FRANKFORT, Ky.—The Kentucky Department of Revenue has set the 2006 State Real Property Tax Rate at 12.8 cents per each $100 of assessed value.  KRS 132.020 requires the Department of Revenue to set the real property rate by July 1 of each year. 

This rate is based on the percentage increase of taxable real property from 2005 to 2006.  If this increase is more than 4 percent after the exclusion of property newly added to the tax roll during 2006, then the prior year rate must be reduced to limit the revenue increase to 4 percent.  Since the assessment increase for 2006 is estimated at 6.6 percent, the state rate must decline from 13.1 to 12.8 cents per $100 of assessed value. 

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