Local Option Sales Tax initiative and enabling legislation pass House

House Bill 2, legislation to give local communities the option to place an additional sales tax of up to one percent on the ballot for voter approval, passed the House Friday with a 60-31 vote.

The bipartisan legislation filed by House Speaker Greg Stumbo, Republican Leader Jeff Hoover and others would give Kentucky’s communities another tool to fund important projects.

The proposal would allow local governments to use the additional sales tax to pay for voter-approved local investments. When the projects are finished, that increase would sunset.

The legislation will require a two thirds majority in each chamber to get through as it is a constitutional amendment. Local option sales tax legislation, also known as LIFT (Local Investments For Transformation), is backed by the Kentucky Chamber.

Passage of the bill in the House Friday came after the legislation passed the House Committee on Elections, Constitutional Amendments and Intergovernmental Affairs Monday.

The House also passed the enabling legislation for LIFT, House Bill 374, on Friday with a 55-36 vote.

Both bills now head to the Senate to be heard in committee.

Learn much more about the issue of local option sales tax including how it works and a list of supporters, visit the LIFT Kentucky website here.

Categories: 2016 General Assembly, Kentucky Competitiveness

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