In 1979, Kentucky Legislators passed HB 44 which allows counties, libraries, cities, schools, health agencies, area planning commissions, etc., to raise the taxes on our homes ( called REAL PROPERTY), up to 4 % WITHOUT voter approval. Any increase in REAL PROPERTY taxes over 4% MUST meet voter approval.
But any tax increase above 4% RATE for TANGIBLE PROPERTY (a businesses' inventory, furniture, fixtures, anything of tangible value), need not be voted on.
And this, my dear Kentuckians, is the scam!
Every year the amount collected for REAL PROPERTY from the previous year AND the amount collected on TANGIBLE PROPERTY are added together and then the new tax RATE is calculated!
Simple explanation: If your property tax is raised 3% from the previous year, and taxes on the businesses in your county are raised 10% from previous year, the totals are added together and THIS RATE is your rate!
It's wrong because it adds the averages for REAL and TANGIBLE property together.
Additionally, HB 44 has a "COMPENSATING RATE" in it which states that NEVER can a taxing district ever take in LESS $$$ than the year before! Hence, every year property owners in KY are getting screwed because they average the averages from REAL and TANGIBLE properties!
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Below is my personal tax bill from 2008.
My property taxes went up 11% (eleven percent) or about $400.00 from previous year.
What was the effect from raising my Property Taxes:
My Family cut expenditures for Christmas, groceries, gasoline, schools, pizza, dining out, office supplies, and every non essential we could think of. What the PVA got in property taxes they lost in sales taxes from us.
We know KY has a "2009 / 2010" $400+ Million Dollar defecit, but raising taxes will HURT our economy. Kentucky will not tax its way into prosperity.
THE REAL SOLUTION lies in reducing taxes, mortgage rates, and putting $ into consumers' hands. 72% of GDP is from consumer spending. The more $ consumers have, the more they will spend. Duh.
We are calling for accountability and tranparency and right thinking by our legislators or let's throw these rip off artists out of office and onto their big fat butts.
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