Regulations

Group Helps Defeat Limo Sales Tax For Now

Posted on July 1, 2009 by LCT Staff - Also by this author - About the author

LOUISVILLE, KY. — While New York operators have been walloped with a sales tax on livery service since June 1, the Kentucky operators have managed to get a reprieve from a proposed 6% state sales tax.

A bill to extend the state’s 6% retail sales tax to limousine and livery service failed in the most recent session of the Kentucky Legislature concluded in April. The legislature does not meet again until January 2010.

“We want to believe it was a result of our grassroots efforts,” said Carey Fieldhouse, president of the Kentucky Limousine Association and owner of R&R Limousine of Louisville. “We all contacted our legislators and voiced or emailed our objections.”

That victory likely will be short-lived. Fieldhouse believes the sales tax measure will rise again when the legislature reconvenes in January 2010. “It will come up again, again, and again,” Fieldhouse said. “Legislators are all looking for ways to balance the budget. It is unfortunate that the first place they look is to increase tax revenues instead of decrease expenses.”

As often is the case among politicians, legislators want to target limousine companies with taxes because they think the company owners are often as wealthy as some of the clients, Fieldhouse said.

To dispel such notions and boost the KLA’s profile, members are working on a position paper that they can take to legislators, introducing the organization and explaining its goals. “It would be a one-page document to summarize who we are and what our position is on legislation in the future and in the past.”

The 19-member group holds its next meeting on Tuesday, Aug. 11 at Skagg’s Limousine in Elizabethtown, KY.

For more information, CLICK HERE to get to the KLA website.

Source: Martin Romjue, LCT Magazine

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