Boyle County takes compensating property tax rate

The Boyle County Fiscal Court voted unanimously Tuesday to adopt a compensating property tax rate that will keep revenues roughly the same as last year.
The new rate will be 6.6 cents per $100 of assessed value on real property. In 2015, the compensating rate on real property was 6.5 cents. Judge-Executive Harold McKinney said someone with a $100,000 property will pay $1 more under the 2016 rate.
Taxing districts have the option to increase revenue from property taxes by up to 4 percent each year as long as they hold a public hearing on the increase. McKinney said he doesn’t think an increase is necessary this year.
“I don’t think we need to increase to our 4-percent limit,” he said. “I think we need to establish the compensating rate.”
If an 4 percent increase were to happen, the rate would go up to 6.8 cents instead of being at the compensating rate of 6.6 cents. Not increasing the rates also keep the revenue at $1,074,290, while a 4 percent increase would raise it to $1,106,844.
The 2016 rate for personal property will be 7.32 cents per $100 in assessed value. McKinney said that means someone with a $100,000 piece of equipment will be $2.50 less in personal property tax this year.
McKinney said he believes Boyle County’s property tax rates are among the lowest in the state.
“We were at one time the lowest in the state,” he said. “And I hesitate to say we are now, but I think there is one lower than us.”