As lawmakers returned to Frankfort for the second half of the 30-day short session, a measure the Kentucky League of Cities Board of Directors has voted to oppose has been filed.
Representative Jared Bauman, R-Louisville, filed House Bill 253 on Tuesday when the House returned to session. If approved, the bill would establish a working group to “assist the State Treasurer’s office in the modernization of occupational tax collections,” according to a news release from House Republicans.
“HB 253 proposes the creation of a unified online portal for businesses to streamline the payment of local payroll and net profit taxes across all jurisdictions,” the release said. The Kentucky League of Cities did not receive the bill for review from the sponsor before it was filed.
KLC Executive Director/CEO J.D. Chaney said the league will vigorously oppose the legislation. Dozens of cities have already filed resolutions to oppose the legislation.
“The Kentucky League of Cities Board of Directors voted to oppose the centralized collection of occupational taxes, and that is exactly what the league will do. This bill is added governmental bureaucracy and will only complicate the process of collecting occupational taxes, a vital revenue source for cities that funds critical infrastructure as well as emergency services, like police and firefighters,” Chaney said. “Cities are the economic engine of Kentucky, and we will do everything we can to protect that engine from unintended consequences of government overreach and expenses, which this bill would create.”
KLC is expected to be joined in opposition to the bill by the Kentucky Association of Counties and other partners.