Lexington tax review 12.2.20

Lexington might see a tax increase to offset the financial impact of the coronavirus.

By resisting.

### a tax increase could be on lexington's horizon as one potential way to offset growing concerns about the long- and short- term financial impacts of the coronavirus.

After six months of study, a working group of experts has offered pros and cons on different revenue options for the urban council to consider.

Those discussions will begin in budget talks next month.

The choices cover everything from payroll taxes to higher franchise fees.

New taxes that would require legislative action are part of the mix as the city seeks to diversity the tax burden while continue to provide services.

But council members already are warning the city needs to make sure any changes don't make the city less competitive when it comes to attracting newsinesses.

Cg: richard maloney/urban county member "we're not going to be very attractive so i want to go on record saying i'm not going to be in favor of a payroll tax.

But i think with four council members going off, this is something we need the new council to look at."

Among the goals of any tax changes will be avoiding further deep cuts to services, replenishing the city's economic contingency fund which was raided to help offset coronavirus expenses, and investing in racial equality.

### firefighters across the country