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Mon February 11, 2013
Legislative Leaders Say They Don't Favor Local Option Sales Tax
Kentucky's top two legislative leaders say the local option sales tax isn't likely to come up this year. The local option would allow cities and counties to put temporary sales tax increases to a public vote. It would typically be used to pay for infrastructure projects.
Louisville Mayor Greg Fischer and Lexington Mayor Jim Gray are the major forces behind the option, and a bill amending the state Constitution to allow it has been filed in the Senate. But Senate President Robert Stivers says his chamber doesn't want to put more tax burdens on individuals.
"You know if you can grow revenues by creating jobs, I'd say that you'd walk in and talk to all 24 members of our caucus and they'd say, therefore that type of tax reform, that does not subject the individual to anymore liability, but brings more people into the base," Stivers says.
House Speaker Greg Stumbo says he's also not favorable to the local option, saying cities have other taxes to raise if they need money.