LOUISVILLE, Ky. (WDRB) -- Would you be willing to pay more taxes to fund major projects in Louisville? Mayor Greg Fischer wants you to consider it.
The mayor is quick to point out that it would be an optional sales tax. Louisville residents would be able to vote yes or no. But his idea is already facing an uphill climb.
Mayor Fischer would like Louisville residents to have the option of voting in a sales tax, above the six percent state sales tax, in order to fund special projects. He says the tax would not be permanent.
"So let's say, for instance, that we want a new forensic crime lab or a new recreational center. This gives us the option to take that to the voters, who then can vote on whether or not they want it. It would have a specific payment mechanism with it, for a specific period of time," said Fischer.
Fischer pitched the idea at a luncheon sponsored by Greater Louisville, Inc. -- perhaps surprisingly, the pro-business organization supports it.
"I think we have to stop thinking of it as a tax and think about it as an investment in economic development in the future. How else are we going to do things we can envision for Louisville to make Louisville the best that it can be. We've got to have the resources to do that," said Eileen Pickett of Greater Louisville, Inc.
Although the sales tax would apply only to Louisville, it would still require an amendment to Kentucky's constitution. That would first mean approval by the General Assembly. "Well, I appreciate him trying to work outside the box and find some creative solutions to our budget problems here," said Republican State Senator Julie Denton.
But State Senator Denton believes any proposal to potentially raise taxes would likely go nowhere fast in Frankfort: "Most of the General Assembly, I think, is against it and, especially in this economy. You can't tax your way to prosperity. And I think this would be shot down fairly quickly."
But Fischer says 38 of the 50 states allow the optional sales tax for cities, and he wants Louisville on a level playing field. "I don't want people to get all hung up on this 'tax' word," the mayor said. "This is an option that we would vote on to invest in our community for the type of city we want to have."
Fischer says the amount of the tax would vary, depending on the specific project. He says in most cities it varies from a quarter-percent to one-percent.
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