Bardstown council to consider final approval on new occupational tax

Monday, July 25, 2011, 11:30 p.m. — The Bardstown City Council will consider Tuesday evening the second reading of an ordinance that increase the amount of occupational tax paid by those who work at jobs inside the city limits.

The ordinance was approved on first reading at the council’s July 12th meeting after the council voted against second reading of the previously approved occupational tax ordinance.

Under the new ordinance — which when approved will go into effect Jan. 1, 2012 — the tax rate of 1/2 of one percent remains the same. The big changes are in the income levels to which the tax will be applied.

EXEMPTIONS, CAP – GONE. Currently, the city’s occupational tax kicks in at the $15,000 income level through $75,000 of income. The new occupational tax drops the exemption on the first $15,000 of income and removes the $75,000 cap. Those with incomes of $15,000 and below will now pay occupational tax to the city of Bardstown in addition to the tax they already pay to Nelson County government.

Workers in the city with incomes higher than $75,000 will also pay more as the new tax will apply to their income without limit.

The 2011-12 budget the council approved last month depends on an increase of about $350,000 in occupational tax revenue.

FOR MORE ON THIS TOPIC. Read these elated stories on the Nelson County Gazette:

• July 13, 2011: Council scraps occupational tax measure before OK’ing original one
• June 29, 2011: Council OKs revised occupational tax ordinance; mayor protests measure as ‘unfair’
• June 29, 2011: Bardstown council approves rate hikes on utilities, services; OKs 2011-12 budget 
• June 28, 2011: Sunset clause not allowed by KRS for occupational tax ordinance
• June 21, 2011: Councilman suggests adding sunset clause back to occupational tax measure
• June 15, 2011: Council takes first step to set budget, raise occupational tax, utility rates
• June 7, 2011: Council expresses interest in ‘sunset’ clause for occupational tax changes

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