Kentucky Department for Libraries and Archives

Property Tax Rate Certification

Based on information provided by the Property Valuation Administrators in each county, the Kentucky Finance and Administration Cabinet, and the Kentucky Department for Local Government, KDLA sends two proposed tax rates to each library taxing district:

  • the compensating rate established by statute which “produces an amount of revenue approximately equal to that produced in the preceding year from real property.”

  • the 4% rate which is calculated to provide an additional 4% in revenue above that produced from the compensating rate.

While districts by law are furnished with these two rates, library districts have the ability to take other rates if they so choose. KDLA encourages library districts to carefully examine their revenue needs and then select a rate which meets the community’s library needs without placing undue burden on taxpayers. To facilitate this, library districts may request alternate rates for consideration. If a district requests alternate rates, up to nine alternatives will be provided by KDLA. For questions about setting tax rates, please contact your KDLA regional consultant.

The adopted tax rate must be set within 45 days of the Kentucky Revenue Cabinet’s certification and by September 15th at the latest.

Once the library has adopted the tax rate, the legal requirements include:

  • Certification of the property tax rate will be filed with KDLA (usually on the KDLA-supplied form). A copy must also be submitted to the fiscal court, the county clerk, and kept on file at the library.

  • The establishing entity may impose reporting or submission requirements that are more stringent than those established in KRS 65A.110, such as a presentation at a meeting of the fiscal court.

  • If a rate is set that exceeds the compensating rate, the Special Purpose Governmental Entity must submit the rate in writing to the establishing entity (usually the fiscal court) within 7 days. The establishing entity has 30 days from the date of submission to:

    • Approve or fail to act on the proposed rate, in which case the proposed rate may be implemented by the Special Purpose Governmental Entity;

    • Approve a rate that is less than the proposed rate but greater than the compensating tax rate, in which case the approved rate may be implemented by the Special Purpose Governmental Entity;

    • Disapprove the entire proposed rate by a majority vote of the governing body, in which case the Special Purpose Governmental Entity may levy a rate for the upcoming year that does not exceed the compensating tax rate.

  • If a rate is set that exceeds the Compensating Rate, additional requirements include a public hearing held immediately before a fiscal court meeting in the same building where the fiscal court meets.

    • This public hearing must be advertised in the newspaper for 2 consecutive weeks following the requirements found in KRS 132.023

    • All citizens who wish to be heard will be allowed time for an oral testimony. The Special Purpose Governmental Entity may set reasonable time limits on these testimonies.