The Hopkinsville City Council discussed and approved lowering the city’s property tax rate for the 2024 fiscal year at their Tuesday meeting.
In 2023 the real property tax rate was 22.3 cents per $100 of assessed value, and City Financial Officer, Melissa Clayton says 2023’s rate was the lowest they had on record and since then real estate property assessments have increased by around $199 million and in addition, new growth was assessed at around $42 million.
As a result of the assessment increase, Clayton presented two rates, both lower than last year’s. She presented a compensating rate of 20.9 cents which would bring in the same amount revenue as last year and a maximum rate of 21.8 cents.
Clayton shared that if the council were to pass the maximum rate, then 8% of residents will see an increase in their property taxes as a result of increases of property assessments. Clayton recommended the 21.8 rate in order to take the 4% increase.
Ward Four Council Member, Chuck Crabtree says the council often provides economic incentives for larger businesses and thought that they should take the compensating rate to give citizens a break.
Ward 10 Council member, Steve Keel asked the council if they could a choose a rate between the compensating and maximum rates to generate some revenue while not putting a strain on tax payers.
Following the discussion, the council approved taking the compensating rate. The rate for personal property is set to remain at 23.9 cents and the motor vehicle rate is set to remain at 25.1 cents.