Citizens of Owensboro will see a decrease in their real property tax rate.
On Tuesday, the Owensboro City Commission voted unanimously to approve the tax rates for the 2020-21 fiscal year that would see a decrease in the real property rate, no change in the vehicle rate and a slight increase in the personal property rate.
The real property rate will drop from last year’s 26.60 cents per $100 assessed valuation to 26.40 per $100 with the vehicle rate remaining at the same rate of 30.30 cents per $100 and the personal property rate increasing from 26.74 to 27.87 cents per $100 of assessed valuation. The city does not set the personal property rate.
The city anticipates revenue from real property taxes to generate $9.4 million, vehicle taxes to generate $1 million and personal property to generate $1.1 million.
While the city reported having a $1.9 million surplus at the end of the 2019-2020 fiscal year, no one could have expected the tremendous impact of the COVID-19 pandemic. However, despite COVID-19, the city is still in a good place, said Nate Pagan, city manager.
“At this point, we have weathered the pandemic well,” he said. “Our current position is what has allowed us to do the decrease in real property rates and we understand that people need that right now. We are pleased that we were able to provide a reduction in rates, even in the face of the pandemic.”
While no one can predict what the future hold in a COVID-19 economy, Pagan is confident in the city, he said.
“It is hard to project what might happen because this is a different kind of economic landscape even compared to 10 years ago,” he said. “We are still seeing progress in the Gateway Commons development and will be doing the ground breaking on the Fairview Drive extension in the next couple of weeks. We have weathered it well and are well positioned to weather it in the future.”
Jacob Mulliken, 270-228-2837, firstname.lastname@example.org