Property values in Daviess County have seen another sharp rise this year, with assessments increasing by an average of 7.5% — marking the sixth consecutive year of 5% or more growth. That trend, driven largely by a hot housing market and low inventory, has some residents bracing for higher tax bills.
But Rachel Pence Foster, Daviess County’s Property Valuation Administrator (PVA), says the increases are a result of state-mandated requirements, not local decisions.
“I’m tasked with assessing all real property at 100% of fair market value,” Foster said. “If I don’t meet the benchmarks set by the Department of Revenue, they can step in and do my job for me.”
This year, only one-fourth of the county was physically reassessed — the area south of Parrish Avenue and east of Frederica Street. The county is divided into four quadrants, and one is reassessed each year. Still, the impact was felt countywide thanks to new construction and property sales, which are reassessed at their purchase price.
Foster said the total taxable value of all property in Daviess County now exceeds $8.5 billion, up from $7.89 billion last year. Residential property alone rose by more than $412 million. Foster said much of that stems from continued demand for homes in the $135,000 to $175,000 range, which are still selling quickly.
“Those homes are still moving in hours or days,” Foster said. “But in the $500,000 market, it’s a different story. It’s slowed down significantly, and interest rates are a big factor in that.”
Commercial, agricultural properties also on the rise
While residential growth remains strong, commercial and agricultural property assessments also jumped by 6.9% and 5.2%, respectively.
Foster said the increase in farm property values likely reflects more farmland changing hands this year, though she hasn’t run year-over-year comparisons yet. Commercial assessments are more complex, she added, because the PVA does not always have access to rental income or detailed building specs, and many properties are not accessible for interior inspection.
Foster encouraged property owners who receive a reassessment notice and believe it’s incorrect to reach out.
“I don’t go into the homes, so I rely heavily on the sales approach,” she said. “If someone believes their property wouldn’t sell for the assessed amount, I want them to come in and show me — whether it’s a recent appraisal or other documentation.”
Few appeals despite rising values
Despite the spike, Foster said her office had 647 conferences but only received 21 appeals this year, consistent with past years. Half of those are commercial properties, and some involve owners contesting the price they paid at purchase.
“It’s rare, but a few owners are appealing their own sale prices because they feel they overpaid,” she said.
Will tax rates be lowered?
As assessments rise, so does the potential revenue for local taxing districts — even if tax rates stay the same. But Foster emphasized that PVAs do not set those rates. Instead, local government bodies — including the city, county, school districts, and special taxing entities such as the library, extension office, and health department — set them each year.
Kentucky law limits how much additional revenue these taxing authorities can generate without voter involvement. The Department for Local Government calculates a “compensating rate” for each agency — the rate that would generate the same amount of revenue as the previous year, excluding new property. Agencies may also adopt a rate that brings in up to 4% more revenue than the prior year, but anything above that must be subject to a potential voter recall.
“If assessments are climbing, compensating rates typically go down,” said Daviess County Treasurer Jordan Johnson. “That’s exactly what happened last year. Even though the county opted for the 4% increase, the actual rate dropped slightly due to the increase in property values.”
Each taxing body receives its own calculation from the state and determines its rate accordingly. School districts generally receive the largest share of property tax revenue. Owensboro Public Schools and Daviess County Public Schools currently levy the highest rates among local entities, and local boards will begin reviewing their rates later this summer.
Homestead exemption still available
For residents 65 and older or those with disabilities, the Homestead Exemption offers some relief. The exemption reduces the assessed value of a qualifying home by $49,100. Foster said 11,023 homes in Daviess County qualified this year — up from 10,820 last year.
“Any homeowner who meets the age or disability requirements should apply,” she said. “It can make a significant difference.”
Check your value
Residents can look up their assessment and estimated property taxes by visiting daviesskypva.org. The website includes a tax calculator that reflects potential bills based on current rates.
Foster said she understands that rising values can create frustration, but stressed that her role is rooted in fairness and transparency.
“The numbers don’t lie,” she said. “We follow a formula and we’re here to help people understand it.”
