Kentucky (KY) Property Valuation Administrator Exam Questions and Answers Plus Rationales

Kentucky (KY) Property Valuation
Administrator Exam Questions and
Answers Plus Rationales

1. What is the primary duty of a PVA in Kentucky?
A) Collect property taxes
B) Assess property values for taxation
C) Set millage rates
D) Issue property titles
B
The PVA’s main responsibility is determining property values for
taxation purposes.
2. According to Kentucky law, on what basis must real property be
assessed?
A) Replacement cost
B) Original purchase price
C) Fair cash value (market value)
D) Depreciated cost
C
The statute requires assessment at fair cash value—what a willing
buyer and willing seller would agree upon under normal
conditions.
3. Which statute primarily governs the powers and duties of PVAs in
Kentucky?
A) KRS Chapter 134

, B) KRS Chapter 68
C) KRS Chapter 132
D) KRS Chapter 13B
C
KRS 132 outlines property valuation and assessment procedures in
Kentucky.
4. A PVA is elected to serve for how many years?
A) 2 years
B) 3 years
C) 4 years
D) 6 years
C
PVAs in Kentucky are elected for a four-year term.
5. The office of PVA is required to perform a physical inspection of
taxable real property at minimum how often?
A) Every year
B) Every 3 years
C) Every 4 years
D) Every 5 years
C
KRS 132.690 states that property must be physically inspected at
least every four years.
6. Which of the following is an example of an exempt property under
Kentucky property tax law?
A) Owner-occupied residence
B) Commercial retail store
C) Property owned by a charitable organization and used for

, charitable purposes
D) Industrial plant leased to a private company
C
Charitable nonprofits often receive exemptions when property is
used for qualifying charitable purposes.
7. What term describes the value a property would bring in a fair
voluntary sale between a willing buyer and willing seller?
A) Assessed value
B) Book value
C) Fair cash value
D) Insurance value
C
This is the definition of fair cash value (market value) used in
Kentucky assessment law.
8. Which local entity is responsible for setting the property tax rate
in Kentucky?
A) The PVA
B) The county clerk
C) Local taxing districts (e.g., school, fire, county)
D) The State Treasurer
C
Taxing districts set millage rates based on budget needs; the PVA
assesses value but does not set the rate.
9. When is the assessment roll typically finalized for real property in
a county?
A) January 1
B) By July 1

, C) December 31
D) March 15
B
The assessment roll is generally finalized mid-year (by July 1) so
that tax bills can be prepared.
10. The principle of “highest and best use” means that a
property’s value is based on:
A) The original historic use only
B) The least profitable permitted use
C) The most profitable legal, feasible, and physically possible use
D) The current zoning designation, even if unused
C
Highest and best use considers the most profitable, legally
permissible, physically possible use for the property.
11. In a mass appraisal system, the approach to value that uses
recent comparable sales is known as the:
A) Cost approach
B) Income approach
C) Sales comparison approach
D) Allocation approach
C
The sales comparison approach examines recent sales of similar
properties to estimate value.
12. Which approach to value is most appropriate when valuing
an income-producing commercial property?
A) Cost approach
B) Income approach