Kentucky lawmakers consider giving cities more freedom to generate tax dollars

Kentucky

FRANKFORT, Ky. (WEHT) — A Kentucky House panel has advanced a proposal aimed at giving local governments more freedom in generating tax revenue.

The proposed constitutional amendment now heads to the full House.

If added to the state’s constitution, it could eventually unlock tight restrictions on the types of taxes that city and county governments can levy to meet obligations.

Supporters of the amendment say the current state constitution restricts local governments’ ability to impose certain taxes and fees which makes cities and counties dependent on payroll and property taxes.

The Kentucky Retail Federation issued a statement that in part reads: “City and county governments already tax Kentuckians where they live and work. Now they want to tax them where they eat, shop and play.”

if passed by the full House and Senate, the measure would be decided by voters in a statewide ballot this fall.

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(This story was originally published on Feb. 28, 2020)

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