Newport: city raises one tax rate, school board lowers property tax rate

Kenton Hornbeck
Kenton Hornbeck
Kenton is a reporter for LINK nky. Email him at [email protected]

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With property tax season in Newport beginning Oct. 1, the City of Newport voted to raise its personal property tax rate, while the school district voted to lower its property tax rate.

Property taxes levied by the city and Board of Education are due and payable by Oct. 31. Property taxes are considered delinquent if they are postmarked after that date.

City of Newport

The City of Newport is raising its personal property tax rate from $2.57 to $2.74 per $1,000.

Investopedia defines personal property as any class of property asset other than real estate, which is considered real property because it isn’t moveable.

Examples of personal property under Kentucky tax code include business equipment, aircraft, manufacturing machinery, inventories, materials and supplies, artwork, antiques, coin collections and construction equipment. Property located inside a person’s home, such as furniture and appliances used for the enjoyment of the home, is not considered personal property.

As for its real estate tax rate, the city is keeping it at $2.74 per $1,000.

“A $100,000 home would pay $274 in city property taxes,” Newport City Manager Fromme said.

Fromme held a presentation regarding the city’s property tax rates at last week’s Newport City Commission meeting. The commission then held a special meeting the next day, Sept. 20, where they officially voted to pass the rate changes.

Revenue that is in excess of the amounts generated in 2022 will be allocated to all citywide operating departments including police, fire and emergency services, public works, recreation, code enforcement and general administration.

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“I think overall, Newport’s tax rate is more than reasonable,” Fromme said.

A chart showing the tax rate per $1,000 assessed valuation and revenue for the City of Newport in 2022. Photo provided | City of Newport

Newport Independent School District

On Aug. 31, following a recommendation from Superintendent Tony Watts, the Newport Board of Education voted to lower its property tax rate.

The board lowered the rate from $1.017 to $1.012 per $100 of assessed property value.

Revenue is projected to increase by nearly $305,000 due to higher property assessments determined by the Campbell County Property Value Administrator.

“With the new tax rate, the positive impact on the district’s general fund will be nearly $305,000,” said Newport Board of Education Vice Chair Julie Smith-Morrow. “An individual taxpayer who owns a property valued at $150,000 will have their real estate tax reduced from $1,525 to $1,518. This proves the positive impact of increased real estate values throughout the City of Newport.”

The increase in revenue will help Newport meet financial obligations the board has approved for teacher retention and attraction. This includes $1.1 million in salary increases, over $130,000 for school performance incentives, an estimated $160,000 for individual personnel attendance incentives, and an estimated $200,000 in tuition reimbursements for teachers and teacher advancement programs. 

“We are working hard to attract and keep good teachers during a severe teacher shortage,” Smith-Morrow said.

Other major expenditures for Newport Schools include approximately $20 million for facilities upgrades over the next two years, including the potential construction of new athletic facilities.

An estimated $60,000 annually will go toward the Northern Kentucky University Young Scholars program, as well as tuitions, fees and books for Newport students taking classes at Gateway Community and Technical College.

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