Local option sales tax bill clears Kentucky House

FRANKFORT, Ky. (AP) – The Kentucky House of Representatives wants voters to decide whether to change the state’s constitution to allow for a temporary increase in local sales taxes to pay for big projects.

The House approved a bill Friday that, if approved by the Senate, would place the question on the ballot in November. If voters favor the change, it would allow local governments to raise sales taxes by up to 1 percent to pay for major projects, like bridges or roads. Voters would first have to OK the project. The tax would expire once the bonds were paid off.

Last year a similar proposal died in the Senate because manufacturers were concerned a sales tax increase would up energy costs. This year’s proposal exempts corporate utility rates from a sales tax increase.