Hazard latest front in longstanding battle over which Kentucky cities can pass a ‘restaurant tax'

Hazard city officials who want to pass a so-called “restaurant tax” have a new opponent: Attorney General Russell Coleman, who’s appealing a Franklin Circuit judge’s ruling allowing Hazard to do so. Morgain Patterson is the director of municipal law for the Kentucky League of Cities, which lobbies the General Assembly to allow all cities to make that decision.

“That has been a major legislative agenda item for years, as long as I've been here, and definitely before, and I've been here seven years. So this has always been a top priority for KLC.”

While the ground has changed over the years, the bottom line is that some cities are allowed to vote on a restaurant tax – with all proceeds dedicated to local tourism efforts – and some aren’t.

“You can see where cities have been able to collect and utilize the restaurant tax through their tourism commissions, they have experienced a significant increase in tourism dollars, and that has really expanded a lot of opportunities.”

Patterson said the KLC will continue to lobby state lawmakers on the issue, but she’s not optimistic the General Assembly will act next session if the matter’s still tied up in court.

Note: After this story posted, the AG's office sent this statement: “The Attorney General’s Office will continue to defend the statute and oppose attempts to impose an unlawful tax.”

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