Owensboro city commissioners unanimously approved tax rates Tuesday that keep the real estate and vehicle rates unchanged while lowering the personal property rate. Officials also reminded residents to allow extra time for mailed payments to avoid late penalties.
The real estate rate remains 25.6 cents per $100 of assessed value, while the vehicle rate stays at 30.3 cents. The personal property rate decreases to 28.44 cents from 30.91 cents last year.
City Manager Nate Pagan said a property assessed at $100,000 would owe $256 in municipal real estate taxes under the approved rate. An individual property’s tax amount also depends on its assessed value, so an unchanged rate does not necessarily mean an unchanged bill.
Pagan said the personal property rate is calculated using a formula after the real estate rate is established.
“The rate on real estate remains the same. The rate on vehicles remains the same, and the rate on personal property actually decreases compared to the rate adopted in 2025,” Pagan said.
Ordinance 18-2026 passed on second reading in a 5-0 vote. It sets the municipal rates for the fiscal year that began July 1, 2026, and ends June 30, 2027.
The ordinance projects approximately $15.6 million in revenue from the three levies, including $12.62 million from real estate, $1.46 million from personal property, and $1.51 million from vehicles. The revenue is designated for the city’s General Fund to cover general municipal expenses.
During the discussion, Angela Waninger urged residents who mail their payments to do so well before the penalty deadline.
Waninger said tax bills are due Nov. 1, with penalties beginning Dec. 1. She encouraged residents to pay by the due date rather than wait until late November to mail a check.
She said mail is no longer processed in Owensboro, and the city encountered problems last year with payments residents said they mailed on time but that received later postmarks. She recommended mailing payments at least two weeks before the penalty deadline.
The ordinance imposes a 10% penalty on taxes that remain unpaid one calendar month after becoming due. Delinquent taxes also accrue interest at 0.5% for each month or portion of a month until paid.
Residents have several alternatives to mailing payments, including paying in person, online, or by phone with a credit card. A secure drop box is also available on the St. Ann Street side of City Hall.
“You may feel odd dropping a check in there, but it’s secure,” Waninger said. “We’ve never had a problem with that.”
Waninger said payments placed in the drop box before 8 a.m. on Dec. 1 would be considered timely.
Payment information has been added to the back of tax bills, she said. Commissioners also asked that the mailing reminder be shared more broadly with the public.