‘A terrible idea’: Mayor breaks tie in first vote for lower occupational license tax in Hopkinsville

HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – The Hopkinsville City Council faced the first vote to lower the net profit tax/occupational tax rate which resulted in continuous division and discussion during the Nov. 4 meeting.

The proposed ordinance would reduce the net profit tax to 1.3% from the current 1.5%, which would make it the lowest rate in the state. If approved, this would take effect July 1, 2026 in the new fiscal year.

“There’s been a lot of games played, a lot of pressure applied, a lot of things I don’t agree with,” said Councilmember Chuck Crabtree, who is against lowering the rate. “We have to plan and help control the revenue that comes into the city and the expenses that go out to the city, and we have to balance them. That is our duty.”

Outspoken councilmembers, split vote

If the lower rate is accepted, this would cost the city around $200,000 in revenue. Crabtree spoke about the need for as much revenue as they can get, referencing the rising expenses the city is facing.

“We’ve been told we are not in the position to lower taxes right now, so I think this is a terrible idea,” said Craig. “Some of the individuals who are pushing hard to get this lowered were basically threatening this council, ‘I’m going to move my business.’ Well guess what? If you move your business to any of the surrounding counties, you’re going to pay more.”

Councilmembers Jason Bell, Elizabeth Draude, Vance Smith, Chuck Crabtree, Amy Craig, and Michael Velez voted against the ordinance. In favor was Brandi Stallons, Donald Marsh, Travis Martin, Brittanie Bogard, Clayton Sumner and Seth Meek. The 6-6 vote forced Mayor J.R. Knight to break the tie, and he voted in favor of approving the ordinance and lowering the rate to 1.3%.

“I said we would go with what was best for the city right now,” said Knight after the vote. This decision sparked verbal pushback from Councilmember Craig, who exclaimed that his vote did not make any sense, accusing him of speaking as a business owner instead of a mayor.

At a previous meeting, Knight was quoted saying the following in reference to lowering the rate, “As a business owner, I’d say yes. But as a man looking at the books, I have to say no.”

A second vote will be held at the next city council meeting for a final decision.

Brief history of tax debate

In January 2023, the City of Hopkinsville eliminated their $10,000 limit on net profit taxes for businesses. Previously, businesses paid 1.5% of their net profits, but their contribution would not exceed $10,000, regardless of how much they earned. With the removal of this limit, all businesses pay a flat 1.5% of their net profits.

In November 2024, several representatives from agriculture businesses in the city voiced their concerns, with H&R Agri-Power sharing that they experienced a sudden 700% increase in net profit tax, and Krusteaz noting a 1,400% increase. Siemer Milling, and the Kentucky Commissioner of Agriculture also shared similar objections at the time. In response, the council created a committee to best evaluate their options moving forward.

At the Sept. 18 Hopkinsville Committee of the Whole meeting, councilmembers disregarded a recommendation presented by the Maximum Tax Liability Committee, which suggested that the city should adjust the already approved city budget and lower the net profit tax rate (occupational tax rate) to 1.1% from the current rate of 1.5%.

The tax rate was added back to the agenda for Nov. 4 after additional input from county and state leadership.