The Mercer County Fiscal Court has elected to raise the property tax rate from 11.2 per $1,000 in assessed value to 11.8 per $1,000. The new personal property tax rate for is 16.26 while the motor vehicle and watercraft tax rate is unchanged at 9.2 per $1,000.
At a tax hearing on Tuesday morning, Judge-Executive Milward Dedman said the four percent increase would generate $52,744 in additional revenue. Dedman also noted that the increase amounted to around $4.50 per house.
Only one citizen spoke at the hearing.
“Where is the tax increase going to go?” asked Terry Dunne, who has been regularly attending county meetings for 18 months. Dunne handed out a spreadsheet to the magistrates showing that the county had chosen the four percent increase every year for five years, increasing the county’s revenues by $361,000. Dunne said the county has been fortunate in not having to spend the money, but wondered if it wouldn’t be better if that money stayed in the taxpayer’s pocket.
“We’ve got to justify why the fiscal court should have it over the individual,” Dunne said.
Dedman pointed out most of the carryover funds were in restricted CDs, which the county could only use for roads and for the jail.
To learn more, check out this week’s issue of The Harrodsburg Herald.