The tax rate in Fort Thomas is most likely staying the same as it was last year.
The proposed real property tax rate, presented during Tuesday’s evening city council meeting, was $0.348 per $100 of property valuation, as it was for Fort Thomas in the fiscal year 2023-2024. However, the rate is slightly higher than the compensating rate for this year.
Property taxes are broken down into several categories. The first and usually largest chunk of your tax bill is real property tax, sometimes referred to as real estate property tax. This is essentially a tax on everything you own that’s nailed down. For residents, this means houses and other real estate property. For businesses, this means office buildings and other buildings and facilities used to conduct business.
Tangible personal property, on the other hand, is another form of property that isn’t real estate. Depending on where you live, residents may not be taxed on personal property at all–this will vary by jurisdiction.
Depending on where you live, other tax-adjacent fees may apply.
How do property taxes work?
The compensating tax rate is the tax rate a taxing body needs to charge to bring in the same amount of tax money on real property as the previous year. A compensating tax rate can be greater or lesser than the preceding year, depending on how much property values have changed.
“What that effectively means, though, is that it is the compensating rate plus one and some change percent, which necessitates the public hearing,” explained Assistant City Administrator Joe Ewald. “The compensating rate was $3.34 per $1000, and $3.48 [per $1000] is what’s being adopted.”
The rate reflects a small increase in property valuation in the city, Ewald said.
Last year, that same rate represented the compensating rate plus the full 4% additional allowed under Kentucky law.
Council will vote on the proposed rate at its next meeting scheduled for Monday, Sept. 16.