Special meeting this evening at city hall;
County approves lowering its tax levy
Most taxpayers in Crittenden County should see a bit of relief this fall when they get their tax bills from city and county government.Crittenden Fiscal Court recently approved a lower levy on real estate for the 2019 tax year, while Marion City Council is expected to do the same in a special-called meeting tonight after introducing a lesser rate last week. Both savings will be small for the average property owner, but
savings nonetheless.
In addition, assessments in some areas of the county and city are up, as the property valuation administrator reasses the worth of real estate in quadrants of the county on a rotating bases. Across the county, overall net assessment growth on real estate is $10.6 million.
But also up are Homestead Exemptions, a partial forgiveness of real estate value offered by the state to aged or disabled property owners. This year, exemptions will total $43.3 million, almost $2 more than in 2018.
By accepting the state’s compensating rate, a term for the tax rate that would generate about the same income as the previous year, magistrates lowered the 2019 levy on real estate a 10th of penny to 11.7 cents per $100 valuation. That means on a $75,000 house, roughly the average value of a home in Crittenden County, a property owner will pay $87.75 in taxes due to the county for general government. That’s a 75-cent savings over last year.
That savings won’t necessarily translate, though, if a homeowner’s assessment was increased by PVA Ronnie Heady’s office.
The county will keep the same tax rates for tangible personal property, motor vehicles and documented watercraft, all remaining at 12.4 cents per $100 valuation. Documented watercraft does not include typical fishing boats or recreational craft. In fact, there is only one documented watercraft in the county.
Aircraft tax
Once again, magistrates decline to tax aircraft, but not without discussion.
Magistrate Greg Rushing brought up the issue of taxing planes, saying that many of his constituents have asked why the county does not place a levy on aircraft owners who base their planes in Crittenden County, almost 30 of which are hangared at Marion-Crittenden County Airport.
“It’s not going to do much, but public perception is, ‘I’m paying for my boat and they’ve got more money than I do,’” said Rushing. “They think we’re letting them slide because of who they are.”
However, figures from the Kentucky Department for Local Government show only $658,850 in total value of aircraft based in the county. If taxed at 12.4 cents per $100 of valuation, that would generate only $817 in taxes for county government.
Personal watercraft owners pay annual registration fees, but only $6 or so of that comes back to the county, depending on the size of the boat, said Crittenden County Clerk Carolyn Byford. The bulk goes to Kentucky Fish & Wildlife Resources.
Revenue from taxing aircraft is an amount that offers little benefit while risking the loss of those planes hangared locally, said Judge-Executive Perry Newcom.
“Is it worth the fight over $800?” said Newcom.
However, the special taxing districts for the library, Extension service and health board do tax aircraft. Those levies are set by their own boards.
Ultimately, magistrates voted unanimously to keep the tax rate on aircraft at zero.
Altogether, property taxes – real estate, tangible personal property, motor vehicles and documented watercraft – are expected to generate $605,990 for county government.
City tax rates
While the City of Marion will not make its 2019 tax rates official until tonight, when a special meeting is scheduled for 5 p.m. at city hall, it appears the council will also be lowering rates while increasing revenue.
As introduced last week, the city would tax real property at 23 cents per $100 valuation, down 1.3 cents from the 2018 levy. The proposed rate is not the compensating rate, but reflects a 2 percent increase in revenue, or $4,700 over last year’s $207,185 anticipated revenue. The council agreed upon the slight revenue bump when it approved its 2019-20 budget in the spring.
However, Councilman Donnie Arflack has proposed a 4 percent increase in revenue like what was taken last year by the council to cover the increased cost for benefits and general operation of municipal government.
“In years past, we didn’t do it at all, and we got ourselves into trouble,” Arflack said, referencing decisions by prior councils on which he sat to stick with the compensating rate, generating little to no additional revenue.
His proposal was met with stiff resistance.
Councilman Darrin Tabor believes laying more on homeowners would be deceptive, when the council at the time of budget approval pointed to the anticipated new revenue from alcohol regulatory fees as a reason to cap the tax rate at a level to generate only 2 percent more revenue.
“Once again, we’re asking for property owners to pay for everything else? You’re wanting to come back and stab them in the back by raising their taxes again,” Tabor said. “I’m not even gonna vote for 2 percent, so I sure ... wouldn’t vote for 4.”
Ultimately, the council rejected amending the tax ordinance to account for 4 percent inadditional revenue. Only Councilman Mike Byford voted with Arflack to bump the increase to 4 percent.
At 23 cents, the 2019 real property tax rate would match the levy from 2017. The proposed 2019 rate on tangible personal property is 31.05 cents per $100 valuation, the same as 2018.
Final rates should be set at Thursday’s meeting.
Also tonight, the Crittenden County Board of Education is expected to set its 2019 tax rates. Special taxing districts will also be setting rates soon, though the public library rate by statute cannot be changed from 5 cents per $100 assessment.
