Georgetown KY Considers Payroll Tax Increase

The Georgetown KY city government is considering up to a 0.5% increase in the payroll tax to help address budgetary shortfalls.  It is estimated that for each increase of tax of 0.1%, that there would be generated approximately $1 million additional in tax revenue.  [So, for a 0.5% increase, approximately $5 million would be expected to be generated additionally for the Georgetown Kentucky government.]

The current financial picture for Georgetown KY is expected revenue of approximately $20.6 million, but it has projected costs of $22.6 million - a shortfall of $2 million.  So, they need to raise additional money (or cut expenses), to address the problem.

The city council members have been discussing an increase in payroll taxes of 0.1% - 0.2%, but Mayor Karen Tingle-Sames is going to recommend a 0.5% increase.  This would result in Georgetown Kentucky city residents in paying a payroll tax of 3%, while non-residents would pay 2.5%.  [Toyota Motor Manufacturing Kentucky employs 7000 persons - of which, roughly 2/3 live outside of Georgetown.]

To give an example:  if a person earned $50,000 annually, they would have a potential additional tax consequence of $250 per year.