Weather for the Following Location: Lexington on Map

Fayette County Cancels Occupational Tax Increase Vote

Article Sponsored by:

Want to target the right audience? Sponsor our site and choose your specific industry to connect with a relevant audience.

What Sponsors Receive:
Prominent brand mentions across targeted, industry-focused articles
High-visibility placements that speak directly to an engaged local audience
Guaranteed coverage that maximizes exposure and reinforces your brand presence
Interested in seeing what sponsored content looks like on our platform?
Browse Examples of Sponsored News and Articles:
May’s Roofing & Contracting
Forwal Construction
NSC Clips
Real Internet Sales
Suited
Florida4Golf
Click the button below to sponsor our articles:
Community members participating in a discussion at a town hall meeting.

News Summary

The Fayette County Fiscal Court has postponed its vote on a proposed occupational tax increase following legal concerns raised by Kentucky’s Attorney General. The school board’s request to boost the tax from 0.5% to 0.75% aimed to bridge a $16 million budget shortfall but was deemed unlawful due to insufficient public notice. There will be a public hearing for community input on the tax proposal prior to the rescheduled vote on June 23.

Fayette County, Kentucky – The Fayette County Fiscal Court has canceled its planned vote on a proposed increase to the occupational tax due to legal concerns surrounding the process followed by the Fayette County Public School Board. This decision came on the heels of an opinion from Kentucky Attorney General Russell Coleman, which ruled that the school board’s earlier vote to request this increase was unlawful.

On May 27, the Fayette County Public School Board voted narrowly by a margin of 3-2 to seek authority from the fiscal court to raise the current occupational license tax from 0.5% to 0.75%. The increase is intended to help bridge a $16 million budget shortfall facing the school district. However, the Attorney General’s opinion indicated that the school board failed to provide the legally required public notice before convening on the tax proposal during its May meeting.

Following the Attorney General’s findings, Fayette County Judge-Executive Mary Diane McCord Hanna determined it was necessary to halt the fiscal court’s vote on the tax increase. This decision was made in consultation with Fayette County Attorney Angela Evans, who advised that moving forward without adherence to proper legal procedures would be inappropriate.

The proposed tax increase has drawn scrutiny from both community members and state lawmakers, with significant criticism directed at the school board’s transparency regarding the vote and decision-making process. Many residents claim that there was insufficient public notice related to the proposed tax hike, leading to concerns about community involvement in such a critical financial decision.

School officials have argued that without the additional revenue generated by the proposed tax increase, the district would face severe financial challenges jeopardizing educational services. They maintain that addressing the budget gap is vital for ensuring the ongoing stability of the district’s finances. If approved, the tax increase is projected to generate between $27 million to $32 million in additional revenue when fully implemented, with the existing occupational license tax expected to yield approximately $57 million for the upcoming fiscal year.

In light of these developments, the Fayette County Fiscal Court plans to schedule a second vote on the proposed tax increase for June 23. This meeting will also include a public hearing designed to solicit community input regarding the tax proposal. Fayette County Superintendent Demetrus Liggins has emphasized the district’s commitment to achieving student success and maintaining transparency, asserting adherence to legal requirements during this process.

Currently, the average monthly payment for workers in Fayette County stands at approximately $26. Should the tax increase be approved, this figure would rise to around $39, reflecting the increased financial obligation for local employees.

Further driving the scrutiny of the school board’s actions, Senator Amanda Mays Bledsoe sought the Attorney General’s opinion after receiving feedback from her constituents regarding the perceived lack of transparency in the school board’s decision-making process. The Attorney General’s ruling reinforces that the Fayette County Fiscal Court is not authorized to vote on tax increases that do not conform to legal procedures set forth.

As the community gears up for the upcoming public hearing, residents will have the opportunity to express their views and ask questions regarding the planned increase to the occupational tax, the budget issues it aims to address, and the importance of transparency in local government processes.

Deeper Dive: News & Info About This Topic

HERE Resources

Fayette County Commissioner Recuses from Tax Vote
Fayette County School Board Approves Tax Increase to Address Budget Deficit
Fayette County Schools Propose Tax Increase to Address Budget Deficit
Fayette County Public Schools Considers Tax Increase to Address Budget Shortfall
Fayette County Proposes Occupational License Tax Increase for Schools
Fayette County Schools Propose Occupational Tax Increase
Lexington Unveils Renovated Briarwood Apartments for Affordable Housing
Fayette County Faces $16 Million Budget Shortfall
Fayette County Schools Propose Significant Budget Cuts
Lexington Mayor Proposes $539.2 Million Budget Focusing on Safety and Infrastructure

Additional Resources

Fayette County Cancels Occupational Tax Increase Vote

HERE Lexington
Author: HERE Lexington

ADD MORE INFORMATION OR CONTRIBUTE TO OUR ARTICLE CLICK HERE!
Article Sponsored by:

Want to target the right audience? Sponsor our site and choose your specific industry to connect with a relevant audience.

What Sponsors Receive:
Prominent brand mentions across targeted, industry-focused articles
High-visibility placements that speak directly to an engaged local audience
Guaranteed coverage that maximizes exposure and reinforces your brand presence
Interested in seeing what sponsored content looks like on our platform?
Browse Examples of Sponsored News and Articles:
May’s Roofing & Contracting
Forwal Construction
NSC Clips
Real Internet Sales
Suited
Florida4Golf
Click the button below to sponsor our articles:

Construction Management Software for Contractors in Lexington, KY

For contractors in Lexington, KY, CMiC offers an industry-leading construction management platform designed to simplify financial oversight and streamline project coordination. With features such as automated reporting, mobile field access, and real-time data synchronization, CMiC ensures that Lexington contractors can efficiently manage budgets, subcontractors, and scheduling.

Learn More about CMiC’s offerings here. 

Stay Connected

More Updates

Would You Like To Add Your Business?

Sign Up Now and get your local business listed!