School board discusses 2024 tax rates

Adoption of 2024 rates expected at special

meeting on Tuesday, October 1st

The McCreary County School District met on Tuesday, September 24, 2024, to discuss and/or take action on setting their 2024 property tax rates.  Typically, residents of McCreary County begin receiving their tax bills on or within a few days of October 1.  However, this year, the school district received the state information needed to set the school district rates later than usual.  Already behind due to the delay in receiving information, the board did not meet to discuss or adopt the 2024-25 tax rates until their regular meeting on Tuesday, September 24, 2025.

During Tuesday’s meeting, Superintendent Brian Crawford, with his finance officer, presented information regarding differences between two tax options, the 2024 compensating property tax rate and the 2024 4% increase in total property tax revenue option.  In addition, the personal (e.g. tangible) tax rate must be set.

McCreary County School District Finance Officer Tiffany Duvall explained the difference between the compensating tax rate and the 4% increase in total tax revenue options.  According to Duvall, the compensating rate is a tax rate calculated by the Kentucky Department of Education (KDE) to generate total revenue for the school district comparable to the amount received in the previous year.  Typically, compensating rates remain relatively consistent; however, they can increase or decrease depending on overall property assessments.

The 4% increase in total property tax revenue option is a rate calculated by KDE to generate 4% growth in the total amount of property tax revenue received by the school district.  The 4% increase in total property tax revenue does NOT increase individual property tax bills by 4%; instead, the 4% option increases the total amount of property tax collected for and by the school district by 4%.

Last year, the school district set compensating rates of 36 cents per $100 and 37.5 cents per $100.  This year, if the compensating school tax rates are adopted, the rates will be 35 cents per $100 for property (real) and 37.5 cents per $100 for personal (tangible).  If the 4% increase in total tax revenue option is adopted, the rates will be 36.4 cents per $100 and 37.5 cents per $100 for personal (tangible).

In setting the 2024 tax rates, the school board must choose between setting the compensating rate or the 4% increase in total revenue rate.  The compensating (property/real) rate for 2024 reflects a 1-cent decrease from the 2023 compensating rate.  The 2024 4% increase in total (property/real) tax revenue rate reflects a .4 cent increase over 2023.

According to information provided during the board meeting, if the McCreary County School Board sets the compensating property tax rate in 2024, a property owner with property (home) assessed at $100,000 will pay approximately $10 less in property tax this year versus last year.  If the Board opts for the 4% increase in total property tax rate, a property owner assessed at $100,000 will pay approximately $4.00 more in property tax than last year.  If chosen, the 4% increase (county-wide) in total property tax rate will generate about $73,000 in additional revenue for the school district.

Board member Braxton King wanted to know the deadline for setting the 2024 tax rates.  According to the finance officer, the board must adopt rates within 45 days after receiving the state information.  Board Member Stacey Hammons said she felt a special meeting is needed to give board members time to study the information before adopting this year’s tax rates.  She also noted that all members need to be present for the vote.  (Board member Cody Perry was absent from Tuesday’s meeting.)

Acting on a motion made by Board Member Hammons, with a second by King, the remaining board members (Chairperson Johnny Barnett and Vice Chair Estle Swain) voted in favor of calling a special meeting on Tuesday, October 1, 2024, at 6:30 p.m. to adopt the 2024 tax rates.