Tax Reform Group Endorses Local Option Sales Tax

By: Associated Press
By: Associated Press

A tax reform group appointed by Gov. Steve Beshear has endorsed a proposal to amend the state constitution to allow a "local option sales tax" in Kentucky to help cash-strapped cities pay for building projects.

The Blue Ribbon Commission on Tax Reform approved the pitch Monday to allow voters in local jurisdictions to decide for themselves through ballot initiatives whether to allow temporary sales tax increases to pay for specific projects.

Beshear appointed the tax panel earlier this year to recommend a simpler tax code that would generate enough revenue to meet state needs even during recessions.

Members of the group, which has been meeting for nearly a year, have tossed aside proposals to implement a 6 percent tax on groceries and to reinstate an estate tax in Kentucky.

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