Dayton City Council joined other Northern Kentucky municipalities opposing a bill that would centralize the collection and distribution of occupational business taxes and fees.
On Tuesday, the council voted unanimously to pass a resolution against House Bill 253, which, if approved, would change the way local governments collecting the taxes. Taxes would be sent to the Office of the State Treasurer who would create a centralized system to collect and then distribute the money back to the municipalities. Currently, the municipalities collect it themselves.
 Leaders in Boone County and cities like Union, Fort Mitchell, Fort Wright, and Newport have spoken out against the bill.
“Most cities and counties in Kentucky collect business license fees that fund their operations, such as police, fire, emergency management services, public infrastructure services,” said City Administrator Jay Fossett. “Last year, the city collected $2.5 million in occupational business license and fees and taxes, which is nearly 30% of our annual revenue, and that is our largest revenue stream.”
Fossett said his larger concern is the move could be a prelude to getting rid of occupational taxes completely. If that were to happen, he said, it would severely impact cities’ and counties’ ability to fund basic services.
The bill is cosponsored by representatives Jared Bauman, Daniel Fister and representative Rachel Roarx. Bauman introduced the bill to the committee on Feb. 4.
The Kentucky League of Cities, an organization that advocates and supports cities across the state, voted to oppose the proposed legislation. The Kentucky Association of Counties also opposed the bill. KLC asked cities to pass resolutions against the bill to send a strong message to Frankfort.