By Abigail Roberts
The state’s portion of property tax rates will drop once again for the fifth year in a row, according to the Lincoln County Property Valuation Administrator Mary Adams.
Adams said the new numbers represent a 13 percent decrease since 2020.
“This is how our compensating tax rate system is supposed to work in times of increasing home prices and values,” Adams said.
The Kentucky Department of Revenue (DOR) has set the 2025 State Real Property tax rate at 10.6 cents per $100 of assessed value.
“The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2024 to 2025,” a DOR press release states. “If the increase in revenue is more than 4 percent after the exclusion of both new properties added to the tax roll during 2024, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.”
The 2024 State Real Property tax rate was 10.9 cents per $100 of assessed value.
“Because the assessment increase for 2024 is estimated at 7.54 percent, the state real property tax rate must be reduced to 10.6 cents per $100 of assessed value to keep state revenues from real property tax to no more than a 4 percent increase over the 2025 receipts,” the release states.
Revenue generated from the state property tax rate is put into the state’s General Fund.
“Unfortunately, the state portion only accounts for about 10 percent of the typical property tax bill, with the majority going to local schools,” Adams said.
