Policy Agenda

Property taxes are a growing concern for Kentucky homeowners, particularly as rising property values can lead to higher tax bills even when tax rates remain unchanged. This dynamic often results in implicit tax increases without clear visibility or public accountability. To address this issue, Kentucky should adopt a truth in taxation framework that improves transparency and gives taxpayers a stronger voice.

Under a truth in taxation policy, local governments would be required to disclose the revenue impact of property value increases and clearly communicate when they are proposing to collect more revenue than the prior year. If a jurisdiction seeks to increase total revenue beyond a neutral rate, it should be required to publicly advertise the increase and hold a vote specifically on that decision. This ensures that tax increases are deliberate and transparent rather than automatic. Such a policy would not prevent local governments from raising revenue when necessary, but it would require clear justification and accountability. By improving transparency and aligning tax increases with public awareness, truth in taxation reforms would help protect homeowners and ensure a more responsible property tax system.