Commissioners introduce ordinance to set Paducah real estate, property tax rates

At Tuesday night's meeting, the Paducah Board of Commissioners introduced an ordinance setting the City’s real estate and personal property tax rates for fiscal year 2026.

A property tax levy public hearing was held prior to the ordinance introduction. Three citizens provided comments regarding the tax rate. The City’s real estate tax levy is proposed to be 27.1 cents per $100 assessed value, slightly higher than last year’s rate of 26.4 cents. Interim Finance Director Audra Kyle said this would be an increase of $18 on a home that is assessed for $250,000.

The City’s Compensating Rate, the rate that would keep the revenue at the same amount as last year, is 26.1 cents per $100 assessed value. Kentucky Revised Statutes permit a city to adjust the rate upward no more than 4 percent of the compensating rate. Since the City’s proposed tax levy of 27.1 cents is higher than the compensating rate, a public hearing was required.

The second reading for the tax rate ordinance is set for the next meeting which will be a called meeting on Monday, September 15 at 5 p.m.