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The Kentucky House recently passed the Local Option Sales Tax bill (HB2). The Senate version appears to be dead in committee again this year but could yet come up for a vote.

The Chamber of Commerce, many of the County Judge Executives, many city councils and several other special interest groups are twisting legislative arms and applying pressure to pass this bill in order to provide a new stand alone mechanism for passing a new local sales tax.

The Local Option Sales Tax bill will be a disaster for Kentucky citizens. If adopted in a county and/or city, the additional tax burden will disproportionately affect those who can least afford it. Those on a fixed income or low income will be forced to make difficult decisions about purchasing food, medicines, and other necessary items of everyday life.

This bill would also place additional expensive monetary and manpower burdens on small business owners who would be forced to collect, account for and disburse the new taxes. The cost of complying with these requirements will only serve to restrict the profitability of small businesses.

This new tax may also force the purchasers of large ticket items to go to other counties or cities or even out of state to avoid the additional tax burden, further squeezing the profitability of these businesses.

The citizens and businesses of Kentucky are Taxed Enough Already. Giving the Chamber of Commerce, County Judge Executives and City Councils another tool to raise taxes and further harm our economy will not help Kentucky recover from its debt problems. We must spur new businesses and encourage hiring. This bill would stifle business and suppress hiring.

I would respectfully ask our legislators to rebuke the Chamber of Commerce, the County Judge Executives and City Councils by voting no on the Local Option Sales Tax bill and encourage them to protect the citizens of Kentucky from this new potential tax increase that we can ill afford.

Scott Hofstra

Spokesperson

United Kentucky Tea Party

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One Response to “Opposition Commentary Local Option Sales Taxes”

  1. Wm Rance Ranney says:

    Great response Scott!

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