Pandemic Expected to Affect McCracken Tax Revenue

McCracken County may be facing a significant downturn in one of its biggest revenue sources due to the impact on local businesses by the COVID-19 pandemic.

The McCracken County Fiscal Court met Tuesday to finalize the county's $34.2 million budget for the next fiscal year, which begins July 1. Deputy Judge Executive Steve Doolittle discussed how COVID-19 is likely to impact future occupational tax collection, which the county has historically relied on as one of its largest revenue sources. Doolittle said the pandemic could reduce the amount collected by as much as 25 percent, but this won't be apparent until next year.

"We don't talk a lot about occupational taxes, but as a revenue source it is one of the single biggest taxes we collect. The effect we will see that happened to businesses in this county we won't see until next April." Doolittle said.

The county has been operating with a financial deficit for the past eight years. Doolittle said he had hoped to break that trend this year, but due to the expected reduction in tax collections that now seems unlikely to happen in the near term.

Doolittle said to make up for the projected downturn in revenue, some county departments will not be getting an increase in funding, and some will receive less overall. Commissioners also discussed expanding revenue through a possible future property tax increase.

"Our revenues, we always base on what's been collected in previous years. Because of COVID, it all gets thrown into doubt." Doolittle said.