County Attorney Kevin Shearer provided a first reading of a proposed occupational tax agreement after discussion and apparent agreement by the magistrates on the new rate a week ago Monday night at the regular meeting of Russell County Fiscal Court.
The new tax rate will drop from the current one percent to three-quarters of one precent, while the maximum cap will be raised from $800 to $2,500.
The new tax rate will contain a two-year sunset clause which will mean the court will have to revisit the tax again in 2015.
Representatives of the Kentucky Department of Local Government appeared before the court to emphasize the need and requirement for a balanced budget and the difficulties in not properly funding governmental agencies tasked with providing vital services.
An informal polling of the magistrates appears to have unanimity in agreement with the first reading proposal.
The one percent occupational payroll tax has been in existence for two years when it was raised from the long-standing quarter of a percent after it was determined that a budget shortfall would leave the county with an unbalanced budget.
An acceptable balanced budget must be approved by the state government by July 1.
The proposed tax ordinance will have a second reading in March.