Boone County residents can anticipate property taxes to stay relatively the same after the Boone County Fiscal Court unanimously approved the new local tax rates Tuesday.
The fiscal court held a brief public hearing for comments on keeping the real estate tax rate at 9.8 cents per $100. The proposal also sets the personal property tax rate at 12.6 cents per $100, an increase from 11 cents, and the motor vehicle tax rate at 14.2 cents per $100. The county expects to generate $13.9 million in revenue from real estate taxes; $3.2 million from personal property taxes; and $1.9 million from motor vehicle taxes.
County Administrator Jeff Earlywine said the personal property tax increased from 11 cents to compensate for the decrease in valuations. He said this rate is often called the “breakeven” tax, because it tends to fluctuate, though this year the county hardly feels it’s breaking even.
No one spoke at the public hearing, but commissioners commented on the necessity of keeping pace with inflation.
“So when you see the fluctuation of that number, unlike the last couple of years where we had the ability to dedicate money to the infrastructure fund or to the county rural road program, the way I see it, any increase in revenue that we generate this year, is to help us keep pace and to cover those personnel costs,” said Judge/Executive Gary Moore.
Earlywine mentioned the 6% salary increases given across the board among county employees and the Boone County Sheriff’s Office due to inflation. He also noted that there have been mandatory increases in pension contributions from the state for government employees, as well as increases in budgets like the public transportation fund, which saw an increase of 14.7% to allow TANK to expand its local bus route services.
Earlywine gave a brief overview of the last five years of property taxes in the county, surmising that Boone County has seen a healthy amount of growth, but while previous tax rate increases have gone toward infrastructure support for sewer and internet, an increase in revenues now are just to keep up with inflation.
The rate of inflation topped 9% this summer, reaching a new high since the 1980s, according to economic data.
The rates for the fiscal year were approved as-is on Tuesday. Kentucky counties will revisit local tax rates next August.