A few days ago, I was asked if the City receives more tax money when valuations increase. The answer is, “It depends.” Property tax is the most criticized and misunderstood source of government revenue. The citizen was interested in recent media reports indicating statewide increases in property valuation. While in Russell County, we have not yet seen our valuation notices, it is probable, based on media reports across the State, we will experience the same. Naturally, we are all concerned about an increase’s effect on our property tax. Different property classes – residential, agriculture, commercial – have different assessment rates, adding to the difficulty of answering the concerned citizen’s question. The straightforward answer is this: Your taxes increase if your property valuation goes up and all the local taxing entities keep the mill levy the same, or the combination of levies remains unchanged. Conversely, a decrease in the overall levy should offset an increased valuation. If the taxing entity’s budgeted revenue from property tax remains the same as the prior year, then the mill levy for that taxing entity would go down if values go up (more on that below).
Read more: KRSL
