What is the procedure for increasing a citys ad valorem tax rate?
KRS 132.027 does not allow a city to levy a tax rate that produces more revenue than would be accrued by using the compensating tax rate unless a public hearing is held on the matter. The compensating tax rate, as defined by KRS 132.010(6), is the rate which produces an amount of revenue approximately equal to that produced in the preceding year from real property taxes. Exempted from the calculation are personal property, new property and net assessment. If the city chooses to levy a tax rate for the succeeding year that will produce more revenue than would be produced by the compensating tax rate, the city must comply with notice and hearing requirements found in KRS 132.027(2). This includes advertising the public hearing by either: 1. Publishing a conspicuous advertisement of the hearing for two consecutive weeks in the largest newspaper in the county OR 2. Mailing a single notice to each person owning property in the tax district. If the city proposes to levy a tax rate that excee
