DAYTON, Ky. — For the first time in more than a decade, Dayton property owners could see a significant drop in their property tax rate.

It's because the value of homes in Dayton has gone way up, a connection that has been confusing to some. 

At Dayton's latest city council meeting, it was announced property owners could see their property tax rate drop by 15% for the 2024-2025 fiscal year. As the city administrator said, someone who owns a $100,000 house would pay about $77 less in taxes.

Joe Neary, city councilmember, said property tax rate is subject to the county Property Valuation Administration.

“The PVA has finally seen the value of property in Dayton, and we’ve had (a) great increase in investment in the community,” Neary said.

He said there has been an almost 30% increase in overall property valuation. Property tax is limited by state law.

“Our property tax revenue can only be, at the most, 4% more than the previous year," Neary said. "That’s the revenue. Because the property valuations have gone up, we’ve been able to reduce that property tax rate to stay at that 4%."

“The natural reaction is, why are people paying so much for these houses, from existing residents who have been here 20, 30, 40 years, myself included. The price of homes has gone up. But we’ve got plenty of people willing to invest their money in these homes, and it has increased the nature of our neighborhoods.”

Keary said he has gotten mostly positive feedback, adding he thinks it's good for Dayton overall and will receive unanimous approval from the council.

Dayton City Council will hear a second reading of the ordinance Sept. 10.