A dispute over lowering the city’s occupational license tax for businesses — from 1.5% to 1.3% on net profits — spilled into a rare outburst during a Hopkinsville City Council meeting.
After the council voted 6-6 on the ordinance Tuesday night, it fell to Mayor James R. Knight Jr. to break the tie.
“I’m telling y’all right now,” said Knight. “Y’all heard my decision on that already. I’ll tell it right now. We will go with 1.3. That is my vote.”
The mayor’s decision to back the lower the tax rate shocked some council members, who believed he had stated the opposite position during previous discussions because of predicted revenue loss.
At a Sept. 18 Committee of the Whole meeting, Chief Finance Officer Melissa Clayton said a 1.1% rate would cost the city $1.6 million in lost revenue. Based on that information, and the fact that the city has additional expenses this year with the recent hire of a dozen new firefighters, Knight indicated he could not support a panel’s recommendation to lower the tax on net profits.
Speaking at that meeting two months ago, Knight said, “I’ll tell you right now, the way our books look, no, we cannot [reduce the tax rate]. … As a business owner, I’d say yes, but as the man looking at the books, I have to say no.”
Ward 5 council member Amy Craig, who was present at the Sept. 18 meeting, laughed in disbelief at the mayor’s vote on Tuesday.
“But that’s not what you said,” Craig told the mayor.
“No, I said we would go with what’s best for the city right now,” he responded.
“So now you’re saying it’s best for the city to lower the tax?” asked Craig.
Knight countered, “Well, as mayor, I’d say it’s not. As a businessman, I say, yes. As a business owner in this town, to make it work for the businesses, we have to look at it. [Council member] Clayton [Sumner] and them said it. Everyone’s looked at that we’re sitting on this money.”
Craig said, “That makes no sense.” And Ward 4 council member Chuck Crabtree interjected: “You sold out?”
“No, I didn’t sell out,” said Knight.
Craig continued, “That makes no sense at all … because you’re speaking as the mayor, not a business owner. You are the mayor!”
“Yes, ma’am,” said Knight.
As the back-and-forth trailed off, Craig said, “That makes zero sense. I disagree 100%.”
Council members who voted in favor of the reduced tax rate were Brandi Stallons, Donald Marsh, Travis Martin, Brittanie Bogard, Clayton Sumner and Seth Meek. Voting against it were Vance Smith, Chuck Crabtree, Amy Craig, Michael Velez, Jason Bell and Elizabeth Draude.
The ordinance will require a second vote, likely at the next council meeting on Nov. 18, to pass.
In other matters at Tuesday’s meeting, the council voted unanimously to amend the policy that deals with citizens commenting at council meetings. The amendment extends the time limit from 3 to 5 minutes.
Jennifer P. Brown is co-founder, publisher and editor of Hoptown Chronicle. You can reach her at editor@hoptownchronicle.org. Brown was a reporter and editor at the Kentucky New Era, where she worked for 30 years. She is a co-chair of the national advisory board to the Institute for Rural Journalism and Community Issues, governing board past president for the Kentucky Historical Society, and co-founder of the Kentucky Open Government Coalition. She serves on the Hopkinsville History Foundation's board.
