At last Tuesday’s Council Work Session, Council voted to follow the Mayor’s recommendations and keep the ad valorem tax rates for Fiscal Year 2025 (FY25) the same as FY24.

Ad valorem taxes are property taxes levied on assets such as homes and real estate, machinery, motor vehicles, boats, private aircraft, or agricultural products. The City of Lexington levies ad valorem taxes that go into two different funds:

• The General Services Fund, which can be used for most city expenses;

• and the Urban Services Fund, which specifically finances street lighting, garbage collection (garbage and recycling), and street cleaning.

Three tariff options were presented to the Council for the General Services Fund and four options for the Urban Services Fund. The Council chose Option 1 in each case and maintained the rates.

• A tax bill for a $250,000 home in Lexington would require a $190 payment to the General Fund at current rates.

• A tax bill for the same home in Lexington would require a payment of $437.50 to the Urban Services Fund if the home had street cleaning and garbage collection and had street lighting.

Maintaining the tax rates will generate more revenue than the administration had originally estimated for the city’s fiscal year 2025 budget.

• The General Fund receives additional revenue of $783,520.

• The Urban Services Fund will receive additional revenue of $951,160.

Despite the unchanged tax rate, the higher revenues are due to increased property values ​​as well as newly developed properties that are transferred to new tax districts after their completion.

Council will hold a public hearing on the tax rates on Tuesday, September 3rd at 1 p.m. in the Council Chambers. The final vote on the ad valorem tax rates will take place at the same meeting on September 3rd.

Republished by CivicLex.

The work of CivicLex is licensed under a Creative Commons Attribution 3.0 United States License.

https://www.civiclex.org/weekly-posts/council-keeps-ad-valorem-tax-rates-the-same