McCracken County fiscal court adopts ordinance cutting insurance premium tax to 4.9%

On second reading, McCracken County Fiscal Court adopted Ordinance 2026-01 to reduce the county insurance premium tax on certain categories, including automobile and life insurance, from 6.9% to 4.9%, effective July 1, 2026.

The ordinance summary read on the record cited statutory authority (as read in the transcript: KRS 91A.080) and said the change was possible because the county is now in a sound financial position. One official noted that the 4.9% rate places McCracken County below many comparable cities and counties, though some nearby counties charge less (a cited example in the meeting: Carlisle County at 4%).

Court members emphasized that the county's improved fiscal standing — including a larger reserve and an improved bond rating after revenue measures and economic-development work — made the reduction possible. Discussion referenced recent and prospective revenue sources, including site preparation at the Bridal Rail site and potential private investments that the court said have strengthened county finances.

After discussion, the court called the vote and adopted the ordinance by voice vote. The court noted the ordinance also establishes an annual review practice to consider further reductions if finances allow.

Why it matters: the tax change reduces a county-level assessment on certain insurance premiums and will affect premium costs remitted to the county beginning with the July 2026 remittance schedule; the court framed the change as a return of fiscal capacity to taxpayers after earlier revenue and cost-control measures.