Two men stand in front of a dais. One is dressed in a police uniform and is presenting the other man with a certificate.
Sergeant Michael Anthony "Tony" Keene (l) receives his certificate of promotion to sergeant from Dayton Police Chief David Halfhill (r). While the officer was promoted over a month ago, the September council meeting was the first opportunity to congratulate him with his certificate. Photo by Robin Gee | LINK nky

Dayton is looking at a 15% decrease in property tax rates for the upcoming fiscal year.

The city council opened its Sept. 10 meeting with a brief hearing on the proposed rate for 2024-2025. The new rate will be $3.99 per $1000 of assessed value, representing a 15% decrease in the property tax rate.

How do property taxes work?

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.

Read more here.

The increase includes the compensating rate plus an additional 4 % allowed under Kentucky state law. An increase in the assessed value of properties in the city allowed for the drop in the rate, according to city officials.

No residents spoke at the hearing, but city council member Beth Nyman asked for clarification on why the city decided to take the additional 4%.

Assistant city administrator Jerrod Barks attributed this to the rates being “lowered significantly,” meaning that even with the 4% increase, rates are still lower than last year.

“Every time you do not take the 4% increase, you’re losing revenue, and it compounds year after year,” said Barks. “It’s typically a smart decision to take the full increase because when it comes to the property tax bills that individuals receive, their bills are still going to be lower even though the city is going to receive more revenue.”

The new rate will bring the city about $44,400 in additional revenue, but that barely covers costs for one city employee, according to council member Joe Neary.

Council member Jeff Volter said, “So, in my opinion, it’s necessary to take the 4% because we have escalating costs in terms of personnel, expenses continue to go up and if you don’t take the 4%, in about 10 years you’ll find yourself not being able to afford to have a city. Bottom line.”

Nyman explained she was not against taking the 4% but felt further explanation behind the decision would benefit residents’ understanding of the issue.

Council held the first reading of the property tax ordinance and is set to vote on it at its next meeting on Oct. 8.