Fayette school board reduces property tax rate, but will still see revenue gain

The Fayette County Public Schools board on Monday reduced the 2021-2022 property tax rate, which will still generate a 4 percent increase in revenue for the district.

With a 5-0 unanimous vote, the board levied a total rate of 80.8 cents for real estate, 80.8 cents for personal property per $100 assessed valuation, and a total motor vehicles property rate of of 59.2 cents per $100 assessed valuation.

That is 0.2 cents less than last year’s real estate rate. A person with a home valued at $100,000 would be paying $2 less per $100,000 than last year. A homeowner’s property tax bill may increase because of an increase in the house’s assessment or taxable value upon which bills are calculated. The school board doesn’t oversee property tax assessments.

The 4 percent increase in revenue could generate $11.5 million.

Each August, school boards across Kentucky have the responsibility of setting property tax rates to generate revenue to pay for their local schools. Those rates are calculated based on the total value of commercial properties and homes in each community.

For the past two years, Fayette County property owners have paid 81-cents for every $100 of assessed valuation, with no increase.

As a result of a healthy real estate market, home prices in Lexington have risen over the past year, district officials said.

That will allow the school board to lower the tax rate to 80.8 cents per $100 of assessed valuation and still generate the revenue needed to expand the Rise STEM Academy for Girls, open the Carter G. Woodson Preparatory Academy, purchase textbooks and instructional resources for all schools and increase salaries for FCPS employees for the first time in five years.

The increase in revenue will cover increasing utility rates and insurance costs, pay teachers for an additional day to prepare their classrooms, and adjust the salaries of hourly employees to acknowledge prior industry experience, district officials said.

No one spoke at a public hearing about the proposal to lower property tax rates prior to the school board meeting Monday.