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B
C
D
D
F
A
Here
very
well
all
right:
we
we're
constituting
conduct
business
so
today,
we've
first
of
all
can't
get
approval
on
the
minutes
from
September
21st,
2022
representative
reader
of
a
second
by
representative
Blanton,
all
is
in
favor,
signed
by
by
saying
I
suppose,
like
signing
the
eyes
have
it,
mints
are
approved
okay.
A
So
today
what
we're
going
to
do
is
we've
had
this
issue
several
times:
Through
The
Years
about
local
Taxation
and
changes
to
it
and
I
thought
would
be
good
for
all
of
us
to
hear
from
the
various
interested
parties
while
we're
not
necessarily
in
the
hustle
and
bustle
session,
and
so
that's
why
representative
Meredith
is
here
today
with
his
crew
and
Jennifer
Hayes
and
Andrew
McNeil
to
kind
of
talk
through
this
issue.
A
The
intent
is
that
we
will
adjourn
at
two
o'clock
today,
so
I
would
ask
everybody
to
keep
your
comments
as
concise
as
possible,
while
allowing
for
a
good
explanation
of
the
issues.
So
with
that
Jennifer
floor
is
yours,
ma'am.
G
So
from
a
big
picture
view,
revenue
is
generated
at
the
local
level
by
two
major
categories
of
taxes.
There
are
various
license
fees
and
then
there
is
property
tax.
G
Thank
you
to
Kentucky
legal
cities
and
Kentucky
Association
of
counties
for
providing
this
data.
You
might
say
well,
you
said,
there's
two
but
you've
got
a
pie
chart
with
three
sections
here.
So
what's
going
on,
I
wanted
to
pull
out
the
most
prevalent
license
fee
and
state
it
separately,
and
that
is
the
Big
Green
slice
of
the
pie
for
occupational
license
tax.
G
And
then
the
yellow
piece
of
the
pie
contains
all
the
other
like
various
license
and
occupational
fees
license
fees
and
then
you
can
see
the
blue
piece
of
the
pie
is
property.
So
really
it's
about
70
75-ish,
split
between
75,
25,
split,
70,
30,
split
between
license
fees
and
property
tax.
G
We
can't
go
very
far
in
a
r
without
talking
about
the
Constitution,
and
so
once
again
here
we
are
section.
181
of
the
Constitution
allows
the
general
assembly
to
delegate
the
power
to
the
local
jurisdictions
to
impose
and
collect
license
fees
on
stock
use
for
breeding
purposes.
I,
don't
know
how
prevalent
that
is
these
days,
but
the
next
one
is
very
big,
franchises,
trades
occupations
and
professions.
That's
all
of
those
license
fees
that
were
in
the
bigger
pieces
of
the
pie.
G
So
you
as
a
general
assembly,
cannot
impose
a
tax
for
a
jurisdiction,
but
you
can
authorize
them
to
impose
the
tax,
so
you
might
be
asking
well
what
what's
in
that
yellow
box,
yellow
piece
of
the
pie,
all
those
other
license
fees
and
I've
broken
them
down
into
two
different
characteristics
related
to
on
the
on
the
blue
side
of
this
chart,
who
is
required
to
pay
the
tax
or
what
the
tax
is
imposed
on.
G
So,
like
insurance
companies,
there's
a
a
premiums
tax
at
the
local
level,
Banks
there's
a
deposit
tax
at
the
local
level,
taxi
cabs
and
limousine
companies.
There
may
be
a
flat
fee
that
is
imposed
for
those
types
of
companies
operating
in
the
in
the
local
jurisdiction
if
they
have
done
an
ordinance
to
impose
that
tax
within
their
jurisdiction
over
on
the
what
side.
It
doesn't
matter
who's
doing
this
it's
if
there
is
a
transient
room
or
if
there
is
a
vehicle
rental
or
if
there
is
cable
television.
G
So
it's
a
either
or
remember,
or
it
might
be.
Both
there
are
alcohol
fees
on
the
company
and
then
alcohol
fees
on
the
item
that
is
being
sold,
so
it
can
be
varied
or
both
and
then
finally,
section
180
of
the
Constitution
says
that
the
local
jurisdiction
must
specify
the
purpose
for
attacks
if
they
do
an
ordinance
or
resolution
to
impose
a
tax.
So
just
a
reminder
that
that
constitutional
provision
is
there
as
well
now,
let's
move
away
from
the
license
side
and
go
to
the
property
tax
side.
G
Of
course,
property
tax
was
the
first
Tax
in
Kentucky
and
it's
all
wrapped
up
in
the
Constitution,
but
section
157
provides
that
that
local
jurisdictions
May
impose
a
property
tax,
and
that
section
also
sets
maximum
property
tax
rates
see
down
in
the
chart.
There
are
three
different
rates
that
cities
May
impose
based
upon
population
and
they
those
rates
range
from
75
cents,
on
each
100
of
value,
all
the
way
up
to
one
dollar
and
fifty
cents
on
each
100
value.
G
G
I'm
from
Anderson
County,
so
I'm
picking
on
my
home
county
here,
this,
the
Department
of
Revenue
each
year,
will
publish
a
what
they
call
a
rate
book
containing
all
the
property
tax
rates
for
each
County
and
so
I've
displayed
here
on
the
screen.
G
We
only
have
one
school
district
in
Anderson
County,
so
the
school
tax
is
62.3
cents
for
each
100
of
value,
so
everyone
in
the
county
pays
62.3
cents
and
then
Anderson
County
has
a
Fire
Protection
District
I
live
outside
the
city
limits,
so
I
pay
10
cents
more
for
the
Anderson
County
Fire
District,
my
daughter
lives
inside
the
city
limits
of
Lawrenceburg.
She
does
not
pay
the
Anderson
County
Fire
District.
She
pays
the
city
of
Lawrenceburg
tax
of
19.5
cents
so
to
understand
the
rate
book.
G
You
really
need
to
understand
where
the
property
is
located
in
order
to
know
which
rates
to
apply
to
that
property.
The
other
columns
on
this
chart
are
primarily
for
businesses,
tangible,
personal
property,
owned
by
business,
Merchants
inventory
owned
by
business,
watercraft
and
aircraft
May
apply
to
an
individual
if
individually
owned
and
then
inventory
and
Transit.
So
you
you
need
to
understand
the
type
of
property
that
is
being
taxed
as
well
as
where
that
property
is
located
to
understand
what
rates
apply
to
to
that
property.
G
There
are
other
constitutional
Provisions
section:
170
allows
real
property
exemptions,
there
are
also
personal
property
exemptions
in
section
170,
but
most
of
the
personal
property
exemptions
are
statutory
exemptions.
So
it
is
easier
for
the
general
assembly
to
allow
personal
property
exemptions,
because
that
can
be
statutory
to
have
a
real
property
tax
exemption.
You
would
probably
need
a
constitutional
amendment.
G
G
G
G
G
A
You
Jennifer
I'm
not
going
to
open
it
up
to
questions
until
we
get
through
all
the
presenters.
So
if
everybody
would
just
kind
of
write
your
questions
down,
keep
them
and
go
from
there,
but
I
if
I
might
editorialize
just
briefly,
I
think
that
the
last
two
bullet
points
of
local
taxation
in
the
weeds
were
a
word
of
caution
to
everyone.
Don't
bring
this
to
me
with
six
hours
left
to
go
to
try
to
draft
a
bill
very
good.
All
right,
representative
Meredith
floor
is
yours,
sir.
A
A
E
Thank
you,
Mr
chairman,
ladies
and
gentlemen
with
the
committee.
It
is
a
pleasure
to
be
in
front
of
you
today
and
Central
McDaniel.
We
thank
you
for
the
invitation.
I
am
going
to
allow
them
to
introduce
themselves
because
they
may
have
brief
comments
if
we
have
time
and
it
permits
so
I
will
go
through
that
really
quickly.
We'll
start
from
the
left
and
move
back
to
our
right.
E
It
is
the
product
of
work
that
has
been
going
on
with
the
core
group
that
you
see
before
you,
since
about
2018
or
2019,
and
I'm
not
going
to
bore
everyone
with
it,
but
that's
the
research
that
we
have
compiled
over
that
four-year
period
of
time.
On
this
issue
from
where
we
stand
in
our
state
government
with
regard
to
our
local
Taxation
and
how
we
measure
up
Across,
the
Nation,
with
research
from
the
tax
foundation
and
other
groups,
one
of
the
things
that
we
found
is.
E
This
is
not
a
new
issue
in
1996
1997.
There
was
a
special
task
force
during
the
interim
that
identified
this
issue
as
their
number
one
recommendation
with
regard
to
local
taxation.
So
it's
been
going
on
for
at
least
two
and
a
half
decades.
Probably
some
of
the
first
references
will
go
back
to
the
late
80s
when
this
discussion
started,
but
we
have
at
least
back
to
the
legislature
making
recommendations
on
a
constitutional
amendment
and
statutorial
changes
back
to
1996-97..
E
E
Unfortunately,
though
it
didn't
get
through
the
house
that
year
and
I
will
lay
that
on
covid,
mostly
we,
we
brought
that
up
right
before
the
the
pandemic
really
got
started,
we're
going
to
circle
back
to
it
and
just
didn't
have
time
with
the
changes
that
occurred
at
the
time
it
was
proposed
again
in
2022,
as
I
said,
it
passed
the
house
with
ads
votes
in
a
bipartisan
Manner,
and
so
a
lot
of
the
information
the
house
members
have
seen
before
either
through
the
committee
process
or
the
house
floor
process,
and
so
that's
why
I
appreciate
you
letting
us
be
here
today,
Senator
McDaniel,
to
talk
to
the
senate,
about
this
I
want
to
tell
you
what
this
bill
is
not.
E
This
is
not
the
lift
or
loss
proposal
that
came
before
the
general
assembly.
Six,
seven,
eight
years
ago,
Lyft
focused
on
add-on
taxes
for
special
projects
approved
by
referendums
of
local
voters,
though
the
general
assembly
could,
if
this
amendment
were
passed,
create
some
structure
for
something
like
what
left
or
lost
was.
That
has
not
been
the
focus
of
the
group
that
you
see
before
you
today.
E
Since
the
start,
we
have
sought
to
work
with
and
continue
to
work
with
groups
that
have
concerns
about
this
process.
The
2022
Bill
had
Provisions
added
to
it,
specifying
that
any
local
sales
tax
must
apply
to
the
same
base
and
shall
be
administered
in
the
same
manner
as
any
state
sales
or
use
tax.
That
language
was
was
requested
by
the
beverage
Association
and
other
business
groups
working
with
the
Kentucky
chamber.
We
have
continued
to
to
update
them
on
this
process.
E
E
E
E
The
only
other
thing
that
I
would
say
from
a
data
standpoint
until
questions
arise
is
I,
do
want
to
make
the
distinction
Jennifer
talked
about
how
much
of
those
overall
funds
are
coming
from
occupational
tax,
and
that
field
has
both
occupational
and
net
profits
in
it
from
a
city
Revenue
perspective
on
those
taxes,
50.2
percent
of
about
58.3
percent
of
Kentucky
city
tax
revenues
comes
from
the
occupational
payroll
person
portion
of
that
tax,
with
about
6.7
coming
from
net
profits
and
1.4
percent
coming
from
gross
receipts
on
the
county
level.
E
It's
about
38.2
percent
coming
from
payroll
with
about
5.1
coming
from
net
profits.
So
most
of
these
taxes
are
derived
from
the
individual
income
side,
not
the
the
business
income
side.
The
other
thing
that
I
would
say
is
Kentucky
is
only
one
of
eight
states
in
the
nation
that
taxes
both
personal
and
business
income
at
the
local
level.
E
H
Thank
you
chairman.
Like
I
said,
my
name
is
Andy
Johnson
I'm,
the
chief
policy
officer
for
Commerce
Lexington.
Our
organization
represents
nearly
2
000
business
members,
not
only
in
Lexington,
but
throughout
a
non-county
region
in
Central
kentucky
Commerce
Lexington
as
a
chamber
of
commerce.
We
also
help
lead
the
economic
development
efforts
in
that
non-county
region,
working
to
attract
businesses
and
talent
to
our
region.
H
You
know
where
we
currently
stand
and
what
it's
going
to
take
for
us
to
be
more
competitive
in
both
of
those
areas
and
through
that
process,
we've
looked
at
how
we
compare
to
surrounding
states
and
other
communities,
and
the
policy
issue
that
is
at
the
top
of
the
list
is
our
local
tax
structure
that
Reliance
on
the
occupational
taxes
and
the
net
profits.
Taxes
is
an
outlier
when
we're
looking
at
jobs
and
talent.
H
So
that's
why
we're
here
today
advocating
to
you
all
for
the
general
assembly
to
allow
this
constitutional
amendment
to
go
on
the
ballot
and
then
to
have
that
robust
discussion
about
overall
modernization
of
those
local
tax
structures
that
enable
us
not
only
to
compete
for
the
businesses
and
the
people,
but
that
would
also
encourage
more
Regional
collaboration
across
county
lines
on
those
types
of
projects
that
would
help
us,
whether
it's
quality
of
life
or
product
development
or
Workforce
strategies
that
we'd
be
able
to
leverage
resources
more
effectively.
Thank
you.
I
Hi
everyone
I'm
Shelby
Somerville,
again
with
greater
Louisville
Inc.
We
are
also
a
Regional
Chamber
of
Commerce
and
we
represent
almost
2
000
businesses
in
the
greater
Louisville
region.
I
think
Andy
did
a
great
job
summarizing
why
this
is
important
for
the
business
Community
to
help
make
Kentucky
more
competitive
and
help
us
attract
businesses
and
talent,
to
the
state
and
to
our
region.
We
took
great
strides
passing
Statewide
tax
reform
last
session
with
House
Bill
8,
but
the
critical
changes
that
were
made
in
House
Bill
8
will
never
be
fully
realized.
I
If
we
don't
take
this
additional
step
and
address
the
local
tax
structures
as
well,
they
put
us
at
a
competitive
disadvantage
and
we
need
these
critical
improvements
in
order
to
move
forward.
Gli
recently
took
about
120
Business
Leaders
to
Jacksonville
Florida
on
our
annual
Glide
trip,
where
we
study
in
other
cities
see
what
they're
doing
from
a
policy
and
economic
development
standpoint.
Why
they're
succeeding
and
what
that
looks
like
in
every
conversation
nation
that
we
had-
and
this
was
not
planned
and
talking
about
every
major
accomplishment
that
they
have
had
in
the
last
several
years.
I
Having
the
local
tax
options
was
a
key
in
all
those
conversations.
They've
been
able
to
fund
many
infrastructure
improvements
and
major
product
major
projects
in
their
City
through
a
sales
tax
at
the
local
level,
and
that,
along
with
their
competitive
tax
code
at
the
state
level,
is
what
they
attribute
a
lot
of
their
growth
and
success
to.
We
need
cities
and
counties
to
be
able
to
reinvest
in
themselves
like
that
here
in
Kentucky.
I
Everyone
wants
economic
development
in
big
projects,
but
first
we
need
to
take
care
of
the
basic
infrastructure
and
services
that
cities
provide
for
people,
because,
without
that
you
can't
have
economic
growth,
so
reforming
Kentucky's
local
tax
structure
will
give
cities
and
counties
the
tools
that
they
need
to
thrive,
promote
Business,
Development,
support
economic
growth
and
attract
and
retain
top
talent
here
to
Kentucky.
So
we
urge
you,
alongside
everyone
here,
to
take
this
critical
step
in
passing
the
bill
to
allow
this
to
go
onto
the
ballot
and
continue
to
help
Kentucky
become
more
competitive.
Thank
you.
F
Good
afternoon
I'm
Amanda
Davenport
the
executive
director
of
the
lake
Barkley
partnership.
My
organization
is
responsible
for
economic
development.
Oh
can
you
hear
me?
Can
you
all
hear
me?
Okay,
I'm
very
short,
so
sorry
about
that
I
represent
Economic
Development
and
Caldwell
Crittenden
Lyon
and
Livingston
counties
in
West,
Kentucky
I
also
serve
as
the
treasurer
secretary
for
the
Kentucky
Association
of
Economic
Development
I
began
my
career
immediately
after
finishing
graduate
school,
where
I
served
as
the
first
economic
development
director
in
a
rural
town
north
of
the
Dallas
Fort
Worth
Metroplex.
F
It
was
during
this
time
that
I
became
a
fierce
champion
for
Rural
communities
and
an
advocate
for
their
Economic
Development
success.
I
first
experienced
the
power
and
potential
of
local
tax
control.
During
this
time.
In
my
professional
life,
I've
witnessed
firsthand
the
incredible
tools
that
tax
policy
can
provide
to
communities
by
allowing
them
to
Define
their
own
goals
and
economic
successes.
In
short,
local
tax
control
allows
for
communities
to
determine
their
own
destiny
by
creating
tailored
solutions
to
meet
their
own
individual
needs.
F
F
Texas
has
had
a
local
option.
Tax
policy
in
place
for
over
30
years,
and
an
economic
analysis
conducted
in
2020
found
that
all
20
of
all
new
job
creation
was
funded
in
some
way
through
that
local
tax
option
that
tax
revenue
has
led
to
an
increase
in
taxes
at
all
levels
of
government.
Typically,
one
dollar
of
local
tax
generated
brings
in
eight
dollars
to
the
state
government
and
six
dollars
to
local
governments.
F
Rural
communities
in
Kentucky
have
a
really
big
job
to
do
and
big
jobs
require
powerful
tools.
Local
tax
control
is
that
powerful
tool,
economic
development
is
highly
competitive
and
we
have
to
be
smart
and
aggressive
to
beat
out
the
competition
when
we're
working
projects.
A
more
contemporary
and
thoughtful
tax
policy
will
be
transformative
to
our
communities
to
compete
and
succeed.
Thank
you
all
so
much
for
your
time.
This
afternoon.
H
Hello
and
thank
you
all
for
allowing
me
to
speak
with
you
today,
as
the
new
executive
director
of
you
decide.
Kentucky
I
am
really
excited
to
be
able
to
introduce
the
organization
to
all
of
you.
We
affectionately
refer
to
it
as
ydk
and
I
joined
the
organization
to
help
catapult
it
to
the
next
phase
of
its
work,
so
I
couldn't
and
I
don't
do
it
alone.
We
have
a
Statewide.
We
have
a
diverse
and
growing
Statewide
board
of
directors
that.
A
H
So
it's
a
well
I'll
just
say
in
terms
of
the
issue:
ydk
fits
into
it
because
we
we
solved
the
problem
of
ensuring
that
it
will
pass
on
the
ballot.
So
ydk
is
a
501c3.
We
are
a
Grassroots
educational
organization
and
we
are
already
laying
the
groundwork
to
ensure
that
when
this
goes
on
the
ballot
it
will
pass.
Kentuckians
will
be
educated
on
the
issue.
H
They
will
know
how
and
that
it
will
affect
their
communities
and
allow
them
to
have
a
say
in
what
will
improve
the
lives
of
their
families,
their
neighbors
and
what
matters
to
them
the
most.
So
we
are
focusing
on
fundraising
ensuring
that
that
each
Community
is
being
reached
in
the
way
that
is
the
most
effective,
and
this
piece
of
this
issue
is
critical.
The
Grassroots
reaching
each
and
every
Community
cannot
be
overlooked,
and
that
is
what
ydk
provides
to
this
issue.
Thank
you
all.
K
Chairman,
thank
you
for
having
us
today.
I've
tried
to
X
through
at
least
half
of
what
I
was
going
to
say.
Counties
have
been
involved
in
this
iteration
of
a
constitutional
amendment
for
many
years,
task
forces
and
commissions
have
been
convened.
I
found
this
in
the
bottom
of
my
desk
final
report
of
the
task
force
on
local
taxation
in
2006..
If
you
care
to
see
some
of
that,
the
first
recommendation
on
that
is
the
same
as
the
one
the
chairman
referenced
a
constitutional
amendment.
K
We
continue
to
evolve
and
work
on
this
JD
and
I
have
been
working
on
this,
since
we
both
started
in
with
our
respective
organizations-
and
we
feel
like
now
is-
is
finally
the
time
to
move
this
forward.
We,
like
you,
want
to
ensure
that,
in
the
future
we
can
be
agile
enough
and
by
we
I
mean
you
all,
and
local
governments
can
be
agile
enough
to
adopt
to
adapt
our
tax
code
so
we're
not
behind
20
or
30
years
of
other
states.
K
The
limitations
on
the
legislative
branch
is
part
of
what
keeps
counties
coming
back
to
you
asking
for
funding
not
only
for
mandated
services
but
for
the
quality
of
life
projects
that
would
make
counties
a
better
place
for
our
mutual
constituents
to
work,
live,
raise
a
family
and
run
a
business
simply
interpreted.
This
would
give
a
future
General
Assembly
the
authority
to
consider
debate
and
hopefully,
pass
adopted
policies
allowing
local
governments,
more
modern
Revenue,
generating
options
and
those
conditions
for
those
options
will
be
placed
by
you.
That
is
all
the
the
amendment
does.
K
You
would
continue
to
have
Primacy
over
our
tax
structure.
Many
counties
outside
of
the
interstate
quarter
struggle
to
know
what
their
landscape
might
look
like
in
the
future
as
they
bump
up
against
that
constitutional
limit
on
their
property
tax
amount.
So
this
is
really
the
only
clear
path
forward
to
expand
options
that
could
be
based
on
each
County's,
unique
needs
and
the
economic
landscape.
All
the
more
reason
for
the
amendment
who
knows
what
the
future
General
assemblies
will
construct
to
give
us
more
options
and
to
make
us
a
little
less
dependent
on
the
state
budget.
J
I
wish
I
had
something
profound
to
say,
like
all
the
other
speakers,
but
I'll
give
it
a
try.
If
you
change
nothing,
nothing
will
change,
and
that
means
that
we're
going
to
continue
to
be
racing
on
a
creased
occupational
taxes
as
city
and
county
governments
continue
to
meet
the
increased
cost
of
services
that
they
have
to
provide,
whether
that's
through
wages
or
or
other
other
types
of
services.
J
We
don't
want
that
that
doesn't
dovetail
with
the
policies
and
the
philosophies
that
have
been
embraced
by
the
general
assembly.
Likewise,
I
want
to
point
out
just
something
on
what
Jennifer
said
and
what
chairman
Meredith
said.
This
is
you
all
are
so
used
to
us
coming
up
here
and
talking
about
home,
rule
home
rule
home
rule
and
we'll
do
that
all
the
time.
This
constitutional
amendment
is
not
about
home
rule.
J
This
is
about
the
power
of
the
general
assembly,
the
power
of
this
legislature,
to
be
able
to
have
additional
flexibility
to
write
local
tax
code.
Jennifer
pointed
out
that
181
right
now
section
181
of
the
Constitution
says
the
general
assembly
has
the
power
to
delegate
to
local
governments
the
authority
to
impose
those
three
types
of
two
broad
categories
of
taxes
that
she
highlighted.
J
This
doesn't
change
that
this
doesn't
say
local
governments
can
do
whatever
they
want.
This
says
the
general
assembly
made
by
General
law
once
again,
keeping
that
statutory
Authority
with
the
legislature
to
decide
how
to
design
design
a
local
tax
code
with
the
business
Community
with
local
government
input,
but
it
gives
greater
flexibility
to
you
all
to
do
that
to
Chase
or
to
dovetail
with
the
state
tax
policies
that
you
all
have
enacted
it.
J
If
the
Constitutional
amendment
is
approved
by
the
general
assembly
and
ultimately
approved
by
the
voters,
it
may
take
a
significant
amount
of
time
in
order
to
to
develop
that
policy.
I'll
give
you
an
example.
The
classification
system
that
we
had
six
classes
of
cities
was
approved
by
the
voters
in
1994..
It
was
2014
before
the
general
assembly
actually
acted
upon
that
voter
approved
referendum
to
change
the
city
classification
system,
so
it
doesn't
mandate
General
Assembly
action.
J
The
people
that
come
here
and
enjoy
air
infrastructure
don't
make
any
contribution
to
funding
our
local
governments
and
all
the
things
that
they
get
to
enjoy,
and
so
that's
a
philosophical
shift,
that's
very
important
to
us
and
I'm
getting
need.
So
it's
time
to
time
for
me
to
shut
up
but
be
happy
to
answer
any
questions.
E
Jd
had
a
critical
point
that
I
was
going
to
sum
up
with
just
two
sentences:
taxing
non-resident
visitors,
that
we
don't
do
right
now,
as
we
continue
to
try
to
focus
on
a
tourism
economy
in
Kentucky,
our
tourists
should
be
paying
for
those
Services,
just
like
our
residents
are,
and
secondly,
although
we
talk
a
lot
about
sales
tax,
when
we
talk
about
this
amendment,
it's
not
the
only
thing
that
we
could
talk
about
here.
I,
don't
think
we
talk
about
it
because
it
is
the
prevailing
Trend.
E
E
However,
this
would
give
us
the
ability,
as
a
general
assembly,
not
the
local
governments,
but
give
us
as
a
general
assembly,
the
ability
to
be
more
agile
if
that
prevailing
mood
amongst
local
governments
and,
amongst
other
states,
changes
in
the
future
so
that
it
doesn't
take
30
or
40
years
for
us
to
catch
up
with
those
communities
that
have
gotten
ahead
of
us.
I
show
this
many
many
times
when
we
talk
about
this
issue.
This
is
a
map
of
the
Kentucky
State
Line,
just
south
of
Hopkinsville
Hopkinsville
Clarksville
area.
A
Very
good,
thank
you
all
very
much
I'm
going
to
ask
you
to
step
back
for
a
second.
Let
Andrew
come
up
here
and
kind
of
give
us
a
look
from
the
Bluegrass
institute's
perspective
and
then
we'll
open
it
up
for
questions.
C
C
I
guess
I
would
preface
my
comments
with
saying
that
what
you'll
hear
from
us
is
not
necessarily
antagonistic
to
what
you
just
heard
from
the
presenters
in
front
of
us
I
think
that
there
may
be
some
principles
that
we'd
apply
to
tax
reform,
local
tax
reform.
That
would
shape
different
ideas
and
different
approaches
to
the
details
of
the
nuts
and
bolts
of
that.
C
But
I
also
think
you're
going
to
hear
a
lot
of
alignment
with
some
of
the
things
that's
representative
Meredith
has
spoken
to,
and
I
would
like
to
extend
our
appreciation
to
representative
Meredith
he's
always
had
an
open
door
with
us
and
we've
reached
out
to
him
to
to
discuss
this
issue,
but
I'd
like
to
begin
with.
You
know
for
most
of
the
20
years
that
I've
I've
worked
in
Frankfurt.
Tax
reform
has
been
framed
by
various
organizations
as
a
need
for
more
Revenue.
C
The
idea
behind
that
approach
was
government
spending
is
what
propels
prosperity
and
progress.
Fortunately,
over
the
last
few
years,
that
mindset
has
been
changing,
notably
with
last
year's
tax
reform
and
the
responsible
budgets
that
have
been
embraced
by
the
general
assembly.
C
C
C
Think
of
tax
burden
as
the
weight
of
Taxation
borne
by
the
average
constituents
or
average
small
business
in
your
District
Kentucky
has
a
relatively
High
overall
tax
burden
or
lower
tax
burden
dependent
upon
how
it's
measured,
I'm
happy
to
discuss
these
metrics
that
are
in
this
table.
If
there
are
some
questions
during
the
Q,
a
I'm,
including
this
primarily
to
point
out
that
there
are
measurements
of
this
available
to
evaluate,
and
our
goal
should
be
to
improve
these
rankings
by
lowering
kentuckian's
overall
tax
burden.
So
how
do
we
do
that.
C
The
Bluegrass
Institute
has
established
three
principles
for
tax
reform.
The
nice
thing
about
this
are
these
principles.
Is
they
equally
apply
to
state
tax
reform,
as
they
do
local
tax
reform
principle
number
one?
Are
the
tax
changes,
Revenue
neutral
at
a
minimum
and
won't
increase
the
net
tax
burden
on
kentuckians,
discuss
tax
burden
and
the
importance
that
we
place
upon
this
part
of
the
equation
in
the
previous
slide?
C
I
do
want
to
clarify-
and
this
speaks
to
something
that
the
presenters
in
front
of
me
spoke
to,
which
is
this
distinguishes
between
organic
and
static
net
revenue.
C
Organic
net
revenue
as
a
result
of
an
enhanced
pro-growth
tax
system
is
a
good
thing
that
is,
economic
growth
and
activity
generating
Revenue,
which
is
the
appropriate
way
and
certainly
aligns
with
I,
believe
some
of
the
approaches
and
the
central
approach
that
was
taken
with
the
the
last
sessions
tax
reform.
C
What
growth
occurs
after
that,
as
a
result
of
a
more
robust
economy
should
be
evaluated,
should
be
modeled.
These
questions
should
be
asked
and
answered,
but
beginning
it's
at
a
revenue
neutral
standpoints
ensures
that
you're
not
out
of
the
gate,
increasing
the
tax
burden
on
your
constituents.
The
second
principle
to
tax
changes,
favor
taxing
consumption
over
income.
C
Again
much
of
the
discussion
surrounding
this
has
pointed
in
this
direction,
but
simply
giving
local
government
new
consumption
taxes
to
layer
on
top
of
existing
taxes
would
be
a
mistake,
and
almost
certainly
will
it
will
result
in
an
increase
in
the
net
tax
burden.
How
local
tax
reform
handles
the
local
occupational
tax
will
be
important.
C
The
goal
should
be
to
eliminate
it
over
time.
Point
number
three:
do
the
tax
changes,
favor
individuals
and
entrepreneurs
over
narrow's
special
interest
to
illustrate
that
last
month,
I
believe
the
committee
heard
from
the
tax
foundation
and
the
Chamber
about
the
inventory
tax.
We
agree
that
the
inventory
tax
hurts
our
competitiveness
and
should
be
eliminated.
C
C
So
local
tax
reform,
if
Done
Right,
is
another
important
opportunity,
shift
the
focus
away
from
the
need
for
Revenue,
prioritize
individuals,
entrepreneurs
and
small
businesses.
We
believe
in
the
long
run
that's
the
way
to
improve
the
state's
economic
competitiveness.
With
that
I'm
happy
to
answer
any
questions
that
the
committee
might
have.
Thank
you
for
the
opportunity
to
present
good.
A
So
representative
Merit
for
those
of
us
who
are
not
necessarily
as
familiar
with
the
actual
bill
that
was
proposed,
we
heard
from
the
different
ones
about
the
idea
is
it
gives
them
more
flexibility,
competitiveness,
taxing
consumption,
but
what
does
the
bill
actually
do
both
the
the
amendment
and
then
also
the
I
believe
there
was
enabling
legislation
that
accompanied
it
correct.
E
So
the
the
amendment
itself
just
removes
the
obstacle
today
of
other
types,
and
let
me
be
very
clear
when
I
say
this
other
types
of
taxes
beyond
the
current
and
and
we
look
at
it
really
three
we've
always
looked
at
it
in
our
group-
is
three
ways:
Jennifer
presented
it
at
two
ways,
but
it's
very
similar.
The
way
you
look
at
that.
The
two
types
that
Jennifer
presented
are
the
three
types
that
we
presented
and
broadens
the
types
of
Taxation
that
could
be
available
to
consumption
or
other
types
of
taxes.
E
However,
again
you
mentioned
476,
which
was
not
what
I
would
consider
a
traditional
enabling
legislation,
but
it
was
kind
of
a
reins
act
for
the
amendment.
If
you
would,
if
you
would
want
to
say
that
it
said
that
nothing
new
could
be
created
by
a
city
or
county
government
or
Municipal
Corporation,
unless
the
general
assembly
expressly
authorized
that
type
of
tax
structure
through
statutorial
Frameworks,
and
so
the
amendment
only
allows
us
to
explore
a
new
framework
to
create
a
new
framework
within
the
general
assembly.
D
Thank
you,
Mr
chairman
I,
appreciate
all
the
presenters
I
agree
with
a
lot
have
been
said
on
I,
don't
know
if
we
want
to
say
both
sides,
because
I
don't
know
that
you're
actually
opposing
especially
the
three
reasons
for
attacks
of
the
three
policies
or
whatever,
whatever
you
call
it
element
factors
I've,
always
supported
this
and
the
reason
I
supported.
D
It
is
because
working
property
owners
are
soaked
in
a
local
government
Taxation,
and
it's
time
that
we
have
more
diversity
of
Taxation
I
would,
and
this
is
the
major
concern
I've
always
had,
although
I've
favored
it
and
voted
for
it
before
I
think
I
may
have
co-sponsored
it,
because
working
property
owners
are
over
text
and
we
need
to
diversify
more
I
would
like
the
comments
from
representative
Meredith,
and
we've
talked
about
this
many
times
before
so
I've
heard
you
say
it,
but
for
the
benefit
of
the
community
or
anybody
or
of
the
committee
or
anybody
that
testified
on
your
behalf.
D
How
are
we
going
to
make
sure
that
we
don't
just
allow
add-ons
to
taxes?
None
of
us
want
that
so
I'm
thinking
of
something
along
the
lines
of
the
old
house
bill
44,
something
along
those
nature
to
make
sure
that
we
don't
just
add
on
a
big
sales
tax
to
our
people,
which
wouldn't
resolve
the
issue
that
I'm,
for
which
is
the
reason
I
support
it,
because
our
working
property
owners
are
over
taxed
already.
Thank
you.
Mr
chairman.
E
E
This
will
not
be
all
that
easy
when
we
get
to
a
statutory
framework
to
draft
chairman,
Petrie
and
representative
Reed
know
very
very
well
how
difficult
it
was
to
draft
the
trigger
mechanisms
for
the
state
tax
reform
that
we
did
in
House
Bill
8
last
year,
and
we
only
had
one
entity
that
we
had
to
work
with
those
numbers
to
create
those
trigger
mechanisms
in
this
situation,
we're
going
to
have
to
draft
some
kind
of
a
smart
policy
that
recognizes
like
I,
said
in
my
earlier
comments.
We
have
to
protect
Baseline
Revenue.
E
And
so
that's
going
to
be
a
challenge
and
I
will
be
upfront
with
all
of
you
all
much
like
JD
said
about
the
classification
Reform
Bill
that
that
Constitutional
Amendment
passed
in
the
90s,
but
it
was
the
2000s
before
we
got
to
an
actual
finished
framework
for
what
that
classification
reform
would
look
like
it
may
take
several
years
to
craft
that
after
we
pass
an
amendment
that
gives
us
the
ability
to
craft.
Something
like
that.
We
want
to
move
as
fast
as
we
can
and
we
continue
to
talk
through
those
issues.
E
But
that
also
recognizes
that,
if
we're
going
to
phase
out
and
as
we
want
to
phase
out
occupational
licensing
tax
or
at
least
at
the
least
lower
our
Reliance
on
those
that
it
will
take
a
period
of
years
to
get
there
in
proving
how
that
can
work
in
protecting
the
Baseline
revenues
that
our
cities
and
Counties
have
to
have
to
meet
their
current
obligations.
L
Thank
you,
chairman
Danielson
Andrew,
on
your
slide
and
that's
what
I'm,
looking
at
the
three
principles
for
tax
reform.
I
think
those
are
great
guiding
principles
probably
would
suggest
that
we
had
a
number
four
and
that
being
it
should
be
fair
and
equitable
and
I
get
a
little
confused
by
your
first
bullet
point.
There
I
think
I
understand
what
you're
trying
to
say,
but
we're
faced
with
a
situation
with,
particularly
with
income
tax
that
we've
got
over
50
of
our
income.
L
C
Yeah,
so
a
simple
way
to
think
about
it
is
that
in
in
either
case,
if
you
were
to
either
and
would
you
use
sales
tax,
if
you
expand
the
base
or
raise
the
rate,
use
that
additional
Revenue
to
buy
down
the
individual
income
tax
rate,
that's
where
you
get
Revenue
neutrality,
dollar
for
dollar
trade-off.
These
are
trade-offs.
You
establish
Revenue
neutrality
and
then
what
you'll
see
through
a
pro-growth
tax
system
is
that
you'll
see
that
organic
growth,
but
look
for
that
trade-off.
C
If
there's
going
to
be
additional
consumption,
taxes
and
I
think
that
the
chairman
has
has
pointed
to
this,
you
know
figure
out
a
way
to
incentivize.
We
might
say,
require
localities
if
they
are
going
to
be
able
to
impose
additional
restaurant
taxes.
Tourism,
taxes,
Etc
sales
taxes
to
ratchet
down
the
occupational
tax,
use
that
additional
Revenue
to
buy
down
rates
isn't.
L
That
what
we've
seen
with
the
the
income
tax
reduction,
that
we
saw
back
in
2018
for
both
personal
and
corporate,
is
that
folks
said
we
would
not
have
the
revenue
to
meet
the
needs
of
our
Commonwealth,
but
yeah.
Just
the
opposite
been
true.
We
fueled
economic
growth
as
a
result
of
that
tax
decreases.
Is
that
the
principle
that
you're
trying
to
embrace
here.
C
It
is
the
principle:
I
have
expressed
some
disagreement
with
the
2018
tax
reform
in
that
rates
were
reduced,
but
on
net
it
was
a
net
revenue
tax
plan
and
it
was
identified
as
such,
even
statically.
What
we
would
have
suggested
in
2018
is
whatever
Revenue
could
have
been
generated
from
the
expansion
of
the
base,
use
that
to
buy
down
the
individual
income
tax
rate
or
other
income
tax
rates.
I'd.
L
Agree
Mr
one
of
the
final
point
to
representative
America's
position.
You
know
in
our
home
District
we
have
no
land
in
Rough,
River
and
Grayson
County,
specifically
population
about
26
000.
But
during
the
summer
it's
more
like
forty,
forty
five
thousand
and
the
census
doesn't
actually
reflect
any
of
that.
So
it
becomes
a
burden
for
that
county,
in
particular,
in
Edmondson
as
well
to
generate
Revenue
support
infrastructure
is
needed
for
the
community
because
it
doesn't
reflect
the
true
population
you're
saying
possibly,
we
could
address
that
inequity
by
adopting
these
principles.
Is
that
correct.
E
I
would
agree
with
that
and
to
further
the
point
previously
just
to
let
you
understand
what
a
statistical
outlier
we
are
with
regard
to
occupational
tax
and
any
plan
that
that
we
would
put
forward
would
seek
to
reduce
our
Reliance
on
occupational
taxes.
I
can't
say
that
we
will
absolutely
get
rid
of
Occupational
tax
across
the
board,
we'll
have
to
figure
some
of
those
numbers
out
over
time,
but
how
Reliant
we
are
currently
on.
E
We're
one
of
six
states
that
takes
in
more
than
one
percent
of
the
state's
adjusted
gross
income
based
on
those
local
income-based
taxes,
we're
in
the
top
five
on
Reliance
on
income-based
taxes
at
the
local
level
of
the
50
states
in
the
nation.
So
any
movement
that
we
can
make
away
from
that.
Even
if
we
don't
fully
reduce
it
or
if
it
takes
years
to
fully
reduce
it
is
a
move
in
the
right
direction.
Very
well.
All
right,
I've
got
to
move
on
to.
A
You're
welcome
sir
representative
Raymond.
B
Okay,
thank
you.
I've
supported
this
surf
proposal
in
the
past,
because
I
really
believed
that
it
would
allow
Louisville
to
raise
the
revenue
that
we
need
to
offer
universal
access
to
life-changing
Pre-K.
Can
that
be
true?
Still,
while
it
can
I
say
that
that's
true,
while
you're
saying
at
the
same
time
that
that
this
is
necessary
to
allow
us
to
implement
the
income
tax
reduction
from
hospital
8.
E
It
does
not
mean
that
we
have
to
implement
the
reduction
plan
in
house
bill.
8.
I,
think
it
complements
house
bill
8.
and
what
you
have
seen
with
the
reduction
in
2018
in
the
house
bill.
8
reduction
is
that
we
do
have
an
economy
that
is
growing
significantly
right
now
in
the
Commonwealth
and
we're
experiencing
great
Revenue
growth.
Because
of
that
that's
what
we
would
seek
to
do
here
as
we
reduce
those
reliances
on
occupational
taxes,
we
seek
to
repurpose
and
bring
more
people
to
our
Commonwealth
I've
heard
representative
Petrie
say
it
time
after
time.
E
We
want
smart
population
growth
in
our
Commonwealth.
We
want
to
grow
the
group
of
people
who
are
moving
here,
living
here
and
making
Kentucky
their
home
so
that
we
have
more
people
paying
into
the
system
and
creating
an
overall
bigger
pie
and
that's
what
this
policy
would
seek
to
do
is
to
grow
an
overall
bigger
pie.
Will
it
do
it
overnight?
Absolutely
not
representative,
but
over
time
it
has
the
potential
to
do
that,
and
there
are
many
different
craftings
of
what
we
could
do
to
get
to
that
positive
project
forward
that
we
could
get
to.
E
B
E
I
think
the
the
con,
the
concept
that
we
have,
that
in
some
way
we
would
have
to
move
to
be
less
Reliant
on
the
occupational
tax.
So
you
would
have
to
you
would
have
to
pay.
You
would
have
to
use
an
offset
in
some
regards.
But
again,
as
I
said
in
my
comments
when
we
started,
we
have
to
protect
Baseline
Revenue,
allow
for
organic
growth
and
provide
some
incentive
for
the
movement
very.
M
Thank
you
Mr
chairman
Mr
McNeil.
Yes,
sir,
do
you
feel
that
the
legislation
has
proposed
meets
the
principles
for
tax
reform
that
you
have
listed?
If
not,
which
ones
does
it
not
meet,
and
why
well.
C
The
legislation
as
proposed
is,
as
representative
Meredith
has
pointed
to,
is
really
constitutionally
authorizing
constitutionally,
determining
that
the
general
assembly
would
come
back
and
then
seriously
visit
with
what
the
tax
policy
then
becomes
for
cities
and
counties.
C
So
these
principles
really
would
have
strongest
application
during
that
second
phase,
if
you
will,
if
representative
Meredith
was
open
to
a
discussion
of
whether
or
not
certain
guard
rails
could
be
considered
as
part
of
the
Constitutional
Amendments,
certain
ratchets
as
part
of
the
Constitutional
Amendment
that'd
be
a
conversation
that
we
would
like
to
have
with
him.
But
given
that
it's
largely
just
empowering
the
general
assembly
to
act,
nothing
in
the
Constitutional
Amendment
necessarily
violates
these
principles.
A
M
Thank
you,
Mr
chairman,
as
Jennifer
said
earlier,
this
may
be
more
for
JD
and
Shelley
the
inequities
in
the
current
local
taxations,
based
on
classification,
old
classifications.
Those
types
of
things
are
the
cities
and
counties
going
to
back
away
from
from
pushing
in
those
areas
and
work
more
towards
getting
this
passed
and
maybe
dealing
with
those
inequities
as
part
of
a
future
tax
proposal.
J
I
was
trying
on
the
classification
reform
which
again
took
20
years
from
the
approval
of
the
amendment
to
the
general
assembly
acting
on
it
and
there's
still
little
pieces
that
Jennifer
referenced.
The
only
one
left,
that's
tied
to
the
old
classification
system
is
the
is
the
restaurant
tax
that
cities
can
Levy
in
the
old
fourth
and
fifth
class
cities,
as
they
were
categorized
back
in
18
1991.
So
that's
the
only
piece
left,
that's
tied
to
that
old
classification
system.
J
You
know
for
us,
I,
think,
I.
Think
the
overall
thing
Senator
Carroll
on
on
this
legislation
is
that
we
understand
in
order
to
be
more
competitive,
we've
got
to
put
some
consumption-based
elements
in
our
in
our
in
our
tax
toolbox
for
lack
of
a
better
term.
Otherwise,
their
our
only
option
is
to
eat
up
the
state.
The
progress
that
the
state
made
with
House
Bill
8
is
is
to
say,
oh
well,
the
state's
lowering
their
income
tax.
J
We
have
additional
cost
we're
going
to
have
to
increase
occupational
taxes
in
order
to
fund
those
police,
the
fire,
the
transportation
services
that
we
have.
So
that's
a
reason
we're
a
part
of
that.
We
still
think
and
I'll
go
on
the
record
for
this.
For
my
membership
we
still
think
from
an
equity
Equitable
standpoint.
The
restaurant
tax
shouldn't
be
based
on
Old
classification
system.
You
fixed
the
reference
in
the
in
the
alcohol
statutes,
the
other
taxation
system.
You
fix
that
with
I
forgot
the
bill
number
a
couple
years
ago.
A
A
E
I
do
want
to
address
one
thing:
Senator
Carroll
said
in
the
question
about
the
restaurant
tax.
Specifically,
if
you
look
over
the
last
several
years,
though,
that
has
been
a
priority
for
both
KLC
and
caico.
E
At
times
there
has
been
no
movement
on
that
issue
in
the
house,
because
this
has
been
the
priority
piece
of
local
tax
legislation
versus
that
piece
through
our
our
work
that
we
have
done
over
there,
you
can
argue
the
inequity
of
that
or
whatever,
but
this
is
what
the
house
has
put
our
focus
on
with
regard
to
local
tax
reform.
I
just
want
to
thank
you
all
for
giving
us
the
opportunity
to
talk
about
this
today.
E
Obviously,
an
hour
doesn't
give
us
the
time
to
go
through
all
that
research
that
I
had
in
that
big
binder,
but
if
any
of
you
all
have
any
questions
that
I
can
answer
for
you
all
as
we
head
into
next
year
as
we
head
into
the
future,
please
allow
me
to
do
that
I'm
happy
to
engage
in
any
way
that
I
can,
with
you
all
or
other
groups
that
have
questions
with
regard
to
this.
It
truly
is
I.
E
Think
now
that
we
have
passed
House,
Bill
8,
there
are
plenty
of
important
things
that
we
have
to
do
as
a
general
assembly,
but
from
a
fiscal
policy
standpoint
from
a
tax
policy
standpoint.
This
may
be
the
most
important
thing
that
we
have
in
front
of
us
as
we
move
forward.
Now
that
we
have
House
Bill
Aiden,
the
mechanism
to
move
to,
hopefully
a
zero
income
tax
rate
at
the
state
level.
A
Very
good,
well,
representative
Meredith,
has
always
maintained
a
very
open
policy
on
this
and
many
other
issues.
So
please
don't
hesitate
to
reach
out
to
him
with
any
questions,
concerns
comments
and
Senator
Carroll
as
you're
driving
home
to
Paducah.
If
you
want
to
dial
him
up,
he'll
talk
to
you
the
whole
four
hours
on
the
way
home,
I'm
sure
very
well.
A
Oh,
my
all
right
last
couple
of
items
here
we
do
have
some
correspondence
items
that
you
will
see
both
from
Jenny
Bannister,
as
well
as
from
Jennifer
Hayes
and
some
various
reports
who
encourage
the
committee
to
take
a
look
at
those
absent
that
our
next
meeting
is
November
the
2nd,
and
we
will
look
forward
to
seeing
everyone
back
here
then
until
then,
we'll
stand
adjourned.