Kentucky Legislature Allows Consolidated Local Government Property Tax Subclassification

The Kentucky General Assembly voted to enact a law overriding the Governor’s veto. The law includes: 1) allowing a consolidated local government council to sub-classify real property within an area formerly comprising a city of the first class into land and improvements; 2) allowing the levy of a separate ad valorem tax rate on each, with the rate on improvements permitted to be lower than the rate on land; 3) providing for calculation of the compensating tax rate; 4) providing the 4 percent recall threshold be determined based on the aggregate revenue generated by the separate land and improvements rates ...