The Paducah City Commission last night introduced an ordinance that will encourage investment downtown by easing property tax rates.
The Downtown & Market House Historic District Assessment and Reassessment Moratorium freezes the city’s property tax for buildings aged 50 years and older at pre-renovation assessment rates for 5 years if the owner does $75,000 or more worth of improvements.
Officials say this won’t affect taxes paid to the city schools or McCracken County. City Planner Steve Ervin emphasized the ordinance does not remove taxes.
“There’s a pre-assessment at the time they purchase the property if they spend $75,000 on the property,” he said. “So, it doesn’t take any taxes away, it just freezes it at the pre-rehabilitation number.”
If approved, property owners have two years to complete renovations, after which the 5 year tax moratorium begins.
Ervin said this ordinance is the third part of the downtown toolbox, which includes the downtown residence and roof stabilization programs.
