Louisville Metro Council approves FY27 tax rates and new MSD explanation rule

Louisville Metro Council approved the city’s fiscal year 2027 property-tax rates on September 10, 2026, and enacted a separate rule requiring advance explanations for certain proposed Metropolitan Sewer District rate increases.

The actions affect property owners across Louisville Metro, residents of the Louisville Urban Services District and customers who pay MSD charges for wastewater, stormwater and flood protection.

What council approved

For FY27, the general Metro Government real-property tax rate is 11.64 cents per $100 of assessed value. Real property inside the Louisville Urban Services District carries an additional 32.76-cent rate per $100 of assessed value.

The Urban Services District rate is separate from the general Metro Government rate. It applies to property within the district, which generally covers the former Louisville city area and supports services provided there that are not provided throughout the rest of Metro Government.

Neither figure represents a property owner’s complete tax bill. Other taxing jurisdictions and levies may also apply.

How the FY27 rates compare

The prior-year comparison rates listed in Metro’s official tax notice were 11.80 cents per $100 for Metro general-purpose real property and 31.90 cents per $100 for the Urban Services District.

The notice also said the FY27 proposed rates exceeded the newly defined compensating rates of 11.20 cents for Metro general purposes and 31.50 cents for the Urban Services District.

That notice identified expected FY27 real-property revenue of $123,632,007 for Metro general purposes and $82,340,291 for the Urban Services District. Those figures are expected revenue, not final collections.

New MSD explanation requirement

Separate from the tax-rate ordinance, council approved Ordinance O-161-26, which amends Louisville Metro Code Section 50.24 concerning MSD debt-service adjustments.

Under the enacted rule, an explanation of any proposed MSD rate increase exceeding 4% must be delivered to Metro Council at least 60 days before MSD board approval. If requested, the council’s Government Oversight/Audits & Appointments Committee may require the MSD executive director and a board member to appear and answer questions about the explanation.

The requirement is an advance-reporting and transparency measure. It does not give Metro Council an automatic veto over MSD rates or freeze future charges. The ordinance states that MSD retains authority under state law to set rates, rentals and charges for wastewater and drainage services.

The separate FY27 MSD increase

The new reporting rule should not be confused with the FY27 MSD charge change already finalized for Jefferson County.

MSD says its board finalized a 3.9% measured-rate increase for Jefferson County residential wastewater, stormwater and flood-protection services. The increase took effect beginning September 1, 2026.

Because the finalized increase is 3.9%, it is below the ordinance’s more-than-4% threshold. The new rule concerns future proposed increases above that threshold; it does not change the already effective FY27 MSD adjustment.

What Louisville residents should watch

Property owners should compare their complete tax bills rather than treating either the 11.64-cent Metro rate or the 32.76-cent Urban Services District rate as the total amount owed.

MSD customers should review their bills and the district’s rate schedules for the separate 3.9% Jefferson County adjustment that took effect September 1. Future MSD proposals exceeding 4% should be accompanied by an explanation delivered to Metro Council at least 60 days before the MSD board considers approval.

Sources

Look for updates to this story

Discover more from Interactive News

Subscribe to get the latest posts sent to your email.