City Prepares to Set Tax Rate for 2017 Fiscal Year

At Tuesday night's Paducah City Commission meeting, an ordinance was introduced that would set the real estate and personal property taxes for fiscal year 2017. 

A property tax levy public hearing was held at the beginning of the Commission meeting. The City’s real estate tax levy is proposed to remain at 25.5 cents per $100 assessed value. The City’s Compensating Rate, which would keep revenue at the same amount as this fiscal year, is 25.4 cents per $100 assessed value. Kentucky Revised Statutes permits a city to adjust the rate upward by no more than 4 percent of the compensating rate. 

The proposed rate of 25.5 cents is much less than more than twenty years ago. In fiscal year 1995, the real estate rate was 43.8 cents per $100 assessed value.  

The revenue generated by the property tax is the City’s second highest revenue source behind the payroll tax. 
 
The final vote on the ordinance is set for the Commission's October 4 meeting.

Recently, the Paducah Independent School District voted to set its tax rate at 79.9 cents per $100 of assessed value. The City collects the school tax, but passes those funds along to the district.