Mayor Knight establishes 3 new committees to strengthen economic growth in Hopkinsville

In an ongoing effort to ensure the responsible management of taxpayer funds and to strengthen economic growth in Hopkinsville, Mayor Knight has established three new committees.

HOPKINSVILLE, KY – In an ongoing effort to ensure the responsible management of taxpayer funds and to strengthen economic growth in Hopkinsville, Mayor Knight has established three new committees: the Net Profit Committee, the Economic Development/Incentives Committee, and the Future Funding Committee.

Net Profit Committee

In January 2023, the City of Hopkinsville eliminated the $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 now pay a flat 1.5% of their net profits, resulting in a more consistent and equitable tax structure.

While this change resulted in increased contributions from higher-earning businesses in 2024, some businesses have expressed concerns and called for the tax limit to be reinstated. However, doing so could create an imbalance, with some businesses paying a lower effective tax rate than others. Additionally, restoring the $10,000 tax limit would reduce city revenue, which supports critical projects like the construction of Fire Station 5 and other essential services.

The Net Profit Committee has been tasked with evaluating the maximum tax liability and exploring solutions that are fair and equitable for all businesses while ensuring the city’s financial needs are met. The committee will make recommendations to ensure a tax system that supports community growth while maintaining fiscal responsibility.

Economic Development/Incentives Committee

Over the years, Hopkinsville has made substantial financial investments through the Economic Development Council (EDC) to attract new industries, create jobs, and stimulate economic growth. In addition to large-scale industrial investments, the city has provided incentives to local contractors and businesses to foster continued growth within the community.

The Economic Development/Incentives Committee will assess past investments, evaluate their impact, and provide recommendations for future economic development strategies. The goal is to balance economic growth with the city’s fiscal needs, ensuring that the city’s resources are used wisely and effectively to benefit the entire community.

Future Funding Committee

The City of Hopkinsville has long provided funding to non-profit organizations, supporting groups that benefit the community. However, the current system automatically allocates funds each year to organizations that have previously received support, which limits opportunities for new organizations and may reduce funding available for essential city services.

To address this, Mayor Knight has established the Future Funding Committee to assess whether the city should prioritize funding for essential services first, with remaining funds allocated to non-profits, or if the current system should remain in place. The committee’s role will be to evaluate funding requests and make recommendations to the City Council, ensuring taxpayer dollars are distributed fairly and responsibly.

As these committees move forward, community input will be essential to shaping the future of Hopkinsville. Mayor Knight invites citizens to stay informed and engaged as these important discussions unfold. For more information or to get involved, please visit the City of Hopkinsville’s website at www.hopkinsvilleky.us, or contact the Mayor’s Office at 270-887-4000.