Metro Councilman Fleming introduces resolution to encourage economic investment
Thursday January 6, 2011
Louisville Metro Council
FOR IMMEDIATE RELEASE
MEDIA CONTACT: STEPHEN HAAG, JR.
574-1204 / 645-1752
Louisville, KY; Metro Councilman Ken Fleming (District 7) has filed a resolution requesting a change by the Kentucky General Assembly to allow for a uniform usage of net operating losses for those filing Louisville Metro’s Form OL-3.
The resolution, R-08-01-11, will be given its first reading during the Thursday, January 6, 2011 organizational meeting of the Metro Council. This resolution is expected to be sent to the Metro Council’s Budget Committee for review.
“The slow economy has hurt businesses, causing many business owners to shy away from investing in their companies. This resolution seeks to end the penalty for those who want to grow their business by changing the way the Louisville Metro Revenue Commission collects taxes. I am hopeful this resolution will bring uniformity to our local code and will signal that Louisville is open for business expansion.”
– Ken Fleming, District 7 Metro Council
“Many Louisville businesses have suffered losses. Giving them the opportunity to apply their losses to future gains allows them to retain cash for reinvestment in capital and hiring people. Helping business innovate and grow is essential and this approach is one step in the right direction.”
– Jonathan Blue, Chair and Managing Director for Blue Equity
The resolution requests the Commonwealth of Kentucky’s General Assembly to modify KRS 67.750 (Section 8) to allow businesses in consolidated governments the ability to deduct net operating loss. Losses are created not only when business income decreases due to a poor economy, but also can occur when a company makes a significant investment in its physical properties, equipment or expansion of services. Both Federal and State government allow these losses to offset profit in future years. This resolution was submitted by Councilman Fleming after months of research and after numerous meetings with local business leaders and job creators.
Ken Fleming (R) 7