HB 475 has passed out of the House Standing Committee on Elections, Constitutional Amendments and Intergovernmental Affairs.
Sponsored by Representative Michael Meredith, the legislation proposes an amendment to the Constitution of Kentucky that would permit the General Assembly to expand and modernize the revenue options available to counties.
Should the bill be signed into law, it would be placed on the November ballot for voters to consider.
The economic landscape has evolved since the state’s constitution was enacted, and the breadth and scope of services county governments provide has significantly expanded. Currently, Section 181 of the Kentucky Constitution limits the types of taxes local governments can impose, resulting in a reliance on outdated and limited options.
This measure is a necessary step toward fulfilling the revenue needs of counties today to fund the services residents expect, while maintaining local control and decision making.
KACo Executive Director Jim Henderson testified on the legislation alongside Rep. Meredith and representatives from the Kentucky League of Cities, Greater Louisville Inc. and Commerce Lexington Inc.
Henderson spoke on the potential impact of this legislation on counties of all sizes, and the importance of providing counties options to diversify the methods by which they raise revenue. He emphasized that counties that currently do not generate much occupational tax revenue, if any, could benefit greatly from a local sales tax.
“Counties have talked about the need for local tax reform for as long as I can remember,” Henderson said. “Unless and until there’s a change to the constitution we are currently limited on how far we can go in this conversation; HB475 is the first step in the process.
“One size doesn’t fit all when it comes to tax policy at the county level,” Henderson added. “I trust elected county officials to know best what works in their community.”
Added Rep. Meredith: “If we want to provide more flexibility to our local governments in setting the course for their future, this is a change we must make.”
HB 475 heads to the House floor for consideration. Click here to contact your House members today and ask for their support of HB 475. You can also call the Legislative Message Line Monday-Friday at 1-800-372-7181 and leave a message with an operator who will deliver it to them.
