The Fayette Board of Aldermen approved a slightly higher property tax rate for 2024 during its regular meeting held on Tuesday, August 27.

The new property tax rate of $0.5929 is up from last year’s rate of $0.5907 per $100 of assessed valuation.

While the rate hike is slight, it serves as an economic indicator. 

The rate is set by the county by way of the state auditor. A rate increase serves to keep the city’s income from property taxes consistent. A rise is typically in response to either less property on the tax rolls or indicates that property values have decreased overall in assessed value.

“It’s designed to keep the city’s property tax income the same year after year,” explained city attorney Nathan Nickolaus. “So, when it’s going up, what that’s indicating is that property values are decreasing slightly.”

Nickolaus said he also sees this in other cities he represents and suspects that the high prime interest rate could be a contributing factor.

Real property in Fayette totals $15,548,765. Personal property was calculated at $5,000,142, with $504,620 in new construction and improvements.

Not so long ago, it appeared that Fayette was moving forward economically. This new indicator, along with two recent business closings on the square, is enough to give one pause on the matter.

The Fayette Board of Aldermen meets regularly at 6 p.m. on the second and fourth Tuesdays of every month in City Hall. Meetings are open, agendas are published in advance, and the public is invited.