A proposed amendment to the Kentucky Constitution aims to provide local governments a new way to gain funding - through a possible local sales tax.
The Kentucky League of Cities prepared an amendment in response to the difficulties some cities have in receiving funding. The local sales tax amendment may be an important tool for local governments looking to raise money, said Sylvia Lovely of KLC.
Rep. Kathy Stein (D, Fayette County) introduced the amendment into the Kentucky Legislature as H.B. 361. The proposed amendment will be heard Wednesday morning by the House Committee on Elections, Constitutional Amendments, and Governmental Affairs, Lovely said.
The possible amendment already has received dissension.
"There is a lack of understanding that this isn't an automatic tax increase," she said.
If passed, the new amendment would allow the option of an additional 1 cent local sales tax be added to purchases in accepting local government areas. However, the amendment would require that a local referendum be completed before the 1 cent local sales tax can be added to the system, Lovely said.
