Paducah adopts lower compensating property tax rate; school recall may require extra bills

The board adopted an ordinance fixing the city's levies for fiscal year 07/01/2026 through 06/30/2027 at a compensating rate of 0.253 per $100 of assessed value, down from last year's 0.271 rate.

Audra, finance staff, explained the change is driven by reassessments that raised property valuations and produced a lower compensating rate to hold revenue constant. She said the median home example in Paducah (assessed at roughly $200,000) would see the city portion fall from about $542 to $506 under the new rate, and she estimated approximately 70% of city property owners would see a decrease.

Commissioners also discussed operational complications: Paducah Independent Schools set a real-estate rate that is currently subject to a 45-day recall process, which could require the city to mail multiple bills and to reconfigure billing cycles. City staff and the vendor processing bills said they are testing systems and plan mailings and explanatory letters to minimize public confusion.

The ordinance to adopt levies and rates passed on unanimous roll call.