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Elizabethtown holds first readings of three tax-rate ordinances; officials say city rates unchanged
Summary
City officials conducted first readings of ordinances to set motor-vehicle, bank franchise and real/personal property tax rates for 2025-26, saying the proposals do not represent a new city tax increase and that higher bills often reflect school and county levies.
Elizabethtown officials on Sept. 15 conducted the first reading of three ordinances that set tax rates for motor vehicles and watercraft, a franchise tax on eligible bank deposits, and the ad valorem rate for real and personal property for the 2025 tax year.
Mayor Judge Howard opened the discussion and asked Finance Officer Jeff Hawkins to explain how the city calculates tax rates. Hawkins said the city follows state valuation updates and a statutory formula that limits how much revenue a municipality can capture from rising assessed values. "We haven't been taking the extra 4%... We have also not raised property taxes since I've been here," Hawkins said, describing roughly 17 years in the finance office.
Ordinance No. 23 20 25, read for a first time, would levy an ad valorem tax of 11.6¢ per $100 of assessed valuation on motor vehicles and watercraft taxable for municipal purposes, effective Jan. 1, 2026. The ordinance text states the revenue would cover salaries, street repairs, lighting, and public safety; the Hardin County Clerk is listed as the collecting agent.
Ordinance No. 24 2025, also read for a first time, would impose a franchise tax of 0.025% on eligible deposits maintained by financial institutions located in the city, citing KRS chapter 136. The ordinance includes standard collection provisions: interest on unpaid bills (6% per year or 0.5% per month), a 10% penalty for nonpayment, and a 2% discount for timely payments in October or November 2025.
Ordinance No. 25 20 25, setting the ad valorem tax for real estate and tangible personal property, was read for a first time with a proposed rate of 10.7¢ per $100 of assessed valuation. Mayor Judge Howard noted the figure is lower than the prior rate cited in the reading ($11.11 per $100). The ordinance specifies a due date of Dec. 1, 2025, a 5% penalty if not paid by Jan. 31, 2026, and higher penalties for later delinquencies; it also references applicable collection procedures in state law.
All three measures were presented as first readings; no final adoption votes were recorded at the Sept. 15 meeting. Mayor Judge Howard and Finance Officer Hawkins emphasized that, in many cases, increases residents see on property tax bills reflect school or county levies rather than adjustments to the city's rates.
The council did not schedule final adoption at this meeting; state law and local procedure require subsequent readings and any statutorily required notices before ordinances become effective.
