The Louisville Subway Board approved lower property tax rates for residents of Jefferson County Thursday night, which means some homeowners may see a lower bill this year.
The Louisville metro has two different property tax rates: one for city residents and another for all residents of Jefferson County. The city’s resident tax rate will see its tax rate drop by about 3.5%, or about $ 25 on a home valued at $ 200,000. The county-wide tax rate could also drop about 1.5%, or about $ 2 in savings on a similarly priced home in one of Louisville’s suburban towns.
Budget committee chairman Bill Hollander, a Democrat representing District 9, warned, however, that homeowners whose property values ââhad recently risen may not realize the savings.
âFor many people in the community there will be a small tax cut because their assessed value has not increased,â he said. “For people whose assessed value has increased, they may pay more, even though the tax rate has fallen.”
Home values ââin the United States began to rise in 2012, the pandemic causing them to climb even faster. But Hollander said revaluations in Louisville are only done every few years or when a home is sold.
In addition to rising home values, a recent Jefferson County Board of Education vote will also limit the potential savings homeowners can expect. Earlier this month, council voted to increase its property tax rate by about 5% from last year. That’s an increase of about $ 80 on a home valued at $ 200,000.
The Louisville Metro, like all local governments in Kentucky, cannot collect more than 4% property tax revenue year over year. Under state law, they are required to reduce the tax rate if they expect income to exceed 4%. Metro officials said the proposed changes are aimed at ensuring revenues stay within that limit. Property taxes represent approximately 25% of Metro’s budget.
Property tax bills will be issued by the Jefferson County Sheriff’s Department in November.