Proposal advances to give local governments more tax options

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FRANKFORT, Ky. (AP) – A Kentucky House panel has advanced a proposal aimed at giving local governments more latitude in generating tax revenue to keep up with demands for services.

The proposed constitutional amendment won initial approval Thursday. It heads to the full House.

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If added to the state’s Constitution, it could eventually unlock tight restrictions on the types of taxes that city and county governments can levy to meet obligations.

Supporters include groups representing local governments. The measure is opposed by the Kentucky Retail Federation. It says the constitutional change could lead to consumption-based taxes that it says would hurt consumers and retailers.