FRANKFORT, Ky. (WTVQ) – Only modest growth in the state’s real property values means its tax rate will remain unchanged, the Kentucky Department of Revenue announced Thursday.
According to a release, the department set the 2020 State Real Property Tax Rate at 12.2 cents per $100 of assessed value. By law, the rate must be set by July 1 each year.
The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2019 to 2020.
If the increase in revenue is more than 4 percent after the exclusion of both new property added to the tax roll during 2019, and the property subject to Tax Increment Financing, then the prior years rate must be reduced, the department explained.
Because the assessment increase for 2020 is estimated at 3.12 percent, the state rate will remain the same as the 2019 rate; 12.2 cents per $100 of assessed value.
All of the revenue generated from the state property tax rate is deposited into the state’s general fund.