Legislation to expand revenue options for counties introduced in House

HB475 would amend the Kentucky Constitution to expand the ability of the General Assembly to provide more revenue options for counties.

The proposed amendment would allow the General Assembly to pass legislation authorizing a county to collect taxes that are currently restricted by Section 181 of the Kentucky Constitution. If passed, the proposed amendment would appear on the ballot in November.

Section 181 of the Kentucky Constitution only allows the General Assembly to delegate to counties a limited number of revenue options, including property, occupational, and a few fees and license taxes.

Those restrictions make modernizing county revenue streams in order to adequately fund the needs of the community impossible. Without a plan for local tax reform that includes the ability of counties to use a variety of revenue options – including a local sales tax – counties are at a huge disadvantage when it comes to maintaining and increasing economic competitiveness.  

More than 50 representatives are cosponsoring HB475.

KACo urges all county officials to reach out to their representatives in the House and ask them to support HB475 to help unlock the potential of Kentucky’s counties.