Radcliff council to consider resolution opposing centralized occupational-tax proposal

Council members heard a presentation Monday on a proposed state measure that would centralize payment of local occupational taxes through a state portal, and were asked to adopt a resolution opposing the change at the council's next regular meeting.

Mike told the Radcliff City Council that a member of the General Assembly has introduced legislation to centralize occupational-tax payments so businesses would remit taxes through a single state system rather than directly to each municipality where they operate. "KLC is against this," Mike said, referring to the Kentucky League of Cities; he and other speakers told the council their concern is that routing collections through the state would reduce the funds returned to cities.

Speakers warned the change could dilute revenue for small cities that already have limited options to raise funds. The mayor cited city receipts for alcohol licensing of about $45,000–$50,000 and said, by contrast, Elizabethtown receives what he estimated as roughly $2.1 million from alcohol licensing and about $4.2 million from restaurant/tourism taxes; he prefaced those figures as approximate. City staff said Vine Grove has adopted the model resolution provided by the Kentucky League of Cities and urged Radcliff to adopt similar language to inform state lawmakers of municipal opposition.

No formal council vote was taken Monday; the council indicated it will place a motion to adopt the resolution on the Feb. 18 agenda. Mike described the proposal as intended to simplify business compliance but said the fiscal effect "doesn't really work for the cities" and that he considered it "a bad idea." The mayor and other councilmembers expressed support for local control of revenue and agreed to consider the resolution at the next meeting.