GLASGOW, Ky. — Three local school boards will vote Thursday on property tax rates for the coming fiscal year.

Barren County, Caverna and Glasgow are taking different approaches to their tax rates.

To understand the differences, it helps to first understand the rules Kentucky law puts in place for school districts when they set their property tax rates.

What Kentucky law allows

Kentucky law gives school districts several options when setting their property tax rates.

One option is the compensating rate. It is calculated each year based on changes in property values and is generally intended to produce about the same amount of revenue from existing property as the previous year.

State law also allows a school district to adopt a rate that produces up to 4% more revenue from existing real property than the compensating rate.

The 4% figure is important to understand.

It does not mean the school district is increasing its tax rate by 4%, and it does not mean every taxpayer’s bill will increase by 4%.

Instead, the 4% is part of the state’s formula for determining how much additional property-tax revenue a school district can generate.

Because property values differ from year to year, the tax rate needed to generate that additional revenue can also differ from one school district to another.

That means one district could keep its tax rate the same while collecting more money, while another district could need to increase its rate to generate additional revenue.

That is what is happening locally.

Barren County is proposing to keep its tax rates the same.

Caverna is proposing to increase its tax rates.

Glasgow is proposing to use its compensating rate.

Barren County

Barren County is proposing to keep its tax rates unchanged.

The proposed rates are:

• 62.6 cents per $100 of assessed value on real property
• 67.4 cents per $100 on personal property

Barren County’s compensating rates for the coming fiscal year are 60.2 cents for real property and 67.3 cents for personal property.

The district is proposing rates above those compensating rates.

Despite keeping its tax rates the same, Barren County expects to collect more money because property values have increased.

The proposed rates are expected to generate about $15.09 million, compared with about $13.59 million generated in fiscal year 2026.

Barren County Chief Financial Officer and Treasurer Joe Murley previously told Barrenside that the increase in projected revenue is largely tied to higher property values.

The district expects to actually collect about $14.49 million, based on its typical collection rate of about 96%.

In other words, Barren County is not increasing its tax rate, but it is proposing to collect more property-tax revenue than it would under the compensating rates.

The board is scheduled to formally adopt its rates Thursday.

Caverna

Caverna Independent Schools is also proposing a rate above its compensating rate, but unlike Barren County, its proposal would increase the tax rate itself.

Caverna is proposing to raise both its real and personal property tax rates from 72.5 cents to 74 cents per $100 of assessed value.

Caverna’s compensating rate is 71.2 cents.

The proposed 74-cent rate is expected to generate about $3.88 million in General Fund revenue. That compares with about $3.68 million generated in fiscal year 2026, an increase of about $199,267.

Superintendent Amanda Abell said the district is proposing the allowable increase in revenue under Kentucky’s tax-rate rules.

The distinction is that the 4% refers to the additional revenue allowed under the state’s formula, not a 4% increase in each taxpayer’s bill.

However, Caverna’s proposed tax rate itself is increasing by 1.5 cents.

For example, if a property were assessed at $200,000 and its assessed value did not change, the school portion of the property tax would increase from $1,450 at 72.5 cents to $1,480 at 74 cents.

That is a $30 increase.

Actual tax bills will vary based on property assessments, exemptions and other factors.

Caverna will hold a public hearing on the proposed tax levy at 4 p.m. Thursday at the Caverna Central Office, 1106 N. Dixie Highway in Cave City.

The school board is expected to take final action following the hearing.

Glasgow

Glasgow Independent Schools is taking a different approach.

The district is proposing to use its compensating rate. That would lower the real property tax rate from 79.1 cents to 78.5 cents per $100 of assessed value.

The personal property tax rate would remain at 80.9 cents. The proposed 78.5-cent real property rate is Glasgow’s compensating rate for the 2026-27 fiscal year.

The district expects the proposed rates to generate about $7.81 million in General Fund property tax revenue, compared with about $7.36 million collected in fiscal year 2026.

The increase in projected revenue can occur even with the lower real property rate because property values have changed.

Unlike Barren County and Caverna, Glasgow is not proposing to use the additional-revenue option above its compensating rate.

The Glasgow Board of Education is scheduled to meet at 5:30 p.m. Thursday to formally adopt its tax rate.

What does this mean for taxpayers?

The biggest thing to remember is that a tax rate and a tax bill are not the same thing.

The tax rate tells you how much tax is charged for every $100 of assessed property value. The amount a person actually pays depends on the value of the property and the applicable tax rate.

That means a taxpayer’s bill does not automatically increase by 4% just because a school district uses the state’s 4% revenue option.

It also means a district can collect more money without raising its tax rate if the value of the property being taxed has increased.

That helps explain the difference between Barren County and Caverna.

These options are not unique to this year.

Data provided by Caverna Independent Schools shows local districts have used different tax-rate options in recent years. Caverna used the compensating rate in 2025 and 2026, while Barren County used the state’s 4% option in 2025 and 2026.

Glasgow used the 4% option in 2025 and 2026 as well.

The choices can change from year to year depending on the district’s property values, revenue needs and the rate calculated under Kentucky law.

Barren County is keeping its rates at 62.6 cents for real property and 67.4 cents for personal property. The district expects higher property values to result in more revenue.

Caverna is raising its rates from 72.5 cents to 74 cents. The district says the higher rate allows it to generate additional revenue under Kentucky’s tax-rate rules.

So while both districts are seeking additional revenue under the state’s property-tax system, the effect on the tax rate is different.

Barren County’s rate stays the same.

Caverna’s rate goes up.

The bottom line

Barren County: Keeping its tax rates at 62.6 cents for real property and 67.4 cents for personal property. The district expects to collect more revenue as property values increase.

Caverna: Raising its real and personal property rates from 72.5 to 74 cents per $100 of assessed value. The district says the higher rate is being used to generate additional revenue under Kentucky’s tax-rate rules.

Glasgow: Using its compensating rate, lowering the real property rate from 79.1 to 78.5 cents while keeping the personal property rate at 80.9 cents.

All three boards are scheduled to take action on their proposed rates Thursday.