Constitutional amendment sought allowing voter approved local option sales tax
The Hardin County Chamber of Commerce hosted its third legislative luncheon today for state legislators. Elected leaders learned about the results of the chamber’s recent public policy survey and its desire to advocate for key issues impacting local business growth and economic competitiveness.
Key among those issues is the board of directors’ unanimous support for a Kentucky constitutional amendment that would allow for voter-approved local option sales tax of up to one percent.
Such a tax would be designated for specific quality of life capital projects and would end once the projects are paid in full.
“This is about self-determination and being empowered to invest in our own community,” said Brad Richardson, President and CEO of the chamber.
Richardson emphasized that the chamber is not endorsing a tax, but rather the right to impose a sales tax locally as long as it’s approved by the voters.
“It’s often been said that the further away your tax dollars go, the less control you have over how they are spent,” said Harry Berry, Hardin County Judge Executive. “I’m in favor of giving Hardin County residents a direct say in how their tax dollars are used.”
The Chamber joins other business, government and economic development organization throughout the state calling for the constitutional amendment including the Kentucky Chamber of Commerce, the Bowling Green Chamber of Commerce, the Owensboro Chamber of Commerce, the Kentucky League of Cities, the Kentucky Association of Counties, the Kentucky Association of Economic Development, Greater Louisville Inc., and more.
“This is a common tool used throughout the country to invest in projects that enhance the quality of life in a community,” said State Senator Dennis Parrett. “When you invest in your community, you attract and retain a quality workforce and that allows you to grow existing business and attract new business.” Parrett is among a growing list of state legislators who support a constitutional amendment.
The results of the Chamber’s public policy survey reinforced the board’s decision. Of the 112 respondents with an opinion, 58 percent indicated local communities should have the option to invest in projects that local voters consider important enough to fund.
That statistic was even higher when the data excluded non-members who took the survey. 62 percent of members with an opinion supported allowing local communities the option to enact a local sales tax of up to one additional percent, voted on by local referendum, to be used only for specific local project(s).
Respondents also weighed in on workforce needs, right-to-work, the state tax system, and other matters impacting economic competitiveness.
74 percent of the respondents supported enacting a right-to-work law for Kentucky to help compete against neighboring states that have similar laws. “In many cases, we know that Kentucky communities don’t even make the list because we aren’t a right-to-work state,” said Richardson
Additionally, 83 percent of respondents were dissatisfied with the state tax system and some 75 percent of survey respondents were in favor of having an independent panel draft congressional districts rather than the state legislature.
The survey participants also resoundingly pointed to soft skills – team skills, work ethic, critical thinking and adaptability – as the greatest challenge they faced in meeting their workforce needs. Additionally, 25 percent of respondents said they need more applicants with college degrees.
“These results on workforce needs further validate the Chamber’s support and partnership with Hardin County Schools and Junior Achievement in the Work Ethics Certification program,” said Richardson.
A majority of respondents were also in favor of repealing the prevailing wage mandate on government funded construction projects.
“We will continue to seek input from our members on public policy and advocate for key issues that directly impact our members, the local business climate and our communities’ economic competitiveness,” said Ray Springsteen, Chamber Board Chair and Executive Vice President of the Fort Knox Federal Credit Union. “We are excited to move the chamber in this direction.”
