Gov. Beshear: State Real Property Tax Rate Drops for Third Consecutive Year
Rate decreases to 11.4 cents per $100 of assessed value
FRANKFORT, Ky. (June 29, 2023) — Today, Gov. Beshear announced the commonwealth’s real property tax rate will drop for the third consecutive year on July 1, decreasing to 11.4 cents per $100 of assessed value in 2023.
“This is great news for many Kentuckians as they’ll see property taxes drop for the third year in a row,” Gov. Beshear said. “Every dollar our families can save helps them build toward their future and the amazing opportunities we have coming our way, as Kentucky’s economy booms.”
He added: “I’m proud to be the Governor who has now had an opportunity to lower both income and property taxes for our families. This is a special time with a booming economy and the ability to ultimately be able to lower these rates.”
Kentucky law requires the Kentucky Department of Revenue to set the real property rate no later than July 1 of each year. The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2022 to 2023. If the increase in revenue is more than four percent after the exclusion of both new properties added to the tax roll during 2022, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.
The 2022 State Real Property Tax Rate was 11.5 cents per $100 of assessed value. Because the assessment increase for 2023 is estimated at 4.27 percent, the state real property tax rate must be reduced to 11.4 cents per $100 of assessed value to keep state revenues from real property tax to no more than a 4 percent increase over the 2023 receipts.
Revenue generated from the state property tax rate is deposited into the state’s General Fund.