Finance and Administration Cabinet
State property tax rate set at 12.8 cents for 2006
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.