City Property Tax Hike Proposed for Fiscal 2014
By Pam Spencer, Paducah Public Information Officer
PADUCAH, KY - Mayor Gayle Kaler and the Paducah City Commissioners approved an ordinance during the City Commision meeting Tuesday evening that sets the real estate and personal property taxes for fiscal year 2014. A property tax levy public hearing was held at the September 17 Commission meeting.
The City’s real estate tax levy is proposed to increase from 25 cents per $100 assessed value to 25.5 cents per $100 assessed value. For a property owner with a home assessed at $50,000, this half penny increase equals an increase in their property tax bill of $2.50. The City’s Compensating Rate, the rate that would keep the revenue at the same amount as 2013, is 24.6 cents per $100 assessed value. Kentucky Revised Statutes permits a city to adjust the compensating rate upward by not more than 4 percent. Please note that the City’s real estate tax rate has dropped significantly over the past nearly two decades from 43.8 cents per $100 assessed value in 1995. In a survey of 18 Kentucky cities taken October 2012, Paducah’s tax rate fell in the middle of those surveyed. Also on the tax bill, residents may notice a change in the amount going to the Paducah Independent School District. This summer the school board raised its tax rate by two cents. The school district’s increase equals a $10 increase on the tax bill for a home assessed at $50,000.
The ordinance also outlines the levies for the Paducah Independent School System and the Paducah Junior College. A document showing citizens how to calculate their property tax bill is located on the city’s website, www.paducahky.gov, under the Finance Department. For example, a home assessed at $50,000 in the City of Paducah and in the Paducah Independent School District will generate a property tax bill of $519.50.