Board sets tax rates
The Letcher County Board of Education has voted to increase its property tax revenue by four percent, but the new rate is six cents lower than last year's assessment.
Roger Martin, director of finance, said the assessment by Letcher County Property Valuation Administrator Randy Hall is the key to understanding the tax rate.
"The assessment is what has gone up and is what makes the tax rate come down," said Martin. "The compensating rate would have given us the same amount of revenue as last year. We chose and have in recent years to increase our revenue by four percent."
The four-percent increase on real estate is the maximum amount allowable under Kentucky law without being subject to recall by registered voters.
The board approved at a special called meeting on Sept. 10 a tax rate of 39.6 cents per $100 of real estate. Last year's tax rate was 45.8 cents per $100 of real estate. Martin said the compensating rate is 37.9 cents on real property and 45.7 cents on personal property.
"On a $100,000 home the rate we are going to set tonight would lower their taxes by $62," said Board Chairman Will Smith. "You're looking at a pretty good tax cut for the average person. It's a good deal for our kids and also a good deal for taxpayers. Both sides win this year."
The tangible personal property tax rate of 47.7 cents per $100 decreased from last year's rate of 51.6 cents per $100.