House panel approves local sales tax bill

FRANKFORT, Ky. (AP) - Voters could choose to impose a 1 percent sales tax on their communities to pay for special projects under a bill approved by a House committee.

The bill would change Kentucky's Constitution to give voters the option of approving a temporary 1 percent sales tax. The tax revenue could be used only for specific projects and the tax would expire once the projects are completed.

Louisville Mayor Greg Fischer testified in favor of the bill, arguing cities and counties need to raise more money after state budget cuts. But the Kentucky Retail Federation opposes it, arguing state retailers are also struggling and raising prices would not help.

Although it got approval Tuesday, the bill has divided House Democrats, with Speaker Greg Stumbo opposed and Majority Whip Tommy Thompson supporting it.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)