Nelson Fiscal Court sets lower property tax rate; discusses bourbon liquids tax

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, Sept. 6, 2022 — Nelson Fiscal Court approved the county’s new property tax and tangibles tax rate at its regular meeting Tuesday morning.

Last year’s tax rates were 13.9 cents per $100 value. This year’s real estate tax rate is 13.7 cents per $100 value, and the tax rate on tangible personal property is $13.9 cents per $100 value.

While the property tax rate is lower, the new rate will bring in approximately 4 percent more tax revenue that last year’s tax rate. The county’s growth, new construction and rising assessments helped fuel the need to lower the tax rates.

The total revenue the county tax rates generate are anticipated to be $7.6 million.

BOURBON LIQUIDS TAX. The court discussed the state bourbon liquids tax task force meeting in regard to the barrel tax that distillers pay to counties where they store their spirits.

The effort led by the Kentucky Distiller’s Association and supported by 50th District Rep. Chad McCoy, seeks to end the tax on stored spirits.

Nelson County Sheriff Ramon Pineiroa told the court he attended the last meeting and said that the county — including schools and other entitites — stand to loose more than $8 million in revenue if this tax is ended.

The county school system receives more than $2 million and the city school district receives more than $1 million. Pineiroa’s office receives a fee to collect the tax, and if the tax was ended, he would lose funding for two deputies.

“It’s a slap in the face what they want to do,” he told the court. “They want to end the tax that helps support the community that’s long supported the bourbon industry.”

Despite vague assurances that “everyone will be made whole” for lost tax revenue, Pineiroa said that replacing that tax revenue is likely to come from just one source — the taxpayers.

911 FEES LOST. Emergency Services Director Joe Prewitt told the court that the state CMRS office — the state entity that collects and distributes 911 funding collected from phone service providers — has advised him to expect a $80,000 shortfall in 911 fee revenue.

The shortfall is due to Verizon’s purchase of Bluegrass Cellular. Bluegrass formerly had more than 12,000 subscribers in Nelson County’s 911 service area. After Verizon purchased Bluegrass, Verizon is reported approximately 10,000 fewer subscribers in Nelson County.

The magistrates asked Prewitt if there’s a way to find out why the numbers changed so drastically. Prewitt advised that he’s working with CMRS to find out why the subscriber numbers dropped so much.

EMT CLASS. Nelson County EMS is sponsoring an EMT class starting in October. Applications will be available soon, Prewitt advised.

This will be a hybrid class, and will last about three months. Nelson County residents will have the first choice of seats in the EMT class.

DEE HEAD / KY 52 INTERSECTION. The court discussed a request by the state’s Department of Transportation to take on a project to rework the intersection of Dee Head Road with KY 52, New Hope Road.

A new design would replace the existing intersection with a wider, longer curved section where Dee Head intersects, providing a greater sight distance and margin of safety.

The state is willing to fund $1 million of the project’s costs, Spalding told the court. Until bids are sought for the project, the county can’t be sure what its financial obligation will be, though the state will require the county to hire a consultant on the project.

New Hope Road is a state highway, but the state doesn’t have time to take on the project, and has asked the county to run the project if the state pays for it.

Spalding said it looks like a good project, and noted that state officials advised if the project was going to be done, the county would have to do it.

The magistrates asked County Attorney Matthew Hite to review the language in the state’s contract before the court approves the project. The project will return to fiscal court on a future agenda for approval.

In other business, the court:

— approved the low bid of $129,850 from Hornback Construction to replace the bridge on Hilton Lane. Funds for the project come from a 80/20 state grant, with the county picking up 20 percent of the total bridge replacement.

— discussed the apparent low bid from Galusha Contracting to replace the bridge on Caney Fork Road.

The low bid of $120,839 was more than $40,000 over the estimate, County Engineer Brad Spalding told the court. Rather than reject the bids, Spalding asked the court to table the bid and give him up to 60 days to see if money can be found to fund the shortfall.

— accepted a budget amendment from Nelson County Clerk Jeanette Hall Sidebottom. The amendment was triggered by a change in state law that required her office to add a new budget line for document storage fees.

NEXT UP. Nelson Fiscal Court next meets at 9 a.m. on Tuesday, Sept. 20, 2022.

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