OPS proposing slight property tax rate increase; public hearing set for Aug. 27

The Owensboro Public Schools Board of Education is proposing an increase to its property tax rates for the upcoming fiscal year, with a public hearing scheduled for Aug. 27 before the board takes a final vote.

Under the proposal, the district’s general fund tax rate would increase to 85.6 cents per $100 of assessed value on real property and 86.2 cents per $100 on personal property. The district’s fiscal year 2026 rates were 84 cents on real property and 85.3 cents on personal property.

The proposed 85.6-cent real property rate would amount to $856 annually in school property taxes on a home assessed at $100,000, before any exemptions. That’s $16 more than under the current 84-cent rate.

According to information from district officials, the proposed rates are expected to generate approximately $17,879,287.91 for the district’s general fund, compared with about $17,325,030.41 generated by the previous year’s rates. That represents an increase of approximately $554,258.

The additional revenue would be allocated across several areas, OPS documents show. About $360,822 would go toward instruction, while $103,092 would be designated for maintenance of plant and $51,546 for transportation. Another $30,484 would go to the building fund, with $8,314 covering collection costs.

Of the approximately $17.88 million expected to be generated under the proposed rates, about $1.62 million would come from new and personal property.

For comparison, the district’s compensating tax rate for fiscal year 2027 is 81.5 cents per $100 of assessed value on real property and 85.3 cents on personal property. That rate would be expected to generate approximately $17.08 million.

The compensating rate is generally designed to produce approximately the same amount of revenue from existing property as the previous year’s tax rate, after accounting for changes in property assessments.

The district will hold a public hearing on the proposed tax rates Aug. 27. The Board of Education is expected to vote on the proposal during its meeting following the hearing.

The district’s public notice states that the proposed tax rate is not subject to recall under state law.