McCracken County moves toward 10% hotel tax


PADUCAH, Ky. (KT) - A struggling western Kentucky county is considering a new hotel tax that could bring in millions, according to a report on WPSD-TV.

McCracken County leaders are proposing the tax because they need money for three reasons:

-The county is paying out state pensions.

-Property assessments for the county were not done in many years, therefore the county lost revenue from property taxes.

-The county has about a $1 million shortfall.

The first reading of hotel transient tax proposal passed on Monday, meaning a 10 percent total six – with 6 percent going to the county and 4 percent to the city of Paducah, the television station reported.

The proposal is "basically trying to utilize a revenue source that is nonexistent today that's paid for by others, people traveling to and through our community," Paducah City Manager Jim Arndt said.

At Monday night's fiscal court meeting, Judge-Executive Craig Clymer said the county is in a tight spot financially.

"We've got to find some way to generate some revenue. We can't continue — responsibly continue — to take money from our savings," Clymer told the station.

From 2011 to now, the county has spent millions from savings to pay routine bills.


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