A series of proposed state laws faced pushback at a local city council meeting in Dayton. At Tuesday night’s meeting, a resolution was passed decrying the legislation.
“There are three bills we’re currently tracking in the Kentucky general assembly, along with the help of Kentucky League of Cities…that usurp the powers we currently have,” city administrator Jay Fossett said. The bills — House Bill 518, Senate Bill 112, and Senate Bill 52 — relate to the collection of taxes, licenses, and local zoning regulations.
HB 518, brought forward by Rep. Patrick Flannery, would create a system where local occupational license taxes are first filed with the Secretary of State’s office, before trickling down to the tax district. The bill also calls for the creation of a committee made up of various local and state bureaucrats and businesspeople.
The Dayton city council’s resolution notes that occupational license taxes make up nearly 30% of the city’s annual revenue. That revenue, the city argues, goes towards the funding of essential services “like police, fire, and emergency-management services, public infrastructure improvements, and other programs.”
SB 112, brought forward by Sen. Craig Richardson, would make it so that short-term rental properties — like Airbnbs — could not be confined by local residential zoning laws. The proposal states that cities can enforce permitting laws, with permits that include the property owner’s contact information and the type of rental property. Each of these permits would cost an initial fee not exceeding $150.00 and would be valid for a year; annual renewal would not be charged.
In its response, the Dayton city council says it “expects to adopt future regulations because of the adverse impacts these uses can have in residential neighborhoods.” These impacts have been a common refrain at council meetings, where residents have complained about noise, litter, and even violence associated with some short-term rental properties in the city.
SB 52, introduced by local Sens. Steve Rawlins, Shelly Funke Frommeyer, and Matt Nunn, would establish new policies for the issuance and approval of work licenses and permits. If passed, public agencies would have to make clear the criteria for approving a license or permit and would have 30 days to approve or deny it (unless another timeframe is specified). If it isn’t approved or denied within thirty days, it will be automatically approved, and any party denied will have the right to a hearing, with the burden of proof on the licensing agency.
“Senate Bill 52 will require the City to amend numerous City ordinances, would negatively impact the City’s local decision-making process, and allow applicants to appeal every denial of a license or permit for judicial review,” the Dayton city council’s resolution reads in no uncertain terms.
The resolution, which concludes, “HB 518, SB 112, and SB 52 would be detrimental to the City, greatly interfere with its police powers, and adversely impact its budget, fiscal condition, and future economic development,” passed 5-to-0. Councilmember Beth Nyman abstained.