Fort Mitchell ratified a resolution opposing state legislation “mandating centralized collection of local occupational fees/taxes.”
Some Kentucky state legislators, including Senator Christian McDaniel, have sympathy for business owners who have to file occupational taxes in multiple jurisdictions. No legislation has been proposed yet, but several Kentucky cities and counties have made their stance clear.
In Kentucky, occupational taxes make up 42.7% of all tax revenue. Fort Mitchell, like many other local cities, is concerned about handing over control of so much of their budget to the state. Council discussed the pros and cons at the Feb. 3 meeting.
Mayor Jude Hehman acknowledged that he held a few perspectives.
“As a small business owner, one way to pay would really streamline things,” Hehman said. “But if I put my ‘mayor hat’ on, this would take power away from the city government. Are we really going to trust the state to collect [occupational taxes] and for us to track and know they got everything?”
Councilmember Greg Pohlgeers believes that cities will face tax collection issues no matter what. He doubts that a statewide system is the best way to address those issues.
“It is more efficient for the City to address any issues with Kenton County, as opposed to Frankfort,” Pohlgeers said.
Councilmember Jeff Dietrich isn’t against the possible legislation.
“Hypothetically, I’m in favor of simplifying the system for our businesses in the city,” Dietrich said. It’s hard for me to say that I am opposed to any legislation that may come down the road without seeing what that legislation is.”
Council passed a majority motion to oppose any state legislation that would centralize occupational tax collection. Dietrich was the only vote against it. Fort Wright and Boone County, among other NKY governments, have also opposed the possible legislation.