Library boards with taxing authority set a tax rate annually. Once the Property Valuation Administrator (PVA) assesses the property in the county, it is sent to the Kentucky Department of Revenue (DOR). If the valuation is approved, DOR certifies the valuation. Certification generally occurs in July and August of each year.
The certified valuation is sent to the Department for Local Government (DLG) and, upon KDLA's request, DLG computes the compensating and 4% increase tax rates for all public libraries with taxing authority in accordance with the guidelines outlined in KRS Chapter 132. The rates are then made available to the library in the SPGE portal.
The library board has the option of adopting a real or personal rate which is different from either the compensating or 4% increase rates provided.
There are several important legal requirements that must be met when setting taxes and fees, including those set forth in KRS 65A.110, KRS Chapter 132 and KRS Chapter 133. The library district may wish to seek legal guidance before taking actions related to tax rates.
Once the board has adopted a rate, certification of the adopted rate should be filed with the county clerk, DOR and KDLA on the DOR supplied form 62A3000. A copy should also be kept on file at the library.
Libraries with taxing authority also adopt a Motor Vehicle & Watercraft Tax Rate by October 1 each year. Libraries receive the form in the mail from DOR and should return the completed form to them and retain a copy at the library.
Revised July 14, 2025