Adair County residents will get an extra tax bill as trustees of bankrupt hospital vote to levy a tax to pay its debts

Facing a $20 million debt and in bankruptcy, the Adair County Hospital District trustees voted unanimously Oct. 4 to impose a 10 cents-per-$100 value property tax, effective immediately.

In August, in a move perhaps unprecedented in Kentucky, the district filed for protection under Chapter 9 of the bankruptcy code, which is designed to allow time for a government debtor to reorganize and restructure its debt.

As a result of the filing, creditors such as Farmers National Bank of Danville have sued the district in state court, seeking to force the district to levy a tax to pay its debts. In addition to passing the tax on real estate, the trustees also passed a 10-cent tax on motor vehicles and watercraft, effective in January, reports the Adair County Community Voice. Part of Green River Lake lies in Adair County.

“Neal Gold, vice chair of the board, who has been overseeing hospital operations, said after the meeting they could have taxed Adair County at a higher rate but couldn’t morally do so and decided to stick to the 10-cent minimum,” the Voice reports.

Adair County Property Valuation Administrator Junior Feese told the Voice that the real-estate tax will generate $573,000 this year. He said Adair County residents can expect a separate tax bill in the mail this week because this year’s tax bills had been mailed.

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