Kentucky Board Approves Significant Increase in Appraiser Licensing Fees

The Kentucky Real Estate Appraisal Board (KREAB) has voted to substantially increase appraiser licensing and renewal fees. Under the fee schedule approved by the Board, the biennial licensing fee would increase to $1,180 every two years, representing a dramatic increase from previous fee levels.

The increase follows enactment of 2026 legislation that removed the statutory cap on appraisal licensing fees and granted the Board broader authority to establish fees through the regulatory process. While the Board has voted to approve the proposed fee schedule, the formal administrative regulations have not yet been published for public comment.

The underlying legislation was a comprehensive appraisal bill requested by the Kentucky Association of Appraisers and included several provisions supported by the Appraisal Institute, including updates to the state's appraiser regulatory framework. However, the provision removing the statutory cap on licensing fees was not included in the original bill. Instead, it was added late in the legislative process, after many stakeholders had already expressed support for the broader legislation. The amendment illustrates one of the inherent risks of proactively pursuing comprehensive legislation—late-stage amendments can significantly alter a bill's impact in ways that were neither anticipated nor intended when the legislation was first introduced.

The Appraisal Institute has actively monitored this issue and expressed concern about the magnitude of the proposed increase and its potential impact on Kentucky appraisers. Once the proposed regulations are formally published, the Institute will submit written comments on behalf of the appraisal profession, advocating for a more balanced approach that ensures adequate funding for the Board while minimizing the financial burden on licensed appraisers.

The Institute remains concerned that licensing fees of this magnitude could create an unnecessary barrier for practicing appraisers and those considering entering the profession. Significant increases in the cost of maintaining a credential may disproportionately affect small appraisal businesses, rural practitioners, part-time appraisers, and individuals seeking to enter the profession.

As states across the country continue to evaluate how their appraisal regulatory programs are funded, the Appraisal Institute will continue to advocate for policies that support effective regulation without imposing unnecessary financial burdens that could reduce access to the profession or limit the availability of appraisal services.