Tax-related constitutional amendment proposal clears House committee

Kentucky voters may soon decide whether or not the Kentucky General Assembly can allow local governments to charge new types of taxes.

House Bill 475 cleared the House Elections, Constitutional Amendments and Intergovernmental Affairs Committee this week.

Currently, Section 181 of the Kentucky Constitution limits the types of taxes local governments can charge. Some lawmakers say most cities, counties and municipalities survive on occupational tax and property tax revenue.

For example, changing the constitution would give the General Assembly the power to approve legislation that would allow local governments to implement a one percent local sales tax.

If the bill receives approval from the House and the Senate, Kentucky voters will decide on the proposed change to the constitution during the November 2022 general election. The bill now goes before the full House for consideration.