The City of Hopkinsville could have a new way to create revenue to meet rising pension obligations, if a bill filed in the House becomes law.
Hopkinsville and other cities formerly classified as ‘second class cities’ based on their population and other factors are not allowed to institute an alcohol tax under current state law, while smaller cities such as Cadiz and Oak Grove can.
Representative Walker Thomas is pushing the bill in the House and says any city would be able to levy an alcohol tax under the legislation.
He notes the alcohol tax would be consumption-based, meaning it would be paid when a customer purchases alcohol.
City Council deferred action on increasing the business license fee tax at a special-called meeting Thursday night, but did institute a new 2-percent payment in lieu of taxes levy against HWEA.
House Bill 426 is currently awaiting a committee hearing.