Restaurant tax on hold until June

According to a recent opinion by Kentucky’s Attorney General, Corbin won’t become a fourth class city until June 20 and can’t possibly pass any proposed restaurant tax until that day.
Corbin Mayor Amos Miller revealed the crux of that opinion during Monday’s monthly work session of the Corbin City Commission.
“I’ve been questioned by the press and a bunch of people about why we haven’t put a restaurant tax on,” Miller said. “We’ve kind of been waiting for sure on something that we got the Attorney General’s opinion back on today. When Corbin went to a fourth-class city, there’s a 90 day waiting period … so I don’t guess we are losing too much money anyway.”
Miller and the commissioners were questioned about the tax April 11 during the commission’s regular monthly meeting by Corbin resident Willard McBurney. Miller didn’t reveal at the time that the city was waiting on an Attorney General’s opinion on the issue, but did say city leaders were attempting to obtain legal opinions regarding what restaurant tax money can be used for. According to state law, 100 percent of any restaurant tax must go to the city’s Tourism Commission and be used to promote tourism and for recreation related projects and activities.
On Tuesday, Miller said he’s received no information yet about how specifically proceeds from the tax can be used. City leaders may also consider a one percent rise in Corbin’s motel tax. The motel tax rate is currently three percent. The extra money must be specifically earmarked to maintain a civic center.
City leaders voted to drop to fourth-class city status earlier this year. The measure was quickly approved by the Kentucky General Assembly.
The opinion from the office of Attorney General Greg Stumbo said there is a 90-day waiting period before Corbin actually drops to fourth-class status.
Miller said in February serious discussions need to take place between members of the City Commission and the Tourism Commission before any vote on a tax is considered.
While no official meetings have taken place between commission members and the Tourism Commission, Miller said he’s had one-on-one informal talks with some of the members.
A study done in 2000 estimated a three percent restaurant tax in Corbin would raise between $600,000 and $800,000 annually. Officials say that figure will likely be over $1 million today because of the increase in the number of restaurants in the city limits.
Tourism and city officials say a vote on the tax is likely.