2024 Tax Rates

Posted October 3, 2024

Proposed 2024 Tax Rate

Under the proposed 2024 rate, a tax bill for a $100,000 house in the City of Morehead would be $452 (45.2 cents per $100 of assessed valuation for the tax year.)

The proposed 2024 rate generates approximately the same revenue as last year. This is approximately a 0% increase in revenue for the City of Morehead.

The proposed 2024 rate is called the (substitute) compensating rate.

The compensating tax rate allows a taxing district, as a minimum, the same tax revenue that was produced in the preceding year.

When setting the annual property tax rate, the process is governed by the Commonwealth of Kentucky. City ad valorem property tax rates are subjected to “compensating tax rate” limit, as defined in KRS. 132.010(6).

KRS 132.010 defines this process. Compensating rate does not allow a new tax rate that will generate less revenue than what was produced the previous year. The compensating tax rate can never, when applied to the total year current assessment of all classes of taxable property, produce an amount less than what was produced in the preceding year from all taxable property.

The other tax rate calculation sent to the City by the State was to set a tax rate that would have generated 4% more revenue than last year. The Board of City Council did not consider this option of increasing revenues.

The proposed 2024 personal property tax rate decreased from last year.

https://www.klc.org/UserFiles/City_Property_Taxes.pdf Kentucky League of Cities Quick Facts Sheet

KRS 132.010(6)
“The compensating tax rate is the rate which, when rounded to the next higher one-tenth of one cent per $100 of assessed value and applied to the current year’s assessment of property subject to taxation (excluding new property and personal property), produces an amount of revenue approximately equal to that produced in the preceding year from real property. However, the compensating tax rate can never, when applied to the total year current assessment of all classes of taxable property, produce an amount less than what was produced in the preceding year from all taxable property.”

2024 Tax Rate Slides from City Council Meeting- September 18- https://morehead-ky.gov/taxrateslides/

Tax Rate Calculation Forms from the Department of Local Governments Cities Branch- https://morehead-ky.gov/taxratesdlg/

Questions: Contact a City Council Member- https://morehead-ky.gov/leader/