Property Tax Statutory Requirements Update

Per the Kentucky Department of Education Commissioner's Office

Updates on Review of Property Tax Statutory Requirements

KRS 160.470provides the process by which a local board of education annually adopts property tax rates. Because of a question about the process from a district, the Kentucky Department of Education (KDE) recently conducted a review of the statutory requirements.

The review determined that the statute permits a local board of education to adopt a tax rate up to and including the 4% tax rate without advertising or holding a public hearing. In the past, KDE provided guidance that a board was required to advertise and hold a hearing if they exceeded the compensating rate. Exonerations may be included in the property tax adoption, but will not trigger any additional advertising or hearing requirements.

KRS 132.0225provides that, unless the local board is adopting a tax rate, excluding exonerations, above 4%, they must adopt a property tax rate within 45 calendar days of the Department of Revenue’s property certification for the school district. If this requirement is not met, the compensating tax rate will be applied to that year’s tax bills.