Fayette County School Board pauses tax increase

LEXINGTON, Ky. (ABC36 NEWS NOW) — The Fayette County Board of Education is putting a hold on its proposed occupational license tax increase, following backlash and a legal opinion from the state’s attorney general.

Board members announced they will not move forward with additional steps tied to the tax hike, which had proposed raising the rate from 0.5% to 0.75% to help fund the school district’s budget for the upcoming year.

Instead, a committee of community stakeholders will be formed to review the budget and make recommendations. The board says it expects to receive those suggestions ahead of its September deadline to submit a finalized budget to the Kentucky Department of Education.

The move comes after Kentucky Attorney General Russell Coleman issued an opinion last week stating that the tax increase was unlawful.

The school board originally voted in favor of the increase two weeks ago, prompting widespread public concern.