Georgetown council opposes state bill to centralize collection of local occupational fees

The Georgetown City Council voted Feb. 10 to oppose House Bill 253, a measure filed in the Kentucky General Assembly that would require local taxing jurisdictions to participate in a state-run, centralized reporting and collection system for occupational license (business) fees.

At a council meeting, Scott Hall, director of the Georgetown–Scott County Revenue Commission, briefed the council on the bill and its potential local impacts. Hall said the bill would require the state treasurer to develop a web-based system for centralized reporting and distribution by Jan. 1, 2028, and would mandate local governments to cooperate with the system. “Local taxing jurisdictions are mandated to cooperate fully with the state treasurer in the development and implementation of the system,” Hall told the council, and he warned that a universal template and mandated ordinance changes could strip established local exemptions such as the local $10,000 exemption for residents age 65 and older.

Hall said the revenue commission supports modern, business-friendly reporting but that the bill’s approach risks “unfunded mandates” and operational problems. He cited past state-managed collection efforts that produced poor accounting or inadequate reporting back to local governments, quoting other jurisdictions’ experience: “When they collect payments … they send us no information,” Hall said, summarizing concerns raised by other local officials.

Council members and the mayor discussed potential impacts on the city’s budget and services. Multiple city and county organizations publicly oppose the bill, including the Kentucky League of Cities, Kentucky Association of Counties and COLA (Cities, Counties and Local Agencies). After discussion, the council approved a resolution opposing House Bill 253 and directed the mayor’s office to distribute the signed resolution to local legislators and to the Kentucky League of Cities for its advocacy work.

Votes at the meeting were recorded by voice; the council adopted the resolution by voice vote without a roll-call tally recorded in the meeting transcript.

The resolution states the council’s position that centralized collection could harm local fiscal stability, increase administrative burdens, and impair local responsiveness to businesses. The council asked the mayor to transmit the signed resolution to state legislative leadership, local representatives and to KLC for inclusion in broader opposition efforts.

Background: House Bill 253, as described at the meeting, would allow businesses to opt in to the state system but would require local jurisdictions to participate and to amend local ordinances as necessary. Hall said the bill authorizes the state treasurer to charge an annual fee to businesses to offset the system’s costs but would leave audit and compliance responsibilities with local governments.