Understanding your property tax bill in Kentucky

By Jesse Brewer, Boone County Commissioner

The property tax system in Kentucky is governed by state laws that separate two key functions: property valuations and tax rates. Understanding these distinctions helps taxpayers know who is responsible for what.

Breaking it down: Knowing who sets what (and who to hold accountable)

A property tax bill reflects a complex web of state and local authorities. The Property Valuation Administration (PVA) sets the valuation under the oversight of the Department of Revenue, while different taxing entities — from schools to libraries to fire districts — determine the actual rates.

This layered system can be confusing, and it raises a fair question: Could legislative changes simplify the process for taxpayers?

For now, the best step is understanding who does what. The PVA determines what your property is worth. The Department of Revenue ensures those values are fair. Local governments and districts — elected boards, city councils, fiscal courts — decide how much to charge per $100 of that value.

In Boone County, we take pride in keeping our rates low, but we also recognize the impact of other taxing bodies on your bill. My goal in writing this is to provide clarity, so you can see where your money goes — and hold the right officials accountable when it comes to property taxes.

How property valuations work

Kentucky Revised Statute (KRS) Chapter 132 governs the PVA. This office is responsible for setting the value of your property—such as your home—but not the tax rate.

By law, PVAs must reassess property at least once every four years. However, properties are often reassessed sooner when they sell for more than their current valuation.

To ensure accuracy, the Department of Revenue (DOR) — which falls under the Governor’s office — monitors PVA offices. The DOR compares PVA assessments with real estate sales data, calculating what’s called a sales/assessment ratio. The goal is for assessed values to align closely with actual sale prices.

If a county’s ratio falls too far below state standards, the DOR may require property revaluations or impose an “equalization increase” across all properties. In some cases, the state has even taken over local PVA offices. For example, in 2011, Webster County’s office was temporarily overseen by the DOR after failing to meet assessment standards.

Reference Guide: Understanding the players behind your tax bill

While PVAs determine property values, various government bodies set tax rates. These rates appear together on one bill for convenience, but they come from different jurisdictions. Here’s a breakdown of the main taxing authorities you may see on your bill:

• Commonwealth of Kentucky – In Boone County, the state’s rate is currently 10.9 cents per $100 of assessed value, which is higher than the county’s rate.

• Fiscal Courts (Counties) – Your county government also sets a rate. In Boone County, where I serve as commissioner, the Fiscal Court’s rate is 8.5 cents per $100, one of the lowest in the region.

• School Districts – These typically account for the largest portion of your bill—often over 60%. While counties (or cities) collect these taxes for convenience, the rates are set independently by elected school board members.

• Cities – If you live in an incorporated area, your city government may levy its own property tax.

• Fire Districts – In areas not served by a city fire department, special fire protection districts levy a tax. Their boards, created under KRS Chapter 75, are made up of elected members, appointees from the fire department, and appointees from the county fiscal court.

• Library Districts – Authorized under KRS Chapter 173, these boards levy taxes to operate and maintain public libraries.

• Extension Districts – Created under KRS 164.605–164.675, these districts fund 4-H youth programs, community development, agricultural education, and more.

• Other Assessments – Some bills include smaller taxes for services such as mental health (KRS 210.470–210.485), senior services, or soil and water conservation.