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Kentucky: Local Option Sales Tax Dead for Now


 The Kentucky capitol, in Frankfort.

Some Kentucky lawmakers think local governments should be able to levy local option sales and use tax. In February, the House approved HB 1, which would amend the state’s constitution in order to allow local communities to do just that. This week, however, the measure was declared dead by Senate Majority Floor Leader Damon Thayer (R).

Local government organizations such as the Kentucky Chamber of Commerce and the Kentucky League of Cities are in favor of a local sales tax. Yet many Kentucky businesses worry that a local sales tax would put them “at a disadvantage with out-of-state, mail-order firms that wouldn’t be collecting the extra sales tax.”

Although declared dead, the issue likely has a bit of life in it yet. Greg Fischer, the Mayor of Louisville, told the Courier-Journal that he will continue to push the issue until March 24, when the current legislative session concludes. Like Governor Steve Beshear, Mr. Fischer has long been a proponent of local sales tax. According to Fischer, it is “a necessary tool for economic development that 37 other states have.”

Find accurate local tax rates for all states with this free sales tax rate map.

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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.