The Hopkinsville City Council will consider lowering the tax liability on net profits, commonly referred to as the business license tax.
During a Committee of the Whole meeting Thursday night, City Chief Financial Officer Melissa Clayton shared that the 2024-2025 rates were inflated due to several large overpayments by businesses.
click to download audioLast fiscal year was the first following the removal of the $10,000 cap for business licenses. Clayton says the recommendation to lower the rate will impact several funds.
click to download audioCouncilman Clayton Sumner moved to do just that, citing the economic development funds and the unassigned cash balance the city has.
click to download audioMelissa Clayton reminded him of the outstanding economic debt the city has.
click to download audioCouncilman Chuck Crabtree moved to amend Sumner’s motion.
click to download audioThe amendment was passed, and the motion was approved 7-5. The matter will appear on a city council agenda for two readings. A similar motion to lower the tax to 1.1% failed to pass the committee in September, following the recommendations from the committee.
