Seeking to give local governments more flexibility to generate tax revenue, the Kentucky House of Representatives on Wednesday granted passage to a proposal to amend Kentucky’s Constitution in House Bill 475.
If passed, House Bill 475 would add a ballot proposal for Kentucky voters to consider loosening tight restrictions on how city and county governments can impose taxes on their citizens.
Supporters of the bill say that local governments are currently too reliant on income and property taxes and that passing HB 475 would help attract more business to Kentucky.
“The Chamber agrees local governments should be able to determine their own destiny and supports House Bill 475,” said Ashli Watts, President and CEO of the Kentucky Chamber. “Should this measure pass, we pledge to work carefully with the General Assembly in future sessions to ensure the enabling legislation increases our competitiveness and does not hinder economic growth.”
“There’s no way to truly do comprehensive tax reform if we don’t address the local side as we address the state side,” Rep. Michael Meredith, the sponsor of House Bill 475, told the Associated Press.
House Bill 475 now moves to the Senate for committee consideration.
Stay tuned to the Bottom Line for further updates.