By Ronica Shannon
Register News Writer
RICHMOND —
The public is invited to discuss the city’s intentions of implementing a small increase in property tax rates for the 2010-2011 fiscal year.
A forum will be conducted at 11 a.m. Tuesday, Sept. 7 at Richmond City Hall, and is required by state law before a new tax rate can be adopted by the city commission.
The first reading of an ordinance setting property tax rates for the 2010-2011 fiscal year was heard by the city commission on Tuesday, Aug. 24.
The ordinance was added to the meeting’s agenda at last minute so tax bills can be delivered early, allowing more people to qualify for a 2 percent discount for early payment, according to Richmond Mayor Connie Lawson.
City property tax bills paid prior to Nov. 1 will be reduced by 2 percent, said Mike Broyles, city finance director. Tax bills paid after Dec. 31 will be assessed a 10-percent penalty.
If adopted by the commission, the city’s personal property tax rate would increase from 15.4 to 16.98 cents per $100 of assessed valuation.
The real property tax rate of 14.8 cents per $100 valuation would not change. Based on this rate, a $150,000 home would yield a tax bill of $222.
The current tax rate for personal property, which includes any property that can be physically moved, brought in $343,916 in revenue for 2009, according to a legal advertisement in the Aug. 26 Richmond Register. Revenue from the real property tax rate in 2009 was $1,856,876. Real property includes and residential/commercial property and land.
When combined, the two tax rates brought in $2,200,792 in revenue for the 2009-2010 fiscal year.
If the increase in personal property tax were to be implemented, it would help raise the revenue of both taxes by $126,443.
The compensatory tax rate, which if adopted would not require a public hearing, is geared to bring in roughly the same amount of revenue as the previous year, Broyles explained.
The city has adopted an increase over the compensatory rate for the past several years, Broyles said.
A list of those delinquent on paying city property taxes will be published in the Richmond Register in late September, he said.
All delinquent property taxes can be viewed on the Richmond Finance Department’s website, finance.richmond.ky.us.
Call 623-1000 for more information about the upcoming public forum.
Ronica Shannon can be reached at rshannon@richmondregister.com or 624-6608.
