Paducah commission introduces ordinance to raise property tax rate

KBSI FOX23 News at 9 p.m.

PADUCAH, Ky., (KBSI) — The Paducah Board of Commissioners has introduced an ordinance setting new property tax rates for fiscal year 2026 after holding a public hearing where three citizens commented on the proposal.

The city’s real estate tax levy is proposed at 27.1 cents per $100 of assessed value, up from last year’s 26.4 cents. Interim Finance Director Audra Kyle said the change would add about $18 to the bill for a home assessed at $250,000.

The city’s compensating rate — the level needed to generate the same revenue as the previous year — is 26.1 cents per $100. State law permits municipalities to increase rates up to 4% above that threshold. Because the proposed 27.1-cent rate exceeds the compensating rate, a public hearing was required.

Officials noted that Paducah collects property taxes for the Paducah Independent School District but does not set its rate. The district has set its real estate tax levy at 88.2 cents per $100 of assessed value. According to the city, about 23% of a homeowner’s tax bill supports city government.

A second reading of the ordinance is scheduled for a called meeting at 5 p.m. Monday, Sept. 15.