Council approves first reading of Sharp Carts payroll-fee retention ordinance

The Glasgow City Council on first reading approved an ordinance permitting Sharp Carts LLC to retain 1% of the city's 1.75% occupational license fee on wages paid to its employees as part of incentives tied to the Kentucky Business Investment (KBI) program.

City Attorney Rich Alexander read the ordinance, saying the retention is "1% of the 1 and 3 fourths percent occupational tax revenues" and that approval is "subject to said company receiving final approval of its application and meeting all terms and conditions of its eligibility for said benefits under the Kentucky Business Investment program." The ordinance sets a 10-year term for the retention beginning on activation as established by the KBI arrangement.

Council members asked whether the rebate would apply to past employees and how the mechanism works. Speaker 1 asked whether the rebate applies to "past employees too, or is it starting anything new from this point on?" Alexander replied, "From this point forward." The mayor explained the measure is a commonly used recruitment tool for industry and that Sharp Carts has recently ramped up operations in Glasgow.

The ordinance was presented as a follow-up to an earlier resolution expressing support for Sharp Carts— application; a motion and second were recorded and the council approved the first reading by voice vote. The reading and discussion made clear the retention applies only to occupational license fees on wages paid to employees in the city and not to other company income.

If Sharp Carts receives final KBI approval and meets ongoing eligibility conditions, the city's ordinance would authorize the retention or rebate to Sharp Carts for up to 10 years. No roll-call vote was required for the first reading.