That's just the local DMV making money. When I got my 2007 Harley Sportster 883 titled and plated in August 2017, the DMV valued my Sportster at $6500.  There was no way my Harley was worth that much at the time, full retail price from a dealer according to KBB was $4025.

The Kentucky DMV uses the NADA guide to determine the value of the car/truck/motorcycle.  When you buy something used it is kind of tough to get KY to adjust that value if you happened to get a good deal.

When I bought my Honda ST1100 I had the Craigslist ad that showed the asking price of $3,500, I had a hand written Purchase Agreement that showed the sale price of $3,500.....and the back of the Ohio Title showed the sale price at $3,500 and our signatures were notarized.  KY would not accept any of that.......I would have to go back and have the seller fill out the "Official" form - or I would have to pay their price and pay about $40 additional in taxes.  It wasn't worth the 2 hour round trip and trouble to go get the previous owner's notarized signature.

The Public Works Director owns a Chevy Colorado pickup - and his assessment keeps going up every year....evidently new trucks are so expensive that the used ones are selling very well.