The LaRue County Board of Education recently adopted new tax rates for the 2021-22 fiscal year.
The proposed general tax levy of 51.3 cents on real property and 51.3 cents on personal property unanimously passed during the short meeting. Rates for motor vehicles was frozen at 55.2 cents, while utilities was frozen at 0.03 cents.
For fiscal year 2020-21, the tax levy was 52 cents on real property and 52 on personal property and produced revenue of $3,920,542.16. With the changes, revenue is expected to be $4,173,903.23. Of that amount, $615,660.46 is from new and personal property.
The compensating tax rate for 2022 is 49.4 cents on real property and 49.4 cents on personal property and is expected to generate $4,019,314.22.
During the discussion about the changes, board member Price Smith wanted to assure residents that this is not a raise in taxes.
“The tax rate that we approved is commonly referred to as ‘4%.’ That’s a bit misleading and it causes some folks to think that we increased the tax rate by 4%, for example, 20% up to 24%. But that is not the case,” Smith said. “The tax rate we approved was the percentage necessary to increase our revenues by 4%. This year, since property assessments have increased sharply, the actual rate we approved was lower than the previous year’s rate. So even though our revenues will increase, the actual tax rate will decrease.”
Prior to the special-called session, the board was required to hwold a 30-minute public hearing where residents could voice their concerns.
No one spoke during the 30-minute window.
“I was a bit surprised that no one attended the tax rate hearing,” Smith said. “Normally, we’ll have a few be there. I think we’ve done a good job disseminating the information on the financial condition of the district.”