This story was written by Lia Salvatierra, our new Education Reporter. Find more of Lia’s reporting here. Do you have an NKY education story? Email lsalvatierra@linknky.com.
Northern Kentucky public school districts are currently in the midst of their most broad-reaching annual duty: setting local tax rates.
This year, school boards must both propose tax rates and then adopt those rates at a later public hearing.
Those decisions directly impact all taxpayers within a school district. For most, the biggest chunk of a resident’s local property tax bill goes toward public school districts.
Public school districts are funded by those local tax dollars, combined with state and federal dollars.
LINK nky breaks down how school boards are setting tax rates this year and where your Northern Kentucky district stands.
Property taxes explained
Property taxes are the meat of a public school district’s tax revenue, though districts set other taxes, like one for registering vehicles called the motor vehicle tax levy.
Taxes like that work differently than property taxes, which are collected once per year via two separate tax rates, one for real property and one for personal property.
Real property includes land and its associated structures and property rights.
Personal property includes items used for business or commerce, including inventory, raw materials and office supplies.
Both rates are measured as the amount of dollars per $100,000 worth of assessed value.
For example, Campbell County Schools had a 64.3 rate for the 2025-26 school year for real property and a 61.9 rate for personal property.
That translates to $643 in tax revenue for every $100,000 in real property and $619 in tax revenue for every $100,000 in personal property.
Check out the 2025-26 tax rates from last year below.
How do those rates change every year?
School boards choose from three options each year when setting real property and personal property tax rates.
Whether the chosen option increases, decreases or retains the amount of property taxes an individual pays to a school district depends on the value of real property and personal property within the district.
- Compensating rate: This rate allows a district to collect the same amount in revenue as it did the previous year from real property and personal property taxes.
- Four percent increase rate: This rate allows a district to collect 4% more in revenue than it did the previous year from real property and property taxes. This is not the same thing as raising taxes by 4% — the resulting tax rate depends on the total valued real property and personal property and the number of taxpayers in the district.
- Subsection (1) rate: This rate allows a district to collect more than the 4% increase rate from real property and personal property taxes. This tax rate opens the door for voters to petition to recall the portion of the rate more than the 4% revenue increase ceiling. If a recall petition is successful, it would go to a vote during the general election.
What’s the process?
New rules this year allow for more public notice during the tax rate setting window — 45 days after a district receives its property valuation report from the state.
That report estimates the total amount of real property and personal property value within district boundaries.
Before this year, school boards could adopt tax rates in one sitting, during one public hearing.
Under a state law passed this spring, districts must both 1) propose tax rates that are published for two weeks and then 2) hold a public hearing to officially adopt rates for the new school year.
If a district opts for tax rates above the 4% threshold, residents can petition for a recall vote within 45 days after formal adoption.
So, what is my NKY district doing this year?
Since receiving their property valuation reports earlier this month, some districts have already proposed rates. Here’s a list of those districts below.
Districts proposing to raise tax rates
Campbell County Schools
The Campbell County Board of Education voted on a proposed 4% rate increase during an Aug. 10 special meeting, which will increase both types of property taxes.
Adopted 2025-26 rates:
- 64.3 on real property
- 61.9 cents on personal property
Proposed 2026-27 rates:
- 65.2 on real property
- 64.5 cents on personal property
Part of the reason real property taxes are increasing is due to allowed adjustments called “exonerations” which enables the board to increase tax rates to account for revenues lost the prior year.
Bellevue Independent Schools
The Bellevue Board of Education voted on a proposed 4% rate increase during an Aug. 5 special meeting, which would lead to an higher tax rate on real property only.
But the board also opted for the allowed adjustment for those rates, or adding 0.2 to each rate to account for revenue not collected last year.
Adopted 2025-26 rates:
- 84.3 on real property
- 96.1 on personal property
Proposed 2026-27 rates:
- 86.7 on real property
- 96.1 on personal property
Exonerations would be added to these rates.
Districts proposing to lower tax rates
Fort Thomas Independent Schools
The Fort Thomas Board of Education voted on a proposed 4% rate increase during an Aug. 10 regular meeting, which would lead to a reduction in both property tax rates.
Adopted 2025-26 rates:
- 104.4 on real property
- 104.4 on personal property
Proposed 2026-27 rates:
- 90.2 on real property
- 102.7 on personal property
Ludlow Independent Schools
The Ludlow Independent School Board of Education also voted on a proposed 4% rate increase during an Aug. 6 special meeting, which would also lead to a reduction in both property tax rates.
Adopted 2025-26 rates:
- 93.2 on real property
- 97.7 on personal property
Proposed 2026-27 rates:
- 85.4 on both real property and personal property
Districts scheduled to propose tax rates
Boone County Schools Board of Education is scheduled to vote on proposed rates during the board’s Aug. 13 regular meeting.
Erlanger-Eslmere Independent Schools Board of Education is scheduled to vote on a proposed rate during the board’s Aug. 13 regular meeting.
According to the meeting agenda, the district is proposing to retain its 2025-2026 property tax rate of 94.5 on both real property and personal property.
Lia Salvatierra is a journalist with Report for America, a service program that helps boost coverage of underreported topics and areas throughout the United States. To help LINK nky continue to provide this kind of reporting, you can make a tax-deductible donation here.