Tagged: local option sales tax

Louisville Metro Councilman Ken Fleming, R-7, is sponsoring a $25,000 study on the economic impact of raising the state sales tax in the city.

Mayor Greg Fischer has been lobbying residents and state lawmakers to support a local option sales tax to raise revenue for special projects.

The plan would allow local voters to accept or reject raising the sales tax, which proponents say could generate around $90 million annually.

But Fleming says the city hasn’t examined its current tax structure and officials don’t know how an increase would burden residents.

"We really don’t have a benchmark or a good analysis on the taxes and how it affects individuals, and this study I’m anticipating will gives us a clear understanding of the tax implications. It can be used for future analysis or reviews of any type of taxes that might come up," he says.

A new Courier-Journal Bluegrass Poll shows an overwhelming number of Kentuckians favor a constitutional amendment that would allow city residents to vote on whether to raise the state sales tax.

The survey found 72 percent of voters support the proposal, while 19 percent are opposed and another 9 percent are not sure. But legislative leaders from both parties in Frankfort have spoken out against the measure, preferring tax reform or raising other fees for special projects.

Louisville Mayor Greg Fischer told WFPL the poll shows residents are behind the idea and he will continue to lobby state lawmakers.

"I’ve been talking to legislators in Frankfort along with other mayors and county judges from around the state to show them that there is in fact strong support at the grassroots level and we hope Frankfort will be listening to the people," he says.

H&R Block has released a graph showing what many have said for years, Louisville is one of most tax burdened cities in the country.

The findings are based on a study conducted by the chief financial officer of Washington, D.C.

That reported was touted by Councilman Ken Fleming, R-7, as a reason for Mayor Greg Fischer's administration to think twice about pushing a local option sales tax.

H&R shows that a hypothetical family of three with an annual income of $50,000 pays an estimated $6,346 in taxes annually.

That means Louisville residents carry a 12.7 percent tax burden, ahead of Boston, Massachusetts at 12.3 percent and just behind Chicago, Illinois at 12.8 percent.

Kentucky's top two legislative leaders are throwing cold water on a proposal to create a local option sales tax for city and county governments.

The plan would give local voters the ability to decide whether to fund special projects through a temporary increase to the state sales tax. It would typically be used for infrastructure, supporters say, but could also be applied to long-term investments.

Democratic House Speaker Greg Stumbo, however, says cities already have alternatives for such projects.

"There's a lot of options that they have, that they haven't used for local option taxes if they want to utilize them. So I don't necessarily favor it," he says.

The measure is heavily supported by Louisville Mayor Greg Fischer and Lexington Mayor Jim Gray, both Democrats.