Sept. 18, 2012 — While real and personal property tax rates for 2012 will increase slightly, the City of Morehead’s revenues for this year will be about the same as last year, according to projections from the Kentucky Revenue Cabinet.
City Council voted unanimously to raise the real property tax rate to 23.7 cents per $100 of assessed valuation for 2012, up from 22.6 cents, and the personal property rate from 29.8 cents to 31.6 cents.
City Clerk Joni Mraz told Council that, based on the state’s formula, the city could, after holding a public hearing, set a real property tax rate that is four percent higher.
Instead, Council voted unanimously to try to keep the city’s revenues the same as last year.
“We chose the compensating rate because that is supposed to generate the same amount of revenue as last year,” Council member Glen Teager said. “But because the compensating rate was already a tax rate increase, I felt like we didn’t need to go any further.”
Based on figures from the state, the city’s revenues will come out to $805,926, theoretically.
“I want to clarify that these are the state’s calculations,” Mraz said. “The state’s calculations say this will bring in the same amount of revenue as the prior year.”
Council will hold a special meeting to vote on the second reading of the ordinance. That meeting is tentatively set for Oct. 1 at 9:30 a.m.
Nicole Sturgill can be reached at email@example.com or by telephone at 784-4116.