You Decide, Kentucky! Praises Rep. Dixon’s Filing of HB 14 to Amend, Modernize Kentucky’s Constitution 

Constitutional amendment would allow for economic competitiveness, strengthened Kentucky communities

Louisville- State Representative Jonathan Dixon’s filing of a bill to amend the state constitution and allow for local tax modernization by reducing Kentucky’s dependence on local occupational taxes drew praise Tuesday from the statewide coalition You Decide, Kentucky! (YDK!). If passed by the General Assembly, House Bill 14 would place the question of local tax reform to Kentucky voters for statewide approval this fall.

You Decide, Kentucky! (YDK!), a statewide grassroots network dedicated to organizing and educating Kentuckians on the need to modernize local revenue codes, lauded Dixon for his leadership in filing the legislation.

“We are grateful to Representative Dixon for his vision of a brighter, more fiscally-secure future for all Kentucky communities,” said YDK! Co-Chair Mayor Suzie Razmus, the mayor of Corbin. “Many of our local governments are struggling to make ends meet and provide essential public safety services such as police and fire protection.

“Kentucky cities and counties need to compete on a level playing field with our neighboring states, who already realize the enormous potential of a tax code that is consumption rather than productivity-based,” Razmus added.

The bill would modernize Kentucky’s 130-year-old constitution and allow the General Assembly to delegate more flexibility to local governments. This long-needed constitutional correction would allow local leaders the opportunity to modernize city and county tax codes and provide a pathway for reducing Kentucky’s over reliance on taxing worker’s wages and business profits.

The 1891 constitution restricts cities and counties to raising revenue using only franchise fees, occupational license fees, and property taxes. These limited options mean Kentucky’s local communities depend almost entirely on taxing families’ paychecks and businesses’ net profits to raise revenues to provide public safety, community amenities, and other infrastructure investments.

“Kentucky is one of only five states that relies so heavily on taxing workers to fund local governments,” said YDK! co-chair Carter Hendricks, Executive Director of the South Western Kentucky Development Council and former Mayor of Hopkinsville.

“The legislation represents a clear path forward towards empowering our communities to determine what is best for them,” Hendricks said. “Our local governments need the resources to provide necessary services, be self-sufficient, and foster transformative growth — all without placing undue burden on Kentucky families.

“Kentuckians deserve strong economies and strong communities, and House Bill 14 will allow them to decide on just that,” he added.

Since 2020, You Decide, Kentucky! has focused on educating the public on the need to remove the constraints of Section 181 of Kentucky’s constitution and empowering Kentuckians to decide what revenue streams will improve the quality of life in their communities.