Christian County Fiscal Court and its magistrates approved the first reading of two ordinances Tuesday morning — one allowing for a wider array of expenditures be allowed on collected transient room tax dollars, and another accepting the language of Senate Bill 63 in regard to special purpose vehicles.
Judge-Executive Jerry Gilliam pointed to a local arts institution as a main reason for tax modifications.
Years ago, KRS 142.400 created a lodging, or transient, room tax at a 1% rate of the rent on every occupancy of any suite, room, cabin, lodging, campsite and/or any other accommodations charged by a hotel, motel, inn, recreational vehicle park, or any other place in which accommodations are regularly furnished to transients.
It is in addition to the state’s 6% sales tax, and transient room tax is reported monthly, before being deposited into the Tourism, Meeting and Convention Marketing Fund administered by the Tourism, Arts and Heritage Cabinet, and the fund is solely used for the purposes of marketing and promoting tourism in the Commonwealth — and includes expenditures to market and promote events and venues related to meetings, conventions, trade shows, cultural activities, historical sites, recreation, entertainment, natural phenomena, areas of scenic beauty, craft marketing, and any other economic activity that brings tourists and visitors to the Commonwealth.
Furthermore, local governments in Kentucky can fund tourist and convention commissions through a transient room tax on short-term accommodations such as hotels, motels, campsites, and rentals. The standard tax rate is capped at 3% (4% for urban-county governments). An additional 1% special tax may be imposed by non-urban counties to support convention centers, with restrictions on how the funds are used if bonds are involved.
Funds may be used for tourism promotion and related facilities but not as subsidies for private lodging or dining businesses (with limited exceptions). Counties with a city of the first class may levy an extra 1.5% tax for additional tourism promotion. Urban-county governments and multicounty commissions may impose an extra 1% tax for land conservation or regional tourism promotion, respectively.
It is believed the Alhambra fits this purview, and Gilliam addressed concerns from leadership at Holiday Inn Express in Hopkinsville.
Furthermore, Gilliam said the court remembered a visit from a special purpose vehicle group within the last six months, one seeking to allow specific units on county and local roads.
Senate Bill 63, however, found effective passage in the Kentucky General Assembly, and as such, Gilliam added local measures would be easier to implement through adoption.
SB 63 doesn’t go into effect until June 27.
In other fiscal court news:
— Magistrate John Bruce addressed social media rumors, dispelling concerns about the transfer of property between the City of Hopkinsville and Christian, as it pertains to the Hopkinsville Airport.
Citing minutes from a November 2022 fiscal court meeting, Bruce confirmed transfers have been well in the works for more than two years.
— And Oak Grove Mayor Jackie Oliver noted that their “Bands, Bourbon and Wine” Festival is planned for 3-9 PM July 12. They are seeking interested individuals and/or groups wishing to be a part of a weekend car show, or perhaps be a vendor, for which there is no cost.
