Paducah public hearing opens on proposed 27.1¢ real-estate tax levy; residents voice opposition

The Paducah Board of Commissioners opened a public hearing on Sept. 2 on a proposed city real-estate tax levy of 27.1¢ per $100 of assessed value, a 0.7¢ increase from last year and the 4% allowable increase above the compensating rate. Audra, a city staff member, told the commission that Kentucky Revised Statutes require a hearing when a proposed rate exceeds the compensating rate (26.1¢) and that staff recommends taking the 4% allowance to meet adopted fiscal 2026 budget assumptions.

Several residents spoke against the increase. Matthew (first-name basis) told commissioners he opposed higher property taxes and warned the increase would spur greater civic engagement and electoral consequences. He said repeated tax bills on improvements feel unfair. Parker Riley Jacob argued higher tax rates on improvements discourage investment and development in Paducah, saying owners may leave property underused rather than invest, and estimated roughly a $7 increase per $100,000 of assessed value. Shannon Crockett described a rising household tax burden after moving from a higher-tax state and urged the commission to consider impacts on lower-income residents; Crockett also asked where revenues from a recent 911-dedicated levy were allocated.

City staff clarified the numbers: the city rate moving from 26.4¢ to 27.1¢ equates to about $18 per $250,000 of assessed value; the proposed personal-property rate for businesses would remain at 0.356 per $100. Staff also explained that the city’s share of a typical tax bill is about 23%, while the Paducah Independent School District accounts for roughly 76% of the total, limiting the city’s control over the larger portion of a taxpayer’s bill.

Commissioners and staff emphasized process and timing. The ordinance setting tax levies for 7/1/2025–6/30/2026 was read for introduction at the meeting; no final action was taken. Staff said the proposed 4% increase was assumed in the fiscal 2026 budget and that, if the commission chose not to take the increase, the city would need to adjust the budget. Staff committed to providing a specific dollar estimate of the revenue difference on request. The ordinance will return for a final reading and vote at the Sept. 15 meeting.

The hearing record shows residents raised both fiscal and equity concerns, and staff described procedural constraints tied to assessment timing and state notice requirements. Commissioners said they would reflect on public input before the next meeting.