Op-Ed: Let Ky local governments tax something besides property

FRANKFORT, Ky. — Do you really own your property? I’m sure many Kentuckians have asked themselves this when the property tax bill arrives every year. Even if your property is fully paid off, every year you get that bill from the sheriff’s office.

Property taxes are a big component in funding local government budgets and each county is different. On average, property taxes fund 35% of the county tax revenue. However, unlike the state sales tax, which is 6% across every county, property taxes are decided by the local government based on their budgetary needs. For example, in Oldham County you can expect to pay on average $2,244 (0.96% of the home value) a year compared to Wolfe County which pays around $293 (0.54% of the home value).

I understand the great need for these funds as they support schools, the maintenance of roads, and other services, but paying a fee on something you already own every single year does not sound right or fair. What other options are there? One would be to give authority to local municipalities to adopt local sales tax to diversify their revenue.

However, currently this is not allowed in the state of Kentucky due to Section 181 of the Kentucky Constitution. Since its adoption in 1891, this has prevented local governments from levying any excise tax. Kentucky is one of eight states that do not give cities or counties the authority to levy their own sales tax. For the fiscal year of 2022, Kentucky collected $4.95 billion in sales tax revenue, but local governments are not allowed to create their own.

There are concerns that this could have a negative effect on lower- and middle-class Kentuckians by raising prices or switching from one tax to eliminate another. A balanced approach based on local needs would have to be assessed. I am not saying property taxes should be eliminated, but I believe the policy is outdated with many Kentuckians speaking their frustrations.

Lawmakers have listened to some with one proposal, Senate Bill 23 looking to freeze property tax values for those who own their home and are over the age of 65 or if they buy a home 65 or after, whichever is later. However, I believe it should be that once you own your home and/or you’re over 65, the property tax goes away. Also, Section 181 of the KY Constitution is outdated by limiting the capacity local governments can act to better serve their communities.

In closing, Kentucky should give local governments the authority to adopt taxes and other government funding policies that are best for their constituents. They are already doing so with several other tax policies such as property and income taxes. However, any potential tax levy would need to be voted in by that local municipality. The revenue added could fund better infrastructure or better services.


By: Tanner Williams

Tanner Willis is a native Kentuckian and a graduate of the United Nations Institute for Training and Research, where he obtained a master’s degree in international affairs and diplomacy. Currently, he is a manager at Inclined Advanced Analytics, based in Arlington, Va. The views and opinions expressed are solely those of the individual and do not necessarily reflect the official policy or position of Inclined Advanced Analytics.