Tagged: local option sales tax

Proponents of a local option sales tax have gained big ally in their legislative fight: Gov. Steve Beshear. 

The local option sales tax would allow cities to levy an additional tax on top of the state’s current six percent sales tax for specific projects, if local voters approved the new tax.

Louisville Metro Councilman Ken Fleming, R-7, is concerned that Mayor Greg Fischer’s push for a local option sales tax will burden residents and wants to examine cutting other levies first.

For several months the mayor has been lobbying that the city needs the tool to be more competitive and independent.

Fischer argues his administration is not seeking a tax increase, and only wants voters to have the power to decide whether or not to fund special projects through a temporary hike to the state's sales tax.

But Fleming says the mayor has provided few details on what a specific proposal would look like, and is ignoring his campaign promises to spur economic development and job creation.

"Their goal should be economic development, and adding an additional tax on individuals regardless of income is not the right way to go," he says. "What we need to focus on is to try to find those strategies and tactics like getting rid of the occupational tax. That will help development incur job creation. I think we ought to look at that process and not a tax mentality."

State Sen. Kathy Stein, D-Lexington, has introduced a bill in the General Assembly that would give cities a local option sales tax.

Louisville Mayor Greg Fischer has been a major proponent of the measure, which allows local voters to decide whether to fund special projects through a temporary sales tax increase. The mayor recently outlined the measure for Metro Council members, saying it gives Louisville more independence.

The bill was introduced Jan. 8 and will be in the State and Local Government Committee.

Stein says many lawmakers oppose any new taxes, but this gives local residents decision-making power.

"It is an option, unfortunately whenever some of us hear the word tax we jump 10 feet up in the air and say 'no, no, no.' But you need to pay attention. It gives the taxpayers the option of doing it. The people who vote have the options," she says.

In an interview broadcast live Thursday on WFPL, Mayor Greg Fischer covered a broad array of topics —violence prevention, charter schools, the NBA and more.

You can listen to a podcast of the interview below, and we'll have more stories Wednesday morning on a couple of specific topics. Here are some of the other highlights.