Earlier this week the Warren County Fiscal Court approved the first reading of an insurance premium tax.
A crowd of Warren County residents attended the fiscal court's first public meeting about the possible tax. The people of Warren County had the chance to voice their opinions, concerns and possible solutions to Warren County's proposed insurance premium tax.
"I think when the county overspends they need to do some cuts and get back within their budget," citizen Norman Sears said.
Judge Executive Mike Buchanon said the county is facing a $ 3 million shortfall due to state and federally mandated but unfunded projects.
This proposal would affect almost all types of insurance, except health insurance, which would be exempt.
WBKO's Lauren Hanson tells us of some changes that may be made to this proposed tax.
The Warren County Fiscal Court is proposing an insurance premium tax to make up for a $3 million shortfall due to state and federally mandated but unfunded projects.
"I'm not for a new tax. No one on this fiscal court prefers to be doing this," Buchanon said.
Warren County's Budget and Revenue Committee recommended this type of tax to help make up the difference. At first the fiscal court recommended a 10 percent tax. Now the suggestion is a lower five to six percent. If you already pay an insurance premium tax lower than five percent to a city with the proposed tax you would pay a flat five percent insurance premium tax with the difference going to the county.
"In Smiths Grove where they already have a five percent tax we'll collect nothing. Zero in Smiths Grove because they're already paying it. They pay five percent up and down in Smiths Grove," Buchanon said.
Buchanon also said this type of tax is a fair solution because it distributes the burden to all residents of the county.
"Now they'll be some people who are paying that haven't paid before, and there are some that have been paying through the cities, that won't be paying or paying very little," Buchanon said.
Buchanon also said the five percent tax is estimated to bring in $2.5 million. He said additional cuts will still have to be made to help balance the budget.
To view the Warren County Fiscal Court's insurance premium tax - estimated revenue projections click here.