LOUISVILLE, Ky. — Louisville residents will see a slight shift in the property tax rates under a proposal before the Louisville Metro Council.

What You Need To Know

  • The proposal slightly decreases property taxes while increasing the rate in the Urban Service District

  • All Louisville businesses will see a decrease in personal property taxes under the proposal

  • Metro Chief Financial Officer Monica Harmon said that ongoing improvements in the local economy, coupled with high demand in real estate, have resulted in increased property values, which then lead to higher assessments

  • Residents have an opportunity to comment on the proposal at a public hearing on Wednesday, Sept. 7

Mayor Greg Fischer’s office announced the proposal in a news release on Friday. If enacted, the countywide Metro real property tax rate would go from 12.89 cents per $100 of assessed value to 12.40 cents, according to the property tax ordinance filed Monday. That amounts to $4.90 savings for every $100,000 of assessed property value.

At the same time, the rate in the Urban Service District will increase from 35.46 cents per $100 of assessed value to 35.80 cents per $100 of assessed value. That equates to a slight increase of $3.40 per $100,000 of assessed property value.

All Louisville businesses will also see a decrease in personal property taxes under the proposal. The countywide personal property rate will drop from 16.60 per $100 of assessed value to 16.41 cents, and the USD rate will decrease from 56.60 cents per $100 of assessed value to 56.00 cents.

Metro Chief Financial Officer Monica Harmon said that ongoing improvements in the local economy, coupled with high demand in real estate, have resulted in increased property values, which then lead to higher assessments.

“These reassessments were primarily conducted outside the USD, “Harmon said. “In order to stay in line with HB 44, a state law that limits property tax growth in revenue to 4 percent, the countywide Metro real property tax rate was lowered while slightly increasing the rate inside the USD.”

Property taxes fund about 24 percent of the city’s budget. The proposed real property rate changes do not require a general vote by the public.

Metro residents have an opportunity to comment on the proposed tax rates during a public hearing at noon on Wednesday, Sept. 7 in room 106 at Metro Hall, 527 W. Jefferson Street.

If Metro Council approves the ordinance, the rates take effect on property tax bills released by the Jefferson County sheriff in early November. 

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