Daviess County Fiscal Court heard the first reading Thursday of proposed tax rates for the 2020-21 fiscal year. Officials have proposed to lower the real property tax rate by .1 cents while keeping all other property tax rates the same.
“I’ve prepared the ordinance taking the compensating rate, which will reduce our real property rate from 13.5 cents per [$100 of assessed valuation] to 13.4 cents per $100,” said County Treasurer Jim Hendrix. “That rate is also used for public service companies and real estate.”
A compensating tax rate would give Fiscal Court approximately the same revenues as the previous fiscal year, Hendrix said.
Hendrix proposed Fiscal Court leave the personal property tax rate at 16.37 cents per $100 assessed value. That rate applies to tangible personal property, distilled spirits, large non-commercial documented watercraft and aircraft.
“Because the property rate decreased by $25 million, our allowable rate would have actually allowed us to increase that rate to 17.58 cents per $100,” he said. “Again, I believe it’s the intent of the court to not increase anything and try to be sensitive to the COVID crisis that we’ve all had to live through and the fact that finances have been tough.”
The motor vehicle watercraft tax rate was proposed to stay at 17 cents per $100 of assessed valuation, where it has remained unchanged since at least 2008, Hendrix said.
If approved, agricultural products such as tobacco and storage will remain the same at a rate of 1.5 cents per $100 of assessed valuation. Other agricultural products would remain at a rate of 4.5 cents and the bank deposit tax would remain at a rate of 2.5 cents.
County Commissioners will vote on the proposed tax rate at their next Fiscal Court meeting.
