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Letter Puts Local Option Sales Tax Prospects In Jeopardy

liftkentucky.com

A letter sent to state lawmakers by Ford, General Electric, and other major utility users could spell trouble for a local option sales tax bill.

Once gaining steam, the measure allowing communities to vote on and fund big-ticket projects through temporary one percent sales tax increases now faces a new hurdle. At issue is how the hikes would affect industrial power bills, which the companies argue could balloon by $24 million annually.

Tuesday, Senate Majority Leader Damon Thayer sounded cautious in light of the newly-raised concerns.

"I would say something like this could create a problem at this point," he said.

But Gov. Steve Beshear and other supporters don’t hear the death knell for the legislation just yet.   

"The implementation legislation can be worked to where we don't put our industrial companies at a disadvantage at all," he argued.

Having already cleared the House with bipartisan backing, the issue now rests in the Senate – where advocates will have to convince skeptics that the companies could, in fact, be exempted.

Josh James fell in love with college radio at Western Kentucky University's student station, New Rock 92 (now Revolution 91.7). After working as a DJ and program director, he knew he wanted to come home to Lexington and try his hand in public radio.