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Paducah commission introduces abandoned-urban-property tax; staff outlines definition, process and costs
Summary
City staff introduced an ordinance to create an 'abandoned urban property' tax classification that would apply $1.50 per $100 of assessed value to qualifying long-vacant, unsafe or tax-delinquent properties; staff outlined KRS-based definitions, deferral options, estimated $30,000 startup costs and a certification and appeal process through fire prevention and the code enforcement board.
City staff on Nov. 25 introduced an ordinance to create a new tax classification for properties the city would designate “abandoned urban property,” a state-authorized tool intended to incentivize owners to repair, sell or redevelop long-vacant, unsafe or tax-delinquent parcels.
Staff said the proposed rate is $1.50 per $100 of assessed value (the maximum allowed under the cited KRS authority) and emphasized the measure is a tax classification—not a code-enforcement tool. According to staff, the ordinance would require fire prevention to develop a policy to compile an initial list, the code enforcement board to certify the list and to hear owner appeals, and it would include deferral categories for properties undergoing active renovation, in an active sale, subject to approved redevelopment activity or constrained by probate or similar legal barriers.
During a detailed presentation, staff walked commissioners through statutory elements and examples: a $200,000 assessed property could face roughly $3,300 under the new rate in the example discussed; staff estimated about $30,000 in first-year implementation costs for staffing, technology and legal work, and said revenue expectations in early years were conservative. Staff also noted the policy would not authorize warrantless entry, force repairs or trigger automatic foreclosure; it would be narrowly targeted to properties meeting both the vacancy and statutory criteria.
Commissioners asked about vacancy definitions, appeals, avoidance tactics such as short-term listings, and whether the tool would unfairly penalize owners making good-faith efforts. Staff said the ordinance includes deferral mechanics and that the code enforcement board would decide marginal cases; staff said the goal is to target properties that create chronic issues rather than owners actively renovating.
The ordinance was introduced and seconded; staff will return with final wording and an implementation schedule for certification, notice and appeals if the commission elects to move forward.
