Luxury tax possible for Louisville if proposed bill passes
Kentucky lawmakers have a restaurant tax put before them that could enable Louisville and Lexington to benefit from a “luxury” tax.
Smaller cities are already allowed to impose this type of tax, but the two largest cities in the Bluegrass State – Lexington and Louisville – have been prohibited from doing so. Louisville leaders have petitioned the General Assembly for the ability to enact the tax, from which the city could raise an estimated $40m per year with a 3% tax on sales of food and beverages.
According to David James, metro council president, the tax could be viewed as a form of luxury tax, since dining out is a choice. James was quoted on WDRB.com as saying:
Louisville leaders have been trying to locate additional revenue as an answer to the city’s pension crisis.
Increasing the quality of life for the citizenry of a community can lead to increased demand for printing services due to an accompanying rise in development that might follow.
Should the bill pass, it would then go to Governor Andy Beshear to sign; however, the matter would still end up being put before the voters, since enacting such a change to the law would require a change to the Kentucky constitution.
Smaller cities are already allowed to impose this type of tax, but the two largest cities in the Bluegrass State – Lexington and Louisville – have been prohibited from doing so. Louisville leaders have petitioned the General Assembly for the ability to enact the tax, from which the city could raise an estimated $40m per year with a 3% tax on sales of food and beverages.
According to David James, metro council president, the tax could be viewed as a form of luxury tax, since dining out is a choice. James was quoted on WDRB.com as saying:
"We have to do something in order to bring in new revenue to our city in order to protect our citizens and serve our citizens with basic services."
Louisville leaders have been trying to locate additional revenue as an answer to the city’s pension crisis.
Increasing the quality of life for the citizenry of a community can lead to increased demand for printing services due to an accompanying rise in development that might follow.
Should the bill pass, it would then go to Governor Andy Beshear to sign; however, the matter would still end up being put before the voters, since enacting such a change to the law would require a change to the Kentucky constitution.