Occupational Tax: Timeline to final OK
STAFF REPORT
Tuesday, Aug. 2, 2011, 8 p.m. — In the past seven weeks the Bardstown City Council has approved first reading on a 
new occupational tax ordinance three times — only to scrap the measure at the following meeting. What follows is a timeline of the votes and the various proposed changes to the City of Bardstown’s occupational tax.
June 14, 2011 (council meeting) — Council approves first reading on occupational tax ordinance that keeps the tax rate of ½ of one percent the same while removing the exemption on the first $15,000 income and eliminates the $75,000 cap.
June 21, 2011 (council working session) – At a specially called working session, councilman Fred Hagan suggests adding a sunset clause to the occupational tax ordinance.
June 28, 2011 (council meeting) – City attorney says KRS prohibits sunset clause; occupational tax measure fails second reading. Hagan proposes new occupational tax measure that keeps the current tax rate, drops the under-$15,000 exemption but leaves the $75,000 cap in place; council vote is 3-3, with Mayor Bill Sheckles breaking the tie with his “no” vote, killing the measure. A second proposal to drop the exemption and raise the cap from $75,000 to $100,000 passes first reading in a 4-2 vote. Mayor is critical of the measure, calling it “unfair.”
July 11, 2011 (council meeting) – With councilman Tommy Reed absent, the occupational tax measure approved June 28th fails second reading in a 3-2 vote. Councilman Francis Lydian proposes an occupational tax ordinance that keeps the exemption on the first $15,000 of income and eliminates the cap; the measure fails 4-1. Councilman Roland Williams makes a motion for a replacement ordinance that keeps the rate the same but drops both the exemption and the cap; this measure is approved in a 3-2 vote.
July 26, 2011 (council meeting) – With all members present the council votes 4-2 against second reading of the occupational tax approved on July 11th. Councilman Tommy Reed proposes an ordinance that eliminates the under $15,000 exemption and moves the cap from $75,000 to $100,000; it passes first reading in a 4-2 vote.
Aug. 2, 2011 (special council meeting) — With all member present the council votes without discussion 4-2 to approve second reading on the new occupational tax ordinance that eliminates the exemption of the first $15,000 of income, and moves the current $75,000 cap up to $100,000. This means everyone will pay the tax to the city beginning with the first dollar of income, up to the new cap of $100,000. Income beyond the $100,000 level will not be subject to the occupational tax.
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