Somerset looking to capitalize on growth through occupational tax hike

SOMERSET, Ky. (FOX 56) — The city of Somerset has seen immense growth in the last few years, both in terms of more and more people coming to live in the city and also the overall expansion of the city and what you can do there.

Mayor Alan Keck told FOX 56 they want to continue the momentum the city has experienced over the last few years.

But money isn’t endless, and to remain competitive with other growing cities in terms of revenue, Keck and other city officials are looking to raise the occupational tax.

Keck said Somerset is in the bottom 12 of 170 Kentucky cities that collect an occupational tax. The proposal would be a two-phase approach, raising the occupational tax by 0.6% to 1.2%.

This increase in taxes would help fund utility and sanitation services, emergency personnel, road maintenance, continued sports tourism growth, and more.

Keck said it’s a certain mindset he likes to call STOP, which is allowing for the continued growth the city is experiencing.

“We’ve invested heavily in automation and equipment,” Keck explained. “I think if you give your team great tools to succeed, they’re going to do that. The other pieces, you know, we spend time with them. One of my favorite acronyms is STOP: spend time on people. We’re investing in them. We’re investing in training. They know that I care; they know that all our executive team cares. And candidly, they all care. I think that sort of culture has trickled down throughout our city. We take a lot of pride in working for the city of Somerset.”

If the tax were to pass, if you make the median income in Somerset of around $33,000 a year, you would pay $32.76.

Now that number will be higher for households that make more and lower for households that make less.

Keck also notes that this tax increase would also be counterbalanced by the state general assembly voting to lower the state income tax.