Fayette County’s Property Valuation Administrator is implementing a new agricultural classification taxation process. David O’Neall detailed changes before the Lexington council Tuesday. Current law allows property owners to receive property tax deferment for ten acres or more that’s used for agriculture. O’Neall says requests must now come from current property owners. “As properties sell, the new property owner will receive a letter from me saying, essentially, the ag classification is not transferable. You’ll need to request it if you believe you qualify for it,” said O’Neall
The issue came to light during a Lexington Herald-Leader series examining whether certain pieces of rural property receive agricultural tax deferments that had little or no income generated from agricultural use. Council member Kevin Stinnett says this change is not about creating revenue. “This is not a city money grab. This is not a PVA money grab, but this is an equity issue and a fairness issue,” explained Stinnett.
Council member Russ Hensley says residents in rural Fayette County are already contributing to city coffers. “We’re carrying a large part of the tax burden out there and I don’t want that general conversation or the dialogue that we’re talking about that, if you live the rural area, you’re not paying your fair share,” said Hensley.
Hensely cited property taxes going to support schools and for library services when there’s not a public library in the 12th district. A bill addressing the issue was filed during the current general assembly session, but did not get a hearing.?
