property in Kentucky is in the county where the property is physically located.
Do not send payments with your return. Tax bills will be mailed by the sheriff in each county no earlier then September 15.
Listing and Valuing Tangible Personal Property
The valuation of tangible property is based upon composite conversion factors established for depreciable property with various expected economic lives.
In order to assist the taxpayer in determining the proper economic life class for a particular property, a general description of various properties is provided indicating the property classification category is included in the return packet.
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Author: Steve Glassford
Revised: November 08, 2004