Ky. City's Restaurant Tax Relief Contradicts State Law, AG Says

A Kentucky city's resolution mandating that restaurants retain tax money as a form of relief for the effects of the COVID-19 pandemic used an improper procedure and directly contradicts state law, the state attorney general's office said in an opinion.

The resolution passed by the city of Harrodsburg that orders restaurants to retain the tax due for March and April improperly modified a prior city ordinance stipulating tax remittance because the city did not amend those existing rules through an ordinance , Attorney General Daniel Cameron said Thursday.

Though the attorney general's office praised the city's goal of providing relief to the restaurant industry during the pandemic, it also noted that the resolution was unconstitutional because it conflicted with state statute , which requires that restaurant taxes be remitted to the county tourist commission.

--Editing by Robert Rudinger.

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