Floyd Talks Potential Property Tax Increase. What We Know

The Floyd County Commission will hold a special called meeting at 11 a.m. Tuesday to hear from staff about the status of the current budget and its potential effect on the proposed property tax increase.

The meeting will be held in the Fire Education Room at 409 E. 12th St.

Commissioners have tentatively adopted a 2024 millage rate that would result in a 14.6% increase in property taxes.

That’s because the net value of taxable property in the county has risen to nearly $4.4 billion from close to $4 billion in 2023. Property values have steadily risen over a five-year period , from just over $3 billion in 2019.

The proposed rate of 9.414 mills is an increase of 1.199 mills over the 2023 rate and a return to the 2022 levy. It means the tax on a home with a fair market value of $250,000 would rise approximately $128. For properties without homestead exemptions, the tax would go up about $103 on a fair market value of $200,000.

Overall, property taxes levied in the county for maintenance and operations would increase to $41.3 million from $34.6 million last year. In 2022, when the rate was at this year’s proposed 9.414 mills, the levy was $33.1 million — another indication of how the total value of taxable property in the county has spiked.

Officials said a shortfall in actual tax collections for last year accounts for almost all of a $3.6 million deficit that needs to be made up. The county also has an aggressive construction program underway and is fully staffed, which led to the adoption of a $77 million budget in January, up from $68 million in 2023. In addition to property taxes, some of the county’s other revenue sources include motor vehicle taxes, state and federal funding, fines, forfeitures and fees.

The board could still opt for a rate lower than it has proposed.

Plans are to hold two public hearings on July 23 — at 8 a.m. and at the board’s regular 6 p.m. meeting — after which the commission will adopt the tax rate for 2024.