UPDATE – Hopkinsville City Council Defers Vote On Business Tax Increase

Hopkinsville City Council unanimously voted not to take any action at Thursday night’s meeting regarding the second reading of an ordinance that would increase the occupational license tax to 1.95%.

At the special called meeting, Presiding Officer Wendell Lynch asked council members to make a motion to defer any further action on the business license tax increase. This comes after council members voted 8-4 at Tuesday night’s City Council meeting to increase the current business tax license of 1.5% with a $10,000 cap to 1.95% with no cap on net income, effective the next fiscal year.

Lynch explained his reason for asking for the delay is due to concerns from their constituents and he wants Council and a committee to study it further before any final action regarding the tax.

Lynch added he plans to appoint a special committee.

In other action, Council approved by a 7-5 vote the second reading of an ordinance that requires Hopkinsville Water Environment Authority to transfer to the City of Hopkinsville a fee equal to 2% on the gross revenue from the sale of water and sewer received from customers located within the city limits. According to the ordinance, the fee collected would be considered as payments in lieu of taxes and as compensation for use of the city’s public rights-of-way. The payments would be made quarterly and generate $310,000 each fiscal year. Council members Paul Henson, Terry Parker, Tom Johnson, Jimmy Dossett, and Jason Bell cast the nay votes at the special called meeting.

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