Kentucky House Committee OKs Local Option Sales Tax

Feb 10, 2015

A bill that would allow Kentucky’s local governments to increase the sales tax one percent to fund projects is heading to the full House.

The local option sales tax legislation won committee approval today Tuesday.

Under the proposed legislation, local voters would need to approve the temporary tax increase for each project.

Louisville Mayor Greg Fischer—an enthusiastic supporter of the local option—said the tax could fund the completion of the Louisville Loop, to build parks, and to increase wireless connectivity.

“People know we have many needs, but it’s up to the citizens to decide if those needs would be funded on a temporary basis.”

Critics argue the sales tax would disproportionately hurt poor Kentuckians.

If the measure passes the both chambers of the General Assembly and is approved by Governor Beshear, it would still have to be approved by Kentucky voters in the November election.