The City of Bowling Green expressed its opposition Tuesday night to House Bill 253 that would allow for the centralized collection of occupational taxes by the state.

“This was very alarming to me,” City Manager Jeff Meisel said during Tuesday’s meeting.

HB-253 was introduced Tuesday and sponsored by Rep. Rachel Roarx, D-Louisville, and Rep. Jared Bauman, R-Louisville. The bill would give the state the authority to collect occupational taxes from businesses in cities across Kentucky. Right now, these taxes are collected by municipal governments and used to fund local government expenses.

The bill states a system will be set up online through the Treasury Department and revenues collected through it will be dispersed back to local jurisdictions within 12 hours. The bill states this should be done to “reduce the administrative burden” on Kentucky businesses.

Occupational taxes in Bowling Green account for a little over 71% of Bowling Green’s general fund budget. The money is used to cover expenses for the city’s police and fire needs, public works, parks, capital improvement projects and even the city’s payroll.

“It’s our lifeblood,” Meisel told commissioners.

Two years ago, the commission voted to increase Bowling Green’s occupational tax rate from 1.5% to 2%. Crunching the numbers in his office Tuesday, Meisel said occupational taxes accounted for $74.2 million in fiscal year 2024.

Commissioners on Tuesday passed a resolution opposing the bill. A resolution has no legal power — it simply states the city’s feelings on a certain issue. The resolution states that the bill would have a “severe adverse effect” on Bowling Green’s finances if passed.

Other Kentucky cities have passed similar resolutions out of concerns that they won’t collect all their revenue efficiently if the state takes over a function that is being done locally.

The resolution was approved unanimously by the commission.

“I can’t emphasize (enough) how critical this is and how devastating this would be,” Meisel said. “This house bill … would be devastating.”

J.D. Chaney, executive director and CEO of the Kentucky League of Cities, said in a statement that KLC’s Board of Directors voted to oppose centralized collection, “and this is exactly what we’ll do.”

“This bill is added governmental bureaucracy and will only complicate the process of collecting occupational taxes, a vital revenue source for cities that funds critical infrastructure as well as emergency services, like police and firefighters,” Chaney stated.

“Cities are the economic engine of Kentucky, and we will do everything we can to protect that engine from unintended consequences of government overreach and expenses, which this bill would create,” Chaney stated.

Commissioners also approved Tuesday the resubmittal of a $2.2 million grant application that, if awarded, would help pave the way for a series of roundabouts that would dot Russellville Road near the campus of Western Kentucky University.

The city previously applied for the funding last year, which would have gone toward two roundabouts that would ease traffic flow at the intersection with University Boulevard and the intersection with Morgantown Road. A revised railroad bridge and walking and biking paths on Russellville Road were also included.

Bowling Green was denied on this application after not scoring high enough in certain parameters. According to a memo from City Grants Manager Nick Cook, the project was deemed “highly recommended,” permitting the resubmission.

Commissioners will meet again on Feb. 18.