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Will Kentucky Approve Local Option Sales Tax Constitutional Amendment?

  • Feb 11, 2015 | Gail Cole

 Kentucky lawmakers consider allowing local option sales and use taxes.

Kentucky lawmakers yesterday took a step toward approving a proposed constitutional amendment that could ultimately give local governments the ability to levy local option sales and use taxes to fund specific projects.

House Bill 1, formerly called Local Investments for Transformation (LIFT), is on its way to the full House for consideration after being approved by the House Elections, Constitutional Amendments and Intergovernmental Affairs Committee. If the House gives it a green light, Kentuckians will be asked to vote on a constitutional amendment seeking to allow “state lawmakers to give local governments the power to levy up to a penny of local option sales and use tax for specific projects with voter approval. The tax would be eliminated with the project is paid off.”

Many people and organizations have spoken in support of House Bill One, including but not limited to the following:

  • Kentucky Chamber of Commerce
  • Louisville Mayor Greg Fischer
  • Kentucky Association of Counties
  • Kentucky League of Cities
  • Governor Steve Beshear
  • Numerous former governors

Yet the bill does not have universal support. Democratic Representative Jim Wayne called it “a regressive tax that would hurt the poor by taking larger amounts of their limited incomes.” And a representative from the Kentucky Retail Federation said a local option tax “would put Kentucky businesses at a disadvantage with out-of-state, mail-order firms that wouldn’t be collecting the extra sales tax” (The Courier Journal).

Find the right rate for all localities in all states, even those with temporary local option sales tax taxes. Learn more.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.