The latest “Ponderings from Paducah” is posted. This blog entry is from Finance Director Jonathan Perkins who explains the property tax bill and makes a comparison to rates from 25 years ago.
Ponderings from Paducah – History and Details of Your Property Tax Bill
Have you looked at your property tax bill to see the different organizations listed? The City of Paducah collects property taxes for the City of Paducah (City), the Paducah Independent School District (School), and the Paducah Junior College (PJC).
The City government keeps the property taxes for the City and passes along the other funds to the appropriate entity. In reality, the City government receives only a small portion of the property tax bill. As a side note, the City of Paducah doesn’t determine property assessments. That work is done by McCracken County PVA.
The Paducah Board of Commissioners sets the tax levy, generally in September of each year, to be collected annually for the City and the PJC. The School tax levy is set annually by the School Board, and the School contracts with the City to collect its taxes. The City of Paducah only collects taxes for the City School District while your county tax bill includes the taxes for the County School District.
Let’s compare the rates over the past 25 years. In fiscal year 2001, the City of Paducah’s real estate property tax levy was $0.30 per $100 assessed value. That means the City received $150 in property taxes on a house valued at $50,000. That same year on the same house, the school tax levy was $0.597 per $100 assessed value which meant that $298.50 was paid to the School. The City’s tax levy was one-third of the total property tax bill.
In the current fiscal year, the City’s real estate property tax levy is $0.264 per $100 assessed value or $132 in property taxes on a house valued at $50,000. That’s $18 less as compared to fiscal year 2001! This fiscal year, the school tax levy is $0.874 per $100 assessed value or $437 on the same house. The City’s levy is now about 23 percent of the total tax bill.
Since the tax bill is issued by the City of Paducah, we get comments that tax rates have increased. In reality, the City’s tax rate is lower now than it was 25 years ago. The purpose of this message is to share the total picture and all the taxing entities on your bill. We understand that taxes are no fun, but knowing where your money is going helps paint the picture of how your funds are helping the community.
The following graphic shows the City’s tax levy over the past 25 years in light blue, the School’s levy in red, and PJC’s levy in green.
(written by Paducah Finance Director Jonathan Perkins)
