Mayor names committee to study rising property valuations and how a tax-rebate program might work

By Aaron Gershon
University of Kentucky School of Journalism and Media

Midway Mayor Grayson Vandegrift has formed a committee to consult with tax experts and look into a tax-rebate program as property valuations are rising in the city, which usually leads to a rise in property taxes.

Logan Nance

The committee, at least for now, is City Council Member Logan Nance, Woodford County Fiscal Court Magistrate Liles Taylor of Midway, and Midway Business Association President Cortney Neikirk. They will study the rise in valuations and consult with tax experts, including local ones, then present their findings and offer recommendations for action to the council.

In his email to the council and the Messenger, Vandegrift didn’t explain what a tax rebate program might look like. “I’m being purposefully vague because I think the committee should hammer out the details,” he wrote.

Liles Taylor

Cortney Neikirk

He said valuations are rising due to lack of housing supply to meet demand, and the fact that the city's valuation hadn't been assessed for four years before its housing market "really took off."

He said county Property Valuation Administrator Judy Bobbitt told him she divides the county into four quadrants that are each reviewed every four years and assessed at fair market value, based mainly on comparable sales in the area.

Vandegrift quoted from Bobbitt’s email: “The market is definitely up right now. Most likely four years ago there was not an increase in sales, like this year.” She said homeowners should watch nearby sales to compare with their valuation, and “If they don't agree with our assessments please give us a call and we will be happy to review with them.”

The mayor said he had been told an "anecdotal story about a home whose valuation rose by $90,000. I doubt that's the norm, though."

With many already dealing with financial hardships amid the covid-19 pandemic, Vandegrift said he wants to avoid a rise in property taxes. He said the pandemic “has accelerated our plans to tackle the issue and help prevent folks from struggling to keep up with the taxation associated with higher values."

He said one possible solution would be to reduce property taxes, “but we’ve already cut them 30% and I don't want to hamstring ourselves or future leaders from being able to raise them if the revenue is needed." Midway's real-estate tax rate is now about the same as the rate in Versailles.

The next City Council meeting is scheduled for 5:30 p.m. Monday, via Zoom.