Fayette registers smallest number of permits for new homes in 35 years

Will this be the year your property tax bill levels out?

Fayette County’s almost non-existent residential growth in the past year is definitely going to have a major impact on municipal budgets and property tax bills this year.

Fayette County’s Chief Assessor Joel Benton said for the first time in five or six years, a countywide reassessment of property will not take place this year.

“The figures we are getting are in line with the current values,” he said.

During the past few years of high growth, the assessor’s office conducted yearly reappraisals, which often caused gnashing of teeth among homeowners who got progressively bigger tax bills.

But this year’s tax digest is only expected to increase about 2.5 percent from $5.24 billion to $5.38 billion.

“Most of the growth is coming in the commercial area, which has done a lot better than the residential market,” Benton said.

The rest of the growth comes from the small number of new homes built last year, and additions residents made to their homes, he added.

In 2007, Fayette County issued only 167 building permits for new residential construction.

“That’s the smallest number of new permits since we began keeping records in 1972,” said interim Administrator Jack Krakeel.

Last year, the county used a 6 percent growth figure, but this year’s much smaller figure means an even tighter year for the county’s budget.

“We’ve been in a hiring freeze since January, and I’ve instructed department heads there is no room for growth in their budgets,” he said.

The County Commission will take a hard look at the numbers in late May, and Krakeel has already established a goal for this year’s budget.

“We intend to present the commission a budget that would have no millage rate increase,” he said.

Budget hearings are tentatively set for the week of May 19.