In a continued effort to responsibly manage taxpayer funds and bolster economic growth in Hopkinsville, Mayor J.R. Knight has formed three committees to further this initiative.
According to information from the City, the Net Profit Committee, the Economic Development Incentives Committee, and the Future Funding Committee have been formed
Knight says the Net Profit Committee was formed after a group of business leaders addressed the city council last year after the $10,000 cap on net profit taxes for businesses was removed.
click to download audioPreviously, businesses paid 1.5% of their net profits, but their contributions were capped at $10,000, regardless of earnings. With the cap removed, all businesses now pay a flat 1.5% of their net profits, which the City says creates a more consistent and equitable tax structure.
While this change led to increased contributions from higher-earning businesses in 2024, some businesses have expressed concerns and called for the reinstatement of the tax limit. Critics have said reinstating the $10,000 cap could lead to an imbalance, with some businesses paying a lower effective tax rate than others.
Knight says the committee will look at both sides of the issue and present their findings to the city council.
click to download audioKnight says restoring the cap would reduce city revenue, which funds projects like the construction of Fire Station 5 and other essential services.
Meanwhile, the City has made significant financial investments through the Economic Development Council to attract new industries, create jobs, and stimulate economic growth. In addition to large-scale industrial investments, the city has provided incentives to local contractors and businesses to foster continued growth within the community. The Economic Development Incentives Committee will assess past investments, evaluate their impact, and provide recommendations for future economic development strategies. The goal is to balance economic growth with the city’s fiscal needs.
The City has also long supported non-profit organizations that benefit the community, but the current system automatically allocates funds each year to organizations that have previously received support, limiting opportunities for new organizations and potentially reducing funding available for essential city services.
Knight says the Future Funding Committee will assess whether the city should prioritize funding for essential services first, with remaining funds allocated to non-profits, or if the current system should remain in place.
The committee’s role will be to evaluate funding requests and make recommendations to the City Council, ensuring taxpayer dollars are distributed fairly and responsibly.
